Constellation Brands: as Millennials have kids, they’re drinking more
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Constellation Brands: as Millennials have kids, they’re drinking more

According to new research from Constellation Brands, aging Millennials are turning to the bottle as they have families. The alcoholic beverage giant, which is behind premium cerveza lager brands like Corona as well as numerous wines and spirits, says that an uptick in consumption by Millennials could be down to increased stress from parenting. What is as-yet unclear is whether the generations that come after them will follow a similar trajectory.

Constellation Brands’ share price has appreciated by 27% so far this year

Brands Sept 11

Source: Yahoo Finance

Constellation Brands said that about three-quarters of Millennials are now regular consumers of alcohol. That’s an uptick against the same measurement a few years ago. Meanwhile, Generation Z (the generation that comes after Millennials) is showing a less consumption. At a discussion at the Barclays Global Consumer Staples Conference recently, Barclays analyst Lauren Lieberman told Constellation Brands CFO David Klein “when you said the Millennials are drinking more, I’m like: that’s because they have kids.”

Klein, however, thinks Lieberman’s joke is not far from the mark: “Well,” he replied “I think that’s exactly the answer.”

What is less clear is whether this trend will also emerge in younger drinkers – and whether or not that matters to Constellation’s business. Klein explained: “What we don’t know, though, is will we see that same thing with Gen Z as they age, will they — will life get more stressful for them and they drink a little more? But it’s too early to tell, but we definitely have seen that with millennials. I think what we have is people saying that they’re drinking less or drinking better, but that’s really driving people into trends like Corona Premier and seltzer and Mic Ultra, and brands like that.”


Dominion holds Constellation Brands in its Global Trends Luxury Fund.

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