Wine and spirits sales rebound in Constellation Q1
Mi Campo Tequila owner Constellation Brands has started fiscal 2027 with an 8% rise in organic sales for its wine and spirits arm.
For the three months ended 31 May 2026, Constellation Brands posted organic net sales of US$149.2 million for its wine and spirits division.
The company’s spirits brands include Tequilas Mi Campo and Casa Noble, as well as whiskeys High West and Nelson’s Green Brier.
Net sales for its first quarter (Q1) of fiscal 2027 (FY27) for wine and spirits were down by 47%, which Constellation said was ‘driven by a 64.1% decrease in shipment volumes’. This was a result of the company’s wine divestitures in 2025.
The 8% increase in organic net sales for wine and spirits, compared to the same period in fiscal 2026, was attributed to a 7.7% increase in organic shipment volumes.
Mi Campo stood out in Constellation’s spirits portfolio after the brand saw depletions soar by 62% in Q1.
Citing Circana data in the US, the firm also highlighted that its wine and spirits portfolio ‘outpaced the total wine and spirits category in both dollar and volume sales’.
Total organic sales for Constellation in Q1 reached US$2.43 billion, representing a 3% increase on an organic basis.
The company’s beer net sales rose by 2% to US$2.28bn. Constellation’s beer brands include Modelo and Corona.
The company reaffirmed its FY27 guidance for its wine and spirits organic net sales of between 1% growth and 1% decline, with the operating margin for the division estimated to increase between 5% and 6%.
Following its 2026 fiscal year (FY26), Constellation dropped the 2028 outlook it issued in April 2025 due to uncertainty. The company’s wine and spirits sales plunged by 51% in fiscal 2026.
Along with the divestiture of wine brands, the company also sold Svedka Vodka to Sazerac and Copper & Kings brandy to Bourdon Spirits Company during the financial year.
Constellation Brands’ president and CEO Nicholas Fink, who assumed the position from Bill Newlands in April, said: “Our portfolio continues to benefit from the strength of our brands, disciplined commercial execution, and our ability to connect with consumers across a broad range of occasions.
“Despite a discerning and value-conscious consumer environment, we grew enterprise organic net sales and gained share during the first quarter of fiscal 2027.
“As we continue to deepen our understanding of evolving consumer needs and invest behind our strategic priorities, we believe that we remain well positioned to drive sustainable organic growth while maintaining healthy investment in our brands.”
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