Constellation Brands

Management is concentrating capital where returns are highest: Mexican beer capacity to lift scale advantage and premiumization of wine and spirits. The company repurchased 1.12B of stock in FY25 and ~604M in the first six months of FY26 under a new 4B authorization, while maintaining a regular dividend (1.02 per quarter on Class A).

Divestitures of mainstream wines and SVEDKA simplify the portfolio and should improve ROIC. Near‑term capex is elevated by the Veracruz brewery and other Mexico projects, which we view as moat‑building rather than maintenance.