President Donald Trump’s tariffs and hardline immigration stance are negatively impacting Constellation Brands, a major beer company. Around half of the company’s beer sales come from Hispanic consumers, who are spending less due to concerns about immigration issues and job losses within their community. This has resulted in a decline in spending on items like restaurants, clothing, and travel, and has affected beer consumption at social gatherings.
Constellation recently gave a weaker outlook for its fiscal 2026 and reduced its medium-term forecast, citing the impact of the new tariffs. While Trump has temporarily lowered tariff rates on reciprocal tariffs for most countries, Mexico’s canned beer imports are still subject to a 25% aluminum tariff. Despite this, the company reported better-than-expected earnings and revenue for the quarter and announced plans to focus on pricier wine brands by divesting cheaper wines.
Shares of Constellation fell slightly following the announcement of the weaker forecast but have fallen more significantly since Trump’s election last year. The company’s marketing strategy targeting non-Hispanic consumers has helped boost sales, but Hispanic consumers remain crucial to their overall revenue. CEO Bill Newlands mentioned that the Hispanic community has expressed concerns about various issues, impacting their spending habits and ultimately affecting Constellation’s bottom line.
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