The parent company of the tokens Modelo Especial, Corona, and Pacif ( Constellation Brands ) exceeded expectations in terms of quarterly earnings per share and revenue. This was due to their beer brands gaining market share, however, consumers' continued caution still put pressure on performance.
In an environment where food and fuel prices are high and consumers are more selective in their purchases,星座品牌 is leveraging special consumption scenarios and business diversification to drive sales.
The liquor company announced on Wednesday that in the second fiscal quarter of the 2026 fiscal year, its adjusted earnings per share were $3.74, with revenue reaching $2.63 billion, which surpassed Wall Street's expectations of $3.56 per share and $2.54 billion respectively.
Brewery business revenue grew by 5% to approximately $2.47 billion; beer shipments also increased by 5.5%. However, the company stated that the amount of beer sold to distributors for resale to retailers and other customers ( depletions ) decreased slightly this quarter, indicating that consumer demand is weaker than what the shipment data suggests.
"For most of the first half of the fiscal year, we were focused on rebuilding our distributor inventory levels," said Nicholas Fink, CEO of the constellation brand, during a financial report conference call on Thursday. "Although there are always fluctuations from month to month, the inventory reduction trend in September is moving in the right direction."
For beer sellers, the overall environment remains challenging. According to the latest Nielsen data, in the two weeks up to September 19th, beer sales in the United States decreased by 1.8% year-on-year.
However, Fink indicates that the improvement in beer inventory clearance in September was not only due to the later timing of Labor Day, but also that this recovery was widespread across various channels. He said that consumers are "overall" participating in the consumption of this category of product.
Some analysts said that the results indicate that high oil prices have weakened the performance of Constellation brands.
Analyst Bill Kirk wrote: “[Constellation Brand] made progress at the beginning of 2026, but it was disrupted by higher fuel costs.” However, he also stated that Constellation Brand is still moving forward according to its plans for the 2027 fiscal year. Kirk has given the stock a “buy” rating with a target price of $209, while as of Wednesday, the stock price was around $116 per share.
Fink stated that the Constellation brand performed particularly well in warehouse membership stores, as budget-conscious consumers seek fuel and grocery deals there. The company is also working to better tailor product and packaging specifications for different channels, as consumers make different choices based on where and when they shop.
This focus on consumer scenarios has also extended to young drinkers. Fink indicates that more and more consumers are purchasing beer for specific occasions, rather than considering it a default purchase item. As a result, beer brands are increasing their investment in sports, music, beach events, and other scenarios in order to boost sales.
The company's pricing strategy also reflects consumers' caution in their spending.
Chief Financial Officer Garth Hankinson stated that the constellation brand has always been relatively restrained when it comes to price increases. Considering the 'macroeconomic environment and its impact on consumers', the company will maintain the price increase within the lower end of the usual range. Hankinson said, 'The cost-effectiveness of retaining customers is far higher than the effort required to win them back after they have left.'
Given the reliance of Constellation Brands on Hispanic consumers, this price sensitivity is particularly important for the company. According to company data, approximately 40% of Constellation Brands' beer consumption spending comes from Hispanic consumers, while this proportion for the entire beer category is around 15%.
This group faces more economic concerns, including pressures on the labor market and family finances, partly due to President Donald Trump's large-scale deportation policies. Constellation Brands previously stated that beer demand is weaker in areas with a higher proportion of Hispanic population, but the company also noted that trends in some markets are improving.
Constellation expands its canned spirits business
Constellation Brands is also expanding into areas beyond its core beer business. The company announced on Tuesday that it will acquire the ready-to-drink beverage brand SpikedAde, which is based on spirits, for a upfront payment of $75 million, with the potential to pay an additional $278 million, depending on future performance.
This transaction allows the Constellation brand to enter a new, more consumer-focused niche market. Fink indicates that the company hopes to “continue to remain relevant to consumers and customers,” and it adds that distributors have been urging the Constellation brand to enter growth categories beyond beer.
Some analysts also recognize this measure.
Analyst Michael Lavery stated: "We believe this acquisition is attractive as it allows [Constellation Brand] to enter the rapidly growing RTD (i.e., beverage) sub-category." He also noted that Super Lyte, a competing brand under Stateside Vodka, has had a "very strong start" on the East Coast of the United States as well.
Lavery gives the zodiac brand stock a 'neutral' rating with a target price of $161.
Although Fink indicates that beer will still be the main source of value creation for the company, he described SpikedAde as providing a “long and broad runway” for the construction of the brand as a zodiac brand and its distribution capabilities.
According to data from the American Distilled Spirits Council ( Distilled Spirits Council of the United States ), the sales of premixed cocktails, including those containing spirits base RTD, are expected to grow by 16.4% in 2025, reaching $3.8 billion, making it the fastest-growing category within the spirits industry.
