Analysts Probe Constellation’s Paradoxical Beer Guidance

Dear Client: Yesterday’s Constellation earnings call consisted of an almost hour-long Q&A, as the CEO/CFO commentary had been released with the earnings report the day prior. (Recall, Constellation Beer Q4 depletions dipped into negative territory – down 1% — for the first time in many years. Shipments were down 1.8%, and net sales were flat. For the full fiscal year, depletions and shipments were both up roughly 3%, while net sales were up 5%.) Many of the questions on the