4 Reasons to Be Bullish From Constellation Brands' Investor Presentation
While the beer market as a whole has been slowly losing its fizz for years, a presentation by Constellation Brands (NYSE: STZ) showed the company might be poised to thrive going forward. The presentation, given at the Barclays Consumer Staples Conference on Sept. 8, was upbeat in tone and highlighted the advantages Constellation believes will bring it ongoing growth in the short and long term. The market seemed to agree as the stock jumped following the presentation. Here are four takeaways investors can use to judge if the company's bullish outlook is justified.
As part of its growth strategy, Constellation is focusing on high-end beer and wine where consumer demand is growing rapidly. It is redirecting resources toward premium categories, which can help it achieve higher margins too. The company's data indicates high-end beer has seen 6% compound annual growth over the three-year period ending in 2020, with similar gains looking back five years and 7% growth in the past decade. Cheaper beers, on the other hand, have seen sales fall 4% to 5% during the same periods.
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Source Fool.com
