Constellation Brands Inc. (STZ) projected slower-than-expected growth for its beer business this year, renewing concern that declines in alcohol consumption have yet to hit their floor.
Organic beer sales, which measure changes in sales volumes, are seen in a range of down 1% to up 1% in the company's current year, Constellation said Wednesday. The range trails analysts' average estimate for a 2.2% increase.
While the guidance represents an improvement from the previous fiscal year, which ended Feb. 28, the lower-than-expected outlook suggests even popular brands such as Modelo and Corona are struggling to sidestep a broader decline in the category.
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