Constellation Brands (STZ, Financial) is the largest imported beer company in the U.S. and one of the country’s leading wine producers. Over the past five years, the company’s beer segment, which includes brands, such as Corona, Modelo, and Pacifico, grew its revenue at an impressive 11% CAGR during a period in which industry volumes remained relatively flat. Constellation trades at a meaningful discount to other consumer packaged goods companies, which are experiencing slow to no growth. We are grateful for the opportunity to invest in an above-average business at a below-average price.
From Bill Nygren (Trades, Portfolio)'s Oakmark Select Fund first-quarter 2020 shareholder commentary.
