Constellation Brands Pops the Top on Marketing Spending in 2024

Hold onto your beer helmets, folks, because Constellation Brands, the big kahuna behind your favorite cerveza Corona in the US, is about to unleash a marketing tsunami. Word on the street (or, you know, from their recent Q earnings call) is that they’re going all-in on marketing this year. Think of it as a marketing bender, but like, a responsible, strategic one that’s good for business.

CFO Garth Hankinson and top dog CEO Bill Newlands basically hopped on a virtual stage during the call and were all, “Marketing is our jam, yo!” Okay, maybe they didn’t use those exact words (they’re corporate bigwigs, after all), but they made it crystal clear that they’re serious about investing in making their brands even more legendary.

Investing in Growth, One Corona at a Time

Hankinson, the money man himself, reassured investors that Constellation Brands isn’t about to pull a Scrooge McDuck and hoard all its cash just to make some short-term gains. Nope, they’re playing the long game, baby! They’re all about investing in growth, and they see marketing as the key to unlocking that sweet, sweet market domination.

Think of it like this: you don’t just open a brewery, brew some killer beer, and then just, like, chill and wait for the profits to roll in. You gotta get out there and tell people about your awesome brews! That’s what marketing is all about, and that’s what Constellation Brands is banking on.

Get Ready for Marketing Mania

CEO Bill Newlands didn’t hold back when he spilled the tea on their marketing plans for . Get this: they’re pouring an unprecedented amount of moolah into marketing initiatives this year. We’re talking record-breaking levels of marketing magic, people!

This bold move is a clear sign that Constellation Brands believes in the power of marketing to drive sales and make their brands even more recognizable than a Kardashian at a pumpkin spice latte convention. They’re not just dipping their toes in the marketing pool; they’re doing a cannonball into the deep end!

A Closer Look at the Numbers

So, how much are we talkin’ here? Well, in the first quarter alone (that’s January through March, for you calendar newbies), Constellation Brands dropped a cool 10.5% of their net sales on marketing expenses. That’s like buying everyone in a small town a round of Coronas… every day… for three months straight. Okay, maybe not exactly, but you get the idea – it’s a lot of dough!

Hankinson knows this is a hefty chunk of change, but he’s all, “Don’t trip, fam, it’s all good.” He explained that the higher-than-usual marketing spend is all part of their master plan to give their biggest brands, like Corona and Modelo (you know, the ones you always see at those epic parties), a serious boost.

Leveling Up the Marketing Game

Now, when they say “tactical initiatives,” don’t picture a bunch of marketing ninjas rappelling from the ceiling with Corona-branded grappling hooks. Although that would be pretty epic. We’re talking about things like:

• Advertising blitzkriegs: Get ready to be bombarded with even more Corona commercials during your favorite shows. We’re talking TV, online, billboards – you name it, they’re gonna be there.
• Experiences that’ll make you say “lit”: Think music festivals, sporting events, and maybe even a Corona-themed escape room (okay, that last one’s just wishful thinking, but a fan can dream, right?).
• Team-ups that make sense: Imagine Corona partnering with a surf brand or Modelo sponsoring a big-time soccer match. Strategic collabs like these are sure to get people buzzing (pun intended).
• Digital domination: From influencer marketing to killer social media campaigns, Constellation Brands is going to own the internet (or at least the parts where people hang out and talk about beer).

The Bottom Line: Cheers to Marketing!

Constellation Brands is betting big on marketing, and honestly, it’s a smart move. In today’s ultra-competitive market, you gotta stay ahead of the game, and that means reaching your audience in creative and engaging ways. By investing heavily in marketing, they’re not just selling beer; they’re building brands, creating experiences, and connecting with consumers on a deeper level.

So, next time you’re sipping a cold one from the Constellation Brands family, remember this: that refreshing taste isn’t just the result of quality ingredients and expert brewing; it’s also the culmination of a well-crafted marketing strategy that’s designed to keep you coming back for more.