Constellation expects drinkers to skip the wine aisle as booze biggies see shifting thirsts

Notes of peppercorn… and disappointment. Booze giant Constellation Brands cut its annual guidance after pricing in an expected loss of up to $2.5B related to its waning wine biz. It’s an about-face from Q1, when the Modelo maker raised its forecast after its profit 6x’d from last year. But Constellation’s non-beer biz, which includes wine brands like Meiomi and Prisoner Wine, appear to be leaving a bigger-than-expected stain. Constellation said this week that wine and spirits sales could tumble as much as 6% this year, down from the roughly flat forecast it shared in July.

• Fizzle: Constellation’s beer biz is staying strong enough to offset its wine weakness and keep annual sales up. But the Pacifico parent trimmed its beer guidance, calling out rising unemployment and thrifty customers.

Getting crushed… Napa wine seller Duckhorn Portfolio cut its outlook this year, citing a softer wine market, while Pernod Ricard said in July it’s selling off most of its vino labels. Booze brands face headwinds beyond the vineyards: fewer young adults are drinking compared to their parents’ generation, and those who still imbibe are sipping less overall. While the #sobercurious trend has boosted zero-proof companies like Athletic Brewing, alcoholic craft-beer sellers like Anchor Brewing and Monster-owned Canarchy have struggled to cope.