STZ Filings — Constellation Brands, Inc. - FilingSpy
STZ
Constellation Brands, Inc.
A maker of beer, wine, and spirits, Constellation Brands is the top imported beer seller in the U.S., home to Modelo Especial, Corona Extra, Pacifico, and Victoria, plus premium wines and spirits like Kim Crawford and High West. It began in 1945 when Marvin Sands turned a former sauerkraut factory in Canandaigua, New York, into a winery, renaming the company Constellation Brands in 2000. Its first hit wine, Richard's Wild Irish Rose, was named after the founder's son.
Q1 FY2027 operating income rose 18% to $845.3M as gross margin expanded to 54.3%
Beer returned to growth while Wine and Spirits shrank to a sliver. fell 3.3% to $2,432.7M but rose 18.4% to $845.3M and widened 3.9 points to 54.3%, driven by , cost savings, and the divested lower-margin brands. The business is now essentially Beer, with the wine and spirits wind-down nearly complete.
Key takeaways
rose 18.4% to $845.3M and widened 6.4 points to 34.7%, as favorable and cost savings offset the lower sales base.
expanded 3.9 points to 54.3%, helped by favorable comparable adjustments, the divestiture of lower-margin Wine and Spirits brands, and Beer pricing.
Beer grew 2% to $2.28B on 1.8% shipment volume growth and favorable pricing, partially offset by unfavorable package mix, reversing the prior-quarter 1% decline.
Section summaries
Management's Discussion and Analysis
Q1 FY2027 net sales fell 3% to $2.43B, but operating income rose 18% to $845M driven by favorable commodity derivative gains and cost savings.
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Beer grew 2% to $2.28B on 1.8% shipment volume growth and favorable pricing, partially offset by unfavorable package mix.
Wine and Spirits dropped 47% to $149M, primarily from the , though organic net sales rose $10.7M on 7.7% shipment growth.
fell 9% to $457M, with Wine and Spirits down 36% on lower marketing and G&A from restructuring and a smaller brand portfolio.
was $661.8M, up 3.9% , and the company refinanced debt with a new $497M 4.85% while redeeming 3.70% notes; $2.75B remains on the $4B authorization.
What changed
Q2 FY2026 watch item — Beer and shipment volume to see if the 7% decline reversed: Beer net sales grew 2% with 1.8% volume growth, reversing the prior-quarter drop and the Q3 FY2026 1% decline.
Q2/Q3 FY2026 watch item — next Wine and Spirits operating result after sales fell to $136M then $213.1M: dropped 47% to $149M from the divestitures, with organic sales up $10.7M; no further was reported.
FY2026 watch item — Meza securities class action: the amended complaint now focuses on beer business prospects, with motion to dismiss fully briefed and oral argument set for July 22, 2026; no financial exposure estimated, and derivative suits are stayed or dismissed.
FY2026 watch item — FY2027 : the company now expects 16%–18%, within the flagged 19%–21% range context but lower, after prior divestiture benefits lapsed.
fell 7.1% to $9.1B, continuing the debt reduction seen across FY2026; total assets were $22.1B, roughly flat versus a year earlier.
What to watch
Q2 FY2027 Beer and shipment volume to confirm the 2% growth holds as begins initial production around mid-year.
Next Wine and Spirits result after the 47% drop to $149M, including any further on remaining assets.
Meza oral argument on July 22, 2026 and whether any financial exposure is established.
Fiscal 2027 landing at 16%–18% and progress on the $4B plan with $2.75B remaining.
Wine and Spirits dropped 47% to $149M, primarily due to the ; organic net sales rose $10.7M on 7.7% shipment growth.
Consolidated expanded 390 to 54.3%, helped by favorable , divestiture of lower-margin brands, and beer pricing.
SG&A expenses fell 9% to $457M, with Wine and Spirits down 36% on lower marketing and G&A from restructuring and a smaller brand portfolio.
was $662M, up $25M, while debt refinancing included a new $497M 4.85% senior note and redemption of 3.70% notes.
The company expects a Fiscal 2027 of 16%–18% and continues its $4B authorization with $2.75B remaining.
The company faces a putative securities class action and related derivative suits over alleged misstatements about its beer business prospects.
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A (Meza) alleges violations of Exchange Act Sections 10(b) and 20(a) and Rule 10b-5, originally concerning wine and spirits strategies but amended to focus on beer business prospects.
The Meza amended complaint seeks unspecified damages, attorneys’ fees, and costs; a is fully briefed with oral argument scheduled for July 22, 2026.
Three derivative complaints (Silva, Mason, Wasserman) were filed on behalf of the company against current and former directors and officers, based on similar allegations as the original Meza complaint.
The Silva and Mason derivative actions were consolidated and stayed pending final judgment in Meza; the Wasserman derivative action was voluntarily dismissed.
No specific financial exposure or loss estimate is stated for any of these proceedings.