Jim Cramer Calls Constellation Brands a “Very Big Disappointment”

A caller asked Cramer’s opinion of Constellation Brands Inc. (NYSE:STZ), and here’s what Mad Money’s host had to say:

“Oh, I know it’s trying to bottom, but you know what? The beer business is soft. The spirit business is not so good, and frankly, I expected more from the company. I think the company has been a very big disappointment, and I just have to say, I don’t need to be in stocks that have been disappointing. I’m sorry. I wish it were doing better for certain, my wife’s in that business itself, but I don’t see it.”

A winemaker examining a glass of red wine from a barrel in a cellar.

Constellation Brands (NYSE:STZ) is a large producer and distributor of beer, wine, and spirits. The company sells beer through a variety of brand names. Appearing on Squawk on the Street in April, Cramer said:

“A rather shocking guide down. Beer will be flat no longer 7% to 9% two years. They got Modelo, which is the number one brand. What this says is, without a doubt, that alcohol continues to slow. Consumption continues to slow. We don’t know. Now, this company over-indexed for Hispanics. There’s always a chance that perhaps Hispanics are unfortunately laying low because of what’s ever happening in our country. That’s what’s happened before. But what’s more important is GLP-1. The craving for beer is no more than the craving for sparkling water. So I’d rather have a sparkling water. There’s big studies going on right now that show that. And no one in the industry is willing to admit it. […]

So for me to just say, you know what, people have decided, I don’t like the taste of that, no. There’s no craving. And I think that when you look at these beer numbers from Constellation and you see what’s happening to the deterioration in their numbers, you understand why this stock is down. […]

[Asked about whether they were hit by any tariffs on Mexico] No, they’re going to be OK. They’re going to be all right. But what matters is consumption, and consumption is not good. Now, once again, no one in the industry will admit what I just said, but I’m in the damn industry, so I don’t really care what they said. That’s what I do for, well, it’s what my wife does for a living. I see the numbers of these other kinds of alcohols, and they’re shocking.”

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