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Constellation Brands CEO Robert Sands on the company’s fourth-quarter results, the company’s new brands and outlook for growth, particularly in No...
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-- Constellation Brands this is the spirit and wine distributor biggest in the United States the fourth quarter earnings.
On both the top -- bottom lines but the market is not liking the report Robert Sands is the CEO and president of Constellation Brands.
Joining us from Rochester good to see you Robert and and -- let's let's get to the numbers here.
You -- big -- 69 cents vs 39 cents which was the estimate.
That of course also beating in the revenue number two days ago you hit a nearly five and a half year high.
What happened today what is in this report from where use it that people just don't -- Well yeah we did beat the we did beat the street in the fourth quarter.
It was primarily due to lower than expected tax rate but the numbers were good and we had great growth in the fourth quarter.
What the street didn't like is this -- didn't like our guidance for.
This current year that we're in it was a bit below what was expected.
And that was really -- to the fact that we've made the decision to invest more.
Behind.
For the future so.
That has I'll say moderated.
Our growth in ebitda in the in this current year although we do have -- -- growth and we do have good top line growth plan.
Well let me also ask you about the Australians who -- the Australians didn't drink hasn't -- this past quarter.
Part of that was some weakness that showed in that region what's going on with Australian drinkers.
Well Tom you know I am not sure your wherever we sold.
You know the majority of our Australian and our UK business -- mom and what we basically said is that that's what accounted for our lower sales is the disposition or the sale of of that.
That business Australians are continuing to drink I'm sure -- well -- Especially after rugby games I think I'm not I I understand that by no I don't well about having jettisoned what are two of the businesses but.
Looking at where you need to see more strength -- what point on the globe would you like to start to see coming back.
Well our primary our business is primarily now focused in North America Canada and the United States.
Those are very healthy markets.
For the wine and spirits business and are imported beer business.
And well we're all about right now is driving growth and calm in in those markets.
So I'd have to say that it's North America is the place where we want to see the best result.
Okay you are going to launch some fifteen new ones this year -- what you did last year which was around 25.
But tell me about what are your favorites or maybe one of the most obscure ones that people should be looking out for.
While you know we are gonna launch a lot of new products in the instinct thing about the wine businesses -- is being driven by innovation and and new product development right now.
One of my favorites -- -- -- a new brand that we're going to introduce shortly called thorny heroes which is.
Really geared towards on the land deals those.
People that are from legal.
Drinking age to about 34 years Arnold and this is a this is a group that's really embraced -- like -- young people have embraced it in the past so.
Of got a new brand as we said thorny roses really directed towards the -- ideals and I think it's gonna be really success.
All right we know that you guys also have Robert -- -- -- what is the best boxed wine you feel you guys sell.
Although we make.
The most premium box -- it's called black box.
It's a three liter bag in the box sells for twenty dollars that's about the equivalent of five dollars a bottle but what you're getting is.
Things like Marlboro -- you know blind -- High quality cabernet seven you know from the north coast and so it's it's a tremendous value in fact we're gonna be.
Starting a national TV campaign for.
Glad you asked about that.
Ally asked because we know what we're watching this and it could be a real growth area for you and again we'd love to see you next on something tells me -- might surprise.
Some of the people who think that you won't do as well as you might thank you rob thank you for being here.
Hey thanks for having in this Constellation Brands CEO and president of.
