Corona and Modelo beers imported from Mexico are seen on sale in a Magnolia grocery store in Texas, April 3, 2025.
Ronaldo Schemidt | AFP | Getty images
Constellation brands On Tuesday, reduced its full exercise prospects, saying that a “difficult” economy strikes its alcohol sales.
The company, which houses popular brands like Modelo and Corona, had previously declared in April that higher American prices on beer would affect its sales and global demand for consumers. Constellation reduced its comparable profit by action on Tuesday for its year 2026 to a range of $ 11.30 to $ 11.60, from $ 12.60 to $ 12.90.
The action dropped by around 6% Tuesday morning, briefly reaching a 52 -week hollow. The constellation is expected to participate in the Global Staples conference in Barclays Global 2025 later Tuesday.
“We continue to navigate a difficult macroeconomic environment that has attenuated consumer demand and has led to a more volatile consumer purchasing behavior since our first quarter of the 2026 fiscal year,” CEO Bill Newlands said in a statement. “In the past few months, high -end beer purchase rates have sequentially decelerated, both travel frequency and travel expenses have decreased.”
The constellation provides that organic net sales will drop from 4% to 6%, against an earlier wait of growth of 1% to a decrease of 2%. This metric excludes the brand and the SVEDKA vodka wine brands that the company has sold.
The company expects the sales of net beers to drop 2% to 4% due to lower volumes and additional tariff impacts. He previously planned that sales are 3%from the apartment. The constellation also reduces its estimate of available cash flows from $ 1.5 to 1.6 billion to $ 1.3 to $ 1.4 billion.
“We remain resolutely concentrated on the continuation of executing compared to our strategic objectives, in particular the conduct of distribution gains, disciplined innovation and investment behind our brands,” said Newlands.
He also underlined the drop in demand from Hispanic consumers, a trend that the company has seen for several months. Newlands added These high -end beer sales for the population were “more pronounced than decreases in the general market”.
The brewer previously declared that the decline had been caused by the concerns of Hispanic consumers concerning the immigration policies of President Donald Trump and potential job losses. The constellation said that Hispanic consumers in the United States represent about half of its beer sales.
Society has made progress to compensate for its losses. In April, he announced that she was repositioning his portfolio in disinvesting “traditional” wines. Constellation has also authorized an action buy -back program which, according to him, said Tuesday at $ 604 million in redemptions in the first half of the financial year under its share repurchase of $ 4 billion.