The beer segment is the largest piece of Constellation's business, with $1.64 billion in net sales in the fiscal second quarter. Simply put, the only way to truly and authentically connect with all the diverse consumers we serve is by having those perspectives and voices widely present and represented within our business. Executives like this deal for many reasons, including the pot giant's ample intellectual property in research areas like genetics and medical marijuana; its portfolio of popular cannabis brands in markets as varied as Canada, Brazil, and Australia; and its rights to sell CBD consumer products in the U.S. By 2025, depending on how the regulatory landscape develops, it's not a stretch to say that Constellation Brands might be getting enough of a contribution from the Canopy Growth business to make it its third reportable operating line, right alongside the spirits and wine and the beer divisions.
While this definitely seems to be where brewers are flocking these days, I wonder how many hard seltzers the market can handle. It's an odd thing to see cannabis losses hinder a beer titan. Those assets, in addition to the promising marijuana bets management has made, suggest this would be a good stock to own to 2025 and beyond. Let's conquer your financial goals together...faster. Constellation Brands said it will acquire direct-to-consumer wine company Empathy Wines, co-founded by entrepreneur Gary Vaynerchuk in …
Let’s achieve bigger and better goals together. On a comparable basis earnings per share were $2.72, a 5% decrease year over year. Let's peer into our crystal ball. It was clear even before Constellation announced a major divestment of its lower-tier wine brands that the company has committed itself to the premium side of the alcoholic beverage market. There may be better entry points ahead. Boston Beer (NYSE:SAM) is currently dominating this space, but the latest Corona Seltzer launch has had a good start by reaching 6% market share in its first few months.
This week, Constellation Brands announced an additional purchase of a 5.1% stake in the Canadian company, bringing the total stake to 38.6%. But that's exactly what's happening at Constellation Brands (NYSE:STZ). Net sales for Constellation Brands increased 2% to $2.34 billion, with operating income taking a 6% hit on a reported basis. Through Constellation Ventures, we collaborate with people and brands to drive innovation and transform the future of the industry together. CEO Bill Newlands and his team like the fact that this niche is outgrowing the value brands that have held back growth at rivals like Anheuser-Busch InBev (NYSE:BUD) and Molson Coors (NYSE:TAP). Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. These results included the realization of a $484 million loss from the company's stake in Canopy Growth. Is Constellation Brands the Coca-Cola of Adult Drinks? Beer sales are expected to strengthen by 7% to 9%, while the wine and spirits segment is expected to decline by 15% to 20%. Where Will Constellation Brands Be in 5 Years? Constellation Brands is also continually expanding, which is a marker of excellent ratings when focusing on its profitability. We’re always looking for what’s next—and for partners who think the same way. Constellation Ventures aims to be an active minority investor with all of our investments. Market data powered by FactSet and Web Financial Group.