Corona beer owner Constellation Brands cut its annual sales forecast on Friday as persistent inflation continued to impact consumer spending on beer, wine and spirits.
The company now expects annual net sales to grow by 2% to 5% instead of the previously forecast 4% to 6% growth.
Chief executive of the company Bill Newlands said, “Given near-term uncertainty on when consumers will revert to more normalised spending, we have prudently lowered our growth outlook.”
Beer, which is Constellation’s major revenue driver, saw a mere 3.2% rise in depletion growth, or the rate at which products are sold, in the third quarter, compared with an 8.2% growth last year.
Overall, demand for alcoholic beverages and spirits has also come under pressure as more people opt for low-calorie and lighter liqueurs.
The company expects adjusted profit per share for fiscal 2025 to be between $13.40 and $13.80, compared with its previous forecast of between $13.60 and $13.80 per share.
Shares of the company were down about 2% in premarket trading on Friday.
They fell about 9% in 2024.
Last month, the company said it would sell its Svedka vodka brand to New Orleans-based Sazerac.
Last week, Constellation stock dipped after the US Surgeon General said alcoholic drinks should carry a warning about cancer risks on their label, signalling a shift towards tobacco-style regulation for liquor and casting further gloom on the industry.
For the third quarter ending 30 November, the company reported net sales of $2.46 billion, below estimates of $2.53 billion.
Meanwhile, adjusted earnings per share of $3.25 missed estimates of $3.31 per share, according to data from the London Stock Exchange Group.
Read More: Global Alcohol firms Demand $466m From Indian State In Payments Row
