CONSTELLATION BRANDS, INC. (STZ)

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. Its brands include Modelo Especial, Corona Extra, Pacifico, Victoria, Kim Crawford, Ruffino, The Prisoner Wine Company, Robert Mondavi Winery, Mi CAMPO, and High West. The company says it is the second-largest beer company in the U.S. by dollar sales, and Modelo Especial is the top U.S. beer brand. It operates through wholly owned entities as well as joint ventures, and its strategy centers on premiumization, higher-margin categories, organic growth supplemented by targeted investments and acquisitions, and digital initiatives.

The company reports three segments: Beer, Wine and Spirits, and Corporate Operations and Other. In fiscal 2026 (year ended February 28, 2026), consolidated net sales were $9,139.0 million, down from $10,208.7 million. Beer contributed $8,315.2 million, and Wine and Spirits contributed $823.8 million (wine $700.4 million, spirits $123.4 million). The Beer segment has exclusive rights to import, market, and sell its brands in all 50 U.S. states. These include the Modelo family (Especial, Chelada, Oro, Negra, Noche Especial, Spiked Aguas Frescas), the Corona family (Extra, Familiar, Premier, Light, Sunbrew, Non-Alcoholic), Pacifico, and the Victoria family. It also sells Austin Cocktails and HOPWTR. The Wine and Spirits segment now holds only higher-end brands after the June 2025 divestiture of mainstream wine brands and related assets. Its brands include Kim Crawford, Ruffino, My Favorite Neighbor, Mount Veeder, Schrader Cellars, Sea Smoke, Casa Noble, High West, and Nelson's Green Brier. The Corporate Operations and Other segment covers corporate functions and corporate venture capital investments.

Customers include wholesale distributors and retailers. In the U.S., products are mainly sold through wholesale distributors, with separate networks for beer and for wine and spirits, and through state alcohol beverage control agencies in government-run states. Wine and spirits are mainly sold in the U.S. and also in Australia, Canada, Italy, New Zealand, and other markets, with expansion through international and direct-to-consumer channels, including hospitality. The company runs in-house marketing, sales, and customer service teams for both segments.

Beer is brewed at two Mexican breweries, in Nava and Obregón, with a third under construction in Veracruz. The company spent more than $700 million on modular capacity additions in fiscal 2026 and expects to spend about $800 million on them in fiscal 2027. Glass bottles are the largest packaging cost, and a joint venture with Owens-Illinois owns a glass plant next to the Nava brewery that supplies about 60% of beer glass needs. The company operates nine U.S. wineries, two in New Zealand, six in Italy, and three U.S. distilleries. It owns or leases about 10,000 acres of vineyards and buys grapes from about 145 independent growers. Competitors include Anheuser-Busch InBev, Heineken, Molson Coors, and Boston Beer in beer; Gallo, Treasury Wine Estates, and The Wine Group in wine; and Diageo, Pernod Ricard, Bacardi, and Brown-Forman in spirits. The company is headquartered in Rochester, New York, and is a Delaware corporation incorporated in 1972 as successor to a business founded in 1945.