Constellation Brands shared expected Q2 declines this week, as the company and its portfolio of Mexican import beer brands continue to tackle macroeconomic headwinds. While losses accelerated in the quarter, leadership told investors Tuesday that they are “cautiously optimistic” that those headwinds are starting to bottom out. 

Insiders are reading highlights from Tuesday’s earnings call, as well as the company’s Q2 and H1 FY2026 financials, released after market close Monday.

In today’s Brewbound Insider Newsletter and on Brewbound.com, Insiders are also reading about:

• Declines in U.S. spirits exports in response to country’s trade war with Canada, among other countries;
• The closure of 2 Voodoo Brewing franchise locations;
• A Portland, OR brewery’s plans to cease production and wind down operations;
• Boston Beer’s launch of 19.2 oz cans for its spirits-based hard tea and lemonade brand, Sun Cruiser;
• And an Avengers-approved collaboration between an NA beer and a coffee brand.

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Constellation Brands has now revealed the Q2 trends that drove the company to lower its full-year guidance last month, and the numbers stand in stark contrast to a year ago. 

Through the first half of FY26, Constellation’s beer business – including Mexican imports Modelo, Corona, Pacifico and Victoria – has declined 6.2% YoY, while depletions are down 2.6%. Beer net sales are down 5%, to more than $4.8 billion. 

Despite macroeconomic headwinds and the latest declines, Constellation leadership reiterated confidence in its beer brands during a call with investors and analysts Tuesday morning. 

President and CEO Bill Newlands said: “We’re cautiously – and I would stress that word again, ‘cautiously’ – optimistic that we’ve hit the bottom here,” But the volatility is unprecedented and the results are very mixed.”

Read more highlights from Tuesday’s call, including why some analysts question Constellation’s optimism, and how leadership responded to those critiques.

Constellation released its Q2 financial results Monday after market close. Here’s how its beer business did by the numbers:

• Shipments -8.5% (-3.3% in Q1);
• Depletions -2.7% (-2.5% in Q1);
• Net sales -7% (-2% in Q1);
• Operating income -12% (-5% in Q1). 

Insiders can read more early coverage of the company’s Q2 financials here. 

2 TX locations of Voodoo Brewery, a mostly franchise-owned brewpub chain, closed last week, bringing the chain’s number of shuttered locations to 5 in 2025. The Plano, TX Voodoo location announced its closure on September 30, 1 day after the shuttering of another Voodoo in College Station. 

Insiders can read more about Voodoo and other 2025 closings. 

Following a record-high for U.S. spirits exports in 2024, exports fell 9% YoY in Q2 2025, driven by ongoing trade tensions, according to a new report released Monday by the Distilled Spirits Council of the United States (DISCUS).

The data comes after a rollercoaster year of new tariffs and negotiations that have at times entangled U.S. spirits in a trade war. Among major trading partners, Canada remains the only country to retaliate against U.S. spirits in response to President Donald Trump’s tariff policies. Canada removed its retaliatory tariffs on spirits in September, but Canadian provinces continue to ban American spirits from shelves.

Insiders can read more about the performance of spirits exports.

How does an RTD brand that was built on the beach translate to other seasons? Surfside, Stateside Vodka’s hard iced tea and lemonade canned cocktail brand, is betting big on sports this fall. 

Stateside co-founders CEO Clem Pappas and president Matt Quigley joined the Brewbound Podcast to discuss the brand’s meteoric rise, its partnerships across college football and professional hockey and baseball and the newly rechristened Stateside Live!, an entertainment hub at the South Philadelphia Sports Complex where the city’s professional sports teams play.  

YTD through mid-September, Surfside’s depletions reached nearly 8M cases, about a 150% increase over last year. 

Prior to the interview, Zoe and Jess break down recent news stories, including the abrupt shutdown of brewpub chain Iron Hill and storied cider maker Martinelli’s pivot to bev-alc. 

Read more and listen to the conversation here or on your preferred podcasting platform.

Bero, the craft NA beer backed by A-lister Tom Holland, has debuted Coffee Draught, a seasonal stout featuring fellow Avenger Robert Downey Jr.’s brand Happy Coffee. 

Insiders can read more about the collaboration here. 

Highland Brewing owner, president and CEO Leah Wong Ashburn will give the keynote address at the Brewbound Live business conference in Los Angeles this December.

Wong Ashburn will share her story as a 2nd-generation brewery owner, guiding her Asheville, NC-based craft brewery through the aftermath of Hurricane Helene and building for the future. The brewery served as a community gathering space in the wake of the natural disaster, and Highland has raised thousands of dollars to support local hospitality workers.

Brewbound Live will take place December 10 & 11 at the Marina del Rey Marriott.

Tickets are available now for the 2-day gathering of founders, entrepreneurs, sales leaders, marketers, c-suite executives, retailers, distributors and suppliers from across the industry. The event will include on-stage conversations with industry leaders, networking and pre-arranged 1:1 conversations with retailers and distributors.

Check out other speakers and register here.

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Interested in other beverage coverage? 👀 Check out the BevNET Daily Briefing covering the broader beverage industry, including energy drinks, cannabis and other non-alcoholic beverages. Want to stick to the hard stuff? Subscribe to our Spirits Newsletter (published every 2 weeks). 

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