Constellation's Europe and Australia sales drop 12%

Published: 07 January, 2011

Constellation's recently-offloaded Australian and European wine business saw sales decline 12% in the third quarter of last year.

Constellation's recently-offloaded Australian and European wine business saw sales decline 12% in the third quarter of last year.

This compares with a 1% increase in North American wine sales, while spirits sales have lifted by 8%, led by a 34% gain for the group's Swedish Svedka vodka.

Constellation owns Hardy's, Banrock Station and Robert Mondavi brands, among others.

At the end of December 2010 the group signed an agreement to sell its Australian and UK wine business to CHAMP Private Equity of Sydney, Australia in a deal worth around AUS$290 million. The deal is expected to complete by the end of this month.

"We've accomplished a great deal this year including the recently announced sale of our Australian and UK business. This is the right move for the company and positions us to better achieve the goals associated with our profitable organic growth strategy," said Rob Sands, chief executive officer.

"Our third quarter results demonstrate that our strategy is working. We are experiencing continued momentum from our US distributor transition with positive depletion trends recorded during the quarter and we continue to reap the benefits from our diligent focus on free cash flow," he added.

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