Constellation Brands year end Australian admired wine brands

Bright Constellation

The parts that make up the Constellation Brands (CB) company are shining brightly, according to the 2017 year-end results.

The 2017 Constellation Brands financial year runs from 1 March 2016 to 28 February 2017. Liquor wise, the company is split into three: beer, wine and spirits. For ease of reporting, CB puts spirits in with wine.

Constellation’s strongest beer brands are Mexican, and distributed throughout the US. President Trump’s rhetoric regarding higher tariffs and building walls hasn’t affected business yet.

Nor has it stopped the patriotic Americans’ thirst for imported beer. CB recorded a 17 per cent increase in its beer sales in the last quarter, including revenue from the Ballast Point Brewing & Spirits Company, which CB acquired for $1 billion in 2015.

Net sales for 2017 were US$7.33 billion ($9.76 billion).

Net profit was US$1.54 billion.

Beer sales were US$4.23 billion; volume 246.4 million cases (24-pack), up from 218 million cases.

Wine and spirits sales were US$3.1 billion; volume 69.2 million cases, up from 68.2 million cases.

Most admired 

UK-based Drinks International has released the results of The World’s Most Admired Wine Brands survey.

Australia does well, having seven (14 per cent) of the top 50:

  • 3rd Penfolds
  • 15th Yalumba
  • 25th Jacob’s Creek
  • 37th McGugian
  • 43rd Wolf Blass
  • 45th Yellow Tail
  • 49th Hardy’s 

Torres regained the No.1 position, having been dethroned last year by Penfolds, which slipped down to third this year.  Perhaps it’s our lack of marketing expertise, or the age of TKR staff, but we find it difficult to think of chateaux Margaux (9th), Petrus (14th), Haut-Brion (21st) d’Yquem (22nd), Latour (33rd), Cheval Blanc (35th) Lafite (40th) and Mouton Rothschild (41st) as “brands” in the same way as Penfolds or Yellow Tail.

The ranking criteria is interesting:

  • The wine should be of consistent or improving quality.
  • It should reflect its region or country of origin.
  • It should respond to the needs and tastes of its target audience.
  • It should be well marketed and packaged.
  • It should have strong appeal to a wide demographic.

The top 10 are:

  1. Torres
  2. Concha y Toro
  3. Penfolds
  4. Villa Maria
  5. Vina Errazuriz
  6. Guigal
  7. Ridge
  8. Michel Chapoutier
  9. Chateau Margaux
  10. Graham’s port

From the daily wine news: “Winemaker Villa Maria has been rated the world’s fourth most respected wine brand, alongside the likes of Torres, Penfolds and Chateau Margaux.” 

It’s three behind Torres, one behind Penfolds and five in front of Chateau Margaux. How is that alongside?  


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