Constellation Brands - statistics & facts
Constellation Brands continues its growth driven by the company’s beer division. Other divisions and investments have not fared as well. The company’s wine and spirits segments have suffered losses and the Canadian cannabis company, Canopy Growth, in which Constellation Brands has invested billions, has become a huge loss for the company. Constellation Brands, headquartered in Victor, NY is one of the largest beverage companies in the world with notable brands such as Corona, Svedka Vodka, and Woodbridge.
Constellation Brands invested over 850 million dollars in advertising in 2023 to support this growth. While this was more than competitor, Brown-Forman's ad spend, it was far behind the marketing investment of Diageo.
Constellation Brands has had a hard few years. Between the acquisition of Canopy Growth which hasn't gone as expected, to two of its divisions seeing years of declining revenue, the company has found itself in a tough spot. At the moment, beer sales have buoyed the company's revenue but such reliance is a precarious position to be in. It remains to be seen whether Constellation Brands can right the ship and get other parts of the company operating as they would hope.
Growing despite setbacks
Constellation Brands was able to grow its net sales in 2023 by 5.4 percent to almost 10 billion U.S. dollars. Nearly all of the company's net sales were generated in the United States. Net income also saw large positivity for the first time in years.Constellation Brands invested over 850 million dollars in advertising in 2023 to support this growth. While this was more than competitor, Brown-Forman's ad spend, it was far behind the marketing investment of Diageo.
Beer is the silver lining
Beer brought in the lion’s share of the company’s net sales again in 2023, followed by a significant but shrinking share from wine. Spirits accounted for the smallest portion. Constellation Brands is one of the biggest wine producers in the world and through a 2013 acquisition of Grupo Modelo's state-side beer business became the largest beer importer in the United States. Aside from Modelo, Constellation Brands also markets Corona in the United States, among other beer brands. The company's beer sales have grown substantially since the acquisition. In 2023, sales increased a further 9.34 percent to over 8.1 billion U.S. dollars. In contrast, sales of wine and spirits declined, continuing their downward trend.Constellation Brands has had a hard few years. Between the acquisition of Canopy Growth which hasn't gone as expected, to two of its divisions seeing years of declining revenue, the company has found itself in a tough spot. At the moment, beer sales have buoyed the company's revenue but such reliance is a precarious position to be in. It remains to be seen whether Constellation Brands can right the ship and get other parts of the company operating as they would hope.
