President Donald Trump’s tariffs and immigration policies are impacting Constellation Brands, a beer company that relies heavily on Hispanic consumers for roughly half of its beer sales. The company’s CEO, Bill Newlands, stated that Hispanic consumers are spending less due to concerns related to immigration issues and job losses in industries with a high Latino employment base. This has led to a decline in spending on beer as well as other items like restaurants, clothing, and travel.
Despite Constellation’s efforts to target non-Hispanic consumers and increase sales, the company’s beer sales still heavily depend on Hispanic customers. Constellation recently gave a weaker outlook for its fiscal 2026 and slashed its medium-term forecast due to the impact of the new tariffs. While Trump lowered the tariff rate on reciprocal tariffs for most countries, Constellation’s canned beer imported from Mexico is still subject to aluminum tariffs of 25%.
Constellation’s disappointing forecast was offset by better-than-expected earnings and revenue for the quarter. The company also announced plans to divest its cheaper wines and focus on pricier brands. Constellation’s stock has fallen more than 23% since Trump’s election last year, and the company continues to face challenges due to the impact of tariffs and immigration policies on its sales to Hispanic consumers.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
