The alcoholic beverages maker faces a lot of near-term challenges.Constellation Brands (STZ -1.18%) was once considered a reliable blue-chip stock. It owns more than 100 brands of beers, spirits, and wines, and it has raised its dividend annually for 10 consecutive years. But over the past 12 months, Constellation's stock price has dropped nearly 30%. Let's see why that happened -- and if it can bounce back over the next 12 months.What happened to Constellation over the past year?Constellation struggled wit ...

ROCHESTER, N.Y., May 01, 2025 (GLOBE NEWSWIRE) -- Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, announced today that Garth Hankinson, Executive Vice President and Chief Financial Officer, and Jim Sabia, Executive Vice President and President, Beer Division, will participate in a fireside chat at the 2025 Goldman Sachs Global Staples Forum on Tuesday, May 13, 2025 in New York, N.Y. The presentation is scheduled to begin at 11:40 a.m. ET and is expected to cover the company’s fin ...

Group 1: Investment Overview - Berkshire Hathaway sold more stock than it bought in 2024, raising questions about its investment in Constellation Brands, which has likely lost value due to tariff fears and declining alcohol consumption [1] - Constellation Brands appears to align with Buffett's investment philosophy, being a "forever" stock with enduring product demand, particularly as it produces the U.S.'s No. 1 beer, Modelo Especial [2] - The current valuation of Constellation Brands is low, with a forward P/E ratio of 15 and a price-to-sales (P/S) ratio of 3.4, down from 6 in 2022, indicating a significant discount [3] Group 2: Market Performance and Concerns - Constellation's stock performance has been poor, diverging from the S&P 500 since 2023, which may have prompted Buffett's team to see an investment opportunity [4] - Recent tariff concerns regarding imports, including Mexican beers and spirits, could lead to increased prices and decreased sales, potentially jeopardizing Modelo's market position [5] Group 3: Investment Strategy and Opportunities - Investors may have the chance to "out-Buffett" Buffett by purchasing shares at a lower valuation, as current P/S ratios are more favorable than those at which Buffett's team bought shares [6] - New shareholders could benefit from a higher dividend yield of about 2.2%, which is significantly above the S&P 500's approximate 1.5% yield [7] - Constellation Brands has consistently raised its dividend since 2015, with a free cash flow of $1.9 billion in fiscal 2025, indicating the potential for further dividend increases [8] Group 4: Future Considerations - While Berkshire's Q1 purchases remain unknown until the release of its 13-F, there is potential for investors to achieve better returns than Buffett if they buy at lower share prices [9] - Despite the uncertainties surrounding tariffs and consumption, the low valuation and prospects for rising dividends may present a compelling opportunity for investors to add Constellation shares [11]

Financial Performance - Consolidated net sales for Fiscal 2025 reached $10,208.7 million, a 2.5% increase from $9,961.8 million in Fiscal 2024[30]. - The beer segment generated net sales of $8,539.8 million, up from $8,162.6 million, reflecting strong growth in high-end imported beer brands[30]. - The wine and spirits segment reported net sales of $1,668.9 million, a decrease from $1,799.2 million, primarily due to challenges in the lower price point segments[30]. Investment and Expansion - The company plans to invest approximately $2 billion from Fiscal 2026 to Fiscal 2028 for expansion and optimization initiatives, including the ongoing construction of the Veracruz Brewery[33]. - The company has entered into a 2025 Wine Divestitures Transaction, including the Gonzales Winery and Woodbridge Winery, along with approximately 6,600 acres of vineyards in the U.S.[194]. - The company plans to invest approximately $2 billion from Fiscal 2026 to Fiscal 2028 in expansion and optimization activities related to the Mexico Beer Projects[208]. Product Development and Innovation - In Fiscal 2025, the company launched several new products, including Modelo Chelada Fresa Picante and Corona Sunbrew, to align with consumer-led premiumization trends[35]. - The company emphasizes the importance of developing new products, with ongoing uncertainty regarding consumer appeal and marketing effectiveness[109]. - The company continues to focus on consumer-led innovation and premiumization trends to meet changing consumer needs[208][215]. Strategic Focus and Market Position - The company aims to maintain its leadership position in the U.S. beer market by increasing distribution for key brands and optimizing growth through differentiated brand positioning[25]. - The company has experienced a significant reliance on sales of its Mexican beer brands, which represent the vast majority of its business[103]. - The Wine and Spirits segment is being repositioned to focus exclusively on higher-end brands, aiming for improved growth and margins[209]. Operational Capacity and Supply Chain - As of February 28, 2025, production capacity at Mexican breweries is approximately 48 million hectoliters, expected to increase to 55 million hectoliters by the end of Fiscal 2028[49]. - The company has adequate production capacity in its Beer segment to meet current and anticipated future demand[189]. - The company relies on a limited number of suppliers for critical materials, such as glass bottles and aluminum cans, which poses risks of shortages and increased costs[125]. Employee Engagement and Safety - Employee engagement measured 86% favorable in a company-wide survey conducted during Fiscal 2025, with an 83% response rate[78]. - The recordable incident rate for work-related injuries is well below the industry average, reflecting a strong commitment to employee safety[81]. - The company spent over $17 million on development and training costs in Fiscal 2025, including leadership coaching for nearly 350 leaders[76]. Corporate Governance and Ethical Practices - The company has a strong focus on corporate governance and ethical practices, with guidelines accessible on its investor relations website[99]. - The Board of Directors oversees cybersecurity risks, with quarterly updates provided by the CIO and CISO to the Audit Committee[184]. - The company has implemented a governance framework to address the use of AI technologies, but risks remain regarding compliance and the effectiveness of these technologies[130]. Risks and Challenges - The company is facing potential declines in consumption due to changing consumer preferences and economic conditions, which could adversely affect sales and profitability[104]. - The company has faced challenges related to inflation, which may reduce consumer spending and increase costs[104]. - The company is subject to various strategic risks, including regulatory changes and shifts in consumer behavior towards alcohol consumption[102]. Financial Management and Debt - The company has incurred significant indebtedness to finance investments, acquisitions, and capital expenditures, which exposes it to risks associated with interest rate fluctuations[153]. - The company is currently experiencing an elevated interest rate environment, which could impact its ability to manage debt service requirements and return value to stockholders[153]. - The company’s capital allocation strategy includes cash dividends and share repurchases, which are subject to market conditions and other uncertainties[169]. Environmental and Social Responsibility - Corporate charitable contributions for Fiscal 2025 totaled $8.0 million, including matching employee donations[84]. - Environmental sustainability and CSR-related costs may increase significantly, impacting the company's financial condition and operational strategies[142]. - The company is dependent on quality water and agricultural raw materials, with potential risks from climate change and supply chain disruptions[121]. Acquisitions and Divestitures - The company has ongoing strategies for acquisitions and divestitures, including a pending 2025 Wine Divestitures Transaction, which may impact financial objectives[107]. - The company has acquired full ownership of companies such as Austin Cocktails and My Favorite Neighbor, indicating a strategy of consolidating interests in successful brands[108]. - A total goodwill impairment of $2,740.7 million was recognized, reducing the carrying value to zero due to negative trends in the Wine and Spirits business[205][206].

Core Viewpoint - A class action securities lawsuit has been filed against Constellation Brands, Inc. due to alleged securities fraud affecting investors between April 11, 2024, and January 8, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit aims to recover losses for investors impacted by the alleged fraud during the specified period [1]. - The complaint highlights that the defendants provided misleading information regarding Constellation's fiscal results for 2024 and the financial outlook for 2025, particularly in the Wine and Spirits business [2]. - A significant sales performance miss was reported in the Beer segment and an even larger miss in the Wine & Spirits segment, leading to a stock price drop from $219.28 on January 8, 2025, to $181.81 on January 10, 2025 [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the relevant timeframe have until April 21, 2025, to request to be appointed as lead plaintiff [3]. - Participation in the lawsuit does not require serving as a lead plaintiff, and there are no out-of-pocket costs for class members [3]. Group 3: Firm Background - Levi & Korsinsky has a history of securing hundreds of millions of dollars for shareholders and is recognized as one of the top securities litigation firms in the United States [4].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Constellation Brands, Inc. regarding a class action lawsuit related to alleged misleading information about the company's financial performance and outlook, particularly in its Wine and Spirits segment [1]. Summary by Sections Allegations - The complaint alleges that Constellation Brands provided investors with misleading information regarding its fiscal year 2024 results and the financial outlook for 2025, focusing on improving sales execution in its Wine and Spirits business [1]. - The company emphasized efforts in premium brands to drive consistent growth and made investments in media spending and price promotions [1]. - On January 8, 2025, the company reported significant misses in sales performance for both the Beer segment and the Wine & Spirits segment, leading to a sharp decline in stock price from $219.28 to $181.81 within two days [1]. Next Steps for Shareholders - Shareholders who purchased shares during the specified class period are encouraged to register for the class action, with a deadline set for April 21, 2025 [2]. - Registered shareholders will receive updates through a portfolio monitoring software throughout the case lifecycle [2]. About the Law Firm - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and illegal business practices [3]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions [3].

Core Viewpoint - A class action lawsuit has been filed against Constellation Brands, Inc. for alleged violations of federal securities laws, specifically related to misleading statements about its sales execution and inventory mix in the Wine and Spirits business [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Constellation Brands made false and misleading statements regarding its focus on improving sales execution and inventory mix, particularly in its premium brands [2]. - The company asserted that its media spending and price promotions would enhance the sales capabilities of its distribution partners, yet it reported significant sales misses in both its Beer and Wine and Spirits segments during its third quarter 2025 results [2]. Group 2: Investor Information - Shareholders who purchased Constellation's securities between April 11, 2024, and January 8, 2025, are encouraged to contact the DJS Law Group to participate in the class action lawsuit [1][3].

Core Viewpoint - Constellation Brands, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with a deadline for potential lead plaintiffs approaching on April 21, 2025 [1][5]. Group 1: Allegations and Financial Impact - The lawsuit claims that Constellation Brands misled investors regarding the performance and reliability of its Wine and Spirits business [3]. - It is alleged that the company failed to improve its product mix, inventory management, and sales execution, and did not disclose the ineffectiveness of its media spending and promotional strategies [3]. - Following the announcement of disappointing third quarter fiscal year 2025 results on January 10, 2025, which showed significant misses in both the Beer and Wine and Spirits segments, the stock price of Constellation Brands declined [4]. Group 2: Legal Process and Representation - Investors who purchased Constellation Brands securities during the specified class period can seek to be appointed as lead plaintiff, representing the interests of the class [5]. - The lead plaintiff is typically the investor with the greatest financial interest and must be typical and adequate of the class [5]. - The lead plaintiff has the authority to select a law firm to represent the class in the lawsuit [5]. Group 3: Law Firm Background - Robbins Geller Rudman & Dowd LLP is a prominent law firm specializing in securities fraud cases, having secured over $6.6 billion for investors in class action cases [6]. - The firm has been ranked 1 in securing monetary relief for investors in six out of the last ten years [6]. - Robbins Geller has a significant track record, including the largest securities class action recovery in history, amounting to $7.2 billion in the Enron case [6].

Core Viewpoint - A class action lawsuit has been initiated against Constellation Brands, Inc. for misleading investors regarding the performance of its Wine and Spirits division and other operational issues during the specified Class Period from April 11, 2024, to January 8, 2025 [1][3]. Group 1: Lawsuit Details - The class action claims that Constellation Brands misled investors by suggesting they had reliable insights into the performance of their Wine and Spirits division [3]. - Allegations include failure to improve product mix, inventory management, and sales execution, as well as not disclosing the ineffectiveness of investments in media, promotional pricing, and sales support for distributor partners [3]. - Following the announcement of significant sales shortfalls in both the Beer and Wine and Spirits segments on January 10, 2025, the company's stock price experienced a decline [4]. Group 2: Investor Information - Investors who purchased securities during the Class Period have until April 21, 2025, to file a lead plaintiff motion [1]. - The Portnoy Law Firm offers complimentary case evaluations and encourages investors to discuss their legal rights regarding potential claims to recover losses [2][5].

Core Viewpoint - The Constellation Brands class action lawsuit alleges violations of the Securities Exchange Act of 1934 by the company and its executives, with a focus on misleading information regarding the company's performance in the Wine and Spirits business and ineffective investments in media and sales capabilities [1][3][4]. Group 1: Lawsuit Details - The class action lawsuit is titled Meza v. Constellation Brands, Inc., and covers purchasers of Constellation Brands securities from April 11, 2024, to January 8, 2025 [1]. - Investors have until April 21, 2025, to seek appointment as lead plaintiff in the lawsuit [1][5]. - The lawsuit claims that Constellation Brands created a false impression of reliable information regarding its business and failed to disclose the ineffectiveness of its investments [3]. Group 2: Financial Performance - On January 10, 2025, Constellation Brands reported third quarter fiscal year 2025 results, showing significant misses in sales performance for both the Beer and Wine and Spirits segments [4]. - The announcement of poor sales performance led to a decline in the stock price of Constellation Brands [4]. Group 3: Legal Representation - Robbins Geller Rudman & Dowd LLP is representing investors in the class action lawsuit and has a strong track record in securing monetary relief for investors in securities fraud cases [6]. - The firm has recovered $6.6 billion for investors in securities-related class action cases over the past four years, significantly more than any other law firm [6].