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#For this year.
Yes, I think that, you know, we will continue to see two things, okay.
Increased marketing and the concentration of that marketing against a smaller subset of brands.
You know, as I mentioned, we have initiated TV marketing at fairly significant rates against Black Box, Woodbridge by <UNK>ert Mondavi, for example.
And with the way that we can measure very directly now through household-type surveys and pantry studies, the impact of our advertising, we believe quite strongly that some of these campaigns, in particular the Black Box and the Mondavi Woodbridge that we have previously tested, is actually not only good for longer-term brand building, but we think that it pays back in the short run with the incremental increase in purchases and consumption that we've seen in the test markets where we've run these ads.
So we are expanding that, and I think that what you're seeing basically is our depletion growth, which was, you know, in the 3.5% range, which is an acceleration, is indicative that what we're doing is working.
And then also from a depletion point of view, which is a little hard to see through our financial results, which are shipment based, we're seeing a pretty significant increase in mix as well against the business.
So pretty much I'd say that what we're doing here is working pretty well.
In fact, I think very well.
So we're pretty optimistic about the wine and spirits business for the remainder of the year.
Hey, <UNK>.
Yes, so, you know, May was tough for some of our competitors.
It was not particularly tough for ourselves.
We saw a slight deacceleration, but it was probably a result of there being one less selling day in the month, which has about, you know, a 1/20 or a 5% anticipated impact.
June, very strong.
IRI dollars for our beer business in the four-week period ending 6/21 up 14% for Constellation's beer business in dollars.
So we see no negative impact or unusual occurrence relative to May on our business.
But as I said, yes, some of our competitors have found that period to be difficult.
And regionally, the answer continues to be no as well.
There's nothing going on regionally for us in terms of a shift of geographic mix or we're not seeing an acceleration in some parts of the country and a slowdown in others.
Everything is pretty much steady as it goes, so nothing ---+ nothing for us, hence we increased our guidance now for the year to the 10% sales growth range on the beer business because, as I said in my ---+ in the answer to some of the earlier questions, it's just evident to us that our previous guidance is ---+ was understated relative to current and expected trends for the remainder of the year.
Yes, so just kind of to look at quarter-over-quarter and I'll focus on Corona because, remember, Modelo Especial is a big can brand, right, but the new launch is really focused on Corona Extra.
And for Corona Extra, say, first quarter last year, about 3% of our ---+ of our depletions were in cans, and this year it was about 5%.
You know, we clearly believe that we'll continue to see the can momentum build.
And we also know, however, that we won't end up with a can mix like the domestic players, but we think we can, you know, someday line up maybe more in line with some of the ---+ some of the other import players in terms of their can mix.
We think the cannibalization rate is fairly low.
Actually, probably below everybody's expectation.
So, you know, I don't think we can really know what the cannibalization rate is, by the way, right, because you'd have to say, well, okay, glass would have grown at X percent but for the cans.
We can't answer that question necessarily.
So we think the cans are representing ---+ let's put it this way ---+ primarily incremental business.
So probably at this, like, 3% to 5% that we're talking about right now, cans are being used on occasions where glass could not heretofore have been used and therefore we think pretty low cannibalization and pretty much incremental growth.
Yes, maybe.
I would say yes.
I would say we did see little bit of impact of weather towards the end of May, but everything just kind of bounced right back in June.
So it's kind of hard to say whether there was really any impact from that.
Probably, as I said, the sell day impact was the greatest impact that we had in May, even though, you know, the weather had to have had some kind of effect on a temporary basis on the sales, but we don't ---+ we don't think that it was anything material.
And it certainly hasn't driven any trend change into the extent that, you know, I don't know, in Texas people couldn't get out and buy a beer, you know, they restocked.
Shortly thereafter.
I think that one deal a year is an overstatement.
Let's see, since I've been CEO for the last eight years, I think we've done three deals of that nature.
<UNK> West, Casa Noble, and now Meiomi.
Our strategy hasn't changed.
No, we don't ---+ I don't think that there's, you know, any more significant deal flow.
I wouldn't ---+ I wouldn't suggest anything different will occur from a number or timing perspective.
You know, we keep our eye open for these kind of things.
They come around every once in a while.
They're very advantageous, if it's the right thing at the right time.
You know, we try to stay away from some of the, I'm going to say trendier stuff, that has a tendency to kind of go up and down.
You take Meiomi, you take <UNK> West, these were classic brands in a category, in this case pinot noir, which is not trendy, but fast growing and will continue, we believe, to be a fast growing varietal as people continue to discover pinot noir.
And we think taste preferences are, on a long-term basis, changing towards pinot noir.
So <UNK> West covers sort of the $10 to $12 pinot noir range, and Meiomi covers sort of the $20-plus pinot noir range, so that puts us in a really strong position in one of the fastest growing and most stable segments of wine, which is the pinot noir varietal in particular.
So, no, no change in sort of the frequency or ---+ of those kind of deals.
Yes, I think, as you know, our tax rates, our ETR on a given quarter is really driven by the geography of the earnings and our resolution of, you know, our various tax issues.
So I would say that, you know, for us, we're the confident in the 30.5% rate and, you know, we don't really have a view on the quarters where the delta will land.
Okay.
Well, thank you, everyone, for joining our call today.
We've covered a lot of ground, but before we go I want to reiterate how pleased we are with the excellent performance of our business this quarter.
Now the team plans to continue to capitalize on the tremendous momentum we have underway in the beer business to drive growth and enhance financial performance.
From a wine and spirits perspective, we are gaining traction, and we are on track to achieve our goals for the year.
I'm also excited about the acquisition of Meiomi wine business, which is an excellent addition to our portfolio.
Our FY16 is off to a great start, and we are eager to continue this momentum into our summer selling season.
As we head into the 4th of July holiday weekend, I hope you remember to bring some of our fine wine products to your celebrations and to please enjoy them responsibly.
We will be on the road next week as we begin to introduce <UNK> <UNK> to those of you he has not already met, so I look forward to seeing you.
