Constellation Brands Reports Strong Q2 Earnings, Raises Outlook

Constellation Brands, the Mexican beer powerhouse and owner of popular brands such as Modelo Especial and Corona Extra, has announced impressive earnings and revenue for its fiscal second quarter of 2024. The company’s beer business experienced double-digit sales growth, solidifying its dominance in the overall beer and high-end categories.

Constellation Brands reported a 12% sales growth in its beer portfolio, driven by an 8.7% increase in shipments. The Modelo brand family, including Modelo Especial and Modelo Chelada, performed exceptionally well with growth rates of nearly 9% and over 40% respectively. Modelo Especial remains the top-selling brand in the U.S. beer category.

However, the wine and spirits division faced challenges, with a 14% decrease in sales and an almost 8% decrease in depletions. Despite this, Constellation Brands highlighted standout brands within this category, including Meiomi and Kim Crawford wines, which saw 7% and 6% depletion growth respectively. Additionally, Mi Campo tequila, a craft spirit, reported an impressive depletion growth rate of over 60%.

CEO Bill Newlands expressed confidence in the second half of the year, expecting solid growth acceleration and margin improvement in the overall Wine and Spirits Business. The company raised its fiscal 2024 earnings per share outlook to a range of $9.60 to $9.80, reflecting increased optimism.

Constellation Brands’ continued success in the beer business, coupled with its focus on growth and improvement in the wine and spirits division, positions the company for a promising future. Investors and beer enthusiasts alike will be eagerly watching as the company capitalizes on its strong performance in the market.