(Corrects bullet 2 to clarify company withdrew its fiscal 2028 outlook) April 8 (Reuters) – Corona beer maker Constellation Brands posted a smaller-than-expected drop in fourth-quarter sales on Wednesday, helped by stable demand for its Mexican lager brands such as Pacifico and Victoria. Lower prices and a sharper marketing strategy helped lift demand for the […]
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Constellation Brands posts smaller‑than‑expected quarterly sales drop on steady Mexican beer demand
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(Corrects bullet 2 to clarify company withdrew its fiscal 2028 outlook)
April 8 (Reuters) – Corona beer maker Constellation Brands posted a smaller-than-expected drop in fourth-quarter sales on Wednesday, helped by stable demand for its Mexican lager brands such as Pacifico and Victoria.
Lower prices and a sharper marketing strategy helped lift demand for the company’s key beers, including Modelo Especial and Corona Sunbrew, even as the broader U.S. alcohol market was muted due to macroeconomic uncertainty.
* The company said it remains encouraged by recent demandtrends in its beer as well as wine and spirits businesses. * However, it expects a volatile operating environment andlimited near-term visibility, prompting it to withdraw itsfiscal 2028 outlook. * Shares of the beer maker, which fell about 38% in 2025,were down 1.5% in extended trading. * Constellation’s quarterly net sales fell 11% to $1.92billion from a year ago, smaller than analysts’ average estimateof a 13% decline to $1.88 billion, according to data compiled byLSEG. * It reported adjusted profit of $1.90 per share for thequarter ended February 28, beating estimates of $1.72. * The broader industry backdrop remains challenging ascustomers cut back spending on alcohol. * In January, CEO Bill Newlands warned that beer sales willbe pressured as demand among Hispanic consumers remains weak.Newlands will be succeeded by Nicholas Fink from April 13. * Constellation said that under a U.S. governmentannouncement issued this month, its products are no longersubject to aluminum tariffs from April 6, easing the marginpressure going forward. * The company expects product innovation, such as ModeloChelada Suprema and Limon y Sal non-alcoholic offerings, alongwith new pack formats, to support higher sales. * It expects fiscal 2027 organic net sales of a 1% declineto 1% growth, compared with a 10% drop in fiscal 2026. * Constellation projects annual adjusted earnings of $11.20to $11.90 per share for fiscal 2027, compared with estimates of$12.36.
(Reporting by Sanskriti Shekhar and Savyata Mishra in Bengaluru; Editing by Shreya Biswas)