Fifth up in "10k in 10 tweets" is Constellation Brands

The company makes beer, wine and spirits. It's the owner of Modelo and Corona in the US.

[THREAD]

1/ Below you can see the company's most popular beer brands. They have exclusive ownership of these Mexican brands in the US.

2/ In 2013, Anheuser-Busch InBev bought Grupo Modelo, but had to split the acquisition with Constellation because of anti-trust concerns.

In short, Constellation got the rights for the US, InBev got the rights internationally.

3/ The company also has these wine and spirit brands.

4/ This the company's clear strategy.

Move into higher-end brands and sell off the under-performing ones.

5/ As you can see, here are the divestitures.

They sold San Diego brand, Ballast Point. And later, sold a bunch of wine brands to Gallo Winery.

6/ Beer makes up roughly 70% of the company's sales with wine/spirits accounting for the remainder.

7/ Beer is also the most profitable segment.

It has gross margins of 56% & it makes up 75% of total gross profit.

Further, beer's EBIT margins are 40% & without adjusting for corporate expenses, it makes up ALL of the profit.

People must love their Corona, Modelo & Pacifico.

8/ The company also bought a sizable stake in Canopy, the cannabis company.

Constellation really tries to stay current with the trends.

It owns roughly 40% of Canopy. Further, Anheuser-Busch has partnered with Tilray to create cannabis-infused drinks.

9/ Last year, the company sold nearly 312 million 24-packs.

That's almost 7.5 billion individual beers.

On average, the cost of a 24-pack was $18. This business definitely has pricing power as shown by its profitability and price inelasticity.

10/ All in all, Constellations Brands has a strong position because it has exclusive manufacturing rights to brands like Corona, Modelo and Pacifico in the US.

The company has doubled down on these brands and divested the distractions.