You might also like
Constellation Brands, Inc. is an international producer and marketer of beer, wine, and spirits, with operations in the U.S., Mexico, New Zealand, and Italy. The company is the second-largest beer company in the U.S. and holds a strong position in the high-end beer segment, with brands such as Corona Extra, Modelo Especial, and Pacifico . Their business is organized into two main divisions: Beer, and Wine and Spirits, with the Beer segment being the largest contributor to revenue . Constellation Brands continues to expand its market presence through strategic investments and innovations, particularly in consumer-led premiumization trends and digital channels .
- Beer - Produces and markets high-end imported beer brands, including Corona Extra, Modelo Especial, and Pacifico, which account for the majority of the company's revenue. Notable achievements include Modelo Especial becoming the best-selling beer in the U.S. .
- Wine and Spirits - Focuses on higher-end brands with a portfolio that includes well-known names like Robert Mondavi Winery and Kim Crawford. This segment has been reshaped to emphasize higher-margin, higher-growth brands .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
William A. Newlands ExecutiveBoard | President and Chief Executive Officer (CEO) | Lead Director at Hormel Foods Corporation | Joined STZ in 2015; became CEO in March 2019. Previously held leadership roles at Beam Inc. and its predecessors. | View Report → |
Garth Hankinson Executive | Executive Vice President and Chief Financial Officer (CFO) | None | Joined STZ in 2004; became CFO in January 2020. Previously led corporate development and financial planning at STZ. | |
James O. Bourdeau Executive | Executive Vice President and Chief Legal Officer | None | Joined STZ in 2014; became CLO in December 2017. Previously a partner at Nixon Peabody LLP. | |
K. Kristann Carey Executive | Executive Vice President and Chief Human Resources Officer | None | Joined STZ in 2013; became CHRO in May 2022. Previously served as Chief Diversity Officer and General Counsel for the Beer Division. | |
Michael McGrew Executive | Executive Vice President, Chief Communications, Strategy, ESG & Diversity Officer | None | Joined STZ in 2014; promoted to EVP in April 2020. Oversees communications, ESG, and diversity initiatives. | |
Samuel J. Glaetzer Executive | Executive Vice President and President, Wine & Spirits Division | None | Joined STZ in 2014; became EVP and President of Wine & Spirits in March 2024. Previously led global operations and international sales. | |
Christopher J. Baldwin Board | Non-Executive Chair of the Board | Managing Partner at CVC Advisors (U.S.) Inc.; Board Member at Advantage Solutions Inc. and BJ’s Wholesale Club Holdings Inc. (not standing for re-election in 2024) | Joined STZ Board in March 2024. Former CEO and Chairman of BJ’s Wholesale Club Holdings Inc. | |
Christy Clark Board | Board Member | None | Joined STZ Board in 2019. Former Premier of British Columbia, Canada. Recognized for economic leadership and consensus building. | |
Daniel J. McCarthy Board | Board Member | None | Joined STZ Board in 2015. Former CEO of Frontier Communications Corporation. | |
Ernesto M. Hern\u00e1ndez Board | Board Member | Director at Dana Incorporated and BRP Inc. | Joined STZ Board in 2014. Former President and Managing Director of GM de Mexico. | |
Jennifer M. Daniels Board | Board Member | Chief Legal Officer and Secretary of Colgate-Palmolive Company | Joined STZ Board in 2018. Brings extensive legal expertise and governance experience. | |
Jos\u00e9 Manuel Madero Garza Board | Board Member | Director at Newmont Corporation | Joined STZ Board in 2019. Former CEO of Grupo Bepensa and senior executive at Monsanto Company. | |
Nicholas I. Fink Board | Board Member | CEO of Fortune Brands Innovations, Inc.; Board Member at Fortune Brands Innovations, Inc. | Joined STZ Board in 2021. Extensive experience in consumer brands and international business. | |
Richard Sands Board | Non-Executive Board Member | None | Joined STZ in 1979; former CEO and Chairman of the Board. Played a key role in transforming STZ into a global beverage leader. | |
William Giles Board | Board Member | Board Member at Brinker International and Floor and Decor Holdings, Inc. | Joined STZ Board in July 2023. Former CFO of AutoZone, Inc. Brings over three decades of financial expertise. |
-
In the Wine and Spirits segment, despite mentioning "green shoots," the business continues to face challenges, including a significant impairment from $3 billion to $500 million. Can you explain the drivers behind such a dramatic change and what strategic actions are being taken to turn around this segment?
-
Now that you've achieved your leverage target and have $2.2 billion remaining in share repurchase authorization, how do you plan to balance further capital returns to shareholders with potential investments in growth opportunities, especially considering the expected uplift in free cash flow beyond fiscal '25?
-
Given that shipments have been ahead of depletions in the first half and you expect a reversal in Q3 due to maintenance activities, how confident are you in achieving the higher end of your Beer top-line growth guidance amid potential macroeconomic headwinds?
-
With Beer gross margins benefiting from cost savings and efficiency initiatives, and with increased marketing spend and less fixed cost absorption expected in the second half, how sustainable is your margin expansion going forward, and what risks might impact these margins?
-
Despite the significant shelf space gains in the spring resets, can you quantify the actual sales lift from these gains, and how does this factor into your expectations for accelerated top-line growth in the Beer segment in the second half, considering the current macroeconomic pressures on consumer demand?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The company is a principal competitor in the beer segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. | |
The company is a principal competitor in the beer segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. | |
Heineken | The company is a principal competitor in the beer segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
Mark Anthony | The company is a principal competitor in the beer segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
The company is a principal competitor in the beer segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. | |
Deutsch Family Wine & Spirits | The company is a principal competitor in the wine segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
Duckhorn Portfolio | The company is a principal competitor in the wine segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
E. & J. Gallo Winery | The company is a principal competitor in both the wine and spirits segments, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
Ste. Michelle Wine Estates | The company is a principal competitor in the wine segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
Treasury Wine Estates | The company is a principal competitor in the wine segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
Trinchero Family Estates | The company is a principal competitor in the wine segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
The Wine Group | The company is a principal competitor in the wine segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
Bacardi USA | The company is a principal competitor in the spirits segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
Beam Suntory | The company is a principal competitor in the spirits segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
The company is a principal competitor in the spirits segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. | |
The company is a principal competitor in the spirits segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. | |
Fifth Generation | The company is a principal competitor in the spirits segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
Pernod Ricard | The company is a principal competitor in the spirits segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
Sazerac Company | The company is a principal competitor in the spirits segment, competing on the basis of quality, price, brand recognition and reputation, and distribution strength. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Sea Smoke | 2024 | Sea Smoke was acquired in June 2024 for $170.0 million (subject to adjustments) and included the purchase of a California-based luxury wine brand, its vineyards, production facility, as well as goodwill, inventory, and trademark. This deal supports the company’s strategic focus on consumer-led premiumization trends by expanding its premium Wine and Spirits portfolio. |
Domaine Curry | 2023 | The Domaine Curry acquisition was completed in June 2023 as part of a portfolio enhancement strategy aimed at capturing younger legal drinking age and multicultural consumers in the luxury wine segment, with the brand built by Ayesha Curry and Sydel Curry-Lee. |
Austin Cocktails | 2022 | In April 2022, Constellation Brands acquired the remaining 73% ownership interest in Austin Cocktails, a small batch RTD cocktails brand, with the purchase price structured to include an earn-out over five years. This acquisition, which has been almost entirely self-funded, reinforces the company’s premium RTD offerings and aligns with consumer-led premiumization trends. |
Lingua Franca | 2022 | Completed in March 2022, the Lingua Franca acquisition included a collection of Oregon-based luxury wines, a vineyard, and a production facility, along with the trademark and inventory, with the deal’s purchase price featuring an earn-out over seven years. The integration into the Wine and Spirits segment supports the expansion of the premium portfolio. |
My Favorite Neighbor | 2021 | Finalized in November 2021, the acquisition of My Favorite Neighbor involved purchasing the remaining 65% interest in a super‑luxury, direct‑to‑consumer wine business and its associated assets (goodwill, trademarks, inventory, property, plant, and equipment), with an earn‑out over 10 years (including a 50% minimum guarantee) and recognition of a $13.5 million remeasurement gain. This adds significant premium DTC value to the portfolio. |
Recent developments and announcements about STZ.
Earnings
New Earnings (Q3 2025)
·Jan 24, 2025, 12:13 AMView full earnings summary →Constellation’s Q3: Beer margin at 39–40%, volumes +4–7%, Wine & Spirits premium labels up 7%, craft spirits +9%. Returned $670M YTD, with $1.9B buyback left. Despite overall beer softness, Modelo’s growing awareness remains a key engine for outperformance.
8-K Filings
8-K Filing
·Feb 19, 2025, 9:34 PMFinancial ExhibitsRegulation FD DisclosureOther EventsView full 8-K filing →Constellation Brands filed an 8‑K noting that Executive VP, Chief Growth & Strategy Officer E. Yuri Hermida will depart effective Feb. 28, 2025. Interim leadership will be managed by Mallika Monteiro, who also oversees Beer Brands.