Constellation Brands CEO Bill Newlands told CNBC Wednesday the company is committing big dollars to launch a line of Corona hard seltzers, an alcoholic beverage category that is a growing favorite among millennials.
The spirits company, whose portfolio includes Corona Extra, Modelo Especial and Svedka Vodka, plans on spending more than $40 million in marketing alone to release four seltzer flavors this spring.
“We're prepared to have one of the biggest introduction spends that we've ever had against a single brand, but recognize we're spending it against a franchise and that's Corona,” Newlands said in a “Mad Money” interview. “So we're quite confident that we will get a significant share of this business and we can't wait for March 1 to roll around.”
The comments came after Constellation released third-quarter results that trounced earnings and revenue estimates for the period ended November. The company also raised its full-year adjusted earnings forecast and investors awarded the stock a nearly 4% gain to $190.29 per share.
Constellation sought to improve its beer portfolio, its biggest moneymaker, with new releases like Modelo Chelada Limon y Sal and Corona Refresca. Beer sales expanded more than 8% to $1.31 billion in the quarter.