10. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders In Q3 2024: 36
Constellation Brands, Inc. (NYSE:STZ) is one of the biggest alcoholic beverage companies in the world. The firm is known for popular beverage brands such as Corona beer. However, its shares closed 2024 7.9% lower due to high inflation eroding the demand for spirits. Constellation Brands, Inc. (NYSE:STZ)’s shares haven’t done well in 2025 either and are down by 18% year-to-date. The drop came after the company cut its beer sales growth forecast for the year to 4% to 7% from an earlier 6% to 8%. Cramer believes Constellation Brands, Inc. (NYSE:STZ) is part of a broader shift in consumer trends:
“It’s a disaster. I did [have hopes for STZ] because they’re the only one that had growth, and it really dashed the hope. Very disappointing. They seem to, I do have Bill Newlands on tonight, and I have a position for my trust [inaudible] been very wrong. And the reason it’s wrong is because I thought that beer would hold up and the other spirits have been down. And I was bullish because Mr. Newlands was bullish.
“The beer sales are no longer strong. Well, some of it is because. . . .GLP-1 but nobody will admit that.
“[On expecting beer to grow by 4% and 7%] Well they’re wrong. They don’t know their own business. They don’t know their own business. I live that business. Let me tell you, they don’t know it. I’m surprised because they are in it too. But I get like daily numbers from this industry. . . see that’s what happens. It’s no longer wine and spirits. They should have sold that [the wine and spirits business] a long time ago and they weren’t able to do it. I think Mr. Newlands is terrific, I think that it’s number one in a declining group and . . Bud hasn’t done well, Brown-Forman’s a disaster. I had felt that this was the one shared take growth that you could have and they missed the quarter. Now they are also optimistic. I’m, my wife is in this business pretty thick, we had some good numbers, and I look at the numbers and I know what the real numbers are for alcohol. You don’t want to be in that business.
“In the case of Constellation, Hispanic growth not as great as it was because of the closing of the border under . . . Biden. But also, cannabis, and younger people not wanting to do to their bodies what they used to. Now against that are executives that tell me I’m completely full of it, and I don’t know what I’m talking about. Well I’ve gotta tell you something, if I don’t know what I’m talking about then we better start cutting back my wife’s business. That one growth industry in the whole . . world, and that is mescal. But you know these guys don’t want to hear that, they’re, it’s a terrible thing to hear your business is bad. You want to hear your business is good.
“Yeah, look and I think Mr. Newlands [inaudible] good job. The issue is, you gotta forecast right. And I think that what you have to recognize is that, and everyone’s been so unwilling to recognize, there’s a structural change going on. Everyone keeps thinking it’s cyclical. I’m beginning to believe it’s secular.”
