18 January 2024

Constellation benefits from Modelo beer sales as its wines and spirits struggle

USA | Constellation Brands’ beer business gained further ground in its third quarter (until the end of November) after its Modelo Especial toppled Bud Light as the best-selling beer in the US last year. Net beer sales were up 4 percent to USD 1.97 billion, led by an approximately 12 percent increase in sales of Modelo Especial.

In its earnings report released on 5 January, Constellation fell short of quarterly sales estimates of USD 2.54 billion. Its revenue only rose 1.4 percent from a year ago to USD 2.47 billion, due to a decline in wine and spirit sales, whose revenue slipped 8 percent to USD 502 million. But the firm stuck with its 2024 profit forecast because of the growth of its beer brands.

“Modelo Especial delivered double-digit volume growth and continued to extend its position as the #1 beer in US tracked channel dollar sales,” Constellation’s CEO Bill Newlands said in a statement accompanying the results. “Our other core beer brands, Corona Extra and Pacifico, also delivered solid growth and were top 10 share gainers across the US beer category.”

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