Mission Statement, Vision, & Core Values (2024) of Constellation Brands, Inc. (STZ).

An Overview of Constellation Brands, Inc. (STZ)

General Summary of Constellation Brands, Inc. (STZ)

Constellation Brands, Inc. was founded in 1945 and has grown to become a leading beverage alcohol company. The company is headquartered in Victor, New York, and specializes in brewing beer, producing wine, and distilling spirits. Its product portfolio includes well-known brands such as Corona, Modelo, and Robert Mondavi. As of 2024, Constellation Brands reported total sales of approximately $5.58 billion, with the beer segment contributing around $4.8 billion and the wine and spirits segment generating about $777.7 million.

Company's Financial Performance in the Latest Financial Reports

In the second quarter of fiscal year 2025, Constellation Brands achieved consolidated net sales of $2.92 billion, marking a 3% increase from the same period in the previous year. The beer segment saw net sales rise to $2.53 billion, a 6% increase year-over-year, driven by a 4.6% increase in shipment volume.

However, the wine and spirits segment experienced a decline, with net sales dropping to $388.7 million, down 12% from the prior year, primarily due to a decrease in shipment volumes and unfavorable product mix.

For the first six months of fiscal 2025, the company reported a total net income attributable to Constellation Brands of $(1.2 billion), primarily impacted by a $2.25 billion goodwill impairment in the wine and spirits segment. This was a significant decrease compared to a net income of $826 million in the same period of the previous year.

Despite challenges in the wine and spirits segment, the beer segment's gross profit increased to $1.37 billion, reflecting a 11% rise attributed to shipment volume growth and favorable pricing.

Introduction to Constellation Brands as a Leader in the Industry

Constellation Brands is recognized as one of the leaders in the beverage alcohol industry, particularly in the beer segment, where it holds a significant market share. The company's strategic focus on premium brands and innovation, along with its robust distribution network, has positioned it favorably in a competitive landscape. The successful execution of cost-saving initiatives and a commitment to high-quality products contribute to its resilience and growth.

Mission Statement of Constellation Brands, Inc. (STZ)

Mission Statement of Constellation Brands, Inc. (STZ)

Constellation Brands, Inc. aims to be the leading beverage alcohol company in the U.S. by providing high-quality products that enhance the drinking experience. Their mission emphasizes a commitment to innovation, quality, and building strong relationships with consumers and stakeholders.

Core Component 1: Quality Products

At the heart of Constellation Brands' mission is the dedication to delivering high-quality products. The company is known for its diverse portfolio, which includes renowned beer brands such as Corona and Modelo, as well as a wide range of wines and spirits. In the second quarter of 2025, the beer segment reported net sales of $2,530.2 million, a 6% increase compared to the same period in the previous year . This growth is attributed to a combination of shipment volume growth and favorable pricing strategies.

Core Component 2: Innovation

Innovation is another critical aspect of Constellation Brands' mission. The company continually seeks to develop new products that resonate with consumer preferences. A significant focus has been placed on premiumization, with a strategy aimed at capturing higher-margin segments of the beverage alcohol industry. For instance, the company aims to align its portfolio with consumer-led premiumization trends, which are projected to drive faster growth rates across beer, wine, and spirits. In Fiscal 2025, Constellation Brands reported a 4% increase in consolidated net sales, largely driven by advancements in its Beer segment .

Core Component 3: Stakeholder Relationships

Building strong relationships with stakeholders is integral to Constellation Brands' mission. The company focuses on consumer engagement and aims to create a culture that is consumer-obsessed. This is reflected in their robust marketing and distribution efforts, which include expanding their presence in digital channels and enhancing direct-to-consumer (DTC) capabilities. In the first half of 2025, the company reported a significant investment in digital business acceleration initiatives, indicating a commitment to strengthening customer relationships and enhancing overall consumer experience .

Constellation Brands' mission statement reflects its strategic focus on delivering quality, fostering innovation, and cultivating strong stakeholder relationships, which collectively support its long-term growth objectives and market leadership in the beverage alcohol industry.

Vision Statement of Constellation Brands, Inc. (STZ)

Vision Statement Overview

Constellation Brands, Inc. envisions a future where they lead the beverage alcohol industry by creating brands that resonate deeply with consumers, leveraging innovation to stay ahead of market trends, and fostering a culture that prioritizes sustainability and operational excellence. Their vision emphasizes growth through premium products and responsible business practices.

Consumer-Centric Innovation

As part of their vision, Constellation Brands aims to maintain a strong focus on consumer preferences, leading to the development of innovative products and brand extensions. The company is committed to investing in market research and consumer insights to drive product development.

• Investment in innovation initiatives amounted to approximately $85 million in the fiscal year 2024.
• Product innovation led to a 4.6% increase in beer shipment volumes in the second quarter of 2025 compared to the previous year.

Commitment to Sustainability

Constellation Brands’ vision includes a strong commitment to environmental, social, and governance (ESG) initiatives. The company recognizes the importance of sustainability in its operations and aims to implement practices that benefit both the business and the community.

• Goal to reduce greenhouse gas emissions by 25% by 2025, compared to 2020 levels.
• Investment in sustainable packaging initiatives projected at $30 million over the next three years.

Operational Excellence

Operational efficiency is a cornerstone of Constellation Brands’ vision. The company strives to optimize its supply chain and production processes to enhance profitability and customer satisfaction.

• Implemented cost-saving initiatives that resulted in $115 million in savings for the first half of fiscal 2025.
• Total debt as of August 31, 2024, was $11,596.4 million, reflecting a strategic approach to leverage while maintaining operational flexibility.

Market Leadership in Beverage Alcohol

Constellation Brands aims to solidify its position as a market leader in the beverage alcohol sector, focusing on premiumization and higher-margin categories.

• Beer segment net sales reached $4.803 billion for the first half of fiscal 2025, a 7% increase from the previous year.
• Wine and Spirits segment net sales, however, faced a decline, dropping to $777.7 million, a 10% decrease year-over-year, highlighting the need for strategic adjustments in this area.

Emphasis on Digital Transformation

In line with their vision, Constellation Brands is prioritizing digital transformation to enhance operational efficiency and consumer engagement.

• Investment in digital supply chain initiatives estimated at $50 million over the next two years.
• Expected digital sales growth of 20% annually, contributing to a more robust eCommerce presence.

Core Values of Constellation Brands, Inc. (STZ)

Integrity

Integrity is a core value at Constellation Brands, Inc. (STZ), emphasizing honesty and ethical behavior in all aspects of the business. This value is crucial for building trust with consumers, employees, and stakeholders.

In 2024, Constellation Brands has demonstrated its commitment to integrity through various initiatives:

• Implementation of a robust ethics and compliance program that includes regular training for employees on ethical decision-making.
• Transparency in reporting financial results, with detailed disclosures in quarterly earnings reports.
• Engagement in community initiatives that promote responsible drinking, showcasing the company's dedication to ethical marketing practices.

Quality

Quality is essential for Constellation Brands, reflecting the company's commitment to delivering superior products to consumers. This core value is evident in the meticulous attention to detail throughout the production process.

Specific examples include:

• Investment of approximately $100 million in state-of-the-art brewing and production facilities to enhance product quality and efficiency.
• Regular quality assurance checks and adherence to stringent safety standards, resulting in a reduction of product recalls by 25% year-over-year.
• Consumer feedback loops that inform product development and improvement, ensuring products meet high-quality standards.

Collaboration

Collaboration fosters teamwork and innovation at Constellation Brands, enabling the company to leverage diverse perspectives and expertise. This core value is critical for driving success in a competitive market.

The company promotes collaboration through:

• Cross-functional teams that work on new product launches, leading to a 15% increase in time-to-market efficiency in 2024.
• Partnerships with local suppliers and communities, enhancing supply chain resilience and sustainability.
• Employee engagement programs that encourage teamwork and idea-sharing, resulting in a 30% increase in employee satisfaction scores.

Accountability

Accountability is a fundamental value at Constellation Brands, ensuring that employees take responsibility for their actions and decisions. This value is vital for maintaining high performance and ethical standards.

Examples of accountability in action include:

• Establishment of clear performance metrics for all employees, linked to compensation and promotion opportunities.
• Regular performance reviews that assess individual contributions to team and company goals, with a focus on continuous improvement.
• Implementation of a whistleblower policy that protects employees who report unethical behavior, promoting a culture of accountability and transparency.

Innovation

Innovation drives growth and competitiveness at Constellation Brands, highlighting the company’s commitment to adapting to changing consumer preferences and market trends.

In 2024, the company has invested significantly in innovation:

• $150 million allocated to research and development to create new beverage products that cater to emerging trends, such as low-alcohol and non-alcoholic options.
• Launch of over 50 new products in the past fiscal year, reflecting a 20% increase in product offerings compared to 2023.
• Collaboration with technology firms to enhance digital marketing strategies, resulting in a 40% increase in online sales through direct-to-consumer channels.