Constellation Brands wins big on rising beer sales


Global alcohol middleweight Constellation Brands ( STZ ) reported higher than expected quarterly revenue and earnings this morning, taking the Street by surprise, despite the Street's already optimistic outlook for the company. It turned out that few people knew exactly how well things were going for the company, which nearly doubled its revenue from the year-ago-quarter to $1.53 billion.

What is driving the success? Beer . Beer sales were up 14% from last quarter, and the company thinks things will get even better as it moves into the summer months, as their now most important beer, Corona, has always been marketed as the most summery of beers. As a longtime bull on Constellation Brands, I've been continuously impressed by the company's ability to market their beers by targeting the right people in the right markets, and doing it in the right way.

For Constellation Brands, acquiring Corona from Anheuser Bush InBev ( BUD ) at a fire sale price back in 2013 tuned out to be one of its best decisions ever. Corona is still popular, still growing, and still avoiding the negative stigma attached to many other mass-marketed beers, making Constellation one of the most exciting companies in the industry in years.

STZ stock has more than tripled in value in the past two years. Shares are trading at $90.60 right now, up 2.3% on the day.

This article was originally published on

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Earnings

Referenced Stocks: STZ , BUD

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