Constellation Brands increased revenue during the crisis
Despite Covid Shutdown, the company was able to increase revenues by over 20%.
Alcohol company Constellation Brands was able to offset the lost sales in bars and restaurants amid the pandemic by targeting consumers at home with "brands that people trust," CEO Bill Newlands said on CNBC's Mad Money on Thursday. Constellation, the parent company of Corona, Modelo Especial and Svedka Vodka, along with many other alcohol brands, reported a 22% increase in third-quarter sales to $ 2.44 billion year over year on Thursday. The surge in profits comes at a time when the company is still largely unable to generate revenue from restaurants, bars, and other out-of-home channels. Out-of-home sales declined 35% for the quarter, but earnings per share still rose 44% year over year. The company is benefiting from a trend in which consumers "stick to things they know," said the CEO.