Constellation Brands Sales Fall 10% to $2.22 Billion Amid Steep Wine and Spirits Decline

Constellation Brands reported a 10% drop in sales for its third fiscal quarter, reaching $2.223 billion, according to a statement released by the company. The results cover the period ending in late 2025 and reflect ongoing challenges in both its beer and wine and spirits businesses.

In the beer segment, net sales fell by 1% compared to the same quarter last year. The company attributed this decline partly to a 2.2% decrease in shipment volumes, which was only partially offset by favorable pricing. Constellation Brands, known for popular imported beers such as Corona and Modelo, said that despite the overall decline, it managed to gain dollar and volume share in monitored retail channels and expanded its distribution footprint.

The wine and spirits division saw a much steeper decline. Net sales dropped by 51%, driven by a sharp 70.6% decrease in shipment volumes. The company explained that this was largely due to the divestiture of the SVEDKA vodka brand and other wine assets in 2025. Strategic pricing actions on selected brands and changes in distributor contract obligations also contributed to the lower numbers.

Bill Newlands, president and chief executive officer of Constellation Brands, commented on the results, saying that the operating environment during the third quarter of fiscal year 2026 remained challenging but was consistent with expectations and similar to the previous quarter. He noted that while beer continued to perform well relative to competitors, the wine and spirits business outpaced the broader U.S. wine industry despite the overall decline.

Newlands also emphasized that the company is actively seeking additional cost savings as it navigates these market conditions. He expressed confidence that these efforts will help position Constellation Brands for long-term success.

The company’s financial update comes at a time when many beverage companies are facing shifting consumer preferences, inflationary pressures, and changes in distribution agreements. Constellation Brands has been adjusting its portfolio through divestitures and strategic pricing moves as part of its response to these trends. The company did not provide specific guidance for future quarters but indicated it would continue focusing on operational efficiency and portfolio management.