Modelo Especial beer arranged in the Brooklyn Borough of New York, U.S., on Tuesday, Nov. 23, 2021. Monster Beverage Corp., the maker of energy drinks, is exploring a combination with Corona brewer Constellation Brands Inc., according to people familiar with the matter. Anheuser-Busch InBev NV’s Bud Light has struggled since controversy exploded over the brand’s sponsored Instagram partnership with transgender influencer and actor Dylan Mulvaney. Bud Light has since fallen from the top spot as the best-selling beer by dollar sales in the US, giving up the title to Modelo. Bud Light has released a new ad campaign focused on backyard barbecues in an effort to move past the backlash.
Constellation executives said on the Friday earnings call that Modelo’s move to number one happened sooner than expected. For the back half of the year, the company expects its products to have more room on store shelves, thanks to the growth of its labels and declines for others.
Despite the gains in beer, Constellation maintained its 2024 outlook. Shares slipped less than 1% at 12:13 p.m. New York time.
“We continue to view guidance as conservative given the strength of Constellation’s underlying business,” wrote Goldman Sachs analysts led by Bonnie Herzog. Any stock weakness is “a buying opportunity,” according to the note.