US – Constellation Brands, Inc., a leading American beverage alcohol company, has announced the exit of Robert Hanson as the company’s Executive Vice President and President of Wine and Spirits division.
Robert Hanson, who has been pivotal in transforming the division since 2019, will step down from his role at the end of Constellation’s fiscal year on February 29, 2024.
The company’s President and CEO, Bill Newlands, will temporarily assume leadership responsibilities for the Wine & Spirits Division until a successor is appointed, fostering a smooth transition.
Under Hanson’s guidance, the Wine & Spirits business underwent a strategic transition, focusing on a higher-end portfolio aligned with consumer trends and expanding into global, omni-channel distribution. This transition included robust international and direct-to-consumer sales channels.
Hanson, acknowledging the successful transformation, stated, “With the strategic, operational, and capability transformation of the company’s Wine & Spirits business in place, this is the right time for me to transition leadership and to step down from my role with the company and pursue my future career goals. I look forward to the continued success of the team in the years ahead.”
Third quarter report
The announcement comes after the Corona Extra producer reported its fiscal third-quarter results, ending on November 30, 2023.
The company posted a net income of US$509 million, a 9% annual increase, on net sales of US$2.47 billion, up 1% from the previous year.
Despite overall positive results, the Wine & Spirits Division faced challenges, with quarterly shipments experiencing a 10.3% decline over the 12 months, excluding brands no longer in the portfolio.
Modelo Especial maintained its status as the top-selling beer in the U.S. market, solidifying Constellation’s position. However, the wine and spirits division reported mixed results, with notable growth in depletion for fine-wine brand, The Prisoner, and a significant 80% annual increase in quarterly depletions for Mi Campo tequila.
The company expects the fiscal year to conclude with wine and spirits net sales down 7%-9%, with operating income down 6%-8%, attributing the decline to broader marketplace deceleration and U.S. wholesale underperformance.
In contrast, the beer division anticipates a positive outlook, with net sales expected to rise 8%-9% for the fiscal year.
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