COMING SOON!

"Everybody has a plan until they get punched in the face," Constellation beer division prexy Jim Sabia said, paraphrasing the famous Mike Tyson quote at co's Gold Network Summit yesterday in Las Vegas. But even as "we took our fair share of blows last year," navigating a "tough" environment with "many" challenges "outside of our control," Constellation still managed to gain significant share of beer volume, while "controlling the controllables," Jim highlighted. Total beer depletions were off ~5.4%, yet Constellation down just 2.8%, amounting to a 0.5-pt share gain on STRs, co estimates. STZ gained share of beer in 49 outta 50 states with IL the lone dip. Now in 2026, after making some "strategic adjustments," Constellation's mentality is "game on," "ready to get back to business and get it back on track this year," he underscored. That all starts with flagships Modelo Especial and Corona Extra, which still make up over 75% of STZ's volume, Jim shared. Even in a down yr, Modelo Especial remained a 200-mil-case brand on its own, and maintained its position as #1 beer brand by $$ by over $640 mil vs next largest (Mich Ultra) in scans last yr. It also leapt from #5 to #2 tap handle in the country, driving company-wide 7% growth in draft accounts and on draft handles in 2025 vs 2024. "On premise is critical to the growth of our brands," Jim stressed, adding that co has "ample runway for growth." And Corona remains the #1 bottled beer brand in the country with 12pk bottles the 3d most valuable SKU industry-wide. This yr will see "next edition" of Modelo's "mark of a fighter" campaign and Corona's return to the beach.Pacifico rose more than 15% to become a 30-mil-cases/yr brand and still "absolutely on fire" in early 2026, Jim highlighted. For the last 26 wks, it's #2 beer brand statewide in CA, and continues to gain traction moving west to east, "now beginning to attract Hispanic drinkers" more too, he emphasized. Corona Familiar grew to 14 mil cases last yr, becoming one of the co's most consistent gainers in recent yrs. Modelo Chelada took a slight backward step in 2025, but still sold about 22 mil cases, and has multiple new avenues of growth this yr thru high ABV and non-alc to bolster biz on top of core flavors. Victoria keeps "growing" with a "younger audience," said Jim. Several innovations and extensions are in a healthier place thru repositioned pricing on Modelo Oro and Corona Premier, Corona Sunbrew's launch, Corona NA continued growth, and Modelo Noche Especial, which was "very successful," and co plans to bring it back in 2026. And co "accelerated efforts" on price pack architecture for core brands, testing 12pks of 8oz Coronita cans, 24pks of 7oz Modelitos, increasing mini bottle offerings to Pacifico and Modelo Negra, and introducing 4pk 16oz cans with avg price below $10. Net-net, "our portfolio sets up well into the future," Jim concluded.More Positive Signs in Early Days of Repositioned Pricing on Oro and Premier; "Block and Tackle" Stage Can Lead to "Big" Oppys Ahead It's early days with Modelo Oro and Corona Premier's repositioned price points, from 155 to 117 index vs premium lights, but there are already positive signs. In the last 13 wks, they're growing 12% and 4.5% respectively in scans, Jim highlighted. Recall, growth especially took off in foodstores since late last yr. While some distribs in the network are already eager for STZ to pour gasoline on these brands to stoke growth, as distrib panel member Chris Stefanci noted during separate mtg discussion, co's "not going to throw $50 million right away" for marketing, but rather "block and tackle" at this stage, fine-tune packaging assortment and inventory, said Jim. This is "a really big opportunity for us," going after the superpremium price point dominated by one "large brand" that sells over 200 mil cases/yr (i.e. Mich Ultra). "If we do it well," these brands "can be really big parts of this portfolio going forward," but "it's going to take time."Chief Sales Officer an "Important Role for Us to Fill"; "Being Very Selective" to Find Right Fit While Constellation's next ceo is in place, co's still looking to backfill the chief sales officer role following Bill Renspie's departure in Mar 2025. It's been nearly a year, but Jim assured distribs that this is "an important role for us to fill," and co's "being very selective in the process" to find "a leader who can add incremental strength to our already strong team." Co continues to "prioritize" on premise going forward as well as key investments like category management, where it's increased "formal" category management $$ by over 7X in 7 yrs.Space is the Place; Gained 465K Incremental PODs in 2025, Up 25% Over 3 Yrs Big part of Constellation's ability to gain share thruout a more challenging yr revolves around its consistent shelf space gains. Co grew off premise space by 465K incremental points of distribution (PODs), putting 'em up 25%, 1.1 mil over the last 3 yrs. On prem PODs rose 54K over the last yr, improving to +21% for 3 yrs with draft placements up 40%. Space continued to grow 6-7% in natl key accounts last yr with indie account space up 27%. And STZ's shopper first shelf program hit 121% of its goals.

Constellation Ready to "Get Back on Track" After Taking Its Punches in 2025, Gaining Share Thruout

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