Bottles of the beer, Corona, a brand of Constellation Brands Inc., sit on a supermarket shelf in Los Angeles, California April 1, 2015. REUTERS/Lucy Nicholson/File Photo Purchase Licensing Rights, opens new tab
July 1 (Reuters) – Constellation Brands is seeing a rebound in U.S. beer sales after a sluggish start to 2026, as a flurry of major sporting events such as the NBA Finals and the soccer World Cup spur more social gatherings and lift consumption.
The sporting events provide a much-needed boost for an industry grappling with slowing demand from a shift toward healthier lifestyles, the growing popularity of weight-loss drugs and pressure on consumers from higher living costs.
“It was great to see both World Cup and some of the energy that we saw in one of our key markets like New York, (from) the Knicks which … (provided) some lift,” Constellation CEO Nicholas Fink said on a call, referring to the New York Knicks team winning their first NBA championship since 1973.
Constellation (STZ.N), opens new tab on Tuesday reported upbeat quarterly results on the back of improving demand for beer brands such as Corona Extra and Modelo Especial.
Beer sales rose about 2% during the three months ended May 31, the second straight quarter of gains after three quarters of declines.
“The pictures from New York, I thought, were remarkable, to see young people being together, watching the game projected on the sides of buildings, and those are beer occasions,” Fink said.
The rare convergence of the U.S. hosting the World Cup, the Fourth of July holiday and celebrations marking America’s 250th anniversary is creating an extended period of social gatherings, encouraging spending on barbecues, watch parties and other festivities, said Suzy Davidkhanian, an analyst at eMarketer.
International visitors are also expected to provide an additional boost in cities hosting the World Cup, she said.
“There is a huge amount of passion for football, soccer in Hispanic culture,” said Hamish Campbell, drinks specialist at Denomination.
Mexican fans are celebrating worldwide, he said, helping brands like Corona and Modelo to tap into a group that forms a major customer base.
Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Sriraj Kalluvila
Our Standards: The Thomson Reuters Trust Principles.
Leave a comment