Constellation Brands: Disciplined RTD Expansion Further Future-Proofs The Portfolio

Constellation Brands retains a Buy rating, with valuation reflecting a conservative margin of safety and solid long-term growth prospects. STZ delivered 6% net sales growth, solid margins, and strong brand performance despite weak beer demand and elevated marketing expenses. Strategic moves, including the SpikedAde RTD acquisition and Veracruz plant expansion approaching completion, position STZ for future growth and margin improvement.