Research · Sep 3, 2026
[STZ] Constellation Brands Thesis 2026: Wine Exit Completes the Pure-Play Beer Pivot
Constellation Brands completed its transformation into a pure-play premium beer company in FY2026, selling mainstream wine brands for $846M and SVEDKA for $409M while Beer reached 91% of consolidated revenue. The Beer segment posted $3.16B in comparable operating income at a 38% margin, but reported its first volume decline since the Modelo acquisition as US Hispanic consumer demand softened. EPS recovered to $9.61 from -$0.45 and FCF held at $1.79B as capex eased.