Chit Chat Stocks Time to Buy The #1 Beer Stock in America? (Recent Berkshire Investment) $STZ
Feb 25, 2026
A deep dive into Constellation Brands' pivot from wine to beer and its major brewery investments. They examine market share gains tied to demographic trends and rival missteps. Conversation covers recent volume declines, whether GLP-1s or economic pressure explain them, and a looming CapEx trough that could free up cash for buybacks.
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How Constellation Acquired Corona and Modelo
- In 2013 Constellation bought Grupo Modelo's U.S. business after the DOJ forced Anheuser-Busch to divest it, paying ~$4.75B for Crown stake and the Nava brewery.
- That acquisition gave Constellation exclusive U.S. rights to Corona, Modelo, and Pacifico and added a vertically integrated Mexican production advantage.
Scale Of Mexican Breweries Drives Margin Advantage
- Constellation's competitive advantage is its massive Mexican breweries and distribution relationships with regional wholesalers.
- Nava produces ~70% of capacity, Sonora adds volume, and Veracruz (online late 2026) will further scale production and distribution reach.
Divesting Wine Assets Focused The Business On Beer
- Constellation strategically sold non-core wine and spirits, shifting from ~50% beer revenue in 2015 to ~88% beer today.
- Asset sales (~$2.9–$3B) freed capital to reinvest in beer production and marketing.