Constellation Brands Inc - Class A

Constellation Brands (STZ) is the leading provider of imported beer in the U.S., offering premium brands such as Modelo, Corona, and Pacifico that have a large and loyal customer base. The stock has been a poor performer in 2025, negatively impacted by lower alcohol sales overall and a decline in sales to its core Hispanic customers. However, we think the price decline has created an opportunity to buy a well-run, high-quality business with a depressed stock valuation. STZ is now selling for less than 13x reduced earnings guidance, with a 3.0% dividend yield.

Constellation Brands (STZ) is the leading provider of imported beer in the U.S., offering premium brands such as Modelo, Corona, and Pacifico that have a large and loyal customer base. The stock has been a poor performer in 2025, negatively impacted by lower alcohol sales overall and a decline in sales to its core Hispanic customers. However, we think the price decline has created an opportunity to buy a well-run, high-quality business with a depressed stock valuation. STZ is now selling for less than 13x reduced earnings guidance, with a 3.0% dividend yield.

Constellation Brands, a beverage company that imports 100% of its beer brands from Mexico, has faced challenges due to tariff impacts, which contributed to a 16% decline in its stock this quarter. Despite our belief that the tariff impact will be reduced over time, the initial implementation has negatively affected the stock's performance. We expect Constellation Brands to continue gaining market share in the interim, but the current economic environment and tariff concerns have made it one of our largest detractors for the period.

Constellation Brands, a beverage company that imports 100% of its beer brands from Mexico, has faced challenges due to tariff impacts, which contributed to a 16% decline in its stock this quarter. Despite our belief that the tariff impact will be reduced over time and that the company will continue to gain market share, the initial implementation of tariffs has significantly affected its performance, making it one of our largest detractors for the period.

Constellation Brands, a beverage company that imports 100% of its beer brands from Mexico, has faced challenges due to tariff impacts, which contributed to a 16% decline in its stock this quarter. While we believe the tariff impact will be reduced over time and that the company will continue to gain market share, the initial implementation of tariffs has negatively affected its performance, making it one of our largest detractors for the period.