Sin Stocks That Sizzle: Constellation (STZ)
It appears that the $5 billion acquisition of Grupo Modelo’s U.S. beer business by Constellation Brands (STZ) is paying off in dividends.
Constellation Brands, which markets wine, beer and spirits, saw third-quarter fiscal net sales skyrocketed 88% to $1.4 billion, and operating income rose 129% to $364 million.
The company’s draft beer business grew by 30% year-over-year, with Modelo Especial up by 18% and Corona Extra up 6%. It wasn’t just beer sales that gained steam; Constellation’s wine sales also rose considerably. Total sales for Constellation are expected to increase another 7% in 2014.
Written by Karen Riccio