Constellation Brands, Inc.
Summary
Brief Company Overview
Constellation Brands, Inc. (NYSE:STZ), together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company provides beer primarily under the Corona Extra, Corona Premier, Corona Familiar, Corona Light, Corona Refresca, Corona Hard Seltzer, Modelo Especial, Modelo Negra, Modelo Chelada, Victoria, Vicky Chamoy, and Pacifico brands. The company company was established in 1945 and in the first year of its operation it sold 200,000 gallons of wine grossing $150,000. It is the third largest beer company in the USA according the reported revenue of 2021.1
The company supplies its brands to the wholesale distributors, retailers, and on-premise locations. Business of Constellation Brands is conducted through wholly-owned subsidiaries, a variety of joint ventures and other entities. Constellation has four reportable business segments - Beer, Wine and Spirits, Corporate Operations and Other, and Canopy.
As of June, 2023, the company had 52-week share price range of $208.12 to $261.32. Trailing P/E ratio of the company is 359.38 times, price to sales ratio (ttm) is 4.61 times, profit margin is -0.75%, operating margin is 30.82%, return on assets (ttm) is 7.21%, return on equity is -0.37%, diluted earnings per share (ttm) is -$0.12. The company has a stock split history to the ratio of 2:1 on May 15, 2005. Number of shares outstanding as of April 13, 2023 is $0.01 par value Class A common stock 183,231,968 shares and $0.01 par value Class 1 common stock 22,705 shares.
Company History
Marvin Sands purchased Canandaigua Industries in 1945 to give a starter to the history of what is today Constellation Brands. With only eight employees, he sold bulk wine in barrels to bottlers in the East. In this first year, the company sold approximately 200,000 gallons of wine and has gross sales of $150,000. By 1951, the company registered $1 million in sales. It introduced a first brand namely Richard's Wild Irish Rose to spearhead the growth of the company. The WIld Irish Rose went out for a explosive demand in the market and the company introduced its own production facilities as well as its unique franchising system to meet demand. By 1961, Canandaigua Industries doubles its gross sales from $4 million to $8 million in just two years.
In 1972, it changed its name to Canandaigua Wine Company, Inc. and went public on the New York Stock Exchange in 1973. Brand acquisitions in the 1970s fueled the company's growth, and in 1974 the company heads west to acquire a majority interest in the Bisceglia Brothers Winery in Madera, California. This gave the company access to a large varietal wine market in the western United States.
