When asked about the decision, Newlands pointed to Corona’s brand equity among consumers. Launching the new seltzer under the Corona umbrella makes the new product an anomaly in the space, as category leaders White Claw Hard Seltzer and Truly Hard Seltzer were introduced as new brands by their parent companies, Mark Anthony Brands and the Boston Beer Company, respectively. “We expect to gain a significant amount of share in the high end, as we have with anything else that we introduce amongst our franchises,” he said.

On seltzer, Newlands expressed confidence in Corona Hard Seltzer’s ability to gain territory in an increasingly crowded market. Constellation’s craft offerings were not discussed. “Interestingly, Corona Refresca has higher velocity trends than one of its key competitors in the space, the Mike’s brand family,” he added, referring to Mike’s Hard Lemonade and White Claw maker Mark Anthony Brands.Įlsewhere in the portfolio, Pacifico posted double-digit depletion growth, supported by national advertising and retail promotions, Newlands said. 3 selling new item for the quarter, according to market research IRI, Newlands said. Other highlights in the portfolio included Corona Refresca, the company’s tropical flavored FMB line that rolled out in May, and low-carb offering Corona Premier. beer market,” Newlands said, adding that the brand achieved double-digit depletions growth in 44 states. “Modelo Especial continues to be en fuego and reached a significant new milestone becoming the No. beer business as a whole with a 15% increase in depletions in the quarter. Modelo Especial drove much of the growth both for Constellation and the U.S. Constellation gained market share over every summer holiday, Newlands added. Shipments (sales-to-wholesalers) increased 5.3%, while depletions (sales-to-retailers) grew 6.2% during the quarter. Net sales of Constellation Brands’ beer offerings in Q2 increased 7.4%, to more than $1.6 billion.

Newlands also expressed confidence in Canopy Growth, the Canadian cannabis company that Constellation has invested $4 billion in but has led the company to record hundreds of millions of dollars in losses. He noted that this quarter marked the 38th consecutive quarter of growth for the company’s beer brands, which include Mexican import brands Corona, Modelo and Pacifico and craft offerings from Ballast Point, Funky Buddha and Four Corners. During a call with investors and analysts today, Newlands pointed to the multifaceted alcohol company’s beer brands driving its success in the second quarter of the 2020 fiscal year.

Corona seltzer beer