Wine company Constellation Brands reports loss

    THE world's biggest wine company, Constellation Brands, reported a $US406.8 million loss in its fourth quarter, as sales fell in             Australasia and the UK.

    The loss was mostly attributed to acquisition-related costs and other one-off items as well as tough conditions.

    ``Turbulent global trading conditions negatively impacted our sales mix in the fourth quarter, which in turn affected our gross profit margins,'' chief executive Robert Sands said.

    ``However, we have been able to partially offset these challenges through cost reductions.'' The group includes Constellation Wines Australia whose brands include Hardys, Banrock Station, Tintara, Berri Estates and Yarra Burn.

    In the three months to the end of February, sales of Australian and New Zealand produced wine fell from $US99.6 million to $US70.1 million compared to the equivalent period in the previous year.

    While this was a 30 per cent decline, the fall was mostly attributed to the currency exchange impact without which there was only a five per cent fall.

    Sales of branded wine within Australia and New Zealand fell three per cent.

    The company has shifted its focus in recent years to the faster-growing and more lucrative premium end of the wine and spirits markets - a trend Mr Sands said would continue.