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Constellation Brands CEO Rob Sands on the state of the economy and the company’s expansion.
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One of the most perfect things is the world.
There's an ice cold Corona beer with a lime wedge and -- hot speech writer please give me thumbs up on that when an apparently I'm not alone in thinking that.
For the past three months the stock for corona is maker Constellation Brands has been on -- fair.
US beer shipments are also on the rise and my next guest is banking on at all.
Constellation Brands topped estimates for second quarter earnings.
Shares hit an all time high today joining us now.
Is Constellation Brands CEO Rob Sands rob congratulations by the way you guys pop open a corona and and a good day like today.
Polish airline -- It's it's it's a terrific what.
Why since July because you look at the stock and it was kind of flat lining during the early part of history spring and early parts -- -- in July -- to begin to take off.
Yeah well we.
Operator beer business through 50% on joint venture called crown.
And we announced back then that we were purchasing the other 50%.
Of that joint venture and it's a really good.
Transaction for constellation and then.
Puts -- in a really good position relative to where we are in the beverage alcohol business so.
Having sole rights to corona is just a huge flaws but what about why you're you're surrounded by -- where you are right now.
And it's a very difficult market is -- not to get into -- competed.
But it's different -- market to get into but where the largest premium wine company in the world.
We decorate brands probably the best brand portfolio of any wine company with brands like Robert Mondavi and -- Ravens word -- -- up in Canada just to name a few.
So word and have very very strong position -- very strong brands Som.
And we also have pretty strong spirits business with.
Led by speck of vodka which is the third largest market brand in the United States how closely do you monitor -- currencies because say as as they as the US dollar begins to increase in value might urge you -- some of them the foreign net exporters of winds and stuff do you do you follow currencies very closely.
You know we follow currencies but.
Actually a a stronger.
Dollar and a weaker Euro helps -- a lot because we own companies.
In Europe like -- now.
And we export those products to the United States -- A -- a week -- strong dollar is actually to our benefit but.
As a general proposition we're not we're not that currency exposed to so currencies not a big factor in our earnings these days what do you think about the economy in general.
You know the economy it's it's a slow recovery.
We've actually seen that help us in certain areas like the on premise which is gone from being substantially down.
To being opt for the first time.
So the slow recovery is has helped our business but in generally our businesses not terribly cyclical.
And you know therefore -- the economy does not tend to have a big impact on us one way or the other what are your plans for expansion -- Beer had been falling for a couple of years had -- not before took off again.
-- -- -- business is -- not actually growing but now it's growing at a at a bigger clip than it has in the past so.
We're right now got a lot on our player relative to expansion we recently in the last several months just -- brand called -- mark west.
Which is the number one pinot noir brand in the United States and not very hot brand very -- category.
And we had to get this deal closed to acquire the other 50% of crown.
By the way you were right now or in Rochester New York my uncle actually used to make -- of his own -- in Naples not far from Rochester.
-- when Kodak has sort of began its slump Rochester -- to go down to are you guys helping to bring Rochester back up as a community.
By you know -- is actually probably the economically the strongest city and upstate New York we have a lot of high tech up here fuel cell optics.
In actuality employment in Rochester over the last ten years has actually increased in some of those areas including.
The world's largest premium wine company of help to offset some of the decline.
In the traditional companies here like a Kodak so -- doing pretty well that's good to hear Rob Sands Constellation Brands congratulations.
And thanks for coming come -- -- -- is again soon.
We -- thanks for -- appreciate it.
