Constellation in a Sweet Spot
UBS analysts argue in a recent report aptly named "Three Drinks Strong" that Constellation is headed towards a bright future of out-growing the industry. How so? For one, imported beer, wine and spirits are seeing improving trends in the US, and Constellation's portfolio "is outgrowing their larger, respective categories," writes senior analyst Kaumil Gajrawala. Secondly, the company is starting to benefit from a multi-year reorganization that included streamlining its distributor network and selling off brands that didn't fit its premiumization strategy.
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