Constellation “cautiously optimistic” on macro challenges having reached bottom

Core Viewpoint - Constellation Brands' CEO expresses cautious optimism about the business having potentially reached the bottom regarding macro pressures affecting sales, despite ongoing volatility in the market [1][3]. Group 1: Business Performance and Market Conditions - The company has experienced unprecedented volatility with mixed results across different markets, particularly noting that high Hispanic zip code areas are performing significantly worse than the general market [2][3]. - Hispanic consumers represent approximately half of Constellation's total beer business, and weakened consumer sentiment among this demographic has been a concern due to socioeconomic factors impacting drinking occasions [3]. - California has been identified as a major challenge, with labor roles not materializing as expected, which could affect the beer business positively if construction opportunities improve [4]. Group 2: Consumer Sentiment and Loyalty - A recent study indicated that 80% of surveyed consumers, both Hispanic and non-Hispanic, express concerns about the socioeconomic environment, with 70% specifically worried about their personal finances [5]. - Despite the challenges, there is an increase in brand loyalty, with loyalty for Corona rising in the general market and for Modelo among Hispanic consumers [6].