Constellation Brands reported a 3.8% year-over-year decline in third-quarter net sales, driven largely by a 6% drop in beer volumes in U.S. off-premise channels. Management attributed the weakness to reduced spending by Hispanic drinkers following heightened immigration enforcement, with Nielsen data showing a 12% contraction in Hispanic household beer purchases compared with the same period last year. This segment accounts for roughly 28% of Constellation’s total beer revenue, making the downturn a significant contributor to the overall sales decline.

Earnings for the quarter came in at $3.06 per share, surpassing the consensus estimate of $2.64, while consolidated net sales reached $2.22 billion versus the $2.16 billion forecasted by analysts. Adjusted operating income rose 5.2%, supported by improved gross margins in the Wine & Spirits division. Free cash flow for the period reached $550 million, up from $520 million in the prior year, underpinning the company’s continued debt reduction efforts.

Constellation Brands upheld its fiscal 2026 adjusted EPS outlook of $11.30 to $11.60, signaling confidence in its cost-optimization programs and supply-chain efficiencies. CEO Bill Newlands highlighted that the Beer Business had expanded its national distribution footprint by 1,200 new points of sale during the quarter, while the Wine & Spirits segment outpaced industry growth by 320 basis points. The company expects full-year organic volume growth of 1% to 2%, with capital expenditures projected at $650 million.

In early January, Constellation launched Modelo Chelada Limón y Sal Non-Alcoholic, featuring 60 calories per 12-ounce can. The offering taps into the low-and non-alcoholic ready-to-drink category, which is forecast to expand by 50% over the next 24 months according to IRI data. Initial distribution covers five key states—Illinois, New York, Texas, Florida and California—in 12-pack formats, complementing Corona Extra Non-Alcoholic and strengthening the company’s presence in the moderation-focused market.