Constellation Brands CEO explains sales weakness in wine and spirits

Constellations Brands CEO Bill Newlands told CNBC’s Jim Cramer on Thursday how the company plans to improve its wine and spirits division, which saw net sales decline in the most recent quarter.

“We’re going to put a lot more emphasis on critical brands, for example brands like Prisoner and Meiomi and High West and Mi Campo. We’re also going to make sure we focus our attention on execution,” Newlands said. said. “I think we spread ourselves a little too thin over the last year.”

Constellation Brands is primarily known for its popular beer offerings, including Modelo, Corona, and Pacifico. Despite the shortcomings in its wine and spirits business, the company’s quarterly earnings report noted the strength of its beer sales. Management also indicated that much of its success in the last fiscal year was due to this segment.

Newlands also expressed confidence in Sam Glaetzer, the new leader of Constellation Brands’ wine and spirits segment. He said Glaetzer had “over 30 years of experience in the industry” and the company was looking forward to what he would bring.

Constellation Brands is seeing success and growth from its Pacifico brand, Newlands added. He noted that Pacifico is very popular in California, but is also starting to expand on the East Coast, including the “beach markets” of Florida and New Jersey.

“It’s very developed on the West Coast, but it’s also really starting to come across across the country,” he said. “We are very excited about the long-term potential of Pacifico.”

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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Constellation Brands.