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Constellation Brands Inc STZ

Consumer Defensive Beverages - Brewers
Constellation Brands, Inc. is a producer and marketer of beer, wine, and spirits with operations in the United States, Mexico, New Zealand, and Italy with brands, such as Corona Extra, Modelo Especial, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, High West, Casa Noble, and Mi CAMPO. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. In the Beer segment, its portfolio consists of high-end imported beer brands and ABAs. It has a perpetual brand license to produce its Mexican beer portfolio and to import, market, and sell such a portfolio in the United States. In the Wine and Spirits segment, it sells a portfolio that includes higher-end wine brands complemented by certain higher-end spirits brands. Its Corporate Operations and Other segment consists of costs of corporate development, corporate finance, corporate strategy, executive management, growth, human resources, internal audit, investor relations, IT, legal and public relations.


NYSE:STZ - Post by User

Constellation Brands Inc
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  • quinlashX
Post by quinlashon May 04, 2020 11:43am
1590 Views
Post# 30983696

Recession Investing and Cannabis / Vice Stocks

Recession Investing and Cannabis / Vice StocksInvestors looking for recession proof stocks may be considering these studies.  Combined with the expected release of infused drinks and edibles we may be seeing optimism coming back into the Cannabis sector.

Quote:

Merrill Lynch recently examined the performance of alcohol, tobacco and casino stocks in all recessions since 1970 and found that while the S&P 500 fell by 1.5% on average, sin stocks raised on average 11%.1

The recent downturn is not shaping up to be any different. For sure, people are cutting their spending far more than in the past recessions, but history shows that people do not drop their bad habits in hard times. Instead many people feel an intense need to escape through alcohol, tobacco, or a trip to their local casino.

Habits are persistent especially for addictive substances and gambling, so demand does not respond much to the price changes, taxes or etc. When people are depress, for instance, losing their jobs or facing financial hardship in recessions, they increase their consumption of drugs and gambling. This means the demand for vice products is countercyclical, i.e. increases in recessions.

Link to full study:
https://core.ac.uk/download/pdf/56366387.pdf
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