The Motley Fool·2025-06-17 07:05Core Insights - Constellation Brands and Anheuser-Busch InBev are both major players in the alcoholic beverage industry, with Constellation focusing on higher-end products and Anheuser-Busch having a more global presence [1][2]. Constellation Brands - Constellation Brands generated $8.5 billion in sales for the fiscal year ending February 28, with 84% coming from beer products [4]. - The company is divesting lower-priced wine brands to focus on higher-margin premium wines, with the beer division showing a 39.7% operating margin compared to 19.5% for wine and spirits [5]. - Despite these strategic moves, fourth-quarter sales only increased by 1% to $2.2 billion, although operating income grew by 6% due to cost-cutting measures [6]. - The medium-term sales outlook has been lowered to an annual growth of 2% to 4%, down from 6% to 8%, indicating potential challenges ahead [7]. Anheuser-Busch InBev - Anheuser-Busch InBev reported $59.8 billion in revenue, with 88% derived from beer, and 76.5% of revenue coming from outside North America, providing greater geographic diversification [8]. - The company is less affected by tariffs due to its local production strategy, which helps mitigate cost increases [9]. - However, Anheuser-Busch has also faced sluggish growth, with a revenue increase of only 0.6% last year and a first-quarter sales growth of 1.5% [10]. Market Performance - Over the past year, Constellation Brands' share price decreased by 34.5%, while Anheuser-Busch's increased by 15.6%, contrasting with a 10.5% rise in the S&P 500 index [10]. - Despite Anheuser-Busch's advantages, both companies are currently not producing meaningful sales growth, leading to a recommendation to avoid investing in either stock at this time [11].