Constellation is a global manufacturer and marketer of wine, spirits, and beer with a wide range of brands, including Clos du Bois, Ruffino, Robert Mondavi, Kim Crawford and SVEDKA vodka. The company also owns the rights to brew and market Modelo Mexican beers (including Coron) in the United States.

Major indices are mixed at midday. Crude oil is down 3%. Wall Street is waiting on the key inflation report coming tomorrow. Any surprises will not be appreciated. We expect the CPI report to show a slight tick down, meaning that inflation is tracking lower, as the Fed wants. Markets have priced in a Fed rate cut at the meeting next week.

Constellation Brands is the largest provider of alcoholic beverages across the beer, wine, and spirits categories in the US, generating 80% of revenue from Mexican beer imports under top-selling brands such as Modelo and Corona. The rest of the business includes some remaining wine and spirits brands, categories where the company continue to prune assets in recent years. With its exclusive rights tied to the Mexican beer brands effective only in the US, the firm has small revenue exposure to international markets. Constellation owns a 36% stake in no-moat Canopy Growth, a medicinal and recreational cannabis producer in Canada, and has a 50/50 joint venture with glass manufacturer Owens-Illinois in Mexico.

Constellation is a global manufacturer and marketer of wine, spirits, and beer with a wide range of brands, including Clos du Bois, Ruffino, Robert Mondavi, Kim Crawford and SVEDKA vodka. The company also owns the rights to brew and market Modelo Mexican beers (including Coron) in the United States.