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One of the more notable stats shared in Constellation's (STZ's) just-filed 10-K annual report was under section dubbed "significant customers and concentration of credit risk." Its biggest customer by far is "Reyes Beer Division" (now going by Reyes Beverage Group), which collectively represented 27.5% of Constellation's total revs in fiscal yr 2026 thru Feb 2026, up from 25.4% in FY25 and 25.1% in FY24. Shows Constellation revs from Reyes were down ~3% vs yr ago but still totaled a whopping $2.5 bil in FY26. That's as STZ's top 10 customers collectively represented "approximately 60% of our total net sales for each of the last 3 fiscal years." So Reyes alone makes up nearly half of the top 10. Southern Glazer's Wine & Spirits is also listed as a top customer, accounting for 6.7% (~$612 mil) of Constellation's total revenue mix, down from 11.2% (~$1.143 bil) in FY25 and 11.7% (~$1.166 bil) in FY24 following various wine & spirits divestitures. Yet SGWS accounts for "nearly 70% of our US branded wine and spirits volume" and nearly all of its US wholesale volume on its own. Last yr, STZ sold 8.3 mil cases of wine & spirits including 6.3 mil cases in US wholesale. Recall, total wine & spirits net sales were $823.8 mil in FY26 including $700.4 mil from wine and $123.4 mil from spirits (see Apr 17 issue).$845.9 Mil for Sale to The Wine Group Helped Pay Down Debt; $1.255 Bil from Divestitures in 6-Mo Span Turns out STZ received $845.9 mil from the sale "primarily centered around its mainstream wine brands" and associated assets to The Wine Group in Jun 2025, co reported. While STZ sold those assets at a slight discount, assuming a net $31-mil loss on the sale, that money was entirely "used for the repayment of debt," co shared. Between that and the $409.2 mil from Svedka sale to Sazerac, which closed in Jan 2025, Constellation got $1.255 bil on two big divestitures in the span of ~6 mos. Proceeds from the Svedka deal were more spread out, "used for general corporate purposes including funding share repurchases, capital expenditures, and repayment of debt," co detailed. But debt payments were a big part of last fiscal yr, reducing debt by $929.2 mil to $10.57 bil total in FY26.Marketing Expenses Down 7% to $867.4 Mil in FY26 vs FY25; Rose 400 Bps to 9.5% of Total Revs Constellation's total marketing expenses were down nearly 7% to $867.4 mil in FY26 vs FY25. That's down $63.6 mil vs yr ago, but still ~$14 mil ahead of FY24 total marketing spend. And marketing rose to 9.5% of net revs in FY26 vs just 9.1% in FY25.Restructuring Initiative Netted $130 Mil in Pre-Tax Cost Savings So Far; $121.9 Mil Spent on Initiative Constellation's well on its way to achieving its goal of "over $200 million in net annualized cost savings by Fiscal 2028" thru its "Restructuring Initiative." It's currently estimated at "nearly $130 million&hellip;once all phases are fully implemented." Tho it also incurred $121.9 mil in additional costs in connection with this initiative since inception in FY25, including $62 mil in employee terminations, $55.5 mil in consulting services and $4.4 mil in "other" areas. Notably, employee termination costs reduced to $15.1 mil in FY26 vs $46.9 mil in FY25 while consulting services leapt to $52.7 mil in FY26 vs $2.8 mil yr ago.9,400 Employees at End of FY26 Including 1,100 at JV with Owens-Illinois Constellation employed 9,400 workers as of Feb 28, 2026. That's down from 10,600 employees same time last year with much of the reduction coming from divestitures. Nearly 2/3 (65%) of current total is in Mexico, primarily on the production team vs 29% in the US and 6% in "other" countries. Notably, 1,100 of its employees work at its JV plant with Owens-Illinois, down from 1,300 year ago. About 20% of employees are covered by collective bargaining agreements.

STZ 10-K Tidbits: Reyes at 27.5% of Total Revs; SGWS 70% of Wine & Spirits; $846 Mil from Sale to The Wine Group

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