Constellation Brands has recently announced a significant decline in its wine and spirits division, which includes prestigious names such as Robert Mondavi and The Prisoner. For the first fiscal quarter ending May 31, the company experienced a staggering 47% drop in net sales for this division, totaling $149.2 million. This downturn follows the sale of numerous lower-priced labels in June 2025, which has led to a reduction in shipment volumes by 64.1% compared to the previous year.

In stark contrast, the organic sales of its remaining brands showed a positive trend, with an 8% increase to $149.2 million from $138.5 million a year earlier. Shipment volumes for these organic brands rose by 7.7%, reflecting a 6.6% increase in distributor sales to retailers.

Constellation noted that their premium wine and spirits brands outperformed the broader market, making them the second-largest gainer by dollar share in the overall wine category, thanks largely to brands like Kim Crawford and The Prisoner. The division also reduced its operating loss to $1.1 million from $6 million in the same quarter last year, thanks to increased organic shipment volumes and reduced marketing expenses.

Overall, Constellation Brands’ total net sales for the first quarter were $2.43 billion, marking a 3% decrease from the previous year, although organic sales excluding divested brands actually increased by 3%. Furthermore, operating income climbed 18% to $845 million, while earnings per share rose by 31% to $3.79.

Despite these challenges, beer continues to dominate the company’s revenue, with $2.28 billion coming from this sector, which represents more than 94% of total sales. For the upcoming fiscal year, the company expects essentially flat organic net sales growth, while projecting that wine and spirits sales will also hover around stable levels.

Constellation previously sold various mainstream wine brands to focus on high-end products, aiming to concentrate on labels priced above $15 per bottle. Shares in Constellation traded at $136.88 following the earnings report, reflecting a slight decline in value amid fluctuating stock prices over the past year.