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Constellation Brands' beer business follows parent company Anheuser-Busch InBev's controversial partnership with transgender activist Dylan Mulvaney last spring, when the company's Modelo Especial became Bud Light's top-selling beer in the U.S. After overtaking Beer, it gained momentum in the third quarter.
In its earnings report on Friday, Constellation said it missed quarterly sales expectations due to lower demand for wine and spirits, but kept its 2024 profit forecast unchanged due to growth in its beer brands.
Constellation Brands' Modelo Especial overtook Bud Light, brewed by Anheuser-Busch, as the best-selling beer in the United States last year. (Illustration: Tamario/Getty Images)
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| STZ | Constellation Brands Co., Ltd. | 250.06 | +7.72 | +3.19% |
Constellation Brands Co., Ltd.
“Modelo Especial achieved double-digit volume growth and ranked #1 in the U.S. tracking channel dollar sales,” Constellation CEO Bill Newlands said in a statement accompanying the earnings call. “It continued to expand its position as the leading beer in Japan.” “Our other core beer brands, Corona Extra and Pacifico, also experienced strong growth and achieved top 10 market share across the U.S. beer category.”
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Constellation, like peers Molson Coors and Brown-Forman, raised prices to deal with rising production costs, which have now peaked.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Tap | Molson Coors Beverage Company | 61.51 | +0.21 | +0.34% |
| BF.B | brown-forman company | 55.84 | +0.07 | +0.13% |
This resulted in the company posting a quarter-over-quarter profit of $3.19, beating expectations of $3.00, according to LSEG data.
The Clos du Bois winemaker had quarterly sales of $2.47 billion, compared to analysts' average estimate of $2.54 billion.
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Net sales for the company's beer business, which includes Corona Premier and Modelo Especial, rose 4% in the quarter.
Newlands said: “This outstanding performance strengthens our confidence in the company's outlook for 2024, despite adjustments to guidance for the Wine and Spirits business in response to near-term headwinds in the wine market. ” he said.
The company maintains its fiscal 2024 comparable earnings per share forecast of $12 to $12.20.
A can of Bud Light is seen at a store in Montreal, Canada, on June 16, 2023. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| bud | Anhauser-Busch InBev | 64.33 | +0.59 | +0.93% |
Anheister Busch InBev SA
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Constellation's beer brands have benefited from customers preferring smaller pack sizes. Customers also grew due to Mr. Mulvaney's social media promotion of Bud Light and comments from Bud Light's former marketing vice president last year that sparked a boycott of the Anheuser-Busch brand in the United States.
Reuters contributed to this report.
