Overview

• Constellation Brands, owner of Modelo Especial, reports a slowdown in beer sales in Hispanic-majority areas, citing reduced social gatherings due to immigration crackdowns.
• CEO William Newlands highlights that fears of deportation are discouraging Hispanic consumers from frequenting restaurants and holding group events, key occasions for beer consumption.
• The company has revised its annual profit projections downward, with additional pressure from tariffs on aluminum and broader economic challenges.
• Market analysts note that discretionary spending among Hispanic consumers has declined faster than among non-Hispanic groups, reflecting broader economic and policy-driven uncertainties.
• Modelo Especial, previously a top-selling beer in the U.S., is losing momentum after years of growth fueled by a more lenient immigration landscape.