Constellation Brands

Beer commands strong pricing power. FY25 beer comparable operating margin was 39.7% with pricing contributing to gross margin expansion.

That pricing strength is supported by brand equity and category positioning, though 2025 saw a tougher backdrop: aluminum and import tariffs raised cost inflation and consumers showed more price sensitivity, particularly within Hispanic cohorts.

We view pricing power as intact structurally, but near‑term elasticity is higher and competitive pressure ticked up as Michelob Ultra briefly led retail sales ranks.