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Constellation posts Q4 loss, plans to expand beer production in Mexico
Constellation Brands' headquarters in downtown Rochester. (Photo by Andrea Deckert)
Constellation Brands' headquarters in downtown Rochester. (Photo by Andrea Deckert)
Constellation posts Q4 loss, plans to expand beer production in Mexico
Listen to this articleConstellation Brands reported a fourth-quarter loss after markets closed Wednesday, as well as plans to expand its capacity to produce high-end beer brands in Mexico and a deal to sell a portion of its wine portfolio.
The Rochester-based beer, wine and spirits producer reported a four-quarter net loss of $375.3 million, or $2.09 a share, compared to net income of $392.4 million, or $2.14 a share in the prior year.
Comparable earnings per share for the fourth quarter were $2.63 compared to $2.30 a share last year.
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Adjusted revenue for the quarter was $2.16 billion, up one percent year-over-year.
“We remain focused on driving distribution gains, disciplined innovation and increased marketing investments in our Beer Business, enhancing efficiency across our enterprise, and repositioning our Wine and Spirits Business to be entirely in higher growth, higher-end segments,” said Bill Newlands, Constellation’s president and CEO.
The company has signed an agreement with The Wine Group to divest primarily mainstream wine brands and related vineyards and facilities from its wine portfolio and is undergoing a review of its organizational structuring, which is expected to deliver net annualized cost savings in excess of $200 million by fiscal year 2028.
Brands to be divested to The Wine Group include Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI and J. Rogét sparkling wine, along with associated inventory, facilities and vineyards.
Constellation’s retained wine portfolio will consist of a collection of highly regarded wines from top regions around the world, predominantly priced $15 and above.
The company, which produces the popular Corona and Modelo beer brands, is ramping up its beer production efforts.
Constellation expects to have some $2 billion of capital expenditures from fiscal 2026 to 2028, largely due to its continued development of a third brewery site in Mexico and additions at existing facilities there.
By the end of fiscal 2028, the company expects to increase its capacity in Mexico to approximately 55 million hectoliters to support the anticipated growth of its high-end beer brands, Constellation said in a release.
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