Constellation Lowers Sales Outlook On Softer Consumer Trends
September 2, 2025Constellation Brands issued an update on its business this morning in which the company warned of macroeconomic headwinds and said it now expects sales in its beer business to decline by 2%-4% in its fiscal year through February, down from an earlier forecast of 0%-3% growth, driving a 4%-6% sales decrease across its total business. Sales guidance for Constellation’s wine portfolio is unchanged, still expected to register a 17%-20% decline against the prior year. Earlier this year, Constellation reshaped its wine portfolio with the divestiture of brands totaling 12 million cases to The Wine Group.
“We continue to navigate a challenging macroeconomic environment that has dampened consumer demand and led to more volatile consumer purchasing behavior since our first quarter of fiscal 2026,” said Constellation president and CEO Bill Newlands. “Over the last several months, high-end beer buy rates decelerated sequentially, as both trip frequency and spend per trip declined. Notably, high-end beer buy rate declines for Hispanic consumers were more pronounced than general market declines, which has an outsized impact on our beer business compared to the broader beer category.”
According to Impact Databank, Constellation ranks as the third-largest beer marketer in the U.S. with volume up 5% to 431 million (2.25-gallon) cases last year. The company recently earned Impact “Hot Brand” awards for Modelo Especial, Pacifico, Modelo Chelada, Corona Familiar, Victoria, Corona Non-Alcoholic, Modelo Aguas Frescas Fruit, and Modelo Ranch Water. Modelo Especial is the second-largest beer brand in the U.S., after Bud Light, at 15.2 million barrels on a 7% increase in 2024, having roughly tripled in size over the past decade.
“Despite the challenging operating environment, through July of fiscal 2026 we grew volume share in 49 of 50 states, and in Circana channels our beer business remained the top dollar share gainer in the total U.S. beer category with a 0.4 point increase,” Newlands added. “We remain resolutely focused on continuing to execute against our strategic objectives, including driving distribution gains, disciplined innovation, and investing behind our brands.”—Daniel Marsteller
Newlands will be among the speakers at this fall’s 49th Annual Impact Marketing Seminar.
| 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, Modelo, Pacifico
