Trump's Immigration Policies Drive Decline in Modelo Sales Among Hispanic Consumers

Constellation Brands lowers profit forecasts as deportation fears and economic pressures disrupt key markets.

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.