President Donald Trump’s tariffs and immigration policies are impacting Constellation Brands, leading to a decrease in beer sales to Hispanic consumers in the U.S. Despite efforts to expand its customer base, roughly half of Constellation’s beer sales come from Hispanic consumers. The company’s outreach to non-Hispanic consumers has helped boost sales and positioned Modelo Especial as the top-selling U.S. beer. However, the concerns of Hispanic consumers regarding immigration issues and job losses are impacting their spending habits, with a decline in purchases of items like beer. Constellation recently gave a weaker-than-expected outlook for fiscal 2026 and slashed its medium-term forecast due to the impact of new tariffs, particularly on aluminum for its canned beer imported from Mexico. While Trump temporarily lowered tariff rates for most countries, Constellation is still subject to the 25% aluminum tariffs. Despite the disappointing forecast, Constellation reported better-than-expected earnings and revenue for the quarter and announced plans to divest its cheaper wines in favor of higher-priced brands. The company’s stock has fallen more than 23% since Trump’s election last year, with shares falling less than 1% following the recent news.
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