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Newlands attributed some of the underperformance to mainstream brands in the spirits and wine business. He noted that the company has already transitioned much of its brand portfolio from mainstream to higher-end products. The earnings report revealed that Constellation’s higher-end wine and liquor brands, such as Meiomi and Kim Crawford, outperformed the rest of the group.
Newlands shared insights into the company’s strategic shift, stating that three years ago, two-thirds of the business was in the mainstream, which he described as “very unhealthy.” Currently, that proportion has shifted to one-third, and despite the mainstream segment continuing to impact the overall business, the top end of the wine business is performing well and gaining market share. Constellation Brands expects continued success in its beer business for the foreseeable future.
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