Mondavi's Sales Fall

An old adage claims that when times are good people drink. When times are bad people drink. That may be the case, but when times are bad people get more selective about what they drink:

Constellation, the world's largest winemaker by revenue, said net income fell to $83.5 million, or 38 cents a share, in its fiscal third quarter ended Nov. 30, from $119.6 million, or 55 cents a share, a year earlier. Sales slipped 6% to $1.03 billion, hurt by the U.S. dollar's strengthening against other currencies.

Constellation shares fell 8% in Wednesday trading.

Constellation is among several major alcohol producers to report slowing sales growth because of the economic downturn, but the industry is holding up better than most others, which is typical in recessions.

I don't think we have to worry about liquor companies going to Congress for bailouts anytime soon, but seeing how various companies weather the economic downturn will be an interesting story to follow.

Robert Mondavi pass away yesterday. It is impossible to tell the story of modern American wine without mentioning him and his influence. Many of today's great winemakers in California were influenced by him. My condolences to his family.