MW How Corona seized on a spring-break trend to win back Gen Z beer drinkers

By James Rogers

Constellation Brands is having success with younger legal-age drinkers with Corona Sunbrew Citrus Cerveza, the top new beer brand

Corona beer parent Constellation Brands says that Gen Z consumers are still drinking alcohol.

Amid industry worries that younger consumers are staying away from alcohol, Corona beer maker Constellation Brands Inc. has found a way to tap into Gen Z wallets.

Somewhat surprisingly, the beer and wine company $(STZ)$ said it was having a lot of success with the younger cohort. During a conference call to discuss its second-quarter results, Chief Executive Bill Newlands said Constellation now has "twice the share of Gen Z, as part of our overall mix, versus the industry average."

Newland's comments come as analysts have warned about the effects on the beer industry of younger people drinking less alcohol. He said that Constellation Brands is actively "going after" younger customers of legal drinking age.

In particular, he pointed to the success of the company's Corona Sunbrew Citrus Cerveza, which is brewed with orange and lime peels.

"Part of what we observed is consumers, particularly around spring break, were mixing orange juice and Corona," Newlands said, according to a FactSet transcript. "Our view was we could do something much better than that in real time, which we did."

Launched last year, Corona Sunbrew is the No. 1 new beer brand in terms of dollar sales, according to data from market-research company Circana.

Constellation's stock rose 2.4% in midday trading Tuesday. It has rallied 7.8% since it closed on Sept. 23 at its lowest price since April 2, 2020. The stock was still down 35.8% in 2025, while the S&P 500 SPX has advanced 14%.

There have been signs that younger consumers are re-engaging with alcohol. Research released earlier this year by IWSR, which provides data analytics on beverage alcohol, found that Gen Z is "confounding conventional wisdom" by reviving participation rates and consumption occasions.

Experts have also said that Gen Z likes new packaging and bolder tastes, as evidenced by the rise of ready-to-drink canned cocktails.

Newlands acknowledged that cannabis use could have a potential impact on consumer spending. "As consumers are constrained about their spending patterns, you know, they make choices as to where they spend their discretionary funds," he said.

Gen Z members are considered to be those born from 1997 to 2012, so many of them are now of legal drinking age.

Constellation, which also sells Modelo beer and wine brands like Kim Crawford, saw its second-quarter sales decline year over year, but they still topped Wall Street expectations. The company's beer sales fell 7% year over year, while wine and spirits sales tumbled 65%.

However, Newlands said that Constellation was seeing more consumer loyalty for Corona in the general market and increasing loyalty among Hispanic consumers for Modelo. The company has said that Hispanic customers account for about half of its beer business.

Constellation, which maintained its full-year outlook, also provided an update on the impact of tariffs on its business. The company expects that tariffs will impact its beer business by about $70 million this year and its wine business by about $20 million.

-James Rogers

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October 07, 2025 12:15 ET (16:15 GMT)

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