Constellation Brands Full-Year Report 2022

Constellation Brands, Inc. a leading beverage alcohol company, reported today its fiscal year and fourth quarter 2022 financial results

“Driven by a relentless focus on building brands consumers love, our business continues to gain momentum. Despite various headwinds, we extended our leadership position in the high-end of the U.S. beer market, our high-end wine and spirits brands continue to outpace the industry complimented by successful innovation, we continue to invest aggressively in our core business, and we’ve set a strong foundation for future growth.” Bill Newlands

Highlights

• Constellation’s Beer Business posted depletion growth of nearly 9%, marking the 12th consecutive year of volume growth, driven by continued strong demand in off-premise channels, as well as a return to growth in on-premise channels. When adjusted for two extra selling days, generated approximately 8% depletion growth.
• In IRI channels, the Beer Business significantly outpaced the total beer category, the high-end segment, and was the #1 dollar share gainer, adding 1.2 market share points.
• Modelo Especial achieved nearly 15% depletion growth and became the #2 beer brand and #1 share gainer in the entire U.S. beer category in dollar sales in IRI channels; Modelo Chelada posted depletion growth of over 30% and solidified its position as the #1 Chelada in the U.S. beer market.
• Corona Extra sustained its reinvigorated growth trajectory, reported depletion growth of 9%, and positioned itself as the #3 brand in the high-end.
• Operating margin decreased 110 basis points to 40.0%, as benefits from favorable pricing, marketing as a percent of net sales, and mix were more than offset by increased COGS driven by obsolescence, higher brewery and material costs, and increased depreciation