Corona and Modelo owner Constellation Brands has beaten second-quarter expectations as resilient demand for its beer portfolio helped offset continued pressure across the wider alcohol market.

Net sales at the company rose six per cent to $2.63bn in the three months to 31 August, ahead of analysts’ expectations of $2.54bn.

Its beer division delivered a five per cent increase in net sales, helped by a 5.5 per cent rise in shipments, while operating income edged up one per cent.

Constellation said the business continued to gain share across US retail channels, with brands including Modelo Especial, Corona Extra, Pacifico and Victoria helping it outperform the wider beer category.

However, underlying beer depletion volumes slipped 0.6 per cent during the quarter, with Modelo Especial down around two per cent and Corona Extra falling approximately five per cent. This was partly offset by growth of about 19 per cent for Pacifico and 15 per cent for Victoria.

The company said demand was supported by major sporting events including the FIFA World Cup and NBA Finals, which boosted social drinking and viewing occasions.

Constellation’s wine and spirits division also returned to growth, with quarterly net sales climbing 17 per cent and depletion volumes up 10.2 per cent. Kim Crawford and Mi CAMPO were among the brands driving the increase.

Chief executive Nicholas Fink said the group was beginning to see returns from increased investment and stronger execution, with both its beer and wine and spirits businesses accelerating their share gains during the quarter.

Despite the stronger-than-expected performance, Constellation lowered its full-year operating margin guidance to between 31 per cent and 32 per cent, down from its previous forecast of 32 per cent to 33 per cent.

It maintained its fiscal 2027 adjusted earnings forecast of between $11.20 and $11.90 per share, alongside expectations for organic sales to range from a one per cent decline to one per cent growth.

The drinks group also revealed it has acquired vodka-based ready-to-drink brand SpikedAde as it looks to strengthen its position in the growing RTD category.

Constellation paid $75m upfront for the business, with up to a further $278m potentially payable over five years depending on its performance.

The acquisition does not change Constellation’s outlook for the current financial year.

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