Flush With Growth, Corona Owner Continues Growing Ad Spend
Posted in: Uncategorized
When it comes to marketing, Constellation Brands has one big advantage over its big brewer rivals: its brands, which include Corona and Modelo, continue to enjoy strong growth, meaning more money can be plowed back into advertising without denting the bottom line.
“We’ve been able to invest year-on-year more and more every single year because of our growth,” said Jim Sabia, chief marketing officer for the beer division at Constellation Brands. Without revealing specific figures, he estimated the marketer would continue its pace of increasing media spend by a double-digit percentage in 2017.
While the beer category has struggled to eke out even the smallest growth, Constellation continues to overperform. The company has projected that its beer business will achieve net sales growth of 16%-17% for the fiscal year that ended Feb. 28, according to its third quarter earnings report. Its biggest brand, Corona, grew sales-to-retailer volume by 5.4% in calendar year 2016, while Modelo Especial surged 18.4%, according to Constellation.
Post a Comment