Buffett’s Berkshire Hathaway Invests US$1.24 Billion in Constellation Brands

Warren Buffett’s Berkshire Hathaway invested US$1.24 billion in Constellation Brands in the fourth quarter of 2024, marking the first time the billionaire’s firm has taken a stake in the global alcohol company, according to a securities filing.

Berkshire acquired more than 5.62 million shares of Constellation, the maker of Robert Mondavi wines and Corona beer, a move that boosted the company’s stock by 7.4% in after-hours trading Wednesday. The company shares surged to US$174.99 following the disclosure.

Buffett’s investment comes amid a broader push into consumer goods stocks. However, Constellation’s shares have trended downward in recent years. When Berkshire built its position in late 2024, shares traded above US$220, meaning the stock’s recent price at around US$175 could put Buffett’s firm at a paper loss.

Constellation, one of the world’s largest producers of wine, beer, and spirits, has a strong presence in the U.S., Mexico, New Zealand, and Italy. Its wine brands, including Kim Crawford and The Prisoner Wine Company, have established distribution partnerships in China with major importers such as Beijing ABA Trading Co. and ASC Fine Wines.

Despite its reputation, Constellation’s wine business struggled in fiscal 2025, with net sales falling 12% to US$1.04 billion due to weak global demand. The company’s overall revenue, however, rose 3% to US$8.04 billion, driven largely by its beer segment, which accounted for more than 85% of sales.

Corona remains a key growth driver, but future performance could be impacted by potential U.S. tariffs on Mexican imports. The Trump administration has floated a 25% tariff on Mexican goods, which could raise costs for Constellation’s beer business.

While the investment may face short-term volatility, Constellation’s diversified portfolio and global footprint could provide long-term resilience.Buffett’s investment in Constellation Brands is not his first foray into the alcoholic beverage industry. Berkshire Hathaway has long been a major shareholder in The Coca-Cola Company. The conglomerate also had a smaller stake in Diageo, the parent company of Johnnie Walker and Guinness, with holdings worth about US$41.5 million.