Corona and modelo beer imported from Mexico are on sale at a grocery store in Magnolia, Texas on April 3, 2025.
Ronaldo Schemidt | AFP | Getty Images
Constellation Brand On Tuesday, it cut its outlook for the entire fiscal year significantly, saying that the “challenging” economy is reaching alcohol sales.
The company, home to popular brands like Modelo and Corona, previously said in April that higher US tariffs on beer will affect sales and overall consumer demand. The Constellation on Tuesday reduced its earnings per share outlook for fiscal year 2026 from $11.30 to $11.60 range, down from $12.60 to $12.90.
Stock fell by about 6% on Tuesday morning, temporarily hitting its 52-week low. Constellation will be participating in the 2025 Barclays Global Consumer Staples Conference later Tuesday.
“We have continued to navigate a challenging macroeconomic environment since the first quarter of 2026 that has weakened consumer demand and made consumer purchasing behavior more precarious,” CEO Bill Newlands said in a statement. “Over the past few months, high-end beer purchase fees have been slowed down gradually as both travel frequency and spending per trip have decreased.”
Constellation expects organic net sales to decline from 4% to 6%, down from previous 1% growth forecast to a 2% decline. That metric excludes wine brands sold by the Svedka Vodka brand and the company.
The company expects net beer sales to fall by 2%-4% as volumes decrease and additional tariff effects are added. Previously anticipated sales ranged from flats to 3% increase. Constellation has also reduced its free cash flow estimates from $1.5 billion to $1.6 billion from $1.3 billion to $1.4 billion.
“We are adamant about continuing to oppose strategic goals, such as acquisition of distribution, disciplined innovation, and investments behind the brand,” Newlands said.
He also pointed to a decline in demand from Hispanic consumers. This is a trend the company has seen over several months. Newlands added that high-end beer sales for the population are “more pronounced than the decline in the general market.”
Brewer previously said it was drawn back by Hispanic consumer concerns about President Donald Trump’s immigration policy and potential unemployment. Constellation says US Hispanic consumers account for about half of beer sales.
The company has made progress to make up for that loss. In April, it announced it would reposition its portfolio by selling “mainstream” wines. Constellation has also approved the stock repurchase program. This said Tuesday that it was a $644 million repurchase in the first half of the fiscal year under a three-year, $4 billion share repurchase approval.
