The Bud Light boycott of 2023 led not just to severe financial pain for Anheuser Busch, which saw its stock price crash and sales of its flagship beer decline by double digits, but also to a bit of a boost for one of its main American competitors: Constellation Brands. That company, which sells Modelo Especial in the US, the beer that managed to beat out Bud Light as the top-selling beer in the US.Constellation’s success in 2023 was revealed in an earnings report that was released on Friday, January 5th, which showed that though Constellation saw a decline in wine and spirit demand in the last quarter, it was comfortable sticking with its profit forecast for 2024 because its beer brands grew so tremendously, something that occurred thanks to Bud Light’s Dylan Mulvaney disaster.
Commenting on the situation, Constellation CEO. Bill Newlands pointed to the massive Modelo success his company saw in 2023, saying, “Modelo Especial delivered double-digit volume growth and continued to extend its position as the #1 beer in U.S. tracked channel dollar sales.” Continuing, he noted that the company’s other beer brands managed to do well as well, saying, “Our other core beer brands, Corona Extra and Pacifico, also delivered solid growth and were top 10 share gainers across the U.S. beer category.”
He then noted that the beer performance was good enough that the company would be able to stick to its guidance despite worse wine and spirit results than expected, saying, “This outstanding performance has reinforced our conviction in our Fiscal 2024 enterprise outlook, despite an adjustment to our Wine and Spirits Business guidance due to near-term market headwinds in the wine market.”
Constellation’s Wine and Spirits head, Robert Hanson, will be stepping down at the end of February, Constellation announced in a recent press statement. Mr. Hanson had led the segment since 2019, and his successor has not yet been identified.
Commenting on the matter, Mr. Newlands said, “Robert has been instrumental in leading the charge to reposition our Wine & Spirits business to a higher-end portfolio of brands more aligned with consumer trends, with an expanded focus to include global, omni-channel distribution, with more robust and targeted international and direct-to-consumer sales channels.”
