Constellation wine and spirits sales slashed by half

In its third quarter (Q3), Constellation Brands’ wine and spirits sales fell to US$213.1 million, a 51% decline on the same period last year.

The low figures for the three months ending 30 November 2025 reflect a 70.6% decrease in shipment volumes following the divestiture of Svedka vodka and multiple wine brands.

The firm’s Q2 results were also impacted by the loss of these brands, with wine and spirits sales falling by 65%.

Constellations Brands also offloaded brandy producer Copper & Kings in August 2025.

The firm also cited ‘strategic pricing actions taken on select brands and changes in distributor contractual obligations’ as reasons for the portfolio’s decline.

Excluding these divestitures, the wine and spirits portfolio’s organic net sales fell by 7%.

Spirits net sales were US$38.6m, a 32% decrease on Q3 2024.

The firm reiterated its expectations for the division’s organic net sales to decline by between 17% and 20% for the full year.

Including its beer business, the business as a whole saw net sales fall by 10% to US$2.22 billion.

President and CEO Bill Newlands said: “The operating environment during Q3 of fiscal 2026 remained challenged, which was in line with our expectations and relatively consistent with the prior quarter.

“Our beer business delivered dollar and volume share gains in tracked channels and gained incremental distribution points, while our wine and spirit business continued to outperform the US wine industry.

“By focusing on factors within our control, we are confident that we are positioning the company for long-term success.”