Overview

• Constellation Brands reported a 1% drop in sales last quarter, marking its first decline since acquiring Modelo and Corona in 2013.
• CEO Bill Newlands attributed the downturn to reduced spending in Hispanic communities, which account for 78% of the company’s beer revenue.
• Trump administration policies, including a 25% tariff on aluminum, have increased production costs for canned beer, pressuring profit margins.
• Immigration crackdowns have disrupted social gatherings in Hispanic communities, leading to diminished beer consumption.
• In response, the company is investing in a new beer plant in Mexico to reinforce its commitment to brand authenticity for its Mexican beer portfolio.