Constellation Posts Full-Year Sales Up 2% Despite “Softer Consumer Demand”
Yesterday, SND reported that Constellation is slimming down its wine and spirits unit with the divestiture to The Wine Group of brands totalling 12 million cases and including Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, Simi, and J. Rogét sparkling wine along with related California facilities. Constellation said the deal is expected to yield proceeds of about $900 million, subject to closing adjustments.
Concurrently, Constellation reported sales up 2% to $10.2 billion for its fiscal year ended in February, as comparable operating income rose 7% to $3.5 billion. The growth came despite what chief executive Bill Newlands called “a softer consumer demand backdrop” over the course of the year.
Constellation’s beer business, accounting for more than 80% of sales, grew 5% to $8.5 billion in the fiscal year, but was flat in the fourth quarter, as depletions declined 1%, “largely driven by decreases
in Modelo Especial, Corona Extra, and the Modelo Chelada brands of approximately 1%, 6%, and 3%, respectively.”
The company’s organic wine and spirits sales dipped 6% to $1.7 billion for the year, mostly due to decreases in the mainstream portfolio, which is now being sold off to The Wine Group. Post-divestiture, Constellation’s wine and spirits unit will number about 5 million cases, according to Impact Databank, tilted heavily toward the high end.
It will include Napa Valley labels Robert Mondavi Winery, Schrader, Double Diamond, To Kalon Vineyard Company, Mount Veeder Winery, and The Prisoner Wine Company; the My Favorite Neighbor family of brands from Paso Robles; Kim Crawford from New Zealand; Tuscan producer Ruffino Estates and Ruffino Prosecco; Sea Smoke from Santa Barbara’s Santa Rita Hills AVA; Lingua Franca from Oregon’s Willamette Valley; and others. The Constellation spirits portfolio continues to include High West whiskey, Nelson’s Green Brier whiskey, Mi Campo Tequila, Casa Noble Tequila, and others.
For its new fiscal year, Constellation is expecting sales to range from a decline of 2% to a gain of 1%, with the beer division at 0%-3% growth and wine and spirits decreasing 17%-20%. The company also downgraded its medium-term outlook—through fiscal 2028—to project sales growth of 2%-4% from the previous 6% to 8%, reflecting the anticipated impact of tariffs amid global trade tensions.—Daniel Marsteller
| Brands To Be Acquired By The Wine Group (thousands of 9-liter case depletions) |
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| Brand | 2023 | 2024 | Percent Change1 |
|||
|---|---|---|---|---|---|---|
| Woodbridge by Robert Mondavi |
7,088 | 6,479 | -8.6% | |||
| Cook’s | 1,946 | 1,763 | -9.4% | |||
| Meiomi | 1,809 | 1,700 | -6.0% | |||
| Robert Mondavi Private Selection |
1,788 | 1,400 | -21.7% | |||
| Simi | 498 | 431 | -13.5% | |||
| J. Rogét | 541 | 362 | -33.1% | |||
| Subtotal | 13,670 | 12,135 | -11.2% | |||
| 1 Based on unrounded data. Source: IMPACT DATABANK © 2025 |
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Tagged : Constellation Brands, Corona, Meiomi, Modelo, Robert Mondavi Private Selection, The Wine Group, Woodbridge
