Constellation Brands Appoints Paula Erickson as Incoming Chief Human Resources Officer

Constellation Brands has named Paula Erickson as its new Executive Vice President and Chief Human Resources Officer, effective April 21. She will succeed Kris Carey, who will step down and depart the company in May after nearly 12 years of service. Carey will remain in an advisory role during the transition period.

Erickson brings decades of experience in the beverage alcohol industry, most recently serving as CHRO at Suntory Global Spirits (formerly Beam Suntory). Her leadership during major organizational shifts, including cross-border integrations, pandemic response, and a corporate relocation, has earned recognition across the industry.

In her new role, Erickson will join the Executive Management Committee and oversee HR strategy, talent development, global operations, and total rewards. Her appointment supports Constellation’s ongoing efforts to align talent capabilities with long-term business objectives.

President and CEO Bill Newlands expressed gratitude for Carey’s contributions and welcomed Erickson, emphasizing her strong alignment with the company’s vision and values. Erickson said she is excited to build on the company’s growth and people-first culture.

Constellation Brands continues to invest in its leadership and organizational resilience as part of its commitment to sustainable growth and market leadership.

Constellation Brands FY2025 Financial Summary and Strategic Outlook

Constellation Brands, Inc. (NYSE: STZ) reported its fiscal year 2025 results, showcasing stable enterprise growth despite a challenging consumer environment. The company also initiated restructuring and asset divestiture actions aimed at streamlining operations and enhancing future profitability.

FY2025 Key Financial Results

Net Sales: $10.21 billion, up 2% year-over-year

Reported EPS: $(0.45), reflecting a $3.3 billion non-cash impairment in the Wine and Spirits segment

Comparable EPS: $13.78, up 11%

Free Cash Flow: $1.94 billion, up 28%

Operating Cash Flow: $3.15 billion, up 13%

Total Shareholder Return: $1.9 billion, including $1.1 billion in share repurchases

Quarterly Dividend: Increased to $1.02 per share

Segment Performance Overview

Beer Business

Net Sales: $8.54 billion, up 5%

Operating Income: $3.39 billion, up 10%

Operating Margin: 39.7%, up 180 basis points

Shipment Volume Growth: 3.3%

Strong performance from Modelo Especial, Pacifico, and Modelo Chelada brands

Constellation retained its position as the number one dollar sales share gainer in U.S. beer

Wine and Spirits Business

Net Sales: $1.67 billion, down 7%

Operating Income: $325 million, down 18%

Operating Margin: 19.5%, down 270 basis points

Sales impacted by declines in mainstream and premium brands in U.S. wholesale channels

International and direct-to-consumer channels showed growth

Strategic Actions and Outlook

Divestiture of remaining mainstream wine brands announced; expected to contribute to over $200 million in annual cost savings by fiscal 2028

Restructuring initiatives launched to reduce fixed costs and focus on premium product segments

$2 billion in capital expenditures planned for expanding beer operations in Mexico through FY2028

New $4 billion share repurchase authorization approved for FY2026 through FY2028

FY2026 Guidance

Reported EPS: $12.33 to $12.63

Comparable EPS: $12.60 to $12.90

Operating Cash Flow: $2.7 to $2.8 billion

Free Cash Flow: $1.5 to $1.6 billion

Capital Expenditures: Approximately $1.2 billion, with $1 billion focused on beer operations in Mexico

Outlook for FY2027 and FY2028

Net Sales Growth: 2% to 4% annually

Operating Margin Target: 35% to 36%

EPS Growth:

FY2027: Mid-single-digit to low-double-digit range

FY2028: Low-single-digit to mid-single-digit range

Free Cash Flow: Over $5 billion projected cumulatively for FY2026 through FY2028

Leadership Commentary

Chief Executive Officer Bill Newlands stated that the company delivered strong results despite macroeconomic pressures and maintained its industry leadership in beer. He emphasized the company's focus on driving distribution, innovation, and operational efficiency.

Chief Financial Officer Garth Hankinson highlighted the company’s strong cash generation and balanced capital allocation, reinforcing their commitment to shareholder returns, operational investment, and financial discipline.