Are Modelo’s Softening Trends Transitory?

Dear Client: After Constellation's recent quarterly results and recent scan data showing a marginal weakening of growth trends for powerhouse brand Modelo Especial, the latest narrative at the Beer Summit and elsewhere focused on more transitory headwinds rather than structural ones.  Nik Modi of RBC Capital Markets writes to investors that "most distributors/retailers had a very strong year with Constellation Brands and said that the brewer was leading growth for their businesses." Indeed, volumes have improved in early January, despite