President Donald Trump’s policies on tariffs and immigration have drawn the ire of Constellation Brands, a company best known for Mexican beer brands such as Modelo Especial and Corona.
“The fact is a lot of consumers in the Hispanic community are concerned right now, two-thirds of them are concerned about higher prices on things like food, gas and other essentials. Over half are concerned relative to immigration issues and how those impact,” Constellation CEO Bill Newlands said during the company’s Q4 conference call last week.
The comments come as Constellation grapples with a changing environment under the leadership of Trump, forcing the company to give a weaker-than-expected outlook for fiscal year 2026, which also comes after the company’s sales fell 1% last quarter, it’s first drop since acquiring Modelo, Corona and Pacifico in 2013, according to a report from the Wall Street Journal.
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About half of Constellation’s beer sales are from Hispanic consumers, according to a report by CNBC, with the demographic accounting for 78% of its total revenue last quarter.
In the conference call and in an interview with the Wall Street Journal, Newlands chalked up much of the thorny outlook to concerns in the Hispanic community over Trump’s policies.
“If that consumer has concerns, issues, et cetera, that’s a big deal for us,” the CEO told the Wall Street Journal.
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The Wall Street Journal report noted that many immigrants in Southern California and Texas have begun avoiding liquor stores, where they are often forced to show identification. Many people have stopped shopping at supermarkets after 6 p.m., hoping to avoid immigration raids.
Trump’s tariffs have also dampened the company’s outlook, most notably by raising the cost of importing its most popular beers from Mexico to the United States.
While Modelo, Corona and Pacifico are exempt from the Trump administration’s 25% tariff on Mexican imports, the company is not able to dodge the 25% tariff on aluminum when it comes to their canned beer imports.
Two years ago, Constellation benefited from increased sales of Modelo in the wake of a boycott of Bud Light for an ad campaign by transgender influencer Dylan Mulvaney.
Modelo overtook Bud Light in the summer of 2023 to become the nation’s best-selling beer brand.
In February 2024, then-candidate Trump said in a Truth Social post he thought Bud Light was a “Great American Brand” that might deserve a “Second Chance,” adding that brewer Anheuser-Busch was not a “Woke company.”
Nevertheless, Newlands struck an optimistic tone during the company’s recent earnings call.
“In a tough socioeconomic environment, we are taking decisive actions designed to continue to support our industry-leading beer business,” Newlands said.
Constellation did not respond to a FOX Business request for comment by publication deadline.
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