On this page of StockholderLetter.com we present the latest annual shareholder letter from CONSTELLATION BRANDS, INC. — ticker symbol STZ. Reading current and past STZ letters to shareholders can bring important insights into the investment thesis.
WORTH REACHING FOR FISCAL YEAR 2025 ANNUAL REPORT
DEAR SHAREHOLDERS In Fiscal 2025, despite a softer consumer demand backdrop largely driven by what we believe to be nonstructural socioeconomic factors, we delivered another year of Enterprise net sales growth and substantial comparable operating margin improvement. Given this performance, Constellation Brands has once again been recognized as the #1 growth leader among large CPG companies by Circana for calendar year 2024,1 as we have been 6 of the last 8 years. We are extremely proud to be the only CPG company of scale to make their Top 10 ranking for 12 consecutive years.1 Our overall performance was driven largely by our Beer Business, which achieved its 15th consecutive year of volume growth, delivering approximately 12 million incremental cases versus last year. We also continued to extend our lead as the #1 high-end beer supplier in U.S. Circana tracked channels, delivering industryleading share gains across the total beer category underpinned by a nearly 5% increase in dollar sales and approximately 4% volume growth. Modelo Especial led the charge for this business, increasing depletions by nearly 5% and maintaining its position as the #1 beer brand in dollar sales in U.S. Circana tracked channels. Corona Extra maintained its position as a Top 5 beer brand in dollar sales and continued to gain share. Additionally, Pacifico achieved an exciting milestone in the fiscal year, delivering over 25 million cases sold and was the #4 dollar and volume share gainer across the total beer category. Strong operational execution, including our cost savings and efficiency initiatives, helped this business maintain best-in-class operating margins. In addition, we continued to invest in capabilities to fuel expected 1 future growth, deploying capital towards the modular development of our new brewery in Veracruz and the modular expansions of our existing breweries. From an innovation perspective, we continued to advance offerings aligned with consumer-led flavor and betterment trends consistent with our disciplined and focused approach: Modelo Spiked Aguas Frescas brands were a Top 10 dollar share gainer within the flavored malt beverage segment; Corona Non-Alcoholic continued to gain momentum as a Top 5 brand in dollar sales and the #4 dollar share gainer in the fast-growing Non-Alcoholic beer segment in the U.S.; and after the successful test of Corona Sunbrew in select eastern markets, we launched this brand nationally in Fiscal 2026. Within our Wine and Spirits Business, we continued to take steps to align our portfolio with consumer-led premiumization trends with the SVEKDA Divestiture completed in Fiscal 2025, and the recent closing of the 2025 Wine Divestitures Transaction that was primarily centered around the sale of our remaining mainstream wine brands and related facilities. Constellation s retained wine portfolio now consists of a collection of highly regarded wines from top regions around the world, predominantly priced $15 and above. This includes iconic Napa Valley brands Robert Mondavi Winery, Schrader, Double Diamond, To Kalon Vineyard Company, Mount Veeder Winery, and The Prisoner Wine Company; the My Favorite Neighbor family of wine brands from Paso Robles; Kim Crawford from New Per calendar year 2024 Circana U.S. CPG Growth Leaders report. Constellation Brands, Inc. FY 2025 Annual Report #WORTHREACHINGFOR
Zealand producer of the #1 Sauvignon Blanc in the U.S.2; acclaimed Tuscan producer Ruffino Estates and Ruffino Prosecco; sought-after gems like Sea Smoke from Santa Barbara s Santa Rita Hills AVA, Lingua Franca from Oregon s Willamette Valley, and more. We expect significant improvements in the performance of this portion of our business beyond Fiscal 2026 as we move forward with this portfolio of higher-end wine and spirits brands that we believe will generate higher growth and higher margins while we seek to drive enhanced commercial and operational execution. Overall, in Fiscal 2025, we generated $3.2 billion in operating cash flow an increase of 13% and reduced our comparable net leverage ratio to under 3.0x, while returning nearly $1.9 billion to shareholders through share repurchases and quarterly dividends and continued to invest to support ongoing growth in our Beer Business consistent with our disciplined and balanced capital allocation priorities. Furthermore, we continued our efforts to operate responsibly and sustainably, surpassing our target to restore 5 billion gallons of our water withdrawals back to local watersheds near our production facilities between Fiscal 2023 and Fiscal 2025 and securing TRUE Zero Waste Certification at our Nava and Obreg n breweries.3 driving distribution gains, disciplined innovation, and incremental marketing investments in our Beer Business; delivering improvements in our repositioned Wine and Spirits Business that is now entirely in higher-end segments that we believe will generate higher growth and higher margins; enhancing efficiency across our Enterprise; and continuing our commitment to operate in ways that help our business and communities where we operate thrive. On behalf of our Board of Directors and Executive Team, I want to sincerely thank each of our colleagues across the Company, our distributor and retailer partners, and our shareholders for your continued support of our business. Together, we are building a company and future that is truly Worth Reaching For. Bill Newlands President & CEO As we look to the future, we remain focused on our strategic priorities and on continuing to deliver shareholder value. In a tough socioeconomic environment, we are taking decisive actions designed to continue to support the growth of our Beer Business, reset our cost base, and redefine our wine and spirits portfolio. We remain focused on: 2 #1 in dollar sales, Circana, Total U.S. Multi-Outlet + Convenience, 52 weeks ended March 23, 2025. All Circana statements are based on Total U.S. MULOC+, 52 weeks ending March 2, 2025, unless otherwise noted. 3 Administered by Green Business Certi cation Inc., TRUE Zero Waste Certi cation is the rst zero waste certi cation program dedicated to measuring, improving, and recognizing zero waste performance by encouraging the adoption of sustainable materials management and reduction practices which contribute to positive environmental, health, and economic outcomes. A list of de ned terms used within can be found beginning on page iii of our Annual Report on Form 10-K for the scal year ended February 28, 2025. Reconciliations of non-GAAP measures together with the reasons management uses these measures are set forth in Appendix 1. Constellation Brands, Inc. FY 2025 Annual Report #WORTHREACHINGFOR
FISCA L 2025 HIG H LIG HTS CONTINUE TO BUILD STRONG BRANDS THAT PEOPLE LOVE #1 growth leader among large CPG companies1 Only CPG company of scale to be a Top 10 growth leader for 12 consecutive years1 10.2B ENTERPRISE NET SALES 15 consecutive years of volume growth in Beer Business DEVELOP CONSUMER-LED INNOVATIONS ALIGNED WITH EMERGING TRENDS Deploy capital in line with disciplined and balanced priorities Net leverage ratio remained below our ~3.0x target2 Nearly $1.9 billion returned to shareholders through share repurchases and dividends ~$1 billion in capital investments to brewery expansion projects Empower the Enterprise to achieve best in class operational e ciency Delivered ~$220 million of cost savings through supply chain efficiencies across the Enterprise Beer Business operating margin increased 180 basis points to 39.7% Achieved 13% and 28% increases in operating and free cash flows, respectively Operate in a way that is good for business and good for the world Per calendar year 2024 Circana U.S. CPG Growth Leaders report. Comparable basis. 3 From Fiscal 2023 to Fiscal 2025 for local watersheds near our production facilities. 4 At our Nava and Obreg n breweries by Fiscal 2025. 1 2 Constellation Brands, Inc. FY 2025 Annual Report Surpassed water withdrawal restoration target of 5 billion gallons3 Achieved TRUE Zero Waste Certification4 #WORTHREACHINGFOR
 • shareholder letter icon 6/5/2025 Letter Continued (Full PDF)
 • stockholder letter icon 6/1/2023 STZ Stockholder Letter
 • stockholder letter icon 6/3/2024 STZ Stockholder Letter
 • stockholder letter icon More "Beverages & Wineries" Category Stockholder Letters
 • Benford's Law Stocks icon STZ Benford's Law Stock Score = 96


STZ Shareholder/Stockholder Letter Transcript:

WORTH
REACHING
FOR
FISCAL YEAR 2025
ANNUAL REPORT

DEAR
SHAREHOLDERS
In Fiscal 2025, despite a softer consumer demand
backdrop largely driven by what we believe to be nonstructural socioeconomic factors, we delivered another
year of Enterprise net sales growth and substantial
comparable operating margin improvement.
Given this performance, Constellation Brands has once
again been recognized as the #1 growth leader among
large CPG companies by Circana for calendar year
2024,1 as we have been 6 of the last 8 years. We are
extremely proud to be the only CPG company of scale
to make their Top 10 ranking for 12 consecutive years.1
Our overall performance was driven largely by our Beer
Business, which achieved its 15th consecutive year of
volume growth, delivering approximately 12 million
incremental cases versus last year. We also continued
to extend our lead as the #1 high-end beer supplier
in U.S. Circana tracked channels, delivering industryleading share gains across the total beer category
underpinned by a nearly 5% increase in dollar sales and
approximately 4% volume growth.
Modelo Especial led the charge for this business,
increasing depletions by nearly 5% and maintaining
its position as the #1 beer brand in dollar sales in U.S.
Circana tracked channels. Corona Extra maintained
its position as a Top 5 beer brand in dollar sales and
continued to gain share. Additionally, Pacifico achieved
an exciting milestone in the fiscal year, delivering over
25 million cases sold and was the #4 dollar and volume
share gainer across the total beer category.
Strong operational execution, including our cost
savings and efficiency initiatives, helped this business
maintain best-in-class operating margins. In addition,
we continued to invest in capabilities to fuel expected
1
future growth, deploying capital towards the modular
development of our new brewery in Veracruz and the
modular expansions of our existing breweries.
From an innovation perspective, we continued to
advance offerings aligned with consumer-led flavor and
betterment trends consistent with our disciplined and
focused approach:
    Modelo Spiked Aguas Frescas brands were a
Top 10 dollar share gainer within the flavored
malt beverage segment;
    Corona Non-Alcoholic continued to gain
momentum as a Top 5 brand in dollar sales
and the #4 dollar share gainer in the fast-growing
Non-Alcoholic beer segment in the U.S.; and
    after the successful test of Corona Sunbrew in
select eastern markets, we launched this brand
nationally in Fiscal 2026.
Within our Wine and Spirits Business, we continued
to take steps to align our portfolio with consumer-led
premiumization trends with the SVEKDA Divestiture
completed in Fiscal 2025, and the recent closing of the
2025 Wine Divestitures Transaction that was primarily
centered around the sale of our remaining mainstream
wine brands and related facilities.
Constellation   s retained wine portfolio now consists of
a collection of highly regarded wines from top regions
around the world, predominantly priced $15 and above.
This includes iconic Napa Valley brands Robert Mondavi
Winery, Schrader, Double Diamond, To Kalon Vineyard
Company, Mount Veeder Winery, and The Prisoner Wine
Company; the My Favorite Neighbor family of wine
brands from Paso Robles; Kim Crawford from New
Per calendar year 2024 Circana U.S. CPG Growth Leaders report.
Constellation Brands, Inc. FY 2025 Annual Report
#WORTHREACHINGFOR

Zealand   producer of the #1 Sauvignon Blanc in the
U.S.2; acclaimed Tuscan producer Ruffino Estates and
Ruffino Prosecco; sought-after gems like Sea Smoke
from Santa Barbara   s Santa Rita Hills AVA, Lingua
Franca from Oregon   s Willamette Valley, and more.
We expect significant improvements in the performance
of this portion of our business beyond Fiscal 2026 as we
move forward with this portfolio of higher-end wine and
spirits brands that we believe will generate higher growth
and higher margins while we seek to drive enhanced
commercial and operational execution.
Overall, in Fiscal 2025, we generated $3.2 billion
in operating cash flow   an increase of 13%   and
reduced our comparable net leverage ratio to under
3.0x, while returning nearly $1.9 billion to shareholders
through share repurchases and quarterly dividends
and continued to invest to support ongoing growth in
our Beer Business consistent with our disciplined and
balanced capital allocation priorities.
Furthermore, we continued our efforts to operate
responsibly and sustainably, surpassing our target to
restore 5 billion gallons of our water withdrawals back to
local watersheds near our production facilities between
Fiscal 2023 and Fiscal 2025 and securing TRUE Zero
Waste Certification at our Nava and Obreg  n breweries.3
    driving distribution gains, disciplined innovation,
and incremental marketing investments in our
Beer Business;
    delivering improvements in our repositioned
Wine and Spirits Business that is now entirely in
higher-end segments that we believe will generate
higher growth and higher margins;
    enhancing efficiency across our Enterprise; and
    continuing our commitment to operate in ways
that help our business and communities where
we operate thrive.
On behalf of our Board of Directors and Executive Team,
I want to sincerely thank each of our colleagues across
the Company, our distributor and retailer partners, and
our shareholders for your continued support of our
business. Together, we are building a company and
future that is truly Worth Reaching For.
Bill Newlands
President & CEO
As we look to the future, we remain focused on
our strategic priorities and on continuing to deliver
shareholder value. In a tough socioeconomic
environment, we are taking decisive actions designed
to continue to support the growth of our Beer Business,
reset our cost base, and redefine our wine and spirits
portfolio. We remain focused on:
2
#1 in dollar sales, Circana, Total U.S. Multi-Outlet + Convenience, 52 weeks ended
March 23, 2025.
All Circana statements are based on Total U.S. MULOC+, 52 weeks ending March 2, 2025,
unless otherwise noted.
3
Administered by Green Business Certi  cation Inc., TRUE Zero Waste Certi  cation
is the   rst zero waste certi  cation program dedicated to measuring, improving, and
recognizing zero waste performance by encouraging the adoption of sustainable
materials management and reduction practices which contribute to positive
environmental, health, and economic outcomes.
A list of de  ned terms used within can be found beginning on page iii of our Annual Report
on Form 10-K for the   scal year ended February 28, 2025. Reconciliations of non-GAAP
measures together with the reasons management uses these measures are set forth in
Appendix 1.
Constellation Brands, Inc. FY 2025 Annual Report
#WORTHREACHINGFOR

FISCA L 2025 HIG H LIG HTS
CONTINUE TO BUILD
STRONG BRANDS
THAT PEOPLE LOVE
#1 growth leader among large CPG companies1
Only CPG company of scale to be a Top 10
growth leader for 12 consecutive years1

10.2B ENTERPRISE NET SALES
15 consecutive years of volume
growth in Beer Business
DEVELOP CONSUMER-LED
INNOVATIONS ALIGNED WITH
EMERGING TRENDS
Deploy capital in line with disciplined
and balanced priorities
Net leverage ratio remained below our ~3.0x target2
Nearly $1.9 billion returned to shareholders through
share repurchases and dividends
~$1 billion in capital investments to brewery
expansion projects
Empower the Enterprise to achieve
best in class operational e  ciency
Delivered ~$220 million of cost savings through
supply chain efficiencies across the Enterprise
Beer Business operating margin increased
180 basis points to 39.7%
Achieved 13% and 28% increases in
operating and free cash flows, respectively
Operate in a way that is good for
business and good for the world
Per calendar year 2024 Circana U.S. CPG Growth Leaders report.
Comparable basis.
3
From Fiscal 2023 to Fiscal 2025 for local watersheds near our production facilities.
4
At our Nava and Obreg  n breweries by Fiscal 2025.
1
2
Constellation Brands, Inc. FY 2025 Annual Report
Surpassed water withdrawal restoration target
of 5 billion gallons3
Achieved TRUE Zero Waste Certification4
#WORTHREACHINGFOR



shareholder letter icon 6/5/2025 Letter Continued (Full PDF)
 

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