Constellation’s Reshaped Wine & Spirits Portfolio Rises 2% In First Quarter
Constellation Brands saw overall sales decline 4% organically to $2.5 billion in its fiscal first quarter ended in May, weighed down by slowing beer sales and large divestitures on the wine and spirits side over the past year. However, Constellation’s retained portfolio of wine and spirits—focused firmly on the higher end of the market—posted 2% depletions growth for the period.
Constellation president and CEO Bill Newlands said the company has “continued to face softer consumer demand largely driven by what we believe to be non-structural socioeconomic factors.” But he added that Constellation is “pleased to continue to lead the U.S. beer industry in dollar share gains, to have fully repositioned our wine and spirits portfolio in higher-growth and higher-margin segments, and to consistently deliver against our capital allocation priorities.” Newlands will be among the speakers at this fall’s 49th Annual Impact Marketing Seminar.
Constellation’s beer business saw sales dip 2% to $2.2 billion, “driven by a 3.3% decline in shipment volumes reflecting socioeconomic headwinds affecting consumer demand,” the company said. Depletions fell 2.6%, with Modelo Especial (-4%), Corona Extra (-7%), and Modelo Chelada (-3%) all decreasing, partially offset by 13% growth for Pacifico. On a selling-day-adjusted basis, depletions were down 1.2%. The beer decline came as Constellation has warned of weaker demand from Hispanic consumers in recent months, with that cohort accounting for around half of its beer sales.
While overall wine and spirits sales declined 21% to $281 million for the quarter, following the divestitures of Svedka to Sazerac and several wine brands totaling 12 million cases to The Wine Group, depletions were on the rise for the retained portfolio, which is led by Robert Mondavi Winery, The Prisoner, Kim Crawford, High West, Mi Campo, and others. “Our remaining wine portfolio outpaced the corresponding higher-end wine segment in both dollar sales and volume year-over-year performance in Circana U.S. tracked channels,” Constellation noted.
SND recently caught up with Sam Glaetzer, president of Constellation’s wine and spirits unit, for a look at the future of the reshaped business, which now numbers about 5.5 million cases.—Daniel Marsteller
| Constellation Brands—Leading Wines & Spirits in the U.S. (thousands of 9-liter cases) |
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| Brand | Origin/Type | 2023 | 2024 | Percent Change1 |
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|---|---|---|---|---|---|---|
| Kim Crawford | New Zealand | 1,840 | 1,760 | -4.3% | ||
| Ruffino | Italy | 656 | 515 | -21.5% | ||
| Ruffino Prosecco | Italy | 520 | 389 | -25.2% | ||
| The Prisoner | California | 285 | 275 | -3.5% | ||
| Mi Campo | Tequila | 161 | 213 | 32.2% | ||
| Unshackled | California | 195 | 181 | -7.2% | ||
| High West | Bourbon/Rye | 170 | 164 | -3.5% | ||
| Harvey & Harriet | California | 33 | 66 | 100.6% | ||
| Total Leading Brands2 | 3,860 | 3,563 | -7.7% | |||
| 1 Based on unrounded data. 2 Addition of columns may not agree due to rounding. Source: IMPACT DATABANK © 2025 |
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Tagged : Constellation Brands, Corona, High West, Kim Crawford, Mi Campo, Modelo, Pacifico, Robert Mondavi Winery, The Prisoner
