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Constellation Brands CFO: ‘We will not starve our brands of marketing’
Constellation Brands, which owns the Corona beer brand in the US, will invest more money in marketing than ever before, says its CFO.
The CEO and finance boss of drinks giant Constellation Brands has highlighted the importance of marketing in driving growth for the business, describing it as “critically important”.
“We will not starve our brands [of] marketing in order to hit margin profile,” said Garth Hankinson, Constellation Brands’ CFO said on an investor call yesterday (3 July) as the business reported its Q1 financial results. “Instead, we will continue to invest for growth.”
The business, which owns Corona and Modelo in the US, as well as a slew of wine and spirit brands, will spend more on marketing this year than ever before, its CEO Bill Newlands confirmed. For the three months to 31 May, the business’s marketing expenses as a percentage of net sales was 10.5% – an elevated figure, said Hankinson, because of investment in its largest brands “through tactical initiatives”.