Constellation Brands
Beverages company featured in The Biology of Business.
A U.S. beverage company ($9 billion revenue, 2022) that exemplifies extinction avoidance through portfolio pruning - identifying and divesting business units facing extinction risk, reallocating resources to resilient/growing segments.
Constellation operated three divisions: Beer (Corona, Modelo, Pacifico - high growth, premium positioning), Wine & Spirits (Robert Mondavi, Clos du Bois, SVEDKA vodka - mature, low growth), and Cannabis (Canopy Growth investment - speculative).
In 2021, Constellation sold most wine & spirits brands (~$3 billion revenue) to E&J Gallo for $1.7 billion, retaining only high-end labels. The company also exited cannabis by writing down its Canopy Growth investment. This strategic pruning resembles autophagy in organisms - shedding vulnerable units to preserve core viability.