Constellation Brands (STZ US): Buy: CEO wants better marketing for Corona Extra

研报英文原文证据摘录

Constellation Brands (STZ US): Buy: CEO wants better marketing for Corona Extra

tity toward more of a regenerative ROE (%) 27.7 24.7 24.4 22.9

concept while still using surfing and beach sports to also align the brand with how young

52-WEEK PRICE (USD)entry level men and women experience the beach. No creativity or effort has reached

Constellation’s marketers, in our view. We find it remarkable that consumers still hold it in 210.00

such “loved” status but as Pacifico encroaches on associated beach concepts, we worry 160.00

that it may erode Corona’s brand power and future from within the organization. Returning

110.00

Corona to growth is also not just a matter of package segmentation or revenue 07/25 01/26 07/26

Target price: 192.00

management. Those are fulfilment opportunities for a firm that is no longer so capacity High: 176.09 Low: 127.65 Current: 137.47

constrained that it has to cut SKUs. We are encouraged that the new CEO seems intent Source: LSEG IBES, HSBC estimates

on getting the marketing for the brand right and that he may have arrived just in time.

Sorabh Daga*

There was much to like in STZ’s 1Q results: 1Q FY27 organic net sales increased Analyst, Global Beverages, LatAm Food

HSBC Securities and Capital Markets (India) Private Limited

3% y-o-y, led by higher beer volumes. Still, depletions were slightly down with sorabh.k.daga@hsbc.co.in

declines in Modelo Especial and Corona Extra partially offset by double-digit growth +91 80 4550 2627

in Pacifico and Victoria. Consumers absorbed the shock of a c.50% increase in Carlos Laboy

Global Beverage Head, LatAm Food Analyst

gasoline prices at the pump in some key states better than expected. Still uncertainty HSBC Securities (USA) Inc.

around Middle East politics is what keeps management from lifting guidance.