Corona beer bottles, the flagship brand of Grupo Modelo are displayed in this illustration taken in Monterrey, Mexico, February 18, 2025.
Daniel Becerril | Reuters
President Donald Trump’s prices are not the only presidential policy that weighs Constellation brands.
In addition to the prices on Mexican imports, its hard immigration position is also night for business beer sales while Hispanic consumers in the United States spend less, the CEO of Constellation Bill Newlands said on Thursday at the company’s call conference.
About half of constellation beer sales come from Hispanic consumers, although the company sells more beers in part because of its marketing strategy. Constellation awareness of non -Hispanic beer drinkers stimulated its sales and helped Modelo in particular to become the best -selling American beer.
However, Hispanic consumers remain integrated into constellation beer sales, which represented 78% of its total income in the fourth tax quarter.
“The fact is that many consumers of the Hispanic community are concerned at the moment … more than half are concerned with the problems of immigration and the impact that these impact [them]. A number of them are concerned about job losses in industries that have a high Latin employment base, “said Newlands.
As a result, Hispanic consumers in the United States fell out for restaurants, clothing and travel, according to Newlands.
“Beer is a path in the list, but it is certainly on the list because things like social gatherings, an area where the Hispanic consumer often consumes beer, decreases today,” said Newlands.
On Wednesday, the constellation gave a lower perspective than expected for its 2026 exercise and reduced its forecasts in the medium term. The projections included the impact of new prices. While Trump temporarily lowered the rate rate on so-called reciprocal rates on all countries except China on Wednesday, canned beer imported from Mexico is still subject to 25%aluminum prices.
Constellation’s disappointing forecasts have been offset by the company’s better than expected income and income for the quarter. The company also announced on Wednesday that it disinveses its cheaper wines to focus on more expensive brands.
Constellation actions dropped less than 1% in the afternoon trade on Thursday. The action has dropped more than 23% since the Trump election last year.