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Next company is seeing the fruits of its labor big time as it pertains to things like beer sales and -- Delivering up 52%.
Rise in fiscal first quarter profits Constellation Brands ticker symbol S -- Ditching its debt cutting costs shares are up to reflect -- 27%.
Over the past year.
How would continue to offset what some have seen in the past as a decline in wine and spirits sales or perhaps a more discerning customer.
Because everybody's worried about how much they spend on everything right now -- joining us now from Rochester New York.
In a Fox Business exclusive is -- rock -- he is CEO and president of Constellation Brands.
And the son of the founder of this company good to have you mr.
cents thank you for joining us -- -- -- -- I've looked at these numbers and outlook cutting costs getting rid of the debt this is exactly what we like to see CEO's doing and -- a 52% jump in Q1 profits here every year.
But but looking at at where the real sales are hitting what are people buying right now -- in what is still a tough economic climate.
Yeah well you know a lot of our really -- brands are doing well in this climate brands like Robert Mondavi wines.
Which are -- great product in very high quality four -- The value.
It's it's another brand that really represents a great value to the consumer.
Mark Kim Crawford wines from New Zealand there are also products that have really just taken off and are doing extremely well.
Connected to that's that the Bok Maggie you get something likely close to four million cases compared to when you first -- -- about one point one million cases in 2007.
Forgive me I'm not a big drinker but who what would -- celebrity attached to this thing why is it's so hot right now -- so many competitors -- vodka.
You know it's really a product it's captured the imagination of the consumer.
-- -- at a great price point.
It's it's sort of in the middle its premium but it's not the it's not the most expensive product but.
We've got to really agree to advertising campaign that that resonates.
With our consumers.
Bomb and they recognize that it's a tremendous value and and agreed products so you know we always say can never fully consumers so.
In this case the consumers rate on -- the product.
Well I know you saw the New York Times article about how everybody's cutting back on on their.
Discretionary purchases they're not buying that expensive cup of coffee there they're being more discerning at this point looking at at that trend.
What is the trend with the consumer that you see because some people are saying look when things get better they will.
Move up they will move up in the higher quality brands are you seeing any of that right now.
Yeah we've seen the beverage alcohol business really rebound from the recession not during the recession it did continue to grow but the growth slowed down a bit.
-- it's back to pre recessionary levels.
Wine is one of the fast is growing.
Or top ten category.
And in grocery and in the fastest growing in grocery at the current time.
We see a lot of trading up going on in line so we see dollar sales growing faster than.
Then volume sales spirits were seeing trading up as well.
And and -- we've got the number one imported beer portfolio in the country led by krona -- -- and I can.
Because there's -- -- share question I wanna ask.
With some of your Branson -- -- such as that cut and we've seen you guys in the past shed certain brands would you cash out here -- cash and I guess you could call it.
And sell some of the better performing brands.
Now that's that's we really would have no intention of doing that you know obviously this is our business it's the it's the mainstream.
Of our business so when we do have something that performs well you know selling it would be.
Contrary to our strategy.
It's really the opposite which is we're we're gonna nurture it and continue to build the brand.
I'm hearing and -- they're OK rob before we go I was I was looking into the history the company your dad -- founded it 1945.
The nation arguably was.
On shaky footing a little bit coming out of a war.
-- and tough economic times almost the same as what we've come out here I know you've probably heard the president saying that this so called bipartisan gang of six.
May very well have an opportunity to figure out a way to raise the debt ceiling from a business person standpoint how important is that.
Well I think that you know we have to do something to solve that problem I mean we.
As a country we have to.
Maintain the credibility.
Of the United States and you know we certainly don't want to see.
Any kind of a downgrade so it's something that congress and the president and needless to say have to deal with -- have to solve in in the very near future before it does turn into a problem.
-- around black velvet Canadian arbor mist Bobby Mondavi of what -- constellation thank you rob it's good to see you.
Thanks a lot Rob Sands is the CEO and president of Constellation Brands stock is up 27%.
Year for -- the closing bell.
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