New York, November 17, 2008 - Alcoholic drinks company Constellation Brands Inc expects sales to remain steady this holiday season, even as a global financial crisis forces U.S. businesses to scale back holiday parties and people stay closer to home to save money, a senior executive said on Monday.
"If people are out less at parties, if they're out at restaurants, bars, clubs, and hotels to a less degree than they have been, it doesn't mean they're necessarily drinking less. It means they're drinking more at home as opposed to being out at parties," Chief Executive Robert Sands told Reuters in an interview.
Constellation also said it will not rule out buying other brands, but it will concentrate on managing its current selection of wine, beer and spirits, Sands said.
"We actually look at all acquisitions. But having made numerous acquisitions in the last year, I would say that it's certainly not our focus at the current time," Sands said.
Constellation is also "unaffected by the credit crunch," with positive liquidity and no current maturities coming due, Sands said.
Sands became CEO in July 2007, succeeding his older brother, Richard Sands, at the top job. Richard Sands is chairman of the board.
Constellation Brands is the world's largest wine producer with brands including Robert Mondavi and Ravenswood. Earlier this year it agreed to sell several lower-end brands, including as Almaden and Inglenook, to focus on higher-end names like Clos du Bois, which it acquired from Fortune Brands Inc.
Constellation also owns spirits including Svedka Vodka, 99 Schnapps and Black Velvet Reserve Canadian Whisky.
The company, based in Fairport, New York, also imports and distributes Grupo Modelo beers like Corona and Pacifico through Crown Imports, a joint venture with the Mexican brewer.