Constellation marks(NYSE: STZ)It sells and sells more than 100 brands of beers, spirits and wines, is often considered a stock of consumer consumption reliability. It is one of the main world producers of alcoholic beverages and has increased its dividend annually for ten years in a row.
But in the last 12 months, Constellation’s shares decreased almost 30%as it joined with three Existential challenges:
Younger consumers drink less alcohol.
Asking for the demand for their cheaper wine brands.
President Donald Trump’s rates Against Mexico will make it much more expensive to produce and import their model, crown and pacific beers.
Image Source: Getty’s pictures.
For its 2026 prosecutor (which will end in February 2026), Constellation hopes that its organic sales will be close and provides for a decrease in gains per action of 8% to 11%. Management is trying to stabilize the global business, diverting it from its cheaper wine brands, expanding its premium wine brands and selling more non-alcoholic beverages, but these efforts will probably not completely compensate for the pressures created by the Trump trade war.
The Action of Constellation has a cheap appearance at 14 times the wins forward, but its advanced yield of 2.2% will probably not be enough to attract severe income investors. So, instead of constellation, these investors may want to consult two best consumer actions: Coca-Cola(NYSE: KO) and Philip Morris International(NYSE: PM).
Both soda and smoking rates are decreasing worldwide, so it may not seem smarter to invest in Coca-Cola or Philip Morris International (PMI) instead of constellation. However, Coca-Cola and PMI faced their existential challenges long before the constellation.
In recent decades, Coca-Cola developed and acquired more bottled water marks, teas, fruit juices, sports drinks, energy drinks, dairy products, coffee and even alcoholic beverages to stop their dependence on their carbonated drinks. He also refreshed his emblematic drinks offering them in different ways, with smaller portion sizes, new flavors and sugar-free versions.
The PMI turned around Altical In 2008. After this division, Altria maintained the North -American Market as PMI sold its tobacco products anywhere else. The PMI initially focused on expanding its sales in countries with higher smoking rates and lighter regulations, but over the last decade, a little has been removed from cigarettes with its IQOS products, which heat tobacco instead of burning it. He also launched more smoke-free products such as snus, e-cigarrets and nicotine bags Zyn.
As a result, PMI generated 42% of its income and 44% of its gross benefit from its smoke -free products in the first quarter of 2025. Like all other tobacco companies, PMI has also constantly increased cigarette prices to compensate for the impact of the decrease in sales volumes on their finances.
Constellation generates most of its income in the United States market, but most of its best -selling brands still occur in Mexico. Therefore, the 25% Trump rate in Mexico imports, which came into force in March, will increase the prices that North -American consumers will have to pay for these beer brands. Without a doubt, short -term consequence gains.
Coca-Cola is better isolated from the rates because it only sells the concentrates and syrups for their drinks. The production, distribution and sales of the finished drinks are managed by independent regional bottles. These bottles will have to deal with the highest rates of aluminum, but they plan to pivot into more plastic bottles to mitigate this impact. The diversification of its supply chain to more than 200 independent bottles worldwide provides Coca-Cola many more ways to counteract the impact of rates on its bottom line than constellation.
The PMI is also protected from these rates because it produces and sells almost all its products abroad. It has only launched some of its smoke -free products in the United States and has been expanding its home manufacturing facilities (particularly for ZYN) to prevent new rates from taking place.
During the last 12 months, Coca-Cola shares increased by 15% and PMI shares increased by almost 80%. However, the two stocks are still reasonably valued. Coca-Cola is listed with 24-time earnings and pays an advanced yield of 2.9%, while PMI traces 23 times ahead with an advanced performance of 3.1%. Both actions may seem more precious than constellation, but they are clearly more safe investments that pay higher dividends.
The two companies also expect them to continue to grow despite the harsh macroeconomic conditions. For 2025, Coca-Cola hopes that their organic sales will increase from 5% to 6%, as their comparable EPs grow from 2% to 3%. The PMI hopes that their organic sales will increase from 6% to 8%, as their adjusted EPs grow between 12% and 14%.
Neither Coca-Cola nor PMI are an exciting investment, but they are safe places to park your cash in this unpredictable market. They are also better isolated from the rates and other macro headers than the constellation and other less diversified companies in the consumer staples sector.
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Leo Sol It has positions in the Altria group. The Motley Fool recommends Constellation Brands and Philip Morris International. The mold’s fool has a Outreach policy.
