Core Insights - The report highlights the significance of Generation X (ages 45-60) as a key consumer group, projected to spend $15.2 trillion globally by 2025, making it the second-largest consumer market after the US [1][22][33] - Generation X is characterized as "caretaker consumers," balancing responsibilities of caring for both aging parents and children, which influences their spending patterns [1][22][81] Consumer Behavior - Generation X consumers prioritize practicality and reliability in products, showing a willingness to pay for quality but rejecting gimmicks [2][34] - They exhibit strong digital adaptability, with 39% open to AI recommendations, yet prefer human customer service due to privacy concerns [2][34] - Brand loyalty is high among Generation X, with 72% favoring well-known brands while also being open to local and niche products [2][34] Spending Trends - Key spending categories for Generation X include Elder & Dependent Care (growing at 8.2% annually), Education (6.2%), and Health-focused food products [1][89] - Alcoholic beverages account for 26% of their global spending, with a notable preference for mid-range wines priced between $15-$20 [2][108][115] - The beauty sector sees Generation X contributing 25% of total spending, with a focus on skincare and beauty services [2][120] Regional Insights - In China, Generation X represents 37% of the global cohort, with spending expected to remain on par with Millennials until 2027 [3] - High-income countries will see Generation X maintain its spending dominance until 2030, while low-income countries are witnessing a decline in their influence [3][45] - Wealthier regions account for two-thirds of Generation X's spending, highlighting the disparity in consumer behavior across different income levels [3][59] Strategic Recommendations - Brands should focus on practical product offerings that cater to the dual role of Generation X as both caregivers and consumers, emphasizing functionality and clear value [3][25] - Retailers are encouraged to enhance omnichannel experiences while maintaining human customer service to build trust with Generation X [3][71] - Marketing strategies should highlight family values and avoid overemphasizing trendy concepts to foster long-term loyalty among Generation X consumers [3][71]

Group 1 - Madison Mid Cap Fund reported a return of 5.2% in Q2 2025, underperforming the Russell Midcap Index which increased by 8.5% [1] - The fund highlighted Brown-Forman Corporation (NYSE:BF-B) as a notable stock, which experienced a one-month return of -11.47% and a 52-week decline of 41.58% [2] - Brown-Forman's stock closed at $27.48 on September 19, 2025, with a market capitalization of $12.888 billion [2] Group 2 - The fund sold its small position in Brown-Forman due to a lack of post-Covid recovery in liquor sales, attributed to changing consumption trends among younger demographics and external factors like tariffs [3] - Brown-Forman is not among the 30 most popular stocks among hedge funds, with 37 hedge fund portfolios holding the stock at the end of Q2 2025, unchanged from the previous quarter [4] - The analysis suggests that certain AI stocks may offer better investment potential compared to Brown-Forman, indicating a shift in investor interest [4]

Group 1 - Coca-Cola is identified as a leading Dividend King, having increased its dividend for 63 consecutive years, with a current dividend yield of 2.9%, which is higher than the average yield of consumer staples stocks [4][9] - The company has a strong market presence with 30 brands worth at least $1 billion and products sold in over 200 countries, yet it sees significant growth potential in developing and emerging markets where it holds only a 7% market share [6][7] - Coca-Cola reported $12.5 billion in revenue for the second quarter, a 1% increase year-over-year, with earnings per share rising 58% to $0.88, despite facing an 11-point currency headwind [7] Group 2 - The stock has appreciated by 12% in 2025 and 37% over the last five years, with a consistent dividend growth of more than 24% during the same period, making it an attractive investment despite lower stock returns compared to tech stocks [8][9] - Coca-Cola's gross margin improved to 62.4%, up 133 basis points from the previous year, indicating effective cost management in the face of rising commodity prices [12] - The company is positioned well to manage tariff impacts on commodity costs, which are more controllable compared to other companies facing higher import costs [11][12] Group 3 - Coca-Cola is viewed as a reliable investment choice in a tariff-centric environment, with a strong historical performance in dividend payouts and a solid market position [11][13] - The company is expected to continue its growth trajectory, leveraging its dominant market position and the potential for expansion in emerging markets [7][13]

Industry Trend - Hybrid pairings, combining alcoholic and nonalcoholic beverages, are gaining popularity in fine-dining restaurants across the country [1]

Group 1 - Alliance Global Partners has cut its price target for Tilray Brands (TLRY) stock by 25%, from $1 to $0.75 per share, citing softness in international cannabis and alcohol sales [1][3] - Despite the price target cut, Tilray's stock price increased by 15.8% as of 2:05 p.m. ET on Tuesday, indicating an unexpected investor reaction [1][3] - Tilray generates 25% of its revenue and 40% of its gross profit from alcoholic beverages, which is significant for its overall financial performance [3] Group 2 - Tilray has not reported a profit since 2018 and has never generated positive free cash flow (FCF) [4][5] - Analysts do not expect Tilray to become profitable before 2029, although there are forecasts for positive FCF in 2026 [5] - Given the company's historical performance, there is skepticism regarding its ability to achieve positive FCF in the near future, leading to a recommendation to sell the stock [5]

Trade Relations - The EU is preparing to impose retaliatory tariffs on a new list of American products if a trade agreement is not reached by August 1 [1] - The targeted American products include aircraft and alcoholic beverages [1]

Core Viewpoint - Constellation Brands Inc (NYSE:STZ) shares are experiencing a 2.2% increase to $168.52, recovering from premarket losses despite missing fiscal first-quarter earnings and revenue expectations due to lower demand for alcoholic beverages and increased costs from aluminum tariffs [1] Group 1: Stock Performance - STZ is on track for its fourth consecutive daily gain, although it has recently faced monthly and quarterly losses, with a decline of 22.9% in 2025 and a five-year low of $159.35 marked on June 20 [2] - The stock has rebounded from its lows, but the 20-day moving average may limit today's gains [2] Group 2: Analyst Ratings - Analysts from Evercore ISI and Bernstein have reaffirmed their "outperform" ratings on STZ, indicating continued confidence in the stock despite recent challenges [1] Group 3: Options Activity - Options traders are exhibiting a notably bullish sentiment, as evidenced by a 50-day call/put volume ratio of 2.57, which is higher than 96% of readings from the past year [3] - Today's options activity shows 12,000 calls and 11,000 puts traded, which is five times the intraday average volume, with the most active contract being the weekly 7/3 175-strike call [4]