This company profile of Constellation Brands reveals the unethical practices of one of the world’s largest alcohol producers. It provides examples of harmful methods across the categories of political interference, promotion, sabotage, manipulation, and deception – the Dubious 5 strategies.

Introduction

Constellation Brands, Inc. is one of the largest alcohol corporations in the world, known for its aggressive expansion strategies and dominant presence in the U.S. alcohol market. Constellation has cemented its grip on the U.S. beer market by acquiring exclusive US rights to sell Grupo Modelo’s brands, including the production of Modelo Especial, which overtook Bud Light as the best-selling beer in the U.S. in 2023.

In 2017, the company became the first major alcohol producer to invest in a cannabis business by acquiring a 9.9% stake in Canopy Growth Corporation, a Canadian medicinal marijuana company. This stake was later expanded to 38% in anticipation of Canada’s legalization of recreational cannabis.

  • William A. Newlands is the president and CEO of Constellation Brands since 2018.
  • The Constellation brand portfolio consists of brands such as Modelo and Corona (US market only), Empathy Wines and Svedka Vodka. 

Fast Facts about Constellation Brands

  • Total revenue: $9,962 million (2023)
  • Gross profit: $5,018 million (2023)
  • Marketing spending: $837 million (2023)
  • Lobbying spending (US): $550,000 (2023)
  • Global market share: 4.3%
  • Number of employees: 10,700

UNETHICAL PRACTICES by Constellation Brands

Promotion

Alcohol Companies’ use Data-Driven Tactics to Target Gen Z

Alcohol companies are ramping up targeted marketing strategies to engage Generation Z, leveraging everything from social media and ...

Political interference

Constellation Brands Buys Influence in Mexico with Billion Dollar Investment

Constellation Brands’ $1.6 billion investment in Veracruz, framed as a major economic win, raises serious concerns about the company’s ...

BROWSE MORE UNETHICAL PRACTICES by Constellation Brands

BIG ALCOHOL IN THEIR OWN WORDS

Whisky brands are very reliant on a small number of heavy, and increasingly ageing, consumers, to provide the majority of volume [...] in the longer term we had to attract more younger drinkers—the heavy- using loyalists of tomorrow [to avoid] the potentially disastrous implications of losing heavy drinkers”.

Source: Research article

“If Miller Lite was to be a large profitable brand we had to attract these young heavy drinkers”.

Source: Research article

To the extent [that laws or regulations or actions against us to substantially curtail the consumption of alcohol, including beer] gain traction, they could have a material adverse effect on our business and financial results. For example, the European Union published its Europe Beating Cancer Plan. As part of the plan, by the end of 2023, the European Union has indicated it will issue a proposal for mandatory health warnings on alcohol beverage product labels."

Source: Molson Coors Annual Report 2022

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