SECOND QUARTER FISCAL YEAR 2027 FINANCIAL RESULTS CEO & CFO COMMENTARY
Use Of Non-GAAP Financial Measures, Conference Call Information, and Location of Defined Terms and Other Disclaimers
Please view this commentary in conjunction with our earnings release for our second quarter fiscal 2027 that can be found on our investor relations website at ir.cbrands.com. This commentary and our live conference call may contain non-GAAP financial measures. These and other non-GAAP financial measures, the purposes for which management uses them, why management believes they are useful to investors, and reconciliations to the most directly comparable GAAP financial measures may be found at ir.cbrands.com under the Financial Info/Financial History (Non-GAAP) section. All references to profit measures and earnings per share on a comparable basis exclude items that affect comparability. Non-GAAP financial measures are also referred to as being presented on a "comparable" or "organic" basis.
A live conference call will be hosted at 8:00 a.m. ET on Wednesday, October 7, 2026, for analysts to discuss our financial results, operating performance, strategic business initiatives, and financial outlook with President and Chief Executive Officer, Nicholas Fink, and Executive Vice President and Chief Financial Officer, Garth Hankinson.
The conference call can be accessed by dialing +1-877-407-9121 and entering conference identification number 13762634, beginning at 7:50 a.m. ET. A live, listen-only webcast of the conference call will be available on our investor relations website at ir.cbrands.com under the News & Events section.
For anyone unable to participate in the conference call, a replay will be available on our investor relations website.
A list of defined terms used within can be found under the "Defined Terms" heading below, and a list of other disclaimers can be found following the Defined Terms.
Forward-Looking Statements
This commentary, including the oral statements made in the live conference call in connection herewith, contain forward-looking statements that are based on certain assumptions, estimates, expectations, plans, timetables, analyses, and opinions made by management in light of their experience and perception of historical trends, current conditions, and expected future developments, as well as other factors management believes are appropriate in the circumstances. These forward-looking statements are subject to various risks and uncertainties, many of which are beyond our control, and which could cause actual results to differ materially from those set forth in, or implied by, such forward-looking statements. When used in this commentary and the live conference call, words such as "anticipate," "intend," "expect," "plan," "continue," "estimate," "exceed," "may," "will," "project," "predict," "propose," "potential," "targeting," "exploring," "goal," "outlook," "forecast," "trend," "path," "scheduled," "implementing," "ongoing," "seek," "can," "could," "might," "should," "believe," "view," "focus," "opportunities," "runway," "pursue," and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although we believe that the estimates, expectations, plans, and timetables reflected in the forward-looking statements are reasonable, they may vary from management's current estimates, expectations, plans, and timetables, and we can give no assurance that such estimates, expectations, plans, and timetables will prove to be correct, as actual results and future events and timetables could differ materially from those anticipated in such statements. Information provided in this commentary and the live conference call are necessarily summarized and may not contain all available material information.
All statements other than statements of historical fact set forth in this commentary and the live conference call may be forward-looking statements, including without limitation statements regarding or applicable to returns from our sharpened execution and increased investments, our commercial and operational strategies, ability to capture additional growth opportunities, strategic priorities and pillars, sustaining growth across our scaled brands, including our evolved playbook to sustain leadership at scale, actions to ensure each of our scaled brands is able to grow and strengthen its leadership position
such as closing distribution gaps and investing in marketing and brand activation, including for NCAA football programming, optimizing our marketing mix, leveraging price-pack architecture and revenue growth management initiatives, strengthening our presence in the on-premise channel, strong customer programming and partnership, expanding brand reach with innovation, and deepening emotional connections while expanding brand relevance across occasions, scaling our next wave brands, including our capabilities and portfolio advantages and converting strong consumer pull into sustained volume and share growth, expanding availability and building awareness, and diversifying with discipline into new growth segments, including the power of our brand portfolios and distribution networks, investing behind our highest-return organic growth opportunities while selectively expanding our portfolio into new consumer demand spaces, the evolution of consumer preferences and our ability to meet consumers with a broader set of brands that satisfy more of their needs across more occasions, our disciplined pursuit of growth, including prioritizing opportunities, opportunities from the acquisition of SpikedAde, growth runways, portfolio momentum, our consumer insight capabilities, investing in data, digital, and AI and associated benefits, ability to continue gaining share, expanding our leadership position across categories, shareholder value creation, distributor inventories, pricing actions, the consumer backdrop, the health and equity of our brand portfolio, advancement toward rising profitability in our Wine & Spirits Business, future sales, space, partnership, distribution, and supply chain initiatives, our beer modular capacity addition activities, including anticipated scope, capacity, supply, costs, capital expenditures, and timeframes for completion, capital allocation and margin framework, priorities, targets, future operations, financial position, net sales, expenses, the anticipated impact of and responses to tariffs, impairments, hedging programs, operating income, operating margins, leverage ratios, including target comparable net leverage ratio, target dividend payout ratio, net interest expense, capital expenditures, tax rates, anticipated tax liabilities, operating cash flow, free cash flow, EPS, shares outstanding, non-controlling interests, and other financial metrics, expected volume, inventory, price, mix, and depletion trends, near-, medium-, and long-term financial models and targets, future acquisition, disposition, and investment activities, including the amount of contingent consideration, if any, that may be paid or received, our environmental responsibility, CSR, and human capital strategies and aspirations, the manner, timing, and duration of our share repurchase program and source of funds for share repurchases, the amount and timing of future dividends, access to capital markets, liquidity and capital resources, anticipated inflationary pressures, changing prices, and reductions in consumer discretionary income as well as other unfavorable global and regional economic conditions, geopolitical events, and military conflicts, including the conflict in the Middle East, and our responses thereto, and prospects, plans, and objectives of management, as well as information concerning expected actions of third parties, are forward-looking statements (collectively, "Projections") that involve risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by the Projections.
All Projections speak only as of the date of this commentary or the live conference call, as applicable. We undertake no obligation to update or revise any Projections, whether as a result of new information, future events, or otherwise. Unless otherwise noted, the Projections do not take into account the impact of any future acquisition, investment, merger, or other business combination, divestiture (including any associated amount of incremental contingent consideration payment paid or received), cost savings, restructuring, operating, or efficiency initiatives, tariff changes, or financing or share repurchases that may be completed after the issuance of this commentary or the live conference call, as applicable.
In addition to the risks and uncertainties of ordinary business operations and conditions in the general economy and markets in which we compete, the Projections contained in this commentary are also subject to the risk, uncertainty, and possible variance from our current expectations regarding:
potential declines in the consumption of products we sell and our dependence on sales of our beer brands;
our President and CEO transition;
impacts of our acquisition, divestiture, investment, and new product development strategies and activities, including from the SpikedAde acquisition and the amount of contingent consideration, if any, that may be paid;
dependence upon our trademarks and proprietary rights, including the failure to protect our intellectual property rights;
potential damage to our reputation;
competition in our industry and for talent;
economic and other uncertainties associated with our international operations, including tariffs;
water, agricultural and other raw material, and packaging material supply, production, and/or transportation difficulties, disruptions, and impacts, including limited groups of certain suppliers;
reliance on complex information systems and third-party global networks as well as risks associated with cybersecurity and artificial intelligence;
dependence on limited facilities for production of our beer brands and impacts from our Brewery Projects;
operational disruptions or catastrophic loss to our breweries, wineries, other facilities, or distribution systems;
severe weather, natural and man-made disasters, climate change, environmental responsibility and CSR-related regulatory compliance, failure to meet environmental sustainability and CSR commitments and aspirations;
the success of our cost savings, restructuring, and efficiency initiatives;
reliance on wholesale distributors, major retailers, and government agencies;
food safety and quality, including contamination and product degradation from diseases, pests, weather, and other conditions;
communicable infection or disease outbreaks, pandemics, or other widespread public health crises impacting our consumers, Customers, employees, and/or suppliers;
effects of employee labor activities that could increase our costs;
our indebtedness and credit ratings, interest rate fluctuations, and credit market disruptions or volatility;
our international operations, worldwide and regional economic trends and financial market conditions, geopolitical uncertainty, including as a result of the conflict in the Middle East, or other governmental rules and regulations;
class action or other litigation we face or may face, including related to alleged securities law violations, abuse or misuse of our products, product liability, marketing or sales practices, or other matters;
potential impairments of our intangible assets, such as goodwill and trademarks;
changes to tax laws, fluctuations in our effective tax rate, accounting for tax positions, resolution of tax disputes, changes to accounting standards, elections, assertions, or policies, and the potential impact of a global minimum tax rate;
uncertainties related to future cash dividends and share repurchases, which may affect the price of our common stock;
ownership of our Class A Common Stock by certain individuals and entities affiliated with the Sands family and their Board of Director nomination rights;
the choice-of-forum provision in our amended and restated by-laws regarding certain shareholder litigation; and
other factors and uncertainties disclosed in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended February 28, 2026, which could cause actual future performance to differ materially from our current expectations.
Overarching Commentary
During the second quarter, our portfolio of iconic brands continued to resonate with consumers. We have sharpened our execution and increased investment across the business, and we are beginning to see early returns through accelerating dollar and volume share gains in both our Beer and Wine & Spirits businesses relative to the first quarter. As a result, we were the #1 dollar share gainer in beverage alcohol during the second quarter.
The commercial and operational strategies that underpin our business are sound. Building on that foundation, our go-forward approach is focused on capturing additional growth opportunities by winning with more consumers across more occasions. As outlined during our first quarter earnings call and at the Barclays Global Consumer Conference, the strategic priorities to support our next phase of growth are organized around three distinct pillars:
Sustaining Growth Across Our Scaled Brands - We have built some of the most successful, enduring, and valuable brands in beverage alcohol, including Modelo Especial, Corona Extra, and Kim Crawford. The capabilities that helped scale these brands, including distribution expansion, brand-building, and disciplined commercial execution, remain essential. However, sustaining leadership at scale requires an evolved playbook. As brands mature, growth is increasingly driven by staying culturally relevant, remaining top-of-mind with consumers, executing a refined commercial playbook, and deploying investment with greater precision. We are taking deliberate actions to seek to ensure each of these brands is able to grow and strengthen its leadership position:
Modelo Especial is the #1 beer brand by dollar sales in the U.S., yet we believe it still has meaningful runway ahead. Distribution remains approximately 20% below domestic competitors, and unaided awareness significantly trails several large beer brands. That combination creates a clear path for continued growth as we close distribution gaps and invest in marketing and brand activation to reach more consumers across the country, as demonstrated by our execution that led to us winning the World Cup occasion. Over the six-week period covering the event, we gained 0.9 points in Circana tracked channels, or more than 3x the #2 share gaining supplier. We are now translating this superior execution into our NCAA football programming this fall, as we seek to maintain momentum on the brand.
Corona Extra is consistently recognized as the most-loved beer brand among consumers, and aided and unaided awareness levels remain among the highest in the industry. Our opportunity is to convert that exceptional brand equity into sustained growth by evolving the way we invest behind the brand, including optimizing our marketing mix, leveraging price-pack architecture and revenue growth management initiatives, and strengthening our presence in the on-premise channel, where Corona Extra remains a leading packaged beer offering. We have begun to action fresh marketing strategies and increased our investment behind the brand during the fiscal year, and are already seeing improved share performance for the brand in a short amount of time.
Kim Crawford is the #1 Sauvignon Blanc in the U.S. wine industry and continues to gain share, with depletions increasing approximately 11% during the quarter. We are driving these results through focused and disciplined execution on our core Sauvignon Blanc, strong customer programming and partnership, and by expanding the brand's reach with innovation, particularly our lower alcohol options and varietal extensions. This performance also reflects the brand's continued resonance with consumers and its strong connection to meaningful moments shared with friends and family. Our opportunity moving forward is to continue to deepen that emotional connection while expanding the brand's relevance across the occasions that matter most to today's consumer.
Scaling Our Next Wave Brands - We have repeatedly demonstrated the ability to identify emerging consumer demand, build culturally relevant brands, and scale them into category leaders through disciplined marketing investment and expanded distribution. We view this repeatable capability as a defining advantage of our portfolio. The same proven playbook that helped build Modelo Especial, Corona Extra, and Kim Crawford into some of the most iconic beverage alcohol brands in the U.S. is now being applied to the next wave of growth brands in our portfolio, including Pacifico, Victoria, and Mi CAMPO. While these brands are in the earlier stages of development, they are exhibiting many of the same characteristics that defined our most successful scaled brands at a similar stage, including strong consumer connection, accelerating awareness, increasing velocity, and significant distribution runway. These results are not isolated pockets of growth, but rather the outcome of a repeatable, disciplined brand-building model that we have successfully deployed across our portfolio:
Pacifico and Victoria are already demonstrating the strength of this model. They are the two fastest-growing brands within the top-50 beer brands in the U.S., and Pacifico recently became a top-10 brand by dollar sales while growing depletions over 19% during the second quarter. Importantly, this momentum is being delivered while both brands remain significantly under-distributed relative to domestic competitors, with distribution levels approximately 80% below those of comparable brands. This creates a compelling opportunity to convert strong consumer pull into sustained volume and share growth as we continue expanding availability and building awareness.
Mi CAMPO is emerging as a clear example of our ability to innovate and scale brands in attractive demand spaces beyond beer and wine. Having recently been named to the Impact Hot Brand list, Mi CAMPO is the #2 growth driver in the $24 to $38 per bottle tequila price segment, while its distribution remains more than 75% below comparable tequila brands. This combination of strong performance, attractive positioning, and substantial distribution whitespace gives us confidence that Mi CAMPO has a long runway for growth as we continue to apply our disciplined commercial and brand-building capabilities.
Diversifying With Discipline Into New Growth Segments - We believe we have one of the most powerful brand portfolios and advantaged distribution networks in beverage alcohol, which continues to drive sustained market share gains, best-in-class operating margins in our Beer
Business, and strong free cash flow. These strengths provide us with the flexibility to invest behind our highest-return organic growth opportunities while selectively expanding into new consumer demand spaces where we have a right to win. As consumer preferences continue to evolve around betterment, flavor, moderation, and occasion-based choice, our goal is to meet consumers with a set of brands that satisfy more of their needs across more occasions.
Importantly, we intend to pursue this growth with the same discipline that has defined our approach to brand building and capital allocation over the past several years. This includes prioritizing opportunities where the consumer signal is clear, the economics and returns are attractive, and our commercial capabilities can create a sustainable advantage:
The acquisition of SpikedAde provides us with a differentiated, consumer-led brand and platform that strengthens our ability to compete in the emerging and rapidly growing "Ade" segment. As one of the fastest-growing segments within beverage alcohol, spirit-based RTDs continue to attract new consumers, with "Ade" products increasingly gaining share. SpikedAde has already established itself as a leading brand within the category, and we believe our commercial capabilities and advantaged distributor network position us to further accelerate growth through expanded distribution and increased marketing investment.
Another example is our innovation within the non-alcoholic beer and wine categories, which remain some of the fastest-growing segments in beverage alcohol, supported by consumers who are increasingly seeking moderation without compromising on brand, taste, or social experience. Corona Non-Alcoholic has emerged as the #3 brand by dollar sales in the non-alcoholic beer category, with depletions growing more than 12% during the quarter. Importantly, the brand has achieved this momentum with limited direct investment and a focused package assortment, giving us confidence there is considerable runway to accelerate growth through incremental investment, expanded availability, and greater consumer awareness. Momentum across our broader non-alcoholic portfolio is also building, with Modelo Chelada Limón Y Sal Non-Alcoholic ranking as the #4 dollar share gainer in the non-alcoholic beer category and Kim Crawford Alcohol Removed emerging as the #1 dollar share gainer in the non-alcoholic wine category.
Underpinning all three growth pillars are our consumer insights capabilities, which we will continue to strengthen through investments in data, digital, and AI. We believe advancing these capabilities will enable us to operate with greater speed and agility, deepen our understanding of evolving consumer behaviors and occasions, and make more informed decisions across the business. We have exceptional brands, differentiated capabilities, and strong customer and consumer relationships, and we remain confident that these strengths position us to continue gaining share, expanding our leadership position across categories, and creating long-term value for shareholders.
Q2 Fiscal 2027 Results Summary
We delivered strong results during the second quarter, as Enterprise net sales and comparable operating income increased 6% and 1%, respectively. Turning to the drivers of our financial results in more detail, starting with our Beer Business:
Beer Business
While depletions declined slightly during the quarter, our Beer Business delivered mid-single-digit net sales and shipment volume growth, underpinned by mid-single digit growth in points of distribution and continued marketing investment to support the health and equity of our brand portfolio. Consistent with prior-year seasonality, we shipped slightly more cases than were depleted during the quarter as distributors ordered to rebuild inventory days on hand to healthier levels. We have spent much of the first half of the year catching up from lower than average inventory levels exiting FY26, and entering the third quarter distributor inventories are now in a healthier position.
Our portfolio of iconic brands continues to resonate in the marketplace, as brand-health and loyalty metrics remain strong and our portfolio's affinity among Hispanic consumers remains the highest relative to other major beer suppliers in the U.S. Across Circana U.S. tracked channels, our Beer Business was the #1 dollar and volume share gainer during the quarter, capturing over 0.8 points of share in the total beer category. This represented an acceleration of more than 0.2 share points versus the prior quarter. We had 5 of the top-15 dollar share gaining brands across the total beer category and continued to be the #1 high-end beer supplier in the U.S. by dollar sales. This momentum was reflected across our core beer brands:
Modelo Especial maintained its position as the #1 brand by dollar sales and was the #3 dollar share gainer. Within the brand family, Modelo Chelada Limón y Sal was the #6 dollar share gainer.
Corona Extra remained a top-five brand by dollar sales, while Corona Familiar was the #14 dollar share gainer.
Pacifico and Victoria were the #2 and #10 dollar share gainers, respectively, and Pacifico became a top-10 brand by dollar sales.
Depletions declined by 0.6% as off-premise activity around the World Cup came in below industry expectations in June and July. On-premise volumes were strong during this period, as our marketing initiatives drove consumer activation, increased tap handles, and strengthened brand positioning across of portfolio. Importantly, in both segments our brands outperformed the broader market significantly.
August showed a temporary deceleration in depletion trends, with macro and consumer headwinds impacting the off-premise channel.
Depletions in the off-premise channel declined by 1.5% while the on-premise channel grew 6.6%, representing 89% and 11% of total depletions, respectively. Among our top five states, California and New York continued to outperform, while Texas and Florida lagged.
On-premise channel growth during the quarter was supported by World Cup-related activity and continued distribution expansion across both packaged and draft formats. Modelo Especial,
Corona Extra, and Pacifico were the top-three dollar share gainers in packaged beer, while Modelo Especial and Pacifico ranked #3 and #5, respectively, among dollar share gainers in draft.
One additional sell day during the quarter was largely offset by a shift in the timing of the Labor Day holiday, resulting in minimal impact on underlying depletion trends.
Net sales increased by over 5% driven by shipment volume growth of 5.5%, while pricing net of mix was roughly flat. In addition to an approximately 25 basis point headwind from cycling our High-End Light Beer repositioning, we have remained selective with pricing actions on a market-by-market basis given the softer consumer backdrop.
Operating income increased 1%, while operating margin decreased 160 basis points to 39.0%, as lower tariff expenses and favorable fixed cost absorption were more than offset by increased marketing investment and other SG&A spend.
During the quarter, marketing as a percent of net sales was approximately 10%. Wine & Spirits Business
Turning to our Wine & Spirits Business, we delivered double-digit growth across net sales, shipment volume, and depletion volume as our focused higher-end portfolio continued to build momentum.
Across Circana U.S. tracked channels, our portfolio outpaced the total wine and spirits category in both dollar and volume sales, and our wine portfolio was the #3 dollar share gainer in the total wine category.
Depletions grew by 10.2%, primarily driven by the strength of Kim Crawford and Mi CAMPO, which grew depletions by 11% and 51%, respectively.
Net sales increased by 17% driven by shipment volume growth of 15.4%, and pricing net of mix was slightly favorable.
We continued to advance toward rising profitability in our Wine & Spirits Business, with operating margin improving to 3.8% driven by favorability in COGS from recoveries of U.S. tariffs and continued savings across marketing and other SG&A from our optimization and restructuring initiatives.
Enterprise
Enterprise net sales increased 6% driven by growth in both our Beer and Wine & Spirits Businesses.
Corporate expense was $74 million reflecting a 62% year-over-year increase, primarily attributable to higher compensation and benefits, including short-term incentive compensation expense.
Enterprise comparable operating income increased 1%, while comparable operating margin decreased 160 basis points to 34.1%.
Comparable net interest expense was $83 million, reflecting a 3% decrease from the prior year driven mainly by lower average borrowings.
Our comparable effective tax rate increased to 20.4% versus 18.5% last year, primarily due to the effects of changes in tax legislation.
Reported EPS increased 25% to $3.32, while comparable EPS increased 3% to $3.74.
Fiscal 2027 Outlook
Looking ahead, our comparable outlook for fiscal 2027 remains unchanged. The following reiterates our outlook and provides additional considerations for the second half of the fiscal year:
Beer Business
We expect net sales to range from down approximately 1% to up approximately 1%.
Operating margin for our Beer Business is expected to be between 37% and 38% for the full year.
For the second half of the fiscal year, we expect operating margin to be between 34.5% and 35.5%, driven by the following factors:
Marketing as a percent of net sales is expected to exceed 10%, including third quarter marketing spend above 11% of net sales to support our fully-integrated programming around Major League Baseball and NCAA Football.
SG&A as a percent of net sales is expected to exceed 7.0%, reflecting lower seasonal shipment volumes in our Beer Business during the second half of the year.
Wine & Spirits Business
We expect organic net sales to range from down approximately 1% to up approximately 1%, reflecting anticipated shipment volume declines during the second half of the year as we continue to progress against mutually agreed-upon finished goods inventory reductions with key distributors.
Operating margin for our Wine & Spirits Business is expected to be between 5% and 6%. Enterprise
We expect organic net sales to range from down approximately 1% to up approximately 1% and comparable operating margin to be between 32% and 33%.
We expect comparable EPS to be in the range of $11.20 to $11.90.
We expect to generate between $2.4 billion and $2.5 billion in operating cash flow and between $1.6 billion and $1.7 billion in free cash flow.
For a complete listing of items included in our fiscal 2027 outlook, please refer to the earnings release.
We thank you for your interest in Constellation Brands - and as we approach the upcoming holiday season, we invite you to enjoy some of our amazing products as part of your festivities and celebrations!
Defined Terms
Unless the context otherwise requires, the terms "Company," "CBI," "STZ," "we," "our," or "us" refer to Constellation Brands, Inc. and its subsidiaries. We use terms in this presentation that are specific to us or are abbreviations that may not be commonly known or used.
Term Meaning
$ U.S. dollars
2025 Restructuring Initiative
2025 Wine Divestitures
an enterprise-wide cost savings and restructuring initiative designed to help optimize the performance of our business, including through enhanced organizational efficiency and optimized expenditures across our organization, with the majority of the work executed within fiscal 2026 and net annualized cost savings expected to be fully realized by fiscal 2028
sale and, in certain instances, exclusive license to use the trademarks of a portion of our wine and spirits business, primarily centered around our then-owned mainstream wine brands and associated inventory, wineries, vineyards, offices, and facilities on June 2, 2025
AI Artificial intelligence
Beverage Alcohol Total beverage alcohol, includes beer, wine and spirits segments CEO Chief Executive Officer
CFO Chief Financial Officer
CircanaTM Industry market research publication used by consumer packaged goods companies
COGS Cost of product sold
Comparable basis ("comparable")
Amounts which exclude items that affect comparability, as they are not reflective of core operations of the segments
CSR Corporate social responsibility
Customers Wholesale distributors, retailers (generally outside of the 3-tier U.S. distribution channel where products are sold to a distributor (wholesaler) who then sells to a retailer; the retailer sells the products to a consumer; however, in control states, the state government performs the role of wholesaler and retailer), state alcohol beverage control agencies which sell to consumers, and direct-to-consumer purchasers
Depletions Represents U.S. distributor shipments of our respective branded products to retail customers, based on third-party data
EPS Diluted net income (loss) per share attributable to CBI FY or fiscal The Company's fiscal year ending February 28, 2027 GAAP General accepted accounting principles in the U.S. High-End Beer Beer that sells above $27.00 a case at retail
Higher-End Spirits Spirits that generally sell above $14.00 - $17.00 per bottle at retail
Higher-End Wine Wine that sells above $11.00 per bottle at retail for table wine and above $13.00 for sparkling wine
International markets
Markets outside of the U.S. in which we sell our Wine and Spirits products
mainstream Includes wine that sells less than $11.00 per bottle at retail, sparkling wine and all other wine that sells less than $13.00 per bottle at retail, and spirits that sell less than $14.00 per bottle at retail, as defined by CircanaTM
Net interest expense
Includes interest expense, interest income, and extinguishment of debt
Premium Includes wine that sells between $11.00 to $24.99 per bottle at retail, sparkling wine that sells between $13.00 to $34.99 per bottle at retail, tequila that sells between $17.00 to $23.99 per bottle at retail, and whiskey that sell between $17.00 to $24.99 per bottle at retail, as defined by CircanaTM
Projections as defined under the heading "Forward Looking Statements"
Reported basis ("reported")
Derived from amounts as reported under generally accepted accounting principles in the U.S.
RTD ready-to-drink
SEC Securities and Exchange Commission
SG&A Selling, general, and administrative expenses Shipments Represents the volume shipped from CBI to distributors
U.S. United States of America
Disclaimers and Caution Regarding Outdated Material
The notes offered under our commercial paper program have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements. This commentary shall not constitute an offer to sell or the solicitation of an offer to buy our notes under the commercial paper program.
Unless the context otherwise requires, the term "consumers" refers to legal drinking age consumers and references to "betterment" products means our lower-alcohol, lower-calorie, non-alcoholic, or no-calorie products. Market positions and industry data discussed in this commentary have been obtained or derived from industry and other third-party publications and our estimates. We have not independently verified the data from the industry and other third-party publications. Unless otherwise indicated, (i) all references to market positions are based on equivalent unit volume, and (ii) data discussed in this commentary is based on our data, analysis, plans, and reporting. Unless otherwise indicated, the information presented in this commentary is as of October 6, 2026, and, to the best of our knowledge, timely and accurate when made. Thereafter, the information contained in this commentary should be considered historical and not subject to further update by us.