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 2026 ANNUAL REPORT
DEAR SHAREHOLDERS As I enter my first year as President and CEO at Constellation Brands, I couldn t be more excited about the future of our business. The focus, determination, and resilience exhibited by our more than 9,000 team members around the world in managing through economic uncertainty and additional headwinds from other socioeconomic factors during Fiscal 2026 is not only admirable, it has positioned our business to continue to outperform the broader market and gain share. Amid a challenging operating environment, our focus on strong execution and partnerships with our distributor network drove results in Fiscal 2026: we continued to outperform our categories and gain share across our beer and wine and spirits portfolios;1 we remained the #1 high-end beer supplier by dollar sales in the U.S.,1 while driving efficiencies as we began to shift our supply chain focus from building capacity to operational excellence, delivering best-in-class operating margins; our core beer, wine, and spirits brands remained healthy and primed for growth; and our strategic use of price-pack architecture and more recent consumer-led innovations helped create more occasions for people to engage with our portfolio. This kind of execution is not new to our team. As a member of our Company s Board of Directors since 2021, I ve had a firsthand view of the results our talented employees have delivered over the years. Their continued commitment to building brands people love is what makes Constellation Brands such a special place to build a career. As I have traveled to our markets and our production facilities to meet with our consumers, customers, and our team, I have grown even more impressed by the potential in our business. Our brands are loved, our partnerships are strong, and our team Constellation Brands, Inc. FY 2026 Annual Report #WORTHREACHINGFOR
is excellent. I m grateful for the opportunity to work alongside our team as President and CEO as we seek to further raise the bar in the years ahead. Looking forward, we aim to deliver continued market outperformance across both our Beer and Wine & Spirits Businesses, and best-inclass operating margins in our Beer Business by focusing on: driving consistent, sustainable growth for our core brands including Modelo Especial, Corona Extra, and Kim Crawford; fueling accelerated growth for brands such as Pacifico, Victoria, and Mi CAMPO, which exhibit the potential to become our next set of scale brands over time; introducing and nurturing new product innovations such as Corona Non-Alcoholic, Modelo Noche Especial, and Corona Sunbrew, which align with evolving consumer trends related to betterment and flavor creating opportunities to satisfy more occasions; operating with excellence across our Company, enhancing efficiency with a continuous improvement mindset, and leveraging technology to enhance productivity and impact; continuing to execute against our disciplined capital allocation approach that helped deliver over $1.6 billion to shareholders through share repurchases and quarterly dividends during Fiscal 2026 maintaining our investment-grade Constellation Brands, Inc. FY 2026 Annual Report rating, and investing in our business to fuel industry-leading profitable growth for our portfolio; and operating in a way that is good for our business and good for the world, making meaningful strides in environmental sustainability focus areas water stewardship, reducing greenhouse gas emissions, and packaging and waste management. In closing, I want to thank Bill Newlands for his leadership over the past 11 years, including the last seven as our Company s President and CEO. Bill and our leadership team have established a strong foundation as we aim to drive long-term industryleading performance. On behalf of our Board of Directors and the Executive Team, I sincerely thank our colleagues across the Company, our distributor and retailer partners, and our shareholders for your trust and continued support of our business. I look forward to all that we will achieve together in the years ahead. Nicholas Fink President & CEO 1 Circana, Total U.S. MULOC+ 52 weeks ended March 1, 2026. #WORTHREACHINGFOR
FISCA L 2026 HIG H LIG HTS BUILDING BRANDS THAT PEOPLE LOVE #1 dollar share gainer in beer category1 Modelo Especial maintained its position as the #1 beer brand in the U.S. by dollar sales1 Pacifico and Victoria were the two fastest-growing beer brands in the top 501 CONTINUED TO BUILD CONSUMER-LED INNOVATIONS ALIGNED WITH EVOLVING CONSUMER PREFERENCES #2 New Beer Brand 2 #2 Share-Gaining Non-Alc Beer 3 #1 New Beer Brand of the 2025 Winter Holiday Season 4 Deployed capital in line with disciplined and balanced priorities Empowered the Enterprise to achieve best-in-class operational e ciency Operated in a way that is good for the business and good for the world Remained at target comparable net leverage ratio of ~3.0x Delivered over $200 million of cost savings through supply chain efficiencies across the Beer Business Beer Division achieved over 100% water replenishment, restoring more water than it consumed to local watersheds, and saved over 33 million gallons of water by improving water efficiency5 Over $1.6 billion returned to shareholders through share repurchases and dividends $875 million in capital improvement investment across the Enterprise Beer Business delivered industryleading operating margin of 38% Generated Fiscal 2026 operating cash flow of $2.7 billion and free cash flow of $1.8 billion Reduced Scope 1 and Scope 2 greenhouse gas emissions by over 10%6 Circana, Total U.S. MULOC+ 52 weeks ended March 1, 2026. Circana, Total U.S. MULOC+ 52 weeks ended March 1, 2026 | New to world brands launched since Fiscal 2025. Circana, Dollar Sales, 52 weeks ended March 1, 2026. 4 Circana, Total U.S. MULOC+ 12 weeks ended March 1, 2026 | Brands launched in Q3/Q4 Fiscal 2026. 5 Fiscal 2026, combined results at our Nava and Obreg n Breweries. 6 Fiscal 2026 Enterprise calculated greenhouse gas emissions compared to Fiscal 2025 baseline. 1 2 3 Constellation Brands, Inc. FY 2026 Annual Report #WORTHREACHINGFOR
 • shareholder letter icon 6/8/2026 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 6/5/2025 STZ Stockholder Letter
 • stockholder letter icon More "Beverages & Wineries" Category Stockholder Letters
 • Benford's Law Stocks icon STZ Benford's Law Stock Score = 69


STZ Shareholder/Stockholder Letter Transcript:

WORTH
REACHING
FOR
FISCAL YEAR 2026 ANNUAL REPORT

DEAR
SHAREHOLDERS
As I enter my first year as President and CEO at
Constellation Brands, I couldn   t be more excited
about the future of our business. The focus,
determination, and resilience exhibited by our
more than 9,000 team members around the world
in managing through economic uncertainty and
additional headwinds from other socioeconomic
factors during Fiscal 2026 is not only admirable,
it has positioned our business to continue to
outperform the broader market and gain share.
Amid a challenging operating environment,
our focus on strong execution and
partnerships with our distributor network
drove results in Fiscal 2026:
    we continued to outperform our categories
and gain share across our beer and wine
and spirits portfolios;1
    we remained the #1 high-end beer supplier
by dollar sales in the U.S.,1 while driving
efficiencies as we began to shift our supply
chain focus from building capacity to
operational excellence, delivering best-in-class
operating margins;
    our core beer, wine, and spirits brands
remained healthy and primed for growth; and
    our strategic use of price-pack architecture
and more recent consumer-led innovations
helped create more occasions for people to
engage with our portfolio.
This kind of execution is not new to our team. As
a member of our Company   s Board of Directors
since 2021, I   ve had a firsthand view of the results
our talented employees have delivered over the
years. Their continued commitment to building
brands people love is what makes Constellation
Brands such a special place to build a career. As
I have traveled to our markets and our production
facilities to meet with our consumers, customers,
and our team, I have grown even more impressed
by the potential in our business. Our brands are
loved, our partnerships are strong, and our team
Constellation Brands, Inc. FY 2026 Annual Report
#WORTHREACHINGFOR

is excellent. I   m grateful for the opportunity to work
alongside our team as President and CEO as we
seek to further raise the bar in the years ahead.
Looking forward, we aim to deliver continued
market outperformance across both our Beer
and Wine & Spirits Businesses, and best-inclass operating margins in our Beer Business by
focusing on:
    driving consistent, sustainable growth for our
core brands including Modelo Especial, Corona
Extra, and Kim Crawford;
    fueling accelerated growth for brands such as
Pacifico, Victoria, and Mi CAMPO, which exhibit
the potential to become our next set of scale
brands over time;
    introducing and nurturing new product
innovations such as Corona Non-Alcoholic,
Modelo Noche Especial, and Corona Sunbrew,
which align with evolving consumer trends
related to betterment and flavor creating
opportunities to satisfy more occasions;
    operating with excellence across our
Company, enhancing efficiency with a
continuous improvement mindset, and
leveraging technology to enhance
productivity and impact;
    continuing to execute against our disciplined
capital allocation approach that helped deliver
over $1.6 billion to shareholders through share
repurchases and quarterly dividends during
Fiscal 2026   maintaining our investment-grade
Constellation Brands, Inc. FY 2026 Annual Report
rating, and investing in our business to fuel
industry-leading profitable growth for our
portfolio; and
    operating in a way that is good for our
business and good for the world, making
meaningful strides in environmental
sustainability focus areas   water stewardship,
reducing greenhouse gas emissions, and
packaging and waste management.
In closing, I want to thank Bill Newlands for his
leadership over the past 11 years, including the last
seven as our Company   s President and CEO. Bill
and our leadership team have established a strong
foundation as we aim to drive long-term industryleading performance.
On behalf of our Board of Directors and the
Executive Team, I sincerely thank our colleagues
across the Company, our distributor and retailer
partners, and our shareholders for your trust
and continued support of our business. I look
forward to all that we will achieve together in
the years ahead.
Nicholas Fink
President & CEO
1
Circana, Total U.S. MULOC+ 52 weeks ended March 1, 2026.
#WORTHREACHINGFOR

FISCA L 2026 HIG H LIG HTS
BUILDING BRANDS
THAT PEOPLE LOVE
#1 dollar share gainer in beer category1
Modelo Especial maintained its position as the #1 beer brand in the U.S. by dollar sales1
Pacifico and Victoria were the two fastest-growing beer brands in the top 501
CONTINUED TO BUILD CONSUMER-LED INNOVATIONS ALIGNED
WITH EVOLVING CONSUMER PREFERENCES
#2 New Beer Brand 2
#2 Share-Gaining
Non-Alc Beer 3
#1 New Beer Brand of the
2025 Winter Holiday Season 4
Deployed capital in line
with disciplined and
balanced priorities
Empowered the Enterprise
to achieve best-in-class
operational e   ciency
Operated in a way that is
good for the business and
good for the world
Remained at target comparable
net leverage ratio of ~3.0x
Delivered over $200 million of
cost savings through supply chain
efficiencies across the Beer Business
Beer Division achieved over 100%
water replenishment, restoring
more water than it consumed to
local watersheds, and saved over
33 million gallons of water by
improving water efficiency5
Over $1.6 billion returned to
shareholders through share
repurchases and dividends
$875 million in capital
improvement investment
across the Enterprise
Beer Business delivered industryleading operating margin of 38%
Generated Fiscal 2026 operating
cash flow of $2.7 billion and free
cash flow of $1.8 billion
Reduced Scope 1 and Scope 2
greenhouse gas emissions by
over 10%6
Circana, Total U.S. MULOC+ 52 weeks ended March 1, 2026.
Circana, Total U.S. MULOC+ 52 weeks ended March 1, 2026 | New to world brands launched since Fiscal 2025.
Circana, Dollar Sales, 52 weeks ended March 1, 2026.
4
Circana, Total U.S. MULOC+ 12 weeks ended March 1, 2026 | Brands launched in Q3/Q4 Fiscal 2026.
5
Fiscal 2026, combined results at our Nava and Obreg  n Breweries.
6
Fiscal 2026 Enterprise calculated greenhouse gas emissions compared to Fiscal 2025 baseline.
1
2
3
Constellation Brands, Inc. FY 2026 Annual Report
#WORTHREACHINGFOR


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