Constellation Brands is having trouble sourcing the brown beer bottles it needs, company executives said during a recent earnings call.
Packaging has been a big concern for food & beverage processors in general, and brown glass bottles are among the hardest kinds to find. Constellation needs them for its Pacifico and other beer brands.
“We are making progress on brown glass,” CEO William Newlands told an investor conference. “I think it remains to be seen when we will be back to full competition and obviously it had some bearing on our ability to deliver in the quarter. As we said, brown glass has been a drag against otherwise outstanding results.” He expects that the situation will straighten out in the coming fiscal year.
Sales for the quarter ending Nov. 30 were $2.5 billion, a decrease of 4.8% from the same quarter last year. Net income was $470.8 million, a drop of 63%. However, CFO Garth Hankinson said during the investor call that he expects Constellation’s earnings per share to range from $10.50 to $10.65, up from previous guidance of $10.15 to $10.45, thanks to strong growth in its beer business.