STZ · 10-Q · 2026Q3 · Full report

Operating Expense Trends

CONSTELLATION BRANDS, INC. · 2026-10-07 · Importance 40 · Surprise 30

Second-quarter consolidated SG&A increased $102.2 million to $538.2 million, and rose to 20.4% of sales from 17.6%. Beer SG&A increased $85.1 million, including $54.5 million of additional marketing and $30.7 million of higher general and administrative expense; the latter reflected higher compensation and unfavorable short-term incentive accruals. Wine and Spirits SG&A declined $10.2 million as marketing fell $5.7 million and general and administrative expense fell $5.0 million, with savings from portfolio optimization and the 2025 Restructuring Initiative. For the six months, consolidated SG&A rose $58.5 million to $995.2 million, including a $98.3 million increase in Beer, partly offset by a $47.1 million decrease in Wine and Spirits; Beer marketing increased $59.7 million while Wine and Spirits marketing decreased $24.2 million.

Key facts

• Second Quarter 2027 Beer selling, general, and administrative expenses increased by $54.5 million in marketing spend and $30.7 million in general and administrative expenses. source
• Six Months 2027 Beer selling, general, and administrative expenses increased by $59.7 million in marketing spend and $38.8 million in general and administrative expenses. source
• Six Months 2027 Wine and Spirits selling, general, and administrative expenses decreased by $24.2 million in marketing spend and $22.2 million in general and administrative expenses. source
• Second Quarter 2027 consolidated operating income decreased 8%, primarily due to asset impairment and related expenses, higher marketing spend, and unfavorable short-term incentive accruals. source
• Six Months 2027 consolidated operating income increased 4%, helped by Beer shipment volume growth, favorable Comparable Adjustments, lower tariffs, and efficiency and cost optimization initiatives, partly offset by higher marketing spend and lower Wine and Spirits sales due to the 2025 Wine Divestitures. source
• Second Quarter 2027 Wine and Spirits selling, general, and administrative expenses decreased by $5.7 million in marketing spend and $5.0 million in general and administrative expenses. source
• Second Quarter 2027 consolidated selling, general, and administrative expenses were 20.4% of net sales, compared with 17.6% in Second Quarter 2026. source
• Six Months 2027 consolidated selling, general, and administrative expenses were 19.6% of net sales, compared with 18.7% in Six Months 2026. source