Constellation Brands To Continue Reducing Debt Ratio

Constellation Brands Inc. (STZ) plans to continue to pay down debt and said its premium wine business continues to perform well despite the weaker economy.

Speaking at a Morgan Stanley consumer conference, Chief Executive Rob Sands said the overall wine industry in the U.S. is growing in the mid-single digit percentage range. Sands said the company is seeing a pick-up in growth in cheaper wines priced below $5 and some slowdown in the more premium ones priced above $5.

"People are not experimenting as much as in the past," Sands said, adding that the company is benefiting as consumers stick to its well known brands.

Sands said the company will continue to reduce its ratio for debt to Ebitda, or earnings before interest taxes depreciation and amortization.

Sands said there won't be an impact to the company's Crown Imports beer joint venture with Grupo Modelo (GPMCY) from InBev's (INB.BT) acquisition of Anheuser- Busch Cos. Inc. (BUD).

-By Anjali Cordeiro, Dow Jones Newswires; 201-938-2408; anjali.cordeiro@ dowjones.com