Constellation Brands: What Is Its Portfolio Transformation Strategy in Wine and Spirits?

Constellation Brands reported strong Q3 results, driven by robust performance in their beer business, achieving over 8% depletion growth for its beer portfolio. This performance is a testament to continued strong consumer demand and contributed to the company’s 55th consecutive quarter of depletion growth and tenth leading share gains. The company also executed $215 million of share repurchases in Q3, maintaining its net leverage ratio at 3.2x, excluding Canopy equity and earnings. It continues to balance capital allocation through delivering cash returns via dividends and investing in the organic growth at breweries, ensuring additional production capacity for its beer business.