Looking ahead, expect Constellation to shake up its portfolio with more deals. “We work hard to make sure they all work, but if you never swing the bat, you’ll never hit the pitch,” he adds. The craft industry has struggled of late, suffering its first volume decline ever in 2020, even as other alcoholic beverage categories grew during the pandemic. Craft beer trends began to favor smaller, hyper-local brands, not the larger players like Ballast Point that aspired to go national. “The entire craft market changed about two days after we invested,” says Newlands. But one deal proved too frothy: Constellation spent $1 billion on craft brewer Ballast Point, selling it for a pittance just four years later. “If you extend your core power brands intelligently, and don’t do things that are the antithesis of what the brand stands for, you really have the chance to fill more consumer needs,” says Newlands.Ĭonstellation has also swung for the fences in some bigger deals like the company’s multibillion-dollar investment in Canadian cannabis producer Canopy Growth. It has innovated around those brands, including a Meiomi Cabernet Sauvignon, bourbon barrel–aged wines from Cooper & Thief, and multi-serve, pre-batched High West cocktails. Within its smaller wine and spirits businesses, Constellation has bought higher-end brands like High West, the Prisoner Wine Company, and Meiomi. Corona is Constellation’s star performer, but Modelo and even more recently, Pacifico, have made inroads among non-Latinx communities. but have also made inroads among other demographics. Mexican-made beers benefit from marketing toward the growing Latinx population in the U.S. “The beer business has been a great growth driver,” says Newlands. have been mostly flat, with market share losses to liquor and wine. This strongly outperforms the category, as total beer sales in the U.S.
Constellation’s beer sales have soared to $6.1 billion in the most recent fiscal year, up from $2.8 billion in the year the deal was announced. Beer accounts for roughly 70% of Constellation’s total sales today.
That deal is why Constellation ranks third in total beer sales in the U.S.
Corona seltzer ingredients full#
Constellation has full control of the beers stateside and can innovate around those brands as it pleases for U.S.
It was a side deal that allowed rival Anheuser-Busch InBev to buy the international assets of Grupo Modelo, which makes Corona and its namesake beer. The deal that has been perhaps the most transformative was Constellation’s $4.75 billion purchase of Grupo Modelo’s U.S. 359 on the Fortune 500 list for 2021, its highest-ever ranking. The heady growth helped Constellation Brands reach No. Over the past five years, Constellation Brands’ net sales have leaped 32% to $8.6 billion, while net income totaled nearly $2 billion in the latest fiscal year. “It was the easiest yes I’ve ever gotten for any pitch I’ve made.” “We want to bet on…an untapped market of great ideas, founders building interesting and disruptive brands,” she says. And it would bother me to no end if she couldn’t get the opportunities that I’ve gotten.”Īnd while Monteiro says she didn’t exactly “storm” into Newlands’s office, she shares his sentiment about much-needed representative change in the industry. He frames his case for why these investments are needed in personal terms: “I have a daughter, and I think she’s very talented. “We believe it is critically important to invest in the communities we serve, while providing capital to audiences that were undercapitalized for way, way too long,” says Newlands. Constellation has since committed to an additional $100 million invested in Black, Latinx, and minority-owned businesses by 2030. In just a year, Constellation’s Ventures portfolio went from having 20% of companies led by women to 40%. Six months later, Constellation Brands made waves when it committed to invest $100 million in women-led startups by 2028. Monteiro, executive vice president and chief growth, strategy, and digital officer, thought Constellation Brands should do something about it. She gave a straightforward and startling pitch: Women led-businesses generated twice the revenue per dollar invested versus the average non–women-owned business, and yet only 2% of venture capital funding went to female-led companies.
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