Sales Surge: Mondavi and The Prisoner Wine Maker Reports Growth for All Wine and Spirits Brands

Constellation Brands has recently reported a significant decline in sales within its wine and spirits sector, which includes well-known labels such as Napa Valley’s Robert Mondavi and The Prisoner. The company shared that for the fiscal first quarter ending May 31, sales plummeted by 47% compared to the previous year, totaling $149.2 million. This downturn is mainly attributed to the strategic divestiture of numerous lower-priced brands in June 2025, affecting shipment volumes which have declined by 64.1%.

Despite these challenges, Constellation’s remaining premium wine and spirits divisions showed promise. The company’s organic net sales, which exclude the divested brands, rose 8% from $138.5 million to $149.2 million. Additionally, organic shipments increased by 7.7%, and depletions—sales metrics tracking sales from distributors to retailers—gained 6.6%.

Moreover, Constellation highlighted improvements within its premium portfolio, with its remaining wine brands outperforming the broader industry. Notably, the brand Kim Crawford and The Prisoner Wine Co. played significant roles in bolstering this growth, ranking highly in dollar-share gains in the total wine segment.

The overall operating loss for this business unit was narrowed to $1.1 million from $6 million in the previous year, aided by higher shipment volumes and reductions in marketing and administrative expenses, despite the implications of past brand divestitures. The company had also shut down its Quarry Lake Winery earlier this year to streamline operations.

When looking at the company as a whole, Constellation reported a slight decrease in net sales to $2.43 billion, down 3% year on year. However, without considering the divested brands, organic sales saw a 3% increase, with operating income rising 18% to $845 million and earnings per share increasing by 31% to $3.79.

Beer continues to dominate Constellation’s revenue stream, creating $2.28 billion in net sales, which accounts for over 94% of total revenue, while wine and spirits sales represent approximately 6% of the company’s earnings.

Looking ahead, Constellation anticipates stable organic net sales growth for fiscal 2027, noting that forecasts indicate little change—ranging from a 1% decrease to a 1% increase. Operating margins are projected to be healthier for beer at 37%-38%, compared to 5%-6% for wine and spirits.

This situation follows Constellation’s earlier sale of mainstream brands such as Simi, Meiomi, and Woodbridge to The Wine Group, which was part of an overarching plan to concentrate on premium and higher-priced labels exceeding $15 per bottle. Brands retained include Schrader Cellars, Mount Veeder Winery, and Double Diamond.

Shares in Constellation, listed on the New York Stock Exchange as STZ, experienced a 2% drop following their earnings report. Over the past year, shares have fluctuated between $126.45 and $178.14.

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