Constellation Brands, Inc.

Constellation has stopped the beer decline and is buying consumers back with the biggest marketing push in years. Profit is arriving late: the margin target came down and the new brewery's costs land before its beer does. What closed the gap to the 39% beer margin target set in April 2025?

• Beer stopped shrinking, but the growth came from the small brands.

  Beer revenue fell in FY2026 and only now leveled off. Q2 FY2027 made Constellation the industry's biggest share gainer, led by Pacifico, up near 20%. Modelo and Corona Extra have only stopped falling, so growth now leans on smaller brands. Which brands are gaining shelf space fastest outside the West Coast?

• Beer margin guidance was cut and the recovery pushed out.

  Beer margin guidance was cut to 37-38% for this year, with nothing given past it. Veracruz starts brewing in early FY2028 with about $75 million a year of new depreciation, while marketing stays above 10% of sales. The costs land first.

• Part of the Q2 beat was warehouse refilling, not shoppers.

  The first half shipped about 8 million cases more than customers bought, refilling warehouses that ran too low last year. Guidance stayed anyway, so shipments should now grow slower than store-level sales. How much of the Q2 beer gain came from restocking distributors?