Constellation Brands to Divest Cheaper Wine Brands Amid Organizational Review
The disclosure came as the maker of Modelo beers and Kim Crawford wine on Wednesday inked a deal to sell some of its lower-costing wine brands, a move it said is aligned with consumers' preference for more premium brands.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 days ago
- Yahoo
Constellation Brands, Inc. (STZ)'s 'A Terrible Stock,' Says Jim Cramer
We recently published . Constellation Brands, Inc. (NYSE:STZ) is one of the stocks Jim Cramer recently discussed. Alcoholic beverage producer Constellation Brands, Inc. (NYSE:STZ)'s shares have lost 24% year-to-date as they are yet to recover from a massive 17% dip in January. The shares fell at the start of the year after the firm missed analyst revenue and EPS estimates for its fiscal third quarter and cut its fiscal year guidance. Cramer's previous remarks about Constellation Brands, Inc. (NYSE:STZ) have discussed the impact of GLP-1 drugs and dropping alcohol consumption on the stock. Here are his latest thoughts: 'In this country we once had prohibition, I'm beginning to think we now have self-prohibition. There's a Gallup poll, talking about American self-reported drinking down 54% after consecutive declines. Believe moderate drinking is bad for health. The Gen Zs aren't drinking. . . .Beer remains America's favorite booze, I'm not going to go into beer stocks, I think Constellation's, STZ's, a terrible stock. . . .Because this is a mocktail era. People are, I mean it really is temperance. And there are a lot of people who feel that even red wine, they finally got rid of that canard. So be careful in the liquor story because its just not getting better, it's getting worse.' Cramer wasn't optimistic about Constellation Brands, Inc. (NYSE:STZ) ahead of its latest earnings either: 'On Tuesday, we get results from former market darling, Constellation Brands. What a fallen idol. There's so much to unpack here because this consumer packaged goods company is a microcosm of what's gone wrong with this now pathetic group that used to be the place to go when there's a slowdown. First: Constellation is an alcohol company, so all their products are being hurt by the GLP-1 drugs, which can blunt your craving for booze. That's especially true for the big beers, which are Modelo [and] Corona, and then a new popular favorite, Pacifico. Photo by Zhivko Minkov on Unsplash Second: Increasingly, surveys show that there's a switch from beer to cannabis because smoking weed is theoretically less fattening. I say theoretically because while alcohol has way more calories, it doesn't give you the munchies. This younger generation cares more about their health than previous ones. Sounds fanciful, but it is true. Third: Constellation said its sales have been hurt by concerns in the Hispanic community about mass deportations. The stock's been steadily declining all quarter. While we acknowledge the potential of STZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Yahoo
5 Stocks Warren Buffett Has Bought So Far in 2025
Warren Buffett is the most prolific investor of the last 50 years. His holding company — Berkshire Hathaway — has outperformed the S&P 500 since the 90s and Buffett always has a keen eye for buying good companies at reasonable prices. Trending Now: Check Out: While Buffett has been a net seller of stocks over the last few years, he has spent a few billion picking up stocks that he finds attractive for his portfolio. Below are five stocks that Buffett recently invested in. Also here are seven stocks Buffett has sold so far this year. Constellation Brands Inc. (STZ) Buffett's Berkshire Hathaway added to their position in Constellation Brands (STZ) in Q1 2025, with a total investment worth over $1 billion at this point. The alcohol importer that owns famous brands like Corona, Modelo and Robert Mondavi Winery. While STZ stock has performed poorly due to news of import tariffs, it still holds a majority of the Mexican import market in the U.S., according to Yahoo Finance. Constellation Brands is starting to include more non-alcoholic options to meet the growing demand, which could boost profit. This is a typical Buffett value stock pick and could be poised for growth in 2025 and beyond. See Next: Pool Corp. (POOL) Pool Corporation is the world's leading distributor of pool supplies and other outdoor products. Pool demand spiked in 2020 during lockdowns and now these newly installed pools need parts and maintenance items, making POOL an in-demand company. Buffett's holding company added to their position, buying more POOL stock in Q1 of 2025, with holdings totaling near $450 million. Another stock that has dropped heavily as new pool installation demand waned post-pandemic, but Buffett now sees the company as a value hold. Domino's Pizza Inc. (DPZ) Dominos Pizza (DPZ) is the largest pizza chain in the world and Buffett has picked up his own slice of DPZ starting in 2024 and as recently as Q1 2025. While DPZ stock has dropped over 14% since mid-2024 due to labor costs and missing revenue forecasts (per Yahoo Finance), the company continues to churn out pizza all over the world. Domino's earnings reports have missed expectations recently, but the stock price continues to hold steady. Buffett most likely sees this as a value investment opportunity and continues to scoop up shares when the price is right. Sirius XM (SIRI) Sirius XM is a satellite radio provider that Buffett owns nearly 35% of — probably because he's a fan of dividend stocks. SIRI currently pays over a 5% dividend to shareholders and Buffett added to his position in Q1 2025 for a total of about $2.7 billion in SIRI holdings. Sirius XM has suffered a massive price drop in recent years, with stock prices nearly cut by 60% since 2022. Its profit has dropped in recent years, but Buffett probably enjoys the dividend along with a low price-to-earnings ratio (P/E), making it an attractive buy. Heico Corp (HEI) Heico Corp is an aircraft and defensive system parts company that Buffett started investing in in late 2024 and added to his position in early 2025. With global conflict and tensions rising, Heico has grown in profit and continues to exceed analyst expectations. The stock is up 32% in 2025 alone, per Yahoo Finance, meaning Buffett has already seen a handsome profit. HEI is poised to continue growing and Buffett seems to be on board for the ride. Other Investment Considerations Buffett also added to his positions in a few other companies in his most recent 13F filing. Occidental Petroleum (OXY): Buffett is a fan of OXY — an oil and gas company — and Berkshire Hathaway owns nearly 30% of the company. He even stated in a recent shareholder letter they might own the stock forever. Verisign (VERI): While Buffett recently reduced their position in Verisign to get below 10% ownership for regulatory reasons, they still own over 9% of the company and added to their position in Q1 2025. Verisign has seen steady growth and a lower price-to-earnings ratio than many other stocks on this list, per Morning Star. More From GOBankingRates New Law Could Make Electricity Bills Skyrocket in These 4 States I'm a Self-Made Millionaire: 6 Ways I Use ChatGPT To Make a Lot of Money 5 Strategies High-Net-Worth Families Use To Build Generational Wealth 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on 5 Stocks Warren Buffett Has Bought So Far in 2025
Business Insider
12-08-2025
- Business Insider
The buzz around THC drinks is going flat
Same drink, different year — and, hopefully, different result. That's Mark Thomas Lynn's approach to the relaunch of Afterdream, a cannabis drink, this year. His company — the premium spirits and beverage company AMASS Brands Group — originally released its THC-infused formulation in 2021, but they pulled it off the market after about nine months due to legal hurdles around where and how they could sell the drink. "Even though people were going crazy over the product, we were like, 'Oh my God, this is just too byzantine,'" he says. "The regulations, basically, hadn't caught up." After re-releasing Afterdream in May of this year, AMASS is hoping its second rodeo will be more successful. The regulatory environment is still challenging, but it's not a complete mess, and they think more consumers will give it a shot. "Customers are much more curious about low-dose and social and non-alcoholic alternatives," Lynn says. "If I have a delicious drink that doesn't floor me, do I reach for that instead of a glass of wine?" AMASS isn't the only company hoping cannabis beverages will catch on. The booze alternatives have been about to be the next big thing for a while now. The dream among those in the industry has been that they'll soon be flying off the shelves, if not replacing alcohol sales, then at least complementing them. The market is indeed growing. Brightfield Group, a market research firm that follows the cannabis industry, conservatively estimates that hemp-derived THC beverages will reach $571 million in sales this year and $756 million by 2029. But even that ambitious 33% growth rate would leave the category comparatively tiny. The US beer market was worth $117 billion in sales last year. Modelo alone is expected to do $5 billion this year. "Initially, there was a lot of hype behind drinks but not necessarily a lot of consumer adoption," says Zehner, a research analyst at Brightfield Group. Drinkmakers and industry analysts have long been confident that cannabis beverages will soon be in refrigerators across America. But whether THC drinks are actually going to take off at a massive scale remains TBD. Legal frameworks are still murky or downright unfriendly, even in some unexpected places. Perhaps more importantly, it's still not entirely clear who these libations are for — alcohol drinkers may be hesitant to swap, marijuana lovers may want something stronger, and some people may have had a bad cannabis experience elsewhere that turned them off. And the taste can be a little funky, too, though it's getting better. Cannabis drinks were supposed to be a rocket, but instead, thus far, they've largely failed to launch. To briefly set the stage here, bear with me while I get a bit in the weeds about, well, weed. If a cannabis plant has more than 0.3% of the psychoactive compound tetrahydrocannabinol — more commonly known as THC — it's marijuana. If it has 0.3% of THC or less, it's hemp. In the 2018 Farm Bill, a comprehensive piece of legislation renewed every five years, Congress created a loophole legalizing hemp at the federal level, perhaps accidentally. Most of what I'll be talking about in this story are hemp-derived THC drinks that seek to take advantage of this congressional go-ahead, though cannabis drinks with the "regular" stuff exist, too. Initially, there was a lot of hype behind drinks but not necessarily a lot of consumer adoption. There's a lot of legalese back-and-forth over the effect of the 2018 Farm Bill, but Elisabeth Stahura, the cofounder and COO of BDSA, a market research firm that focuses on the cannabis industry, says it can be interpreted as anywhere from a "gray area" backdoor to sell hemp products to a definitive blessing for federal legalization. The real can of worms comes at the state level, where rules vary widely in terms of where beverages can be sold, what dosages they can contain, and whether they can be sold at all. "There have been different approaches to how tightly they are regulated, whether they're regulated, whether it's just kind of a free-for-all," Stahura says. The risk is probably worth the reward. Minnesota has been particularly friendly to THC-infused drinks, allowing them to be sold at retailers, restaurants, bars, and liquor stores. Zehner says Texas and Florida have been "hotbeds" for the products, too, though there's been some legal wrangling. Other states have not been so kind to them. Despite legalizing recreational marijuana, California has moved to ban intoxicating hemp products, and Colorado has severely limited them. Leaders in those states say they want to protect their constituents from unregulated products. Also, an obstacle: The states' licensed marijuana industries don't want to face competition from the hemp companies. If a state has a legal cannabis market, "it probably has limited the sales of hemp-derived THC significantly, if not outright banned it," Zehner says. "Usually, because of some sort of protectionism around their existing cannabis market and not wanting to have those necessarily be undermined." The regulatory guidelines remain precarious, with threats to legalization at both the federal and state levels. In July, Kentucky Republican Senators Mitch McConnell and Rand Paul clashed over whether to close the farm bill's hemp loophole. In June, Texas Gov. Greg Abbott vetoed a bill that would ban THC in the state. "The regs could still go the wrong way here, and this could be very challenging," Lynn says. "But the risk is probably worth the reward." Blake Patterson, the chief revenue officer of Keef Brands, which makes THC and cannabis beverages, tells me that he spent much of the day before we spoke trying to decide what to do about new rules in Florida around drink serving sizes on packaging. "We say two servings of five milligrams. It needs to change to just one serving of 10 milligrams," he says. "They keep moving the goalposts." As much as the legal hurdles may be irksome to the cannabis beverage industry, there are cultural barriers, too. Widespread adoption isn't really happening, at least not yet. Scott Selix and his wife founded Climbing Kites, a cannabis beverage company, out of their Iowa brewery in 2023. They wanted to create something that caters to America's "can-in-hand culture" but also serves people who aren't drinking alcohol as much. He's been blown away by the uptake but also acknowledges there's a long way to go. "There is an absurd amount of white space here, and I think it's going to take a long time to get where this industry eventually grows to," he says. One problem: many people don't know these products are even available. "If you ask people and you go out and say, 'Hey, does beer exist?' They say yes. And you say, 'Does wine exist?' They say yes. It's like 99% consumer awareness," he says. "If you ask people, 'Hey, when was the last time you had a THC beverage?' Consumer awareness is really low." The constituency for cannabis beverages isn't always obvious. Big cannabis connoisseurs don't tend to opt for relatively low-dose drinks, which generally run from 2 mg to 10 mg per can. (Two mg probably won't do much, 10 mg might, depending on your tolerance.) Oftentimes, they want something stronger — it's sort of a beer vs. liquor situation, but one in which few people want the beer-level option. Dispensaries haven't really had an easy time selling them, either. Stahura tells me cannabis drinks are 1-1.5% of total sales in dispensary channels. "Beverages are difficult to carry for a dispensary where the rest of their inventory is something that's smaller, easier to move, doesn't require refrigeration," she says. Consumers who prefer alcohol or who don't like marijuana are tough to win over. As much as alcohol is dangerous, it's also ingrained in American culture. Even Gen Z teetotalers are picking up the bottle now. The effects of THC aren't as familiar to many people as, say, a glass of wine. Aaron Nosbisch, the founder of Brēz, which makes THC-infused drinks and other beverages, says they've had to work to get cannabis-skeptic consumers to get past their negative run-ins with other cannabis products. "If you ask 10 people if they've tried an edible and they say yeah, and then you ask them again, 'Have you had a bad edible experience?' Like eight out of 10 will say yes," he says. "We call Brēz the antidote to the bad edible experience." I think the idea that we market this as it fits in where alcohol does all of the time for everybody is not necessarily the route. He and other modern THC beverage makers have tweaked the science behind the formulations so that they better mimic alcohol. They're using smaller particles now, which means the psychoactive effects hit people faster and also fade away faster. "If you want to disrupt an industry, what you have to do first is meet the industry where it's at, and then you have to find a better solution." Still, these drinks may make some people nervous, and — like alcohol or coffee — are not for everyone or suitable for every occasion. "There is a lot of consumer education that we're working on of, like, 'Hey, is this right for you when you're going to sleep? Is this right for you when you're at a bar? Is this right for you when you're at a pool party? For some people, is this right for you when you wake up in the morning and need to work from your home office?" Selix says. "I think the idea that we market this as it fits in where alcohol does all of the time for everybody is not necessarily the route." There is hope that the lighter hemp-derived THC drinks will finally reach what those in the cannabis industry call the "reclusive soccer-mom" constituency, who, thus far, have been quite nonexistent, Keef's Patterson says. They're the people who, because of the remaining stigma around cannabis, have been too afraid to go into dispensaries. But if they see the drinks in a liquor store or convenience store, they may be more open to giving them a try — and, perhaps, delving into other, higher-dose cannabis products, too. "If we can start to seed these people with these beverages, it is going to get them at some point in time into our dispensaries," Patterson says. They'll get "canna-curious," he says, and start looking for what's next. The appeal of cannabis beverages is definitely there. They promise the buzz without the hangover. Consumers view them as healthier. They're getting better in terms of taste. Bigger companies, including Total Wine and DoorDash, are selling and distributing them more. And where these beverages are widely and easily available, there are signs they're doing well. Minnesota liquor stores have seen their profits boosted partially by THC sales. Nosbisch, from Brēz, tells me they did $1.25 million in sales the year they launched, in 2023, and got to nearly $29 million in 2024. The alcohol industry is getting anxious about the threat of cannabis beverages, and some alcohol companies are even testing the waters with their own products. "The hemp space has shown that this category, the beverage category, can be successful if it's properly marketed," Patterson says. All that being said, widespread adoption remains an uphill climb for the cannabis drinks industry. The regulatory landscape is better, but it's still a nightmare. Everyone's sort of holding their breath, hoping they've interpreted the laws right and states won't change their minds too quickly, at least not in the wrong direction. Consumers seem to be a little bit holding their breath, too. Sure, maybe you'll stick a four-pack or two in the cooler at your BBQ, next to the beer and wine, to see if anybody bites. But if they're all left over at the end of the night, you won't be surprised, either — even if people were passing a joint around all night.
