Long-term investment reflects confidence in management, portfolio strength, and enduring consumer trends.

TOMS RIVER, NJ / ACCESS Newswire / July 8, 2025 / BlackBird Financial LP, a value-focused investment firm founded by Judah Spinner, CFA, announced today that it has acquired a significant stake in Constellation Brands, Inc., the global beverage leader behind iconic brands including Modelo, Corona, Pacifico, Kim Crawford, and The Prisoner Wine Company.

While the size and exact timing of the investment were not disclosed, regulatory filings are expected in due course. Constellation Brands, with a market capitalization of approximately $30 billion, is one of the largest players in the U.S. Beer and Wine sector and the leading importer of beer in the United States.

"Constellation Brands is a dominant franchise in the U.S. beer and premium wine markets, with some of the strongest consumer brands in the industry," said Judah Spinner, Chief Investment Officer of BlackBird Financial. "We believe the company is meaningfully undervalued relative to its intrinsic worth and has the potential to compound shareholder value at attractive rates over the long term."

Investment Thesis: Durable Brands, Structural Growth, and Capable Stewardship
BlackBird Financial's investment thesis is grounded in three key pillars: brand strength, strong execustion, and high-quality leadership.

Constellation's beer business, led by its Modelo and Corona brands, continues to outpace industry growth. Modelo Especial recently surpassed Bud Light to become the No. 1 beer in dollar sales in the United States-a historic milestone that highlights the growing consumer preference for Mexican imports and premium-positioned beverages. According to IRI data, Modelo's market share has expanded steadily across key demographics and regions, supported by effective marketing, cultural resonance, and robust distribution.

While beer remains the core driver of profitability, Constellation's premium wine and spirits division-featuring brands like Meiomi, High West, and Casa Noble-also positions the company to benefit from consumer trading-up behavior. As younger consumers shift away from legacy mainstream brands and toward more authentic, premium offerings, Constellation stands at the intersection of this powerful trend.

"We are long-term investors, and our focus is on owning exceptional businesses led by principled, capable operators," Spinner added. "In Constellation, we see a category leader with durable competitive advantages. Just as important, we believe the company is being run by an outstanding management team under CEO Bill Newlands."

Support for Management and Strategic Vision
"We have no intention of pursuing an activist role," Spinner said. We are fully supportive of the current leadership team and the direction they have charted for the company," Spinner stated. "Bill Newlands has demonstrated exceptional strategic clarity in focusing the business, optimizing capital allocation, and returning value to shareholders.

In recent years, Constellation has made several key moves to sharpen its focus and enhance return on capital. The company divested a number of lower-margin wine brands and reallocated proceeds toward share repurchases and high-ROI organic initiatives. At the same time, it has maintained a strong balance sheet, a commitment to dividend growth, and prudent investment in its supply chain infrastructure-particularly its state-of-the-art Mexican breweries, which give it cost and capacity advantages unmatched in the industry.

Constellation's alignment of incentives has also been a focal point for BlackBird. The company has tied executive compensation to long-term value creation and return metrics, reinforcing a culture of ownership and accountability.

Why Now: Dislocation Meets Opportunity
BlackBird Financial believes recent market dynamics have created a compelling entry point for long-term investors. While Constellation's fundamentals remain strong, its valuation has compressed due to near-term concerns around input cost inflation, FX headwinds, and transient shifts in consumer spending. BlackBird views these pressures as cyclical and temporary-not structural.

"In our view, the market has been overly focused on short-term noise while underappreciating the company's underlying earnings power and brand momentum," Spinner noted. "Modelo continues to gain market share and drive growth within Constellation's portfolio, even as broader beer industry trends remain muted. We believe the company is well positioned to expand margins and generate meaningful free cash flow in the years ahead."

Indeed, BlackBird believes that Constellation has the potential to generate meaningful free cash flow and deliver mid-teens total shareholder returns through a combination of organic growth, disciplined capital deployment, and operating leverage.

A Natural Fit for BlackBird's Investment Philosophy
BlackBird Financial LP was founded on a fundamental, value-driven investment philosophy, emphasizing deeply discounted opportunities, concentrated positions, and long-term ownership. Inspired by the principles of Graham and Buffett, the firm focuses on businesses trading significantly below their intrinsic value.

The firm has historically invested across a range of industries, including retail, energy, hospitality, gaming, restaurants, and fashion. BlackBird makes investments based on independent, fundamental analysis, often in areas overlooked or out of favor with the broader market. While the firm typically operates as a passive investor, it has occasionally taken a more active role when warranted to protect and enhance shareholder value.

In this case, however, no such involvement is planned or anticipated.

"Great businesses rarely come cheap," Spinner said. "But when they do-either because of market volatility, temporary underperformance, or misperception-it is our job to act decisively. Constellation Brands checks all the boxes we look for in a long-term compounder."

About BlackBird Financial LP
BlackBird Financial LP is a privately held investment partnership based in Toms River, New Jersey. Founded by Judah Spinner, CFA, the firm manages capital on behalf of long-term oriented investors and is guided by a disciplined approach to fundamental analysis, downside protection, and long-term capital appreciation. BlackBird is named in homage to the SR-71 Blackbird reconnaissance aircraft, a symbol of speed, precision, and strategic vision.

The firm does not typically comment on individual investments but has made an exception in this case due to investor interest and public filings.

Media Contact:
Investor Relations
BlackBird Financial LP
info@blackbirdfinancial.com

SOURCE: Judah Spinner