We're getting bold aromas and notes of oak... from the earnings report of Constellation Brands. The liquor legend's beer sales jumped 9%, but wine slipped 8%. Blame that on 3 key trends:
- Americans are drinking less.
- When they do drink, it's higher-end stuff.
- And they want to try something lower-cal (but refreshing).
"Rosé all day" is over... "Expensive low-alcohol rosé occasionally" is the new thing. Constellation's adjusting to those shifting tastes in a big way with its wine portfolio — "Non-premium" is out and vintage Brunello is in:
- Under-$11 labels: Gone. Constellation just sold off 30 of its cheapest brands for $1.7B (it was hoping to get twice that).
- Over-$11 labels: They get all the attention. Constellation's promoting them through new partnerships with the PGA and a bunch of NFL teams.
Constellation's making alcohol more like seltzer... Rising Modelo sales have Constellation focused on beer. Next is Corona Refresca, the Mexican brand's 1st non-beer (but beer-branded) option that comes this month. Look out for its Insta-worthy guava or coconut-lime flavor cans. Pairs well with those 3 trends above. ⬆️⬆️
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