- Constellation Brands technically saw its first negative volume quarter for beer, but consumption has continued to grow through the downturn, and management has been carefully managing inventories to limit out-of-stocks.
- With $1 billion sale of several wine brands to Gallo, Constellation should have the wine and spirits business "right-sized" and focused on higher-value properties.
- The company's efforts in packaging and distribution have helped fuel strong growth in its beer brands, but there are still attractive share growth opportunities, helped by new product development.
- Constellation shares offer a decent return on prospective 8%-9% FCF growth.
For further details see:
Constellation Brands Continuing To Leverage Its High-Value Portfolio Through The Pandemic