Modelo owner Constellation says Trump immigration policy hitting beer sales

President Donald Trump’s tariffs aren’t the only presidential policy that is weighing on Constellation Brands.

Along with tariffs on Mexican imports, his hardline immigration stance is also hurting the company’s beer sales as Hispanic consumers in the U.S. spend less, Constellation CEO Bill Newlands told analysts on the company’s conference call on Thursday.

Roughly half of Constellation’s beer sales come from Hispanic consumers, although the company is selling more brews in part because of its marketing strategy. Constellation’s outreach to non-Hispanic beer drinkers has boosted its sales and helped Modelo Especial become the top-selling U.S. beer.

Still, Hispanic consumers remain integral to Constellation’s beer sales, which accounted for 78% of its total revenue in its fiscal fourth quarter.

“The fact is, a lot of consumers in the Hispanic community are concerned right now … Over half are concerned relative to immigration issues and how those impact [them]. A number of them are concerned about job losses in industries that have a high Latino employment base,” Newlands said.

As a result, Hispanic consumers in the U.S. have pulled back their spending on restaurants, clothing and travel, according to Newlands.

“Beer is quite a ways down the list, but it’s certainly on the list because things like social gatherings, an area where the Hispanic consumer often consumes beer, are declining today,” Newlands said.

On Wednesday, Constellation gave a weaker-than-expected outlook for its fiscal 2026 and slashed its medium-term forecast. The projections included the impact of the new tariffs. While Trump temporarily lowered the tariff rate on so-called reciprocal tariffs on every country except China on Wednesday, Constellation’s canned beer imported from Mexico is still subject to aluminum tariffs of 25%.

Constellation’s disappointing forecast was offset by the company’s better-than-expected earnings and revenue for the quarter. The company also announced on Wednesday that it is divesting its cheaper wines to focus on pricier brands.

Shares of Constellation fell less than 1% in afternoon trading on Thursday. The stock has fallen more than 23% since Trump’s election last year.