Constellation ditches 2028 guidance amid uncertainty
In the 2026 fiscal year (FY26), Constellation Brands’ wine and spirits sales fell to US$823.8 million, a 51% decline from FY25.
As in its third-quarter (Q3) results, the firm’s performance was hindered by the divestitures of multiple wine and spirits brands, including Svedka Vodka and Copper & Kings brandy.
Excluding the divestitures, the wine and spirits portfolio’s organic net sales fell by 14% for FY26 and by 6% for the final three months (Q4), both periods ending on 28 February.
The firm had previously predicted an organic net sales decline of between 17% and 20% for the full year.
Alongside the divestitures, Constellation blamed the poor performance on ‘unfavourable mix, changes in distributor contractual obligations, and strategic pricing actions taken on select brands’.
Spirits net sales for the year were US$123.4m, a 44% decrease on FY25. Similarly, its Q4 sales totalled US$39.3m, a decrease of 21% on the previous year.
As a whole, Constellation’s net sales for the year fell by 10% to US$9.14 billion, with its beer portfolio declining by 3%.
Uncertain future
Looking forward to 2027, Constellation said it was “encouraged by the momentum displayed during the fourth quarter across our beer and wine and spirits businesses”. Accordingly, it updated its guidance assumptions to predict organic net sales to be between a 1% growth and a 1% decline.
It also withdrew its previously issued 2028 outlook guidance, which it had provided in April 2025, stating “we expect the operating environment to remain dynamic given the evolving socioeconomic backdrop and limited near-term visibility”.
President and CEO Bill Newlands said: “Despite the dynamic operating environment in fiscal 2026, we remained focused on the factors within our control and executed with discipline.
“That execution enabled our beer business to continue to be the number-one dollar share gainer across US tracked channels, and our remaining portfolio in our wine and spirits business to deliver depletion growth during the year.
“As we look ahead to fiscal 2027, we expect consumers will continue to navigate a shifting macroeconomic environment, but we remain encouraged by the momentum we saw in the fourth quarter.
“Our strategic priorities continue to be clear, and our best‑in‑class organisation is energised and committed to delivering solid results.”
Newlands will hand over the reins of Constellation to former Suntory Global Spirits executive Nicholas Fink next week.
Last month, the firm appointed a new master distiller.
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