Hard seltzer has gone soft, but Constellation Brands Inc. says that’s all right because its beer portfolio will generate growth for the company.
reported a second-quarter earnings miss on Tuesday, though sales beat expectations. The company’s beer business, which includes Corona and Modelo Especial, was up 14% to $1.861 billion. Total sales were $2.565 billion.
“As it relates to our hard seltzer business […] we’re unique in our position versus our competitors in this space, as our primary growth is coming from our core beer portfolio and we’re not reliant on the growth of hard seltzers and ABAs [alternative beverage alcohol] to achieve the medium-term growth goals of our beer business,” said Constellation Chief Executive William Newlands on the earnings call, according to FactSet.
“The hard seltzer landscape has shifted…