Type brands(NYSE: STZ)Which makes and sells more than 100 brands of beer, souls and wine, often considered a reliable stock of consumer. It is one of the best alcoholic drink producers in the world, and has raised its profits annually for 10 consecutive years.
However, over the past 12 months, the Constellation stocks decreased by approximately 30 % as it wrestled with three Existential challenges:
Younger consumers drink less alcohol.
The demand for wine brands is cheaper.
President Donald Trump’s tariff Against Mexico will make it more expensive for the production and import of a leading beer in style, corona and Basivico.
Photo source: Getty Images.
In the 2026 fiscal year (which will end in February 2026), Constellation expects its organic sales close to the flat and expects the profits of the share of 8 % to 11 %. The administration is trying to stabilize the total business by stripping it of its cheapest wine brands, expanding its commercial wine signs, and selling more non-alcoholic drinks-but these efforts may not completely compensate for the pressures established by the Trump’s commercial war.
Constellenge shares look cheap with future profits 14 times, but the 2.2 % front return may not be enough to attract serious income investors. So, instead of a constellation, these investors may want to check the stock of two better consumers: coca cola(Nyse: ko) and Philip Morris International(NYSE: PM).
Both soda and smoking consumption rates decrease all over the world, so it may not seem more intelligent to invest in Coca -Cola or Philip Morris International (PMI) instead of a constellation. However, Coca-Cola and PMI actually dealt with existential challenges before many of the constellation.
Over the past few decades, Coca-Cola has developed and has gained more brands of bottled water, tea, fruit juices, sports drinks, energy drinks, dairy products, coffee, and even alcoholic drinks to reduce their soft drink sales. He also updated the leading soft drinks by serving them in various ways, with smaller meal sizes, new flavors and sugar -free versions.
Procurement managers were woven from Tria In 2008. Then the division, Altria kept the US market while PMI sold tobacco products elsewhere. The Procurement Manager Index initially focused on expanding its sales in countries with high smoking rates and lighter regulations, but over the past decade, it was somewhat central to cigarettes with their iQOS products, which heats tobacco instead of burning it. It also launched more smoking -free products such as SNUS, electronic cigarettes, and ZYN Nicotine nicknames.
As a result, PMI produced 42 % of its revenues and 44 % of its total profits from its smoking -free products in the first quarter of 2025. Like all other tobacco companies, PMI has also raised cigarette prices steadily to compensate for the impact of the low sales volume on its money.
Constellation generates most of its revenues in the American market, but most of the best -selling beer brands in Mexico remain. Therefore, Trump’s tariff by 25 % on imports from Mexico, which entered into force in March, will increase the prices that American consumers will have to pay in exchange for these marks of beer. This will undoubtedly the profits of the constellation of strangulation in the short term.
Coca-Cola is better isolated than the tariffs because it only sells concentrations and drink for their tanks. Production, distribution and final drink sales are treated by independent regional bottles. These bottles will need to deal with a higher tariff on aluminum, but they are planning to achieve more plastic bottles to alleviate this effect. The diversification of the supply chain across more than 200 independent bottle around the world gives many ways to meet the impact of customs duties on the end result of what was a constellation.
PMI is also protected from this customs tariff because it produces and sells almost all of its products outside. She launched only a few of its smoking -free products in the United States, and has expanded local manufacturing facilities (especially for ZYN) to avoid new definitions.
Over the past 12 months, Coca-Cola has increased by 15 % and PMI shares increased by approximately 80 %. However, both shares are still affordable. Coca-Cola is trading with 24-time front profits and pays 2.9 % front return, while the purchasing manager is trading at 23 times front profits with a front return of 3.1 %. Both stocks may seem more stable than a constellation, but they are clearly safer investments that pay higher profits.
Both companies also expect to maintain growth despite the difficult economic conditions. For 2025, Coca-Cola expects its organic sales to increase by 5 % to 6 % as the similar arrow profit grows by 2 % to 3 %. PMI expects its organic sales to increase by 6 % to 8 % with 12 % to 14 % profitability.
Coca-Cola nor PMI is an exciting investment, but they are safe places to stand your money in this unexpected market. It is also better isolated from customs tariffs and other overall opposite winds of constellation and companies that are less diverse in the consumer food sector.
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Leo Sun He has jobs in the Altria group. Motley Fool recommends the brands of Constellation and Philip Morris International. Motley deception has Disclosure.
