Constellation Brands reports third-quarter profit gain but drop in wine, spirits sales

Constellation Brands Inc. reported Wednesday net income of a little more than $360 million for the third quarter, a 19% increase over the same period in 2018 though its wine and spirits division experienced a sales drop.

The Victor, New York, alcohol beverage company generated the profit gains from its beer sales, which were up 8% for the three-month period. Meanwhile, its wine and spirits division had a 9.7% decrease in net sales in the third quarter. The quarterly division net sales were $688.8 million, down from $762.8 million during the same quarter in 2018.

Constellation owns local wine brands such as Simi Winery in Healdsburg and Robert Mondavi in Napa Valley.

The company is finalizing a sale of its low-price wines to E. & J. Gallo Winery of Modesto in a $1.1 billion deal that will include the Clos du Bois winery in Geyserville and the Ravenswood and Mark West brands. Constellation expects its net sales for the wine division to decline 8% to 10% for fiscal 2020 as a result of the pending sale.