Constellation Brands, $STZ, is up 3% in premarket after Fiscal 2025 Q1 Earnings: 📈 Net Sales: $2.66B, up 9% Y/Y driven by a robust 12% growth in beer and 2% in wine & spirits. 🍺 Beer continues to lead, boosting market share. 💼 Operating Income: $820M, soaring 22% from last year. ◼ In-Depth Analysis of Constellation Brands' Q1 Fiscal 2025 Performance Constellation Brands has delivered a robust performance in the first quarter of Fiscal 2025, showcasing a significant increase in net sales which reached $2.66 billion, marking a 9% growth year-over-year. This impressive surge is attributed primarily to the beer segment, which alone saw a 12% increase, spearheading the company's revenue growth. Meanwhile, the wine and spirits division also contributed with a modest 2% rise. A pivotal element of this quarter’s success was the substantial rise in operating income, which escalated by 22% to reach $820 million. This growth underscores Constellation Brands’ strong operational efficiency and strategic marketing maneuvers that continue to pay dividends. Beyond financial metrics, Constellation Brands remains fervently committed to its sustainability and social responsibility initiatives. The company’s ongoing efforts to enhance community engagement and environmental stewardship are integral to its corporate ethos. Furthermore, looking ahead, Constellation Brands is strategically focusing on expanding its premium product portfolio and enhancing its direct-to-consumer sales channels. This approach is aimed not only at sustaining growth but also at fortifying its market position in the competitive beverage alcohol industry. 🔗 Full report: https://lnkd.in/dy9s6zGp
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Carlsbergs purchase of Britvic got me to thinking. Will total beverage or at least beer/RTD/Non-Alc companies take rise in the US or globally. In the US, there are only 3 major Alcohol/Wine distributors; SGWS, RNDC, Breakthru. there are several partnerships between Coke, Tropicana, and Pepsi with Anheuser Busch and MolsonCoors to produce alcoholic versions of non-alcoholic beverages. In Brazil, AmBev combines Pepsi & beer. If total beverage does not emerge, can portions of the value chain be shared or combined. In CPG beverage, I frame out operating pillars as: -Portfolio: having skus to satisfy Occasion, Brand, Price, Pack, Channel to satisfy consumer demand. -Point of Connection: Gain Distribution. Take Orders. Merchandize. Deliver. -Production/Supply Chain: low cost production. On-Time in Full Supporting Pillars are: -Systems/Processes -Culture Could a "shared" value chain total beverage partnership emerge where: -Each company controls their individual "Portfolio" and 'Gain Distribution & Take Orders' from Point of Connection -Shared "Production/Supply Chain" and 'Merchandize & Deliver' from "Point of Connection" as well as "Systems/Process". For Total Beverage, imagine ABI partnering with Coke or its bottler network outside the US; yes issues with ABI being a partner with Pepsi in Brazil. For shared, companies control their own Sales/Marketing Value drivers but combine to drive down Production, Supply Chain, Delivery, and G&A costs.
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Modelo Especial is now firmly ensconced as America’s biggest beer as measured by dollar sales. Its smart marketing strategy is boosting the company financial profile. We developed a short analysis about Modelo success, trying to understand the reasons behind it, that you can find below as a PDF (we can send it to you on request - please indicate your email in a private message). This performance is fueling parent company Constellation Brands, who reported a comparable profit of $3.57 per share for the quarter, eclipsing analysts’ estimates of $3.46 per share. Constellation Brands now expects full-year earnings per share between $14.63 and $14.93, up from its previous outlook of $13.40 to $13.70, based largely on buoyant demand for its Mexican beers, Modelo and Corona. (source: The Drinks Business) Constellation Brands The HEINEKEN Company AB InBev Molson Coors Beverage Company Danone Diageo The Coca-Cola Company Pernod Ricard The Absolut Group Nestlé Nespresso SA
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In recent years, the spirits, wine, and beer industry has recognized that their market share is slipping. As alcohol consumption trends evolve—especially among younger consumers—companies are actively seeking ways to reclaim market share and tap into emerging markets and channels. The need for strategic positioning and adaptation to emerging trends is more critical than ever #Spirits #Diageo #MandA #ConsumerTrends #cpg
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Working with beverage brands over the last few years I've always felt like Gen Z's “moderate alc movement” was not a threat to legacy players but an opportunity to cater to changing lifestyles and behaviors. Traditional beer, wine and spirits brands shouldn't fear a lower ABV anchor point - they can harness it as a point of differentiation AND use it to create new formats in partnership with soft drink brands. Example? Danish brewer Carlsberg acquired soft drink company Britvic for $4.2B to help expand outside of traditional lagers and pilsners. The deal will give Carlsberg a foothold in the British soft drink market and help inform flavor and ARTD expansions in the years to come. Britvic owns over 35 brands, like J2O, that sell predominantly in Britain and other parts of Europe. And it’s the official PepsiCo bottler and distributor in the U.K. for drinks like Mountain Dew and 7UP. This move allows Carlsberg to bolster its soft drinks business, refocus its premium lagers business, and use the costs saved from added efficiencies to explore and innovate new lower ABV formulations with so many new brands to play with. 📚 READ MORE:
Carlsberg is pouring $4.2 billion into a deal with Pepsi and Lipton distributor Britvic as Gen Z shies away from alcohol
fortune.com
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Corporate Tracker report for @The Boston Beer Company : The Boston Beer Company faces a complex market landscape, balancing strengths in core brands like Twisted Tea and Samuel Adams against challenges in the declining hard seltzer segment. With a robust financial position, including a 46.3% gross margin and debt-free status, the company is well-positioned to navigate market fluctuations. However, the 22.8% drop in Truly Hard Seltzer sales highlights the need for strategic adjustments. Opportunities lie in product diversification, expansion into emerging markets, and leveraging digital transformation. Yet, intense competition, market saturation, and shifting consumer preferences towards healthier options pose significant threats. The company's ability to innovate, adapt to changing market dynamics, and capitalize on its strong brand equity will be crucial in maintaining its competitive edge in the evolving alcoholic beverage industry.
SAM The Boston Beer Company SWOT analysis based on Q3 2024 Earnings Call 2024-10-24
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The global alcoholic beverage sector encompasses a diverse industry engaged in the production, distribution, and retail of various alcoholic drinks, including beer, wine, spirits, and other beverages. Driven by the enduring allure of alcoholic beverages and the cultural significance attached to them, companies operating within this sector strategically adapt to evolving consumer tastes and market dynamics. To navigate these shifts, businesses frequently pursue partnerships, collaborations, and acquisitions to diversify their product offerings, cater to niche preferences, and expand their global presence. Cross-border mergers and acquisitions are common strategies, facilitating entry into new markets, alignment with regional preferences, and the expansion of beverage portfolios. The sector is heavily influenced by trends such as the growing demand for premium products, increasing awareness of craft and artisanal offerings, and the rise of online and offline retail platforms. Within this dynamic landscape, strategic decisions regarding partnerships and acquisitions are pivotal in shaping companies' market positions, driving innovation, and addressing challenges such as sustainability and changing consumer preferences worldwide. Key players in this consolidation include, among others, Diageo, Anheuser-Busch InBev, Pernod Ricard, Constellation Brands, Heineken, and Bacardi Limited. Fredericks Michael & Co. advises alcoholic beverage companies and private equity firms on their acquisition and divestiture strategies. We are pleased to provide our update on the 2024 alcoholic beverage sector from the perspective of an M&A advisor.
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Pernod Ricard, headquartered in France, has a large presence in the U.S., with brands like Absolut Vodka and Kahlúa coffee liqueur. The newly formed company could help Pernod Ricard better compete in the American whiskey market where it goes up against giants like Diageo and Jim Beam owner Suntory. Pernod Ricard’s American whiskey brands previously existed within its wide portfolio of spirits, but they will now have their own dedicated unit under the larger company umbrella. In the press release, the company pointed to its recent investments in American-owned whiskey brands like Jefferson's, Rabbit Hole, Smooth Ambler, Skrewball and TX in building up its presence in the segment. The company also owns and operates European whiskey brands like Jameson Irish Whiskey and Chivas Regal. richard black Richard Black, the CEO of North American Distillers. Courtesy of Pernod Ricard USA Black most recently served as the global marketing director for French cognac maker Martell. He pointed to the dynamism of whiskey as a driving factor in building a new company to help Pernod Ricard’s brands reach their potential. “My mission is to harness this potential and drive a singular focus on these brands and our operations, driving us towards our goals and creating a top-tier marketing and sustainable operations team on the back of our peoples' deep-rooted expertise,” Black said. As consumer tastes evolve and the alcohol industry faces competition from other beverage categories, major players in the space are turning to portfolio diversification and honing in on niche markets. The spirits category is projected to be worth $107 billion in 2029, increasing at a compound annual growth rate of 5.27%, according to Mordor Intelligence. Molson Coors, a longtime stalwart of the beer space, has turned to ultra-premium spirits like bourbon to capture a larger market of consumers seeking more expensive spirits. Pernod Ricard also is extending into the lucrative and quickly growing ready-to-drink cocktail market. Earlier this year, it debuted its first collaboration with soda giant Coca-Cola, Absolut Vodka with Sprite.
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Guru takes its wings back from Pepsi La Presse features interesting reporting today on Guru’s decision to reclaim control of its sales and merchandising efforts. So many partnerships and product launches get media attention. Yet it’s the breakups and failures that often offer the most valuable lessons. There are no doubt two sides to this story. June 2021 press release highlights: “Partnering with PepsiCo Beverages Canada at this stage of our growth for the Canadian distribution of our better-for-you energy drinks is a game changer for Guru and has the potential to accelerate our sales and distribution plans. This agreement is also a strong endorsement of Guru’s growing brand profile, which is quickly setting the standard as the Canadian consumer’s organic plant-based energy drink of choice. This is thanks to our differentiated brand and clean list of ingredients that delivers good taste and good energy,” said Carl Goyette President and CEO of Guru. “Guru quickly made its mark as a disruptive energy drink brand with ingredients that are organic and plant-based,” said Mike Ruff, President of PepsiCo Beverages Canada. “As we continue to focus on being consumer-centric, this partnership will help us expand our energy drink portfolio and meet the rapid changes in consumer demand for more functional beverages.” The agreement was set for an initial term of 10 years, subject to 5-year renewal periods. November 2024 reporting in La Presse: “We had a story of growth and profitability before the partnership with Pepsi. Since then, our growth has slowed, and we’ve incurred significant losses.” — Carl Goyette, CEO of Guru Guru posted a net loss of $9.8 million in 2021, $17.5 million in 2022, and $12 million last year. Analyst Martin Landry noted that the termination of the agreement came soon after both companies were legally able to end the deal without cause. “This suggests the partnership did not deliver the expected benefits for either party,” he observed.
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Dr Pepper has moved into a volume share tie with Pepsi-Cola in BD’s newest carbonated soft drink brand rankings. We released our 2023 All-Channel Rankings and Analysis this morning, which includes the fountain channel. Here’s what’s waiting for you inside BD’s newest special edition newsletter: 2023 All-Channel LRB Dollars Up +7.9%. Volume Down -1.1% [DATA] Dr Pepper Moves Into Volume Share Tie With Pepsi-Cola [DATA] Most Top-10 LRB Trademarks Add Value, Lose Volume [DATA] 2023 Coca-Cola, PepsiCo Company Revenue Report https://lnkd.in/dZQzWfek
Beverage Digest Newsletter
beverage-digest.com
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Carlsberg Group: Q1 2024 results - fast start with a top-line beat despite a still challenging beer market in China Carlsberg Q1 FY24 results summary: • NR: $ 2.5bn (DKK 17.13bn) • OSG: +6.4%; Volume: 2%; Price/ mix: 4.4% Results by Region: • Western Europe: $1.1bn (DKK 7.6bn) net revenue; OSG: 5.1% (Volume: 0.2%; Price/Mix: 4.9%) • Asia: $0.8bn (DKK 5.8bn) net revenue; OSG: 7.6% (Volume: 3.1%; Price/Mix: 4.5%) • Central & Eastern Europe and India: $0.4bn (DKK 3.1bn) net revenue; OSG: 7.3% (Volume: 2.2%; Price/Mix: 5.1%) Results by Product Category: Volume growth • Total premium beer category: +8% • Alcohol-free brews +2% Share Buy-Back Program: The company announced a new quarterly share buy-back program, amounting to DKK 1.0 billion. Analyst Consensus: Beat analysts’ consensus for revenue FY24 guidance: • Unchanged • Organic operating profit growth of 1-5% #fmcg #cpg The HEINEKEN Company AB InBev Molson Coors Beverage Company Diageo Pernod Ricard The Coca-Cola Company Coca-Cola Europacific Partners PepsiCo https://lnkd.in/dWvhGVbx
Carlsberg says Q1 growth driven by premium brands despite flat Chinese beer market
uk.finance.yahoo.com
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