Constellation Brands (STZ) Beer Sales Data Accelerating - Wells Fargo

Wells Fargo analyst Bonnie Herzog reiterated an Outperform rating on Constellation Brands (NYSE: STZ) after the latest Nielsen results showed STZ’s retail dollar sales increased a strong +12.2% for the recent 4-wk period, a clear acceleration vs +10.3% for 12-wks. This is ahead of the overall industry with overall industry beer sales during the 4-wk period ended 7/27 with $ sales up +5.6% vs +2.8% for 12-wks.

The analyst stated "Premier continued to capture share & distribution – with $ share at just 0.7% and in ACV (All Commodity Volume) of 79.4% y/y as of 7/27 (up significantly from 58.8% as of 4/7). Michelob Ultra’s share gains, however, remain robust (up 57bps Y/Y to 614% for 1-wk), as is Ultra’s $ sales growth perform, which was up +16.8% for 4-wks (vs +14.7% for 12-wks). Continued softness in Corona Light (-11.9%/-14.0% EQ vol in 4-/12-wks) is notable as it appears to reflect cannibalization by Premier & likely share encroachment by Mich Ultra, which is a concern that is being addressed by STZ as it works to reposition the brand".

For an analyst ratings summary and ratings history on Constellation Brands click here. For more ratings news on Constellation Brands click here.

Shares of Constellation Brands closed at $186.69 yesterday.

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