With the onset of the COVID-19 pandemic, Constellation Brands (NYSE: STZ) ran into a situation it had never encountered before: Many of its primary channels for making sales were closed off.
The premium beer, wine, and spirits distributor saw bars, restaurants, and other venues where people gathered and drank shut down, while the travel and tourism markets -- another big driver of alcoholic beverage sales -- evaporated.
Although alcohol is considered a recession-resistant business -- because when times get tough, you can still drown your sorrows -- if a large share of the places that pour your beverages aren't pouring, the model gets shaky.
Source Fool.com