Financial Performance - Constellation Brands is cutting comparable EPS (Earnings Per Share) by over $1 [1] - The brewer's beer business expects year-over-year net sales to decline between 2% and 4%, versus prior guidance of flat to down 2% [2] - Beer operating income is now guided to fall between 7% and 9% [2] Market Trends & Consumer Behavior - A challenging macro environment has dampened consumer demand and led to more volatile consumer purchasing behavior [3] - High-end beer rates have declined for Hispanic consumers, who make up roughly 50% of Constellation's consumer base [3] - Shoppers are going to the store less, and when they do, they're spending less [3] - Constellation volumes are down almost 3% year-over-year on a 12-week basis [4] - Other brewers are also experiencing volume declines: Boston Beer down 7%, Molson Coors down 11%, and AB InBev down 4% year-over-year [4] Strategic Shifts - Companies are pivoting their strategy to include products that might otherwise not have been a part of the portfolio, such as non-alcoholic beverages [7] - Some companies are exploring the energy drink or soft drink market [7]
Constellation Brands sinks on new outlook