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Constellation spirits continue decline
By Lauren BowesHigh West whiskey owner Constellation Brands saw wine and spirits net sales fall by 14% in the third quarter (Q3) of fiscal 2025.

Total sales for the three months to 30 November 2024 were flat at US$2.5 billion, with the decline of wine and spirits aided by a 3% growth for its beer brands.
As in Q2, the fall in wine and spirits was driven by a decrease in shipment volumes, this quarter by 16.4% – nearly seven percentage points lower than the previous quarter. The firm cited ‘ongoing weaker consumer demand and continued retailer inventory destocking across most price segments in the US wholesale market’.
Total wine and spirits sales were US$431.4 million. Spirits fell by 15% to US$56.8m and wine dropped by 14%.
The firm recently offloaded its only vodka brand, Svedka, to Sazerac for an undisclosed sum. In its Q3 results, Constellation said the move ‘further aligns our wine and spirits portfolio with higher-growth, higher-margin brands driven by consumer-led premiumisation trends’.
From March to November 2024, Svedka delivered US$84m in net sales and US$30m gross profit.
The firm revealed its craft spirits portfolio achieved depletion growth of approximately 9%, with Mi Campo Tequila depletions growing by more than 30%.
Constellation’s other spirits brands include Casa Noble Tequila and Nelson’s Green Brier.
For its wine and spirits division, the firm now expects an organic net sales decline of 5%-8% for fiscal 2025, updating its previous guidance of a 4%-6% decline.
It expects organic net sales growth of 2%-5% for its whole portfolio.
Bill Newlands, the firm’s president and CEO, said: “While we continue to face the subdued spend and value-seeking behaviours that emerged among legal drinking age consumers in Q2, our beer business delivered a sequential increase in our depletions growth rate in Q3.
“This was supported by our relentless focus on executing against the key growth drivers of our beer business, including incremental marketing investments.
“That said, given near-term uncertainty on when consumers will revert to more normalised spending, we have prudently lowered our growth outlook for net sales and operating income in fiscal 2025, and have also revised the lower-end of our comparable EPS [earnings per share] growth guidance.”