Constellation Brands, Inc.

Constellation Brands, Inc. is an international producer and marketer of beer, wine, and spirits, and the second-largest beer company in the United States. Its beer portfolio — anchored by Modelo Especial, the best-selling beer in America by dollar sales, and Corona Extra — generates roughly 91% of net sales from a perpetual exclusive U.S. brand license. The company also operates a repositioned Wine and Spirits segment focused on higher-end brands including Kim Crawford, The Prisoner Wine Company, and High West.

This is a story about one of the most valuable asset bases in consumer staples — a portfolio of imported Mexican beer brands with durable pricing power, category-leading margins, and demographic tailwinds — trading at a multiple that embeds very little credit for those attributes. The file turns on a single question: whether the beer franchise can sustain its growth trajectory as its largest brand, Modelo Especial, approaches distribution maturity, and whether the market is over-discounting the risks of a cyclical consumer slowdown, tariff exposure, and a Wine and Spirits business still finding its footing.

The market price of $137.47 per share represents roughly 12.4 times TTM GAAP net income and 10.5 times TTM EBITDA — multiples more consistent with a no-growth industrial than with a brand-owning consumer franchise that has been gaining share in the U.S. beer market for more than a decade. A new CEO, Nicholas Fink, took the helm in April 2026 and inherits a business with exceptional brands, real risks, and a valuation that asks very little of him.