STZ · CIK 16918
What Constellation Brands, Inc. told the SEC could break it.
Constellation's sharpest exposure runs through one geography: its majority beer segment — Modelo, Corona, Pacifico — is produced entirely at breweries in Nava and Obregón, Mexico, and that same Mexican footprint is the source of its biggest trade risk, leaving it squarely exposed to new U.S. tariffs on Mexican imports and aluminum, retaliatory measures, and the ongoing USMCA review. Commodity costs reinforce the theme: it hedges aluminum (for beer cans), corn, diesel, and natural gas, and aluminum tariffs have already raised cost of product sold and cut Beer operating income. On the demand side, its ten largest customers — beer distributors — were about 60% of net sales in each of the last three fiscal years, with Reyes Beer Division alone over 10%.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Geographic concentration
- beer production in Mexico (Nava, Obregón breweries)high
Beer (the majority segment, incl. Modelo/Corona/Pacifico) is produced at breweries in Nava and Obregón, Mexico, concentrating production in one country and exposing it to Mexico import tariffs.
“We have production facilities in the U.S., Mexico, New Zealand, and Italy and employees in various countries, and our products are sold in numerous countries.”
Regulatory & policy
- US tariffs on Mexican/aluminum imports; USMCA reviewhigh
Exposed to new/increased US tariffs on aluminum and product imports from Mexico, Italy, EU, and New Zealand, plus the ongoing USMCA review and retaliatory tariffs — material because beer is produced in Mexico.
“significant additional changes in U.S. trade policy and actions which include threatened, new, and increased tariffs imposed by the U.S. government on other countries, such as tariffs on aluminum and aluminum derivative product imports and other product imports from certain countries, including Mexico, Italy and the rest of the European Union, and New Zealand, and the ongoing review of the U.S.-Mexico-Canada Agreement;”
Commodity & input dependence
- aluminum, corn, diesel fuel, natural gasmedium
Hedged commodity price exposures include aluminum (beer cans), corn, diesel fuel, and natural gas; aluminum tariffs increased cost of product sold and cut Beer operating income.
“As of February 28, 2026, exposures to commodity price risk which we are currently hedging include aluminum, corn, diesel fuel, and natural gas prices.”
Customer concentration
- 10 largest customers (distributors)medium
The 10 largest customers represented ~60% of total net sales in each of FY2026, FY2025, and FY2024; Reyes Beer Division individually represents 10%+ of net sales.
“Net sales to our 10 largest Customers represented approximately 60 % of our total net sales for each of the years ended February 28, 2026, February 28, 2025, and February 29, 2024, and are expected to continue to represent a significant portion of our revenues.”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
Reyes Beer Division
“Net sales to Customers which individually represent 10% or more of our net sales, and the associated accounts receivable from these Customers as a percentage of our total accounts receivable, are as follows: For the Years Ended February 28, 2026 February 28, 2025 February 29, 2024 Reyes Beer Division”
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