Constellation Brands, Inc.
CorpDigest
Constellation Brands, Inc.
Company History
Founded 1945 in Rochester, New York
Last reviewed: 2025-07-15 · By Swet Parvadiya
Constellation Brands' most important strategic fact is that the company has completed a fundamental business model transformation from a diversified wine and spirits producer into a beer-centric, high-margin consumer staples company, with the beer segment now generating 83.6% of revenue and 97.7% of segment operating income. This transformation was catalyzed by the 2013 Grupo Modelo acquisition but has accelerated under CEO Bill Newlands, who has divested underperforming wine and spirits assets, invested more than $4 billion in Mexican brewing capacity, and delivered enterprise-wide cost savings of approximately $220 million in FY2025. The strategic pivot is validated by Modelo Especial's ascension to #1 beer in America by dollar sales and the beer segment's 39.7% operating margin—levels that rival software companies and exceed most consumer packaged goods peers. The company's FY2026-FY2028 outlook commits to this beer-focused strategy with $2 billion in capital expenditures for Mexico brewery expansion, a new $4 billion share repurchase authorization, and continued portfolio rationalization in wine and spirits. The key risk is that the wine and spirits impairments and Canopy Growth losses have destroyed billions in shareholder value, raising questions about capital allocation discipline.
Marvin Sands founded Constellation Brands' predecessor company, Canandaigua Industries, in 1945 in Canandaigua, New York. Starting with eight employees and $150,000 in first-year sales, Sands built the company into a regional wine powerhouse through value brands and strategic acquisitions. He took the company public in 1973 as Canandaigua Wine Company, providing capital for the acquisition spree that would define the company's growth strategy. Sands introduced Richard's Wild Irish Rose in 1954, which became a flagship brand. He served as chairman until his death in 1999. His sons, Richard and Robert Sands, succeeded him in leadership roles, with Richard becoming president in 1993 and CEO in 1996, and Robert later becoming CEO in 2007.
Marvin Sands establishes Canandaigua Industries in the Finger Lakes region of New York with eight employees, focusing on bulk wine production for East Coast bottlers. First-year sales total $150,000.
The company introduces Richard's Wild Irish Rose, a dessert wine that becomes its flagship brand and significantly expands market presence beyond bulk wine.
The company is incorporated as Canandaigua Wine Company, Inc., preparing for public market access.
Canandaigua Wine Company completes its IPO, providing capital for the acquisition-driven growth strategy that would define the company for decades.
The company purchases the Manischewitz winery in Canandaigua, New York, adding kosher wine capabilities and licensing the Manischewitz name.
Constellation acquires Barton Incorporated for $123 million, entering distilled spirits and imported beer distribution, including Corona Extra distribution rights. The deal doubles the company's size.
Canandaigua Brands Inc. is formed as the parent company of Canandaigua Wine Company and Barton Incorporated, reflecting the diversified portfolio.
The company acquires Napa Valley-based Franciscan Estates, one of the biggest California winery deals ever, establishing a powerful presence in premium and luxury wine markets.
Canandaigua Brands changes its name to Constellation Brands, signaling the company's breadth across wine, beer, and spirits categories.
Constellation acquires Robert Mondavi Corporation for approximately $1 billion, adding premium California wines and becoming the largest fine wine company in the United States.
Constellation and Grupo Modelo create the Crown Imports joint venture for U.S. beer imports, and the company acquires Spirits Marque One, bringing SVEDKA Vodka into the portfolio.
Constellation completes the $4.75 billion acquisition of Grupo Modelo's U.S. beer business from Anheuser-Busch InBev, gaining 100% ownership of Crown Imports, the Nava brewery, and exclusive perpetual U.S. rights to Corona and Modelo brands.
Constellation acquires Ballast Point Brewing for $1 billion, entering the craft beer segment.
Constellation acquires the Obregon brewery from Grupo Modelo for $600 million, achieving supply independence from the interim supply agreement.
Constellation invests $191 million in Canopy Growth, the Canadian cannabis company, beginning what would become a approximately $4 billion commitment.
Constellation invests an additional $3.8 billion in Canopy Growth, increasing its stake to 38% and making it the largest shareholder.
Constellation sells Ballast Point for a fraction of its $1 billion purchase price, and Bill Newlands succeeds Rob Sands as CEO in March 2019.
Constellation sells 30 low-cost wine brands to E. & J. Gallo for $810 million as part of its premiumization strategy.
Stockholders vote to eliminate Class B Convertible Common Stock and shift to a single class with one share, one vote rights. The Sands family receives $1.5 billion (pre-tax) for their enhanced voting shares.
Constellation relocates to a 170,000 square foot campus in Downtown Rochester, becoming the first Fortune 500 company to operate in the city in two decades.
Constellation completes the SVEDKA Vodka divestiture on January 6, 2025, and announces plans to divest remaining mainstream wine brands while retaining premium and luxury wines priced $15 and above.
Constellation acquired Grupo Modelo's U.S. beer business from Anheuser-Busch InBev as part of an antitrust settlement, gaining 100% ownership of Crown Imports, the Nava brewery in Mexico, and exclusive perpetual U.S. rights to Corona and Modelo brands.
Constellation acquired Robert Mondavi to add premium and super-premium California wines to its portfolio, accelerating the shift from value brands to higher-margin varietals.
Constellation acquired Barton to enter distilled spirits and imported beer distribution, including Corona Extra distribution rights.
Constellation acquired Ballast Point to enter the high-growth craft beer segment, which was expanding at double-digit rates at the time.
Constellation acquired the Obregon brewery from Grupo Modelo to achieve supply independence from the interim supply agreement and gain immediate functioning brewery capacity.