Constellation Brands has lowered its sales forecast for fiscal 2026, citing a continuation of weaker consumer demand and macroeconomic headwinds.
The group now expects its sales in the 12 months to the end of February 2026 to come in down by between 4% and 6%, compared to previous guidance of -2% to +1%. Beer sales are forecast to contract by between 4% and 2%, down from earlier guidance of flat to 3% growth, while wine and spirits expectations remain unchanged at a decline of 20% to 17%.
In the update earlier this week, CEO Bill Newlands said that “high-end beer buy rates [in the US] decelerated sequentially” with more pronounced declines among Hispanic consumers in the country, which is having a greater impact on Constellation’s beer business.
He added: “Notably, high-end beer buy rate declines for Hispanic consumers were more pronounced than general market declines, which has an outsized impact on our beer business compared to the broader beer category.”
The news comes after the multi-category group reported in July that sales in the quarter to the end of May came in down by 4% on the corresponding period a year ago. The Q1 fall represented Constellation’s worst three-month performance since Q4 (December-February) of fiscal 2023.
Three months earlier, Constellation joined Heineken in expressing concerns about the current consumer sentiment among the Hispanic population in the US and the ensuing impact on their brands.
Constellation is due to post its second-quarter results on 1 October.
