Why has Constellation Brands' stock performance lagged?

Constellation Brands' stock has declined over 40% due to stalled growth, rising tariffs, supply chain issues, and inflation, while the broader market rallied.

What challenges are impacting Constellation Brands' beer business?

The beer business faces challenges from younger consumers drinking less alcohol, reduced spending by Hispanic consumers, and rising tariffs on aluminum cans.

How is Constellation Brands adapting its wine and spirits segments?

Constellation Brands is divesting lower-end wine and spirit brands to focus on higher-end offerings, aiming to align with consumer preferences for premium products.

Home / Business and Economy / Constellation Stock Plummets 40% Amidst Growth Slump

Constellation Stock Plummets 40% Amidst Growth Slump

15 Dec, 2025

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Summary

Constellation Brands stock declined over 40% in three years.
Beer revenue impacted by younger drinkers and Hispanic consumers.
Rising tariffs and supply chain issues plagued the beer business.

Constellation Stock Plummets 40% Amidst Growth Slump

Constellation Brands, formerly a stable blue chip stock, experienced a significant decline of over 40% in its stock value during a three-year period when the S&P 500 saw substantial gains. The company's growth has been hampered by several challenges, including shifting consumer preferences and macroeconomic factors.

The company's beer segment, which constitutes 84% of its revenue, faced a slowdown. This was attributed to decreased alcohol consumption among younger U.S. consumers and reduced spending by Hispanic consumers due to immigration issues and other economic pressures. Furthermore, rising tariffs on aluminum cans and supply chain disruptions in Mexico, coupled with inflation, forced price increases that exacerbated the sales slowdown.

Constellation's wine and spirits segments also encountered difficulties, with consumers gravitating away from cheaper brands. While the company attempted to adapt by divesting lower-end brands to focus on premium offerings, this strategy reduced overall segment revenues and amplified the impact of its struggling beer business.