Constellation Brands tops estimates and buys SpikedAde for $75 million

Constellation Brands, the US seller of Modelo Especial, Corona and Pacifico, posted fiscal second-quarter results on October 6 that came in above Wall Street forecasts, with adjusted profit of $3.74 a share and sales of $2.63 billion, against analyst projections of $3.56 and $2.54 billion, CNBC reported.

Beer sales rose 5% to roughly $2.47 billion and shipments grew 5.5%, though depletions, which track distributor sales to retailers, edged lower, a sign that underlying demand lagged shipments. Chief executive Nicholas Fink told analysts on an October 7 call that the first half went largely toward restocking distributor inventories and that September depletion trends had improved.

US beer sales fell 1.8% from a year earlier in the two weeks through September 19, according to Nielsen data cited by CNBC. Chief financial officer Garth Hankinson said price increases were held toward the low end of the company's usual range because of pressure on consumers. About 40% of spending on Constellation's beer comes from Hispanic shoppers, versus roughly 15% for the category.

The company also said on October 6 it would buy SpikedAde, a spirits-based ready-to-drink brand, for $75 million at closing plus as much as $278 million tied to performance. Shares traded near $116 on October 7.

This story was first reported by CNBC.