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Constellation Brands’ Hidden Beer Comeback: $600 Million in Savings and a Top 10 Brand!

Constellation Brands reported second quarter fiscal year 2027 results exceeding expectations, with management reiterating full-year guidance of comparable earnings per share between $11.20 and $11.90. If positive trends observed in September continue, the company anticipates results toward the upper end of this range. The company highlighted its strong performance in beverage alcohol, notably regaining the position as the number one dollar share gainer. The beer segment notably accelerated quarter-over-quarter, led by Pacifico’s elevation to a top 10 beer brand with significant potential for expansion. Management emphasized the effectiveness of recent increased marketing investments, which contributed to outperformance versus the broader industry. Inventory levels were addressed, noting a significant focus in the first half of rebuilding distributor inventories after an overcorrection in the prior fiscal year. Days on hand remain lower than historic averages but have improved entering the third quarter.