Constellation Brands: Searching for the “Right” Product Mix

Constellation Brands Inc. (Constellation)—a publicly traded multinational beverage company that produced beer, wine, and spirits—was at a crossroads. Demand for alcoholic beverages was in decline. Younger consumers were drinking less, primarily because of concerns that alcohol was not good for their health; and older consumers, who represented a large proportion of drinkers, were dwindling in numbers. In search of a product mix that resonated with consumers, Constellation divested value brands to focus on premium offerings and stepped into adjacent markets such as no-alcohol and cannabis-infused beverages. In spite of its efforts, Constellation’s stock price was down 50 percent from March 2024 to September 2025. Chief executive officer Bill Newlands was betting that the firm’s recent divestitures, acquisitions, and product extensions would pay off in the long run. Was he right to think so or was it more likely that Constellation would need to once again shuffle its product mix to meet shifting consumer demand, potentially getting out of the wine business altogether?