Constellation Brands CEO Says Company Can Make $1B in Revenue This Year

On CNBC this week, Corona beer owner Constellation Brands’ CEO Bill Newlands said that his company can generate $1 billion in revenue in 2019.

“If you look at Canada alone, Canada is on a run rate of $5 [billion] to $6 billion in sales, and Canopy is the leading player in that market,” Newlands said to Jim Cramer, the host of “Mad Money.”

“Then you add in new form factors later this year in things like beverage and other edibles, we think the sky’s the limit. This is going to be a big business, and Canopy is going to be the leader.”

Constellation has a 38% stake in Canopy Growth Corp.

He proclaimed, “This is going to be a big business, and Canopy is going to be the leader.”

He also said, “We’ve got a very strong team in beer and we got a very strong team in wine. We think we’re
pretty good position to win on all three of those fronts.”

Constellation, which makes Corona and Modelo beers, has a 38% stake in the cannabis company, which is the largest medical marijuana producer in Canada.

“Canopy is focused on what they’re going to do to build the right form factors and the right markets to win across the globe as necessary and as [marijuana] becomes legal,” said the CEO. “We’ve got a very strong team in beer and we got a very strong team in wine. We think we’re pretty good position to win on all three of those fronts.”

Constellation will be divesting 30 of its brands, mostly wines that cost under $11 a bottle, to E. & J. Gallo for $1.7 billion.

Newlands said the move is to “better align portfolio with consumer premiumization trends.”

“This move will help us drive focus on a smaller set of premium, high-growth brands that have gained significant momentum in the marketplace. These brands more closely align with consumer premiumization trends, as they continue to shift to higher-end, higher-quality products like the Prisoner, Kim Crawford, Meiomi, Schrader, High West Whiskey, Casa Noble and SVEDKA Vodka [to name a few],” said Michael McGrew, senior vice president of corporate communications in Constellation Brands’ Chicago office.

Disclaimer: We have no position Constellation Brands, Inc. (NYSE: STZ) have not been compensated for this article.