Constellation Brands’ stock price drops after company sales fall

Local News

A new report shows sales of a locally-based wine and beer maker, Constellation Brands, have dropped sharply in the third quarter.

The report shows that the company has had a decline among its cheaper wine products, saying it has been struggling with slumping demand.

The company recently made a $4 billion investment into Canadian marijuana grower Canopy Growth Corporation following the recent legalization of recreational cannabis in a number of states in the U.S. and Canada.

Last week, outgoing Constellation CEO Rob Sands said this about the company’s big bet on marijuana: “As you know, a number of states from a population perspective the majority of the people in this country, states that contain a majority of the people have legalized cannabis as well. I would say it’s inevitable that this is going to become a big legal market around the world and I would say pretty good that this is a smart calculated risk that minimizes the downside and maximizes the potential upside.”

Sands recently announced he would be stepping down. He’ll be succeeded by president and COO Bill Newlands.

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