Jim Cramer recently noted the resilience of Constellation Brands, Inc. (NYSE:STZ) amidst ongoing tariff discussions and broader economic challenges. The company's strength largely stems from its successful beer segment, which includes the popular brand Modelo. This comes at a time when tariff concerns and economic indicators have put pressure on the beverage industry.
Modelo's sales have been a standout, supporting Constellation Brands at a time when the wine and spirits segments are underperforming. The strong performance of Modelo is especially significant amid industry challenges, including shifts in alcohol consumption trends among younger generations and growing competition from low- and zero-alcohol options. According to sources such as Insider Monkey, these factors have been influencing strategies within the sector.
Despite these hurdles, Constellation Brands has managed to avoid additional tariffs on Modelo—a significant point made by Cramer. He suggests that this exemption, coupled with the brand's appeal, aids in maintaining their competitive stance. Additionally, Cramer has been vocal about considering changes within the company's portfolio, specifically hinting at a potential shift away from its wine and spirits operations.