Constellation Brands beer sales up 13%

This brew bound article from the Q1 reports suggests that BP is negatively affecting Constellation Brands. There is nothing to suggest that that has changed. BP was a bad apple. Modelo is their prize winner out of all of this.

Had Constellation Brands not bought BP, their upward trajectory would be mammoth. While AAL are losing sales and ground, it is very interesting to see the Import Lager market triumph over American Craft sales and AAL sales.

 

"Mammoth" ? According to the Brewbound article you linked:

So, ½%. Sure, they overpaid, but Ballast Point still was up 55% for 2016, and if still independent, they'd be the 6th largest "Craft" brewer with a barrelage of over 430k bbl.

 

Only way I can drink a Corona. The light, which has popped up recently at many places in town, I can drink neat.

 

I'm considering a solo increase without the $billion dollar anchor. The quotes are basically saying they are better off without them. I just feel CTZ could be at an even higher level if it didn't have the American craft segment hurting them. 1/2 pt increase without the billion dollar debt? I think they'd trade it back if they could. Modelo and CTZ could be even bigger imho. But they will go on like the CBA. KONA is their saving grace while widmer and redhook suffer big time. I guess that's why you diversify but honestly, way too much spent for Bp. A company that was seeing enroumous growth for years. This baby growth is not what they wanted. So now you bring in funky Buddha and ride with them for awhile. See what sticks.

I think it's troubling they aren't exactly sharing how good BP is doing for Q2 2017. Beers were still moving in 2016 for Bp around here. 2017 it's been a complete stall. They seem to lump all beer sales as a whole and unless you are in on the conference calls, all signs lead to growth ( which we know is 90% driven by their imports).

That BB article does mention them needing and wanting more distribution points. So that's where growth may go for a few more years. Everyone who over grows pushes this angle. I guess I'm just trying to look down the line and say this isn't sustainable. For now, I do own some CTZ stock and am sitting happy. But I'm happy about the modelo and corona crowd. Iffy about craft

 

Doesn't this mean shipments of BP are down? If so that's not a good trend for their investment.

 

Corona is to good beer what premium vodka is to scotch. It's for people who want to pay a lot of money for something that actually has no real reason to be expensive.