Distillers & Vintners

Constellation Brands is scheduled to release second-quarter fiscal 2027 results on Oct. 6, 2026, with the Zacks Consensus Estimate pegging earnings at $3.62 per share, a 0.3% decline from the year-ago quarter's actual, and revenues at $2.57 billion, up 3.6% year over year. The consensus earnings mark has moved down by a penny in the past seven days, and the company currently carries an Earnings ESP of -1.86% and a Zacks Rank #4 (Sell), a combination the Zacks model says does not conclusively predict an earnings beat. Constellation Brands delivered an earnings surprise of 6.5% in the last reported quarter and its bottom line beat estimates by 9.6%, on average, over the trailing four quarters. Results are expected to reflect continued strength in the beer business on premiumization and capacity expansion in Mexico, while the wine and spirits business transitions toward higher-end brands such as The Prisoner Brand Family, Kim Crawford and Meiomi, after sales plunged 47% in the fiscal first quarter. Tariffs, product mix, marketing timing, Veracruz start-up costs, and high packaging and raw material costs from inflationary pressures are expected to have weighed on operating income in both the beer and wine and spirits businesses. STZ trades at a forward 12-month price-to-earnings ratio of 9.39X, below its five-year high of 18.33X and the Beverages - Alcohol industry average of 13.91X, while its shares have lost 17.8% in the past three months compared with the industry's 6.7% decline.

Shunxin Agriculture announced that its branch Pengcheng Food received a Tax Matters Notice from the competent tax authority, requiring a self-inspection of tax-related matters for the period from January 1, 2021 to December 31, 2025. After self-inspection, input value-added tax of 30.1081 million yuan needs to be transferred out. Since the book retained tax credit can be fully offset, it does not involve supplementary tax payment, late fees, or administrative penalties. This adjustment will be recorded in the 2026 profit and loss, and is expected to reduce the company's 2026 net profit, but will not affect daily production and operations.

Shunxin Agriculture's branch Pengcheng Food needs to transfer out value-added tax input tax of 30.11 million yuan in a tax self-inspection. On September 28, Shunxin Agriculture announced that its branch Pengcheng Food received a Tax Matters Notice from the tax authorities, requiring a self-inspection of tax-related matters from January 1, 2021 to December 31, 2025. After self-inspection, the company needs to transfer out value-added tax input tax of 30.11 million yuan. Since there are excess input tax credits on the books that can be fully offset, no back taxes are involved, and this adjustment will be recorded in the 2026 profit and loss. This adjustment is expected to reduce the company's 2026 net profit attributable to the parent company, with the specific impact subject to the 2026 audited financial statements. In the first half of 2026, Shunxin Agriculture achieved revenue of 3.804 billion yuan and net profit attributable to the parent company of 40.35 million yuan.

Marie Brizard Wine & Spirits reported H1 2026 EBITDA of €4.9m, down €0.9m from €5.9m in H1 2025, with net profit Group share of €2.1m, down €0.5m, as the group navigated a globally challenging market environment. Net revenues excluding excise duties came to €84.0m, down 4.4% at constant scope and exchange rates and down 3.0% as reported, while the gross margin ratio held virtually unchanged at 38.8% versus 38.9%. Within that total, the France Cluster posted revenues of €35.6m, up 1.2%, with a particularly pronounced second-quarter upturn of 6% to €18.6m, and the International Cluster posted revenues of €48.4m, down 8.3% at constant scope and exchange rates and down 5.8% as reported. By cluster, France EBITDA was €3.7m, close to the prior-year figure, International EBITDA fell €1.2m to €3.4m on declining Lithuanian exports to Ukraine and weaker Bulgarian Industrial Services orders, and holding company EBITDA improved by €0.4m. Net cash stood at €46.8m at 30 June 2026, up from €45.3m at 31 December 2025, with gross borrowings stable at €6.7m, and the group said it expects prevailing uncertainty and contrasting trends to continue for the rest of the year, with positive momentum in France offset by an expected decline in Eastern Europe.

Sir Dave Lewis has hired his former Tesco colleague Joanne Wilson as Diageo's next chief financial officer, part of the chief executive's push to turn around the Guinness maker. Wilson, currently CFO at the advertising group WPP, will join Diageo in 2027 and will sit on its board and executive committee, replacing Nik Jhangiani, who is leaving after a mutual decision with the board. Lewis, who started as Diageo's chief executive in January and earned the nickname "Drastic Dave" for his cost-cutting, is seeking $1bn (£750m) in savings to overhaul major brands including Captain Morgan and Smirnoff, where sales have declined. The plan also doubles production of Guinness after sales of the stout rose 12pc in the 12 months to June, and pivots Diageo towards more cost-conscious drinkers. Diageo has already cut 2,000 jobs in the past 12 months; its revenue fell 3pc to $19.6bn last year, while operating profit plunged 27pc to $3.2bn.

Diageo has named Joanne Wilson as its new chief financial officer, with Wilson joining the board and executive committee some time in 2027. Wilson, currently the CFO of WPP, replaces Nik Jhangiani, who joined Diageo as CFO in May 2024 and was briefly interim CEO before Dave Lewis took over the top role this year. The appointment comes as CEO Dave Lewis drives a major restructuring at Diageo, marked by senior executive departures and layoffs. Last month, Lewis announced a $1B cost-cutting plan to help the world's largest spirits maker navigate sustained weak growth. Wilson and Lewis have both previously worked together at Tesco.

Diageo is finalising the appointment of Joanne Wilson, currently finance chief of the London-listed marketing services group WPP, as its new chief financial officer, Sky News has learnt. An announcement could come as soon as Wednesday morning. If confirmed, the move reunites Wilson with Diageo chief executive Sir Dave Lewis, her former colleague at Tesco, and marks the latest stage of a transformation of Diageo's leadership team by Sir Dave, who took over as chief executive of the Guinness and Johnnie Walker producer earlier this year. Wilson, who joined WPP just three-and-a-half years ago, spent more than a decade at Britain's biggest grocery retailer, including a stint as finance chief of dunnhumby, Tesco's data analytics division. At Diageo, which is also in the foothills of a significant transformation programme, she will replace Nik Jhangiani, who had been tipped as a contender to take the FTSE-100 drinks group's top job on a permanent basis and is expected to leave the company. Sir Dave announced last month that Diageo would invest heavily in a number of mass-market brands, including Smirnoff and Captain Morgan, with capital freed up by a cost-cutting exercise which will ultimately lead to a significantly reduced workforce. It was unclear on Tuesday night whether WPP had had time to prepare for the appointment of an interim finance chief, or how long a notice period Wilson would be held to at the marketing services group. Diageo declined to comment, while WPP has been contacted for comment.

ST Yedao announced on the evening of September 21 that it had received a case filing notice from the China Securities Regulatory Commission that day. The regulator decided to open an investigation into the company over suspected illegal information disclosure. The company said all business activities are currently operating normally, and it will actively cooperate with the investigation and fulfil its information disclosure obligations in accordance with regulations. ST Yedao's main products include Lugui wine, Haiwang wine and sauce-flavoured baijiu, and it has also expanded into coconut juice and tropical fruit drinks. In the first half of 2026, the company reported revenue of 173 million yuan and a net loss of 7.54 million yuan. Net profit was negative every year from 2021 to 2025, with combined losses over the five years of about 493 million yuan. On July 30, 2026, the Shanghai Stock Exchange agreed to lift the delisting risk warning on the company's shares, while other risk warnings remain in place. As of the close on September 21, ST Yedao's share price was 4.68 yuan per share, giving it a total market value of 2.098 billion yuan.

After market close on September 21, ST Yedao announced that it had received a Notice of Case Filing from the China Securities Regulatory Commission that day. Because the company is suspected of violating laws and regulations on information disclosure, the CSRC has decided to file a case against it. The company said all business activities are currently proceeding normally, and during the investigation it will actively cooperate and fulfil its information disclosure obligations. ST Yedao's shares have been subject to other risk warnings since May 6, 2025, because Zhong Shen Asia Pacific Certified Public Accountants issued an adverse opinion on the company's 2024 internal control audit report. For the company's 2025 internal control, Zhong Shen Asia Pacific issued an unqualified audit report with an emphasis-of-matter paragraph. The emphasis-of-matter paragraph relates to incomplete documents for the transfer of title to baijiu products sold in 2020 and 2021, and insufficient basis for recognising the related revenue, involving total revenue of 30.5025 million yuan. The company disclosed an accounting error correction and retrospective adjustment announcement on April 30, 2026. In terms of performance, in the first half of 2026 the company achieved operating revenue of 173 million yuan, up 94.00 percent year on year. Net profit attributable to shareholders of the listed company was negative 7.538 million yuan, compared with negative 15.765 million yuan in the same period last year, with the loss narrowing significantly.

More than 100 workers at Diageo's Cameronbridge distillery, Europe's largest grain distillery, will walk out from Sept 28 for three weeks in a dispute over plans to cut 10 jobs at the site, threatening supplies of Johnnie Walker, Bell's and Haig whisky. The action could halt production at the factory, which makes the grain spirit used in blends for some of Diageo's best-known whiskies, and marks the first bout of strike action since Sir Dave Lewis announced a sweeping cost-cutting drive at the drinks giant. Sir Dave, nicknamed "Drastic Dave" for his aggressive approach to cutting costs, took over as Diageo's chief executive in January and is targeting $1bn (£750m) of savings; Diageo employed 27,938 people at the end of June, down by almost 2,000 from a year earlier, while it spent $514m on redundancy payments. Unite, the union overseeing the strike, accused Diageo of failing to consult workers properly, with general secretary Sharon Graham saying there is no justification for slashing hundreds of jobs across its operations when it is raking in hundreds of millions of profit. Diageo said the Cameronbridge dispute was limited to 10 roles, with eight people affected because two of the positions are vacant, and that the cuts were necessary because it had reduced production at the distillery and expected to maintain lower levels of grain distillation over the next few years.

Unite members at Diageo's Cameronbridge distillery in Leven, Fife, will walk out on Monday September 28 in a dispute over jobs, with strike action due to last until just before 6am on Thursday October 15. Different groups of workers, including distillation and process controllers, distillery and machine operators, technicians, quality control analysts, process chemists and engineers, will strike on different days in a series of targeted protests. Unite believes the action will halt production at the site, which it describes as Europe's largest grain distillery and which produces millions of litres of spirit each year. The union says Diageo is to cut hundreds of jobs across Scotland as part of a global restructuring process, with dozens of roles at Cameronbridge potentially lost. Unite general secretary Sharon Graham said there is no justification for slashing hundreds of jobs while the company is raking in hundreds of millions of profit, and deputy Scottish secretary Dougie Maguire warned that if Diageo fails to halt the proposals, strikes will bring production to a standstill. Diageo has been contacted for comment.

Constellation Brands warned that higher transportation and commodity costs will weigh on gross profit margins in the second half of the year, sending shares down more than 4% and marking the ninth decline in ten sessions. The margin pressure stems from logistics inflation and volatile commodity hedges, but management remains confident in its long-term outlook, citing underlying pricing power and early signs of normalized consumption. At the Barclays Annual Global Consumer Conference in Boston, CEO Nicholas Fink said the parent of Modelo and Corona is shifting from expansion to operational efficiency and cost optimization, measures expected to boost profits despite sluggish sales. The company reiterated its fiscal 2027 targets of reported EPS between $11.50 and $12.20 and comparable EPS between $11.20 and $11.90, with enterprise organic net sales seen down 1% to up 1%.

Schloss Wachenheim, the Germany-based sparkling-wine group, reported preliminary annual results that fell short of its own forecasts, with sales inching up just 0.3% to €448.9m ($521.9m) for the year to 30 June, versus a projected 3% rise. Volume sales increased 2.4% to 229.6 million 750ml bottles, but the company's fourth-quarter performance "fell short of expectations" across all divisions. EBIT came in at approximately €27.6m, up from €27.2m a year earlier but below the €30-33m forecast, while net income after taxes of around €16.4m exceeded the prior year's €16.2m but missed the €18-21m range. The company will publish its full annual results later this month.

Diageo is cutting 305 roles at its North America headquarters as part of a cost-saving and turnaround plan under its recently appointed CEO, marking a material change in its largest market. The company, valued at £37.1 billion, produces and distributes alcoholic drinks globally, and this restructuring aims to reshape its operating model and support wider turnaround efforts. The move tests Diageo's premiumization narrative, which relies on premium brands and efficiency to drive growth and margins. While management sees streamlined assets and tighter execution as positives, analysts flag execution risks and potential constraints on brand investment if trading remains tough. Comparisons are drawn with peers Pernod Ricard and Brown-Forman.

Brown-Forman Corporation reported first-quarter fiscal 2027 earnings of 38 cents per share, up 6% year over year and meeting the Zacks Consensus Estimate, while net sales of $911 million declined 1% and missed the consensus mark of $921.2 million by 1.1%. The top line was pressured by the end of the Korbel relationship, lower used barrel sales, and tequila weakness, but Ready-to-Drink sales rose 20%, led by a 48% jump in New Mix. Gross profit fell 1% to $549 million, with gross margin expanding 40 basis points to 60.2%, while operating income declined 3% to $252 million on a reported basis but increased 4% organically. The company reaffirmed its fiscal 2027 outlook for organic net sales to be approximately flat and organic operating income to decline 3-5%, projecting an effective tax rate of 20-22% and capital expenditure of $60-$70 million.

Brown-Forman, the maker of Jack Daniel's, warned that alcohol demand in developed markets is likely to remain weak through fiscal 2027, as the company reported first-quarter net sales of $911 million, down 1% year over year and slightly below analysts' expectations of $914.9 million. Despite the sales miss, adjusted earnings of $0.38 per share beat estimates of $0.37, and management maintained its full-year outlook for flat organic sales and a 3%–5% decline in organic operating income. The company cited cautious U.S. consumers, health-conscious behavior, and growing GLP-1 use, with weakness also in Germany, France, and the UK. Canada remains a major headwind, as U.S.-made spirits are still absent from shelves in most provinces, a situation the CEO expects to continue for the rest of the fiscal year. Brown-Forman's ready-to-drink business grew 20% in the quarter, but whiskey sales were flat and tequila sales fell 12%, with Herradura and el Jimador under pressure. The planned retirement of CEO Lawson Whiting adds uncertainty as the company navigates weak demand and changing consumer preferences.

Huazhi Liquor Chain released its semi-annual report, with revenue of 3.249 billion yuan, down 17.72% year on year, and a net loss attributable to the parent of 73 million yuan, down 230.67% year on year, marking its first interim loss in over a decade. The loss mainly stemmed from a back-tax payment of 127 million yuan. Excluding that impact, non-GAAP net profit was 39 million yuan, up 18.72% year on year. The company's baijiu business gross margin was only 6.53%, down 2.17 percentage points year on year, compared with a gross margin as high as 22.9% in the same period of 2021. To cope with the industry adjustment, Huazhi Liquor Chain proactively scaled back purchasing, with prepayments down 49.31% year on year and inventory down 42.13% year on year. Meanwhile, it opened 173 new stores, bringing the total to more than 2,000, and stepped up investment in instant retail as it transforms into a liquor terminal service provider.

Brown-Forman B reported quarterly earnings of $0.38 per share, in line with the Zacks Consensus Estimate and up from $0.36 a year ago. Revenue for the quarter ended July 2026 came in at $911 million, missing the consensus by 1.11% and down from $924 million in the prior year. The company has beaten revenue estimates three times in the last four quarters but has surpassed EPS estimates only once in that period. Following the report, the stock carries a Zacks Rank #4 (Sell), indicating expected underperformance in the near term. Brown-Forman B shares have gained about 1.2% year to date, compared with the S&P 500's 11.5% rise.

Swellfun released its 2026 interim report, showing the company swung from profit to loss, with net profit attributable to the parent company at negative 6.2225 million yuan, a decrease of 112 million yuan compared with the same period last year, down 105.90 percent year on year. Total operating revenue was 1.082 billion yuan, down 27.78 percent year on year. Net cash flow from operating activities was negative 73.2514 million yuan. The company's gross margin was 76.13 percent, down 3.12 percentage points year on year. Return on equity was negative 0.12 percent, down 2.31 percentage points year on year. Diluted earnings per share was negative 0.01 yuan, down 105.89 percent year on year.

Shanxi Fenjiu released its 2026 interim report. Total operating revenue was 21.044 billion yuan, down 12.18% year-on-year, and net profit attributable to the parent was 6.439 billion yuan, down 24.29% year-on-year. Net cash inflow from operating activities was 6.652 billion yuan, up 11.23% year-on-year. The company's asset-liability ratio was 39.34%, gross margin was 75.40%, ROE was 16.90%, and diluted earnings per share was 5.28 yuan. Total asset turnover was 0.35 times, and inventory turnover was 0.35 times. The number of shareholders was 117,900, and the top ten shareholders held 75.05% of total share capital.

Shanxi Fenjiu released its 2026 interim report. In the first half, operating revenue was 21.04 billion yuan, down 12.2% year-on-year; net profit attributable to the parent was 6.44 billion yuan, down 24.3%; net profit attributable to the parent after deducting non-recurring items was 6.44 billion yuan, down 24.4%; net operating cash flow was 6.652 billion yuan, up 11.2%; earnings per share were 5.2783 yuan. In the second quarter, operating revenue was 6.12 billion yuan, down 17.7% year-on-year; net profit attributable to the parent was 1.06 billion yuan, down 43.1%. As of the end of the second quarter, the company's total assets were 63.676 billion yuan, up 13.1% from the end of the previous year; net assets attributable to the parent were 38.092 billion yuan, down 3.9% from the end of the previous year. The company said its main business remained unchanged, still the production and sale of Fenjiu, Zhuyeqing and Xinghuacun liquor, and it continued to promote product research and development and market expansion.

Shanxi Fenjiu disclosed its semi-annual report on August 30. In the first half of 2026, it achieved operating revenue of 21.044 billion yuan, down 12.18% year-on-year; net profit attributable to shareholders of the listed company was 6.439 billion yuan, down 24.29% year-on-year; basic earnings per share were 5.2783 yuan.

Diageo has slashed its workforce by more than 6% as part of a cost-cutting blitz under new CEO Dave Lewis, with further layoffs expected by September 1. The company's annual report revealed an average of 27,938 full-time employees by the end of June, down from 29,860 a year earlier. The cuts are part of a program to lower operating costs by nearly $1 billion over three years, with savings earmarked for growth initiatives such as price reductions and expansion in canned cocktails and Guinness. Diageo's revenues fell 2% organically to $19.6 billion for the year ending June 30, while operating profits dropped 27% to $3.2 billion, hit by $900 million in restructuring charges and a $1.5 billion impairment in Turkey. The company also abandoned its medium-term growth target of 5% to 7% in favor of a low-single-digit outlook, as North American sales declined 8.4% in fiscal 2026.

Gujing Gongjiu released its 2026 interim report. Total operating revenue was 10.131 billion yuan, down 27.01% year-on-year, and net profit attributable to the parent company was 2.164 billion yuan, down 40.89% year-on-year. Net cash inflow from operating activities was 1.543 billion yuan, down 62.87% year-on-year. The company's latest asset-liability ratio was 32.38%, gross margin was 80.33%, ROE was 8.70%, and diluted earnings per share was 4.09 yuan. The number of shareholders was 57,500, and the top ten shareholders held 63.93% of the total share capital.

Jinfeng Wine released its 2026 interim report. Total operating revenue was 189 million yuan, and net profit attributable to the parent company was negative 5.762 million yuan, an increase of 1.374 million yuan compared with the same period last year, marking two consecutive years of improvement. Net cash flow from operating activities was negative 91.3477 million yuan. The asset-liability ratio was 11.06 percent, and the gross margin was 42.50 percent, up 2.82 percentage points from the same period last year, marking three consecutive years of improvement. The latest return on equity was negative 0.30 percent, diluted earnings per share was negative 0.01 yuan, total asset turnover was 0.09 times, and inventory turnover was 0.18 times. The company had 46,100 shareholders, and the top ten shareholders held 281 million shares, accounting for 41.96 percent of total share capital.

Jinzhongzi Liquor released its 2026 interim report. Total operating revenue was 236 million yuan, and net profit attributable to the parent company was negative 64.8388 million yuan, an improvement of 7.358 million yuan compared with the same period last year, with the loss narrowing year-on-year. Net cash flow from operating activities was negative 160 million yuan. The asset-liability ratio was 34.15%, and the gross margin was 49.08%, up 6.20 percentage points from the same period last year. Diluted earnings per share were negative 0.10 yuan. The number of shareholders was 106,400, and the top ten shareholders held 37.16% of total share capital.

Laobaigan Liquor released its 2026 interim report. Total operating revenue was 2.104 billion yuan, down 15.23% from the same period last year. Net profit attributable to the parent company was 262 million yuan, down 18.47% year-on-year. Net cash inflow from operating activities was 191 million yuan, an increase of 237 million yuan compared with the same period last year. The company's asset-liability ratio was 35.96%, gross margin was 63.45%, return on equity was 4.80%, and diluted earnings per share was 0.29 yuan. The number of shareholders was 160,500, and the top ten shareholders held 36.80% of total share capital.

Laobaigan Liquor released its 2026 interim report. Operating revenue for the first half was 2.10 billion yuan, down 15.2 percent year on year. Net profit attributable to the parent company was 262 million yuan, down 18.5 percent. Second-quarter revenue was 883 million yuan, down 32.8 percent, while net profit attributable to the parent company was 96.14 million yuan, down 42.9 percent. The company said that amid a deep adjustment in the baijiu industry and increasingly fragmented consumption scenarios, performance declined. It is optimizing its product structure, strengthening the competitiveness of its leading products, and accelerating online channel expansion by setting up an e-commerce subsidiary and exploring new instant retail formats.

Gujing Gongjiu released its 2026 semi-annual report. In the first half, it achieved operating revenue of 10.131 billion yuan, down 27.01% year on year, while net profit attributable to shareholders of the listed company was 2.164 billion yuan, a year-on-year decline of 40.89%. Among these, the Year Original Pulp series, which is the absolute mainstay, achieved revenue of 7.965 billion yuan, down 27.32% year on year, contributing about 78% of the company's revenue and serving as the key factor dragging down performance. The Gujing Gongjiu series recorded revenue of 1.052 billion yuan, down 11.14% year on year, while Huanghelou and other series recorded revenue of 979 million yuan, down 34.57% year on year. By quarter, first-quarter revenue was 7.446 billion yuan, down about 18.6% year on year, while second-quarter single-quarter revenue was only 2.69 billion yuan, with the year-on-year decline widening to 43.3%, and net profit was 558 million yuan, plunging 58.1% year on year. The company said the baijiu industry is in a period of deep adjustment, with business banqueting and gifting demand contracting significantly. The company is actively working through inventory, and some markets outside its home province, such as Jiangsu, are showing signs of stabilising. On 28 August, Gujing Gongjiu shares closed up 1.88% at 93.90 yuan.