Jim Cramer on Constellation Brands: “The Company Has Fallen Out of Grace”

Core Insights - Constellation Brands, Inc. is facing challenges in the alcohol market, particularly due to the impact of GLP-1 drugs that reduce cravings for alcohol, affecting sales of its major brands like Corona and Modelo [1][2] - The company's stock has seen a decline, with a current valuation at 12 times earnings, which is noted as the lowest seen, although this multiple contraction is considered justified given recent performance [1] Company Overview - Constellation Brands produces and markets a variety of alcoholic beverages, including beer, wine, and spirits, under well-known brands such as Corona, Modelo, Robert Mondavi, Kim Crawford, and SVEDKA [2] - The company has been described as a "fallen idol" in the consumer packaged goods sector, reflecting broader issues within the alcohol industry [2] Market Context - The alcohol industry is currently experiencing a downturn, with Constellation Brands exemplifying the struggles faced by companies in this sector [2] - The introduction and popularity of GLP-1 drugs are significantly impacting consumer behavior, particularly in relation to alcohol consumption [2]