Constellation Brands CEO Bill Newlands told CNBC’s Jim Cramer on Thursday how the company plans to improve its wine and spirits division, which saw its net sales decline during the most recent quarter.
“We’re going to put a lot more focus on the critical brands, brands like the Prisoner and Meiomi and High West and Mi Campo, as examples. We’re also going to make sure that we focus our attention on execution,” Newlands said. “I think we spread ourselves a little too thin in the past year.”
Constellation Brands is primarily known for its popular beer offerings, including Modelo, Corona and Pacifico. Despite shortcomings with its wine and spirits business, the company’s quarterly earnings report did show strength in its beer sales. Management also indicated that much of its success over the past fiscal year is due to that segment.
Newlands also expressed confidence in Sam Glaetzer, the new leader of Constellation Brands’ wine and spirits segment. He said Glaetzer has “over 30 years in the business,” and said the company is looking forward to what he brings to the table.
Constellation Brands is seeing success and growth in its Pacifico Brand, Newlands added. He noted that Pacifico is very popular in California, but it’s also starting to grow on the East Coast, including the “beach markets” in Florida and New Jersey.
“It’s very developed on the West Coast, but it’s also really starting to express itself around the country,” he said. “We’re very excited about the long-term potential for Pacifico.”
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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Constellation Brands.
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