What's Causing The Rally In Constellation Brands? CEO Answers

Shares of spirit maker Constellation Brands, Inc.

have had a spectacular rally in the last 3 months, up by over 26 percent. Rob Sands, Constellation Brands CEO, was on CNBC Thursday to talk about what's causing this rally and share his views on powdered alcohol and competition in premium liquor space. Categories, Growth And Margin "We are in just fantastic categories. Imported beer is very strong specially our Mexican portfolio…Corona, Modelo Especial is now the second largest import brand in the United States and growing high double digits. We got a fast growing wine business with brands like Robert Mondavi and Black Box and dreaming tree. So, great categories and a lot of growth and great margins in our business." Powdered Alcohol Snda was asked what he thinks about powdered alcohol. He replied, "Yeah, we have of course looked into it, but we seriously doubt that it's going to become a mainstream or material part of the business. So, I would say we are not very interested in it at the moment." Consumers Realizing More Money Doesn't Guarantee Better Taste On the high competition in the premium liquor market, especially vodka, Sands said, "Our brands happens to be Svedka, it is a premium product, but we will call it a mid-premium product and it's now the third-largest Vodka brand overall in the United States and the second largest import largely because it is a great value Swedish vodka for the money and I think consumers are realizing…and therefore they are buying brands like Svedka instead of more expensive brands.