Constellation Brands Posts Strong Q4 Results as Premium Alcohol Demand Holds Steady
Constellation Brands (NYSE: STZ), the beverage alcohol giant behind Corona, Modelo, and Robert Mondavi, delivered robust fourth-quarter fiscal 2024 results, sustaining momentum in its premium beer and wine portfolio. The company reported net sales of $2.14 billion for the quarter, up 7% year over year and exceeding analyst expectations of $2.09 billion.
Beer remained the leading growth driver, with sales rising 14% year over year to $1.86 billion. Operating income from the beer segment surged 11% to $689 million. Modelo Especial, the top-selling beer in the U.S. by retail sales, led the charge alongside strong performances from Pacifico and Corona. The company’s continued success highlights the resilience of higher-end beer brands even as broader U.S. beer volumes contract.
Constellation’s strategy to focus on Hispanic and multicultural consumers is paying dividends, with Modelo especially benefiting from this targeted positioning. This demographic-led growth, paired with ongoing premiumization trends, has helped the beer business outperform much of the industry.
Meanwhile, the wine and spirits segment showed signs of stabilization. Though net sales dipped 6% to $289 million compared to the prior year, the company’s focus on higher-margin, premium brands like The Prisoner and High West supported a modest 1% rise in operating income to $56 million. The company has been actively pruning low-performing SKUs while reinvesting in premium and crafts spirits, in line with evolving consumer preferences for quality over quantity.
Looking ahead, management offered full-year fiscal 2025 guidance that includes 6% to 7% beer net sales growth and 4% to 5% wine and spirits growth. The company also expects full-year adjusted EPS of $13.50 to $13.80 and reaffirmed its commitment to shareholder returns, announcing increases to both its dividend and share repurchase programs.
For FMCG stakeholders, Constellation Brands’ latest results underscore how deeply consumer demand is shifting toward premium offerings across alcohol categories. Brands that align with cultural relevance, product differentiation, and experience-based consumption continue to outperform. As private label and discount competition intensifies, the company’s above-premium strategy serves as a compelling model for driving growth and profitability in a maturing beverage market