HomeFinancial MarketsConstellation CEO Says Beer is “Recession Resistant”

Constellation CEO Says Beer is “Recession Resistant”

The spiraling prices of goods and services, alongside the fear of recession, have caused Americans to be cautious about where they spend their money. However, they are not that cautious that they can’t have a beer or two.

Speaking recently with Yahoo Finance Live, Constellation CEO Bill Newlands said that the demand for their beer brands Corona, Modelo, and others, remains robust. He also added that he thinks the beer business is “recession resistant.”

“Consumer demand has been very strong,” Newlands shared. “We have the benefit in this industry in this category of being somewhat recession resistant. And we have seen no slowdown at a consumer level of purchasing against our brands.”

According to Newlands, his company, which also produces wine and spirits, expects the beer business to continue booming in 2023 as well. Constellation is projected to increase its beer sales early next year by up to 10 percent.

As a result of the profitable beer division, which outshined its wine and spirits business, Constellation Brands managed to keep its stock on a reasonably satisfying level. While companies in other industries have seen their shares dip up to 50 percent or more in value, Constellation stock is only 12.58 percent down year to date. Its most recent close was at 222.70 per share.

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