- Three months to end of November finish flat at US$2.46bn
- Buffers are hit after H1 of fiscal 2025 rise 4%
- First nine months of financial year at +3% – $8.04bn
- Beer up 3% ($2.03bn) in Q3, combined wine & spirits sales down 14% ($431.4m)
Constellation Brands has noted “value-seeking behaviours” by consumers, resulting in a stagnant sales performance in the three months to the end of November.
A six-strong streak of quarterly sales rises came to an end today (10 January), with the multi-category group posting a resultant 3% top-line lift from the first nine months of its fiscal 2025 (to the end of February). For the full 12-month period, Constellation now expects its sales to come in up by between 2% and 5%, suggesting the possibility of further flatness in the short term.
Having warned of “ongoing macroeconomic headwinds” back in September, Constellation’s fears have been realised; beer sales – which originate solely from the US – inched up in the quarter by only 3% on a 1.6% increase in shipment volumes, while combined wine & spirits sales continued to decline, sliding 14%. The beer unit’s performance came despite Constellation retaining the top-five value sales positions for Modelo Especial (number one) and Corona Extra (position not specified) in the US.
Over in wine and spirits, meanwhile, the double-digit fall was blamed on what Constellation highlighted as “ongoing weaker consumer demand and continued retailer inventory destocking across most price segments in the US wholesale market”. Contradicting the view on consumer demand, however, was the group’s reference to the “consumer-led premiumisation trends” in spirits, presented as explanation for last month’s decision to divest the Svedka vodka brand to Sazerac Co.
“Given near-term uncertainty on when consumers will revert to more normalised spending, we have prudently lowered our growth outlook for net sales and operating income in fiscal 2025,” said CEO Bill Newlands.
Constellation’s market capitalisation currently stands at $35.45bn, down from $44.24bn three months ago.
This article is available to Global Drinks Intel members only.
Click below for details on how to join the Global Drinks Intel community.
Already a member?
Log in here to read the article in full.
If you work for any of the following corporate subscribers to Global Drinks Intel, head here to activate your access.
- AB InBev
- Bacardi
- Campari Group
- Diageo
- Moët Hennessy
- Pernod Ricard
- Proximo Spirits
- Suntory Global Spirits
- William Grant & Sons
