Constellation Brands

Constellation Brands overtook Molson Coors as the No. 2 beer category vendor by dollar sales in multi-outlet grocery and convenience stores (MULO+C) in 2023, according to market research firm Circana, which shared its year-end report. Constellation grew off-premise dollars by $1.092 billion to $8.446 billion through December 31.

Constellation Brands has raised its full-year operating income guidance for its beer brands to +7% to +8% (previously +6% to +7%), following another quarter of shipments and depletions growth, the company reported today in its Q3 earnings results.

Martignetti Companies has closed on its acquisition of Quality Beverage, according to a press release. Financial terms of the deal, which was announced in April 2023, were not disclosed.

The fallout surrounding the conservative-led boycott of Anheuser-Busch’s (A-B) Bud Light brand and the accelerated declines that ensued accounted for three of Brewbound’s top stories of 2023. The internal machinations at A-B, including a reshuffling of its craft division, also piqued Brewbound readers’ interests. As we close out the year, here’s a look back at the 10 most-read stories of 2023.

Red Tree Beverages, Coca-Cola’s “firewalled, wholly owned” subsidiary to explore beverage-alcohol, has no intention of getting into the distribution business, Red Tree president Jenny Dowdy said yesterday during Beer Marketer’s Insights fall seminar.

Constellation Brands has launched Shyft, “a new flavor changing” flavored malt beverage (FMB), in three markets as part of a newly created “emerging brands group” aimed at creating new-to-world brands with “a more focused but longer testing approach,” CEO Bill Newlands announced during the company’s “Investor Day” on Thursday.

Beverage sales in the convenience channel remained “healthy” in Q3 2023, up +4.4%, despite decelerating from stronger +6.6% growth in Q2, according to the latest Beverage Bytes survey of retailers conducted by Goldman Sachs Equity Research.

Massachusetts-based Quality Beverage has filed a lawsuit against Constellation Brands, alleging the bev-alc giant has interfered with its pending sale to wine and spirits wholesaler Martignetti Companies.

Monster Energy is “all-in on alcohol” and “thinks it could be big for them by 2025,” according to Goldman Sachs equity analyst Bonnie Herzog’s report from the National Association of Convenience Stores (NACS) trade show. The energy drink maker, which entered beverage-alcohol with the acquisition of CANarchy in January 2022, displayed its forthcoming hard tea, Nasty Beast Hardcore Tea during the show, Herzog wrote.

Constellation Brands continues to grow its beer business, increasing net beer sales +12% year-over-year (YoY) in Q2 of fiscal year 2024 (+$253 million), to more than $2.39 billion.

Distributors noticed stronger beer trends this summer versus last summer, “despite headline concerns over the slowing category and ongoing Bud Light pressures,” Goldman Sachs analysts reported in the company’s latest Bev Bytes Beer Distributor Survey.

A month after Molson Coors’ sunny Q2 earnings call with investors, CEO Gavin Hattersley gave an update on continued positive trends at the Barclays Global Consumer Staples Conference.

Constellation Brands posted solid shipments and depletions growth in its first quarter of fiscal year 2024. Beer shipments increased +7.5% year-over-year (YoY), to 107 million case equivalents, while depletions increased +5.5%.

Constellation Brands is exiting the craft beer business. Constellation, which has found success with Mexican import brands Modelo, Corona and Pacifico, said it will divest of its craft and specialty division to refocus its efforts on its core brands. As such, Funky Buddha Brewery in Florida and Four Corners Brewing Co. in Texas will return to their respective original founders.