Depletions Rise For Constellation’s Reshaped Wine And Spirits Portfolio
October 7, 2025Constellation Brands posted net organic sales of $2.48 billion for fiscal second quarter ended in August, down 15%, as the company’s beer business has slowed this year. Operating income, slipped 13% to $886 million on a comparable basis. While it’s confronting headwinds on the beer side, Constellation has recently streamlined its wine and spirits portfolio via the divestitures of Svedka vodka to Sazerac and 12 million cases in wine volume to The Wine Group. Its remaining wine and spirits portfolio, led by Kim Crawford, The Prisoner, and Robert Mondavi, among others, saw depletion growth of 2% in the second quarter.
Net sales for the company’s beer unit dipped 7% to $2.35 billion for the quarter, with volumes declining 8.7% to 117.4 million 24-pack, 12-ounce case equivalents. Corona and Modelo (including Modelo Cheladas) decreased during the quarter, somewhat offset by double digit gains for Pacifico and Victoria. Despite the declines for Modelo, Constellation noted that it remains the no.-1 brand in the U.S. by dollar sales, with Corona also holding steady in the top five. Looking ahead, the company expects to see further net sales declines of 2% to 4%, with operating income for beer down 7% to 9% for fiscal 2026.
According to Impact Databank, Modelo, Pacifico, and Modelo Cheladas all grew in 2024, with all three receiving Impact “Hot Brand” awards. Modelo was up 7% to 210 million cases, Pacifico was up 21.5% to 25.2 million cases, and the Cheladas were up 5% to 23 million cases. The Mexican brands’ long run of growth has been impacted this year by economic challenges among their core Hispanic consumers.
“While we continue to navigate a challenging socioeconomic environment that has dampened consumer demand, our teams remain focused on executing against our strategic objectives, including driving distribution gains, disciplined innovation, and investing behind our brands,” said Constellation CEO Bill Newlands, who will be among the speakers at the 49th Annual Impact Marketing Seminar in New York this Thursday.
Following the aforementioned divestitures, the company’s wine and spirits segment saw sales drop 65% for the quarter, with shipment volumes falling roughly 75%. On an organic basis, adjusted for those divestitures, net sales were down 19% to $136 million. Constellation’s wine and spirits business saw operating income drop 128%. For fiscal 2026, the company expects to see net sales decrease 17% to 20%, with operating income down by up to 100%.
However, the company’s remaining wine and spirits portfolio has shown depletion growth lately, and both Kim Crawford and The Prisoner are growing in IRI/Circana channels through July 2025. In spirits, Mi Campo Tequila is outperforming the rest of Constellation’s portfolio, reaching 214,000 cases last year, according to Impact Databank and continuing to grow in 2025. The label was up 66.5% in IRI/Circana channels through July.
“Our cost savings and efficiency initiatives continue to deliver incremental benefits for our business, supporting continued healthy investment levels behind our brands,” said Garth Hankinson, executive vice president and CFO.—Shane English
| Constellation—Leading Wine & Spirits in the U.S. | ||||||
| Brand | Origin/Type | Total 2024 U.S. Depletions1 |
Volume Growth 2025 YTD2 |
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|---|---|---|---|---|---|---|
| Wine: | ||||||
| Kim Crawford | New Zealand | 1,760 | 5.2% | |||
| Ruffino | Italy | 515 | -5.0% | |||
| Ruffino Prosecco | Italy | 389 | -21.9% | |||
| The Prisoner | California | 275 | 3.0% | |||
| Unshackled | California | 181 | -0.1% | |||
| Harvey & Harriet | California | 66 | 75.1% | |||
| Total Leading Wine | 3,186 | 2.8% | ||||
| Spirits: | ||||||
| Mi Campo | Tequila | 213 | 66.5% | |||
| High West | American Whiskey | 164 | 1.0% | |||
| Casa Noble | Tequila | 50 | -4.5% | |||
| Total Leading Spirits | 427 | 27.9% | ||||
| 1 Thousands of 9-liter cases. 2 26 weeks ending July 13 in IRI/Circana channels for wine and year-to-date ending August in control states for spirits. Source: IRI/Circana, NABCA, and IMPACT DATABANK © 2025 |
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Tagged : Constellation Brands, Corona, Kim Crawford, Mi Campo, Modelo, Pacifico, Robert Mondavi, The Prisoner, VIctoria
