Constellation Brands Adjusts Strategy Following Tariff-Induced Forecast Cuts

The Trump administration’s 25% tariff on imported beer and aluminum cans prompts the company to lower earnings projections and restructure its portfolio.

Constellation Brands has revised its fiscal 2026 earnings forecast downward, projecting adjusted earnings per share of $12.60 to $12.90, below analysts' estimates of $13.97.
The company’s revenue model, heavily reliant on Mexican beer imports, faces significant cost pressures due to the newly imposed tariffs on imported canned beer and aluminum cans.
In response to financial challenges, Constellation is divesting non-core assets, including mainstream wine brands and spirits like Svedka vodka, to focus on premium products.
Medium-term projections for fiscal 2027 and 2028 have also been lowered, with expected enterprise sales growth reduced to 2%-4%, down from prior estimates of 6%-8%.
Stock volatility followed the tariff announcement, with shares initially dropping but rebounding after President Trump announced temporary reductions in some trade duties.