Constellation Brands said it is refining its beer strategy around consumer occasions and brand-specific playbooks while reaffirming the full-year guidance it issued in April. Speaking at an investor conference in Boston, Chief Executive Officer Nick Fink said mature brands such as Corona need a more granular approach centered on relevance and targeted activation, while Modelo, Pacifico and Victoria still have room to grow through distribution. Fink said Constellation was the number-one share gainer during the World Cup by nearly one share point, with strong on-premise performance, but he called off-premise results and August Circana data lackluster amid higher gas and diesel prices and broader macroeconomic and geopolitical pressures. Chief Financial Officer Garth Hankinson said the company has generated more than $600 million in supply-chain savings after spending nearly $1 billion annually over the past decade on brewery capacity, and he expects second-half operating margins to be lower than the first half on seasonal, inflationary and increased marketing pressures. Constellation's wine and spirits segment grew 8% in the prior quarter and is expected to produce margins in the 5% to 6% range this year, while capital allocation will continue to emphasize investment, a dividend with a 30% payout and share repurchases under a $4 billion authorization.
Corona Corporation
Victoria PLCConstellation Brands Inc Class AReaffirmed full-year guidance and detailed margin/capital-allocation plans, but flagged lower second-half margins and lackluster off-premise results.
