Why Investors Shouldn't Fear Constellation Brands' Spending Spree

Constellation Brands (NYSE: STZ) had investors worried heading into its fiscal fourth-quarter earnings report. The alcoholic beverage giant is facing several headwinds, including a costly restructuring of its wine and spirits business. The core beer division is dealing with soaring costs, too, even as consumer demand shifts away from previously popular niches like hard seltzer.

On April 7, the company eased a few of those growth and earnings concerns while delivering good news on cash flow. But management also issued a conservative outlook for the fiscal year ahead that includes higher spending.

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Source Fool.com