Dive Brief:
- President Donald Trump’s hardline immigration policies are weighing on sales of Mexican beers Corona and Modelo, according to owner Constellation Brands.
- Deportation threats and the potential of job losses have led to decreased spending among Hispanic populations, Constellation CEO Bill Newlands told investors Thursday. The demographic represents roughly half of the company’s beer sales.
- Constellation has seen growth of its Mexican brews in the U.S. over the last three years as Modelo became America’s top selling beer brand in 2023. However, the company has suddenly faced new headwinds as it’s caught in the crosshairs of geopolitical decisions and broader consumer uncertainty.
Dive Insight:
Part of Constellation’s strategy to overcome difficulties in the beer market is to better advertise Modelo beyond the Hispanic market, where it already has a strong foothold.
“We increased our [marketing] spend even though the consumer was pulling back, and we’re seeing that providing great returns to our business,” Newlands said.
In a note to investors, TD Cowen analyst Robert Moskow pointed to Nielsen data that found the rate of Constellation beer purchases among Hispanic consumers declined between 7% and 9% so far in 2025. He projected immigration and employment issues related to the demographic could weigh on the company for years to come.
Constellation’s CEO pointed to internal data which found two-thirds of Hispanic consumers are concerned about the price of food. Half are worried about Trump’s actions on immigration.
“Social gatherings, an area where the Hispanic consumer often consumes beer, are declining today as part of these overarching concerns they have,” Newlands said. “We’re going to need and want to see some improvement in the consumer brand health before we’re able to correctly project how long some of these challenges are going to last.”
Constellation lowered its anticipated sales growth for its beer business to 0% to 3%, it said in the earnings call, down from 7% to 9%.
In its most recent financial quarter ending in February, the company’s beer business saw flat growth in net sales and a 1.8% decline in shipments, according to Constellation’s earnings report.
Declining demand is just one issue linked to Trump’s policies that has weighed down the Pacifico brewer. Constellation is considered among the brands most vulnerable to the president’s tariff policy because imports make up nearly 85% of its annual revenues.
