Constellation says Trump’s immigration crackdown is hurting sales of Modelo, Corona

Diving briefs:

• According to the owner’s Constellation brand, President Donald Trump’s hard-hit immigration policies focus on Mexican beer coronavirus and modelo sales.
• The threat of deportation and the likelihood of unemployment have led to a decline in Hispanic population spending, Bill Newlands, the zodiac CEO He told investors on Thursday. The demographic represents about half of the company’s beer sales.
• Constellation has seen Mexican brewing growth in the US over the past three years as Modelo became America’s top selling beer brand in 2023. However, the company suddenly faced a new headwind as it got caught up in the intersection of geopolitical decisions and wider consumer uncertainty.

Dive Insights:

Part of Constellation’s strategy to overcome the challenges of the beer market is to promote the modelo better beyond the Hispanic market, which already has a strong foothold.

“We’ve increased us [marketing] Despite consumers being pulled back, we see that it brings great benefits to our business,” Newlands said.

In a note to investors, TD Cowen analyst Robert Moscow pointed to Nielsen data that found that the rate of beer purchases in the constellations among Hispanic consumers had dropped between 7% and 9% so far in 2025.

The CEO of Constellation pointed to internal data that found two-thirds of Hispanic consumers worried about food prices. Half of them are worried about Trump’s actions against immigrants.

“Social gatherings, a region where Hispanic consumers often consume beer, are declining today as part of these comprehensive concerns,” Newlands said. “Before some of these challenges can correctly predict the longevity period, there will be some improvement in the health of consumer brands.”

Constellation reduced the beer business’s expected sales growth from 0% to 3%, down from 7% to 9% on revenue calls.

In the latest financial quarter, which closes in February, the company’s beer business grew flat net sales and saw a 1.8% drop in freight. According to Constellation’s revenue report.

The decline in demand is just one of the issues related to Trump’s policy that put pressure on Pacifico brewers. Constellation is considered among brands most vulnerable to the president’s tariff policy, as imports account for nearly 85% of annual revenue.