Constellation Moves To Profit; Looks To Holidays

EMILY FREDRIX

MILWAUKEE (AP) — Wine and spirits maker Constellation Brands Inc. said Thursday no matter how consumers limit alcohol purchases this holiday season, it hopes its new distribution system will help squeeze out more profits, continuing the trends of its second quarter.

The world's largest wine maker by volume said Thursday it moved to a profit in the quarter because of lower restructuring costs and the absence of last year's impairment charge, beating analyst estimates.

Shares rose 66 cents, or 4.4 percent, to $15.81 in afternoon trading Thursday.

CEO Robert Sands praised the company's consolidation of its distribution network, which started Sept. 1. He told analysts on a call the move should bode well for the holidays, the largest season for wine sales.

The Victor, N.Y.-based company has been trying to tighten its business as it deals with consumers shying away from buying alcohol in restaurants and bars and trading down to less-expensive brands at home.

Constellation recently announced deals for exclusive distributor rights, which helps drive profits by having distributor teams focused solely on the company's products, especially marketing its more expensive — and profitable — brands.