Constellation Brands nearly halved its yearly earnings outlook on weak US wine demand as consumers pull back on non-essentials amid sticky inflation.
Booze giant Constellation Brands on Tuesday warned it could be forced to write down the value of its assets by as much as $2.5 billion this year because of weak wine demand as consumers pull back on non-essentials amid sticky inflation.
Constellation nearly halved its earnings outlook to between $3.05 and $7.92 a share, a steep decline from initial expectations between $14.63 and $14.93 a share.Constellation Brands slashed its yearly earnings outlook and projected a loss of up to $2.5 billion on weak wine demand.“Ongoing macroeconomic headwinds, particularly rising unemployment, have led to a recent deceleration in the rate of growth of consumer demand for our products,” CEO Bill Newlands said in a statement.
While its wine and spirits business falters, the company said it expects between 6% to 8% sales growth in its beer division. However, its beer division has experienced lower-than-expected growth.
Beer Corporate Earnings Inflation Wine
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