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Constellation Brands' Beer Slips as Company Tightens Strategy Before 2026 World Cup

Executives blame unusually cautious Hispanic spending, prioritizing small price moves, packaging tweaks, Mexico investment to stabilize sales.

Overview

  • For Q3 FY2026, consolidated net sales fell 10% year over year to $2.223 billion, with beer net sales down about 1% as shipments declined 2.2%.
  • Management reports persistent softness in ZIP codes where more than 20% of residents are Hispanic, and the CEO says roughly 75% of Hispanic consumers are very concerned and spending more cautiously.
  • Plans include 1–2% price increases, expanded use of smaller or alternative pack sizes such as 7‑ounce formats, and a sharper focus on distribution and price architecture.
  • Capital spending guidance for fiscal 2026 is about $1.2 billion, including approximately $1.0 billion earmarked for beer operations in Mexico.
  • Leaders expect the 2026 FIFA World Cup to provide an incremental sales lift for Modelo and Corona but caution the magnitude is difficult to project given consumer and macro conditions.