The modelo beer bottle is on display on the shelf of the Bevmo store in San Rafael, California on January 5th, 2024.
Justin Sullivan | Getty Images
Constellation Brands ‘ Beer sales fell 2% in the latest quarter as President Donald Trump’s deportation and wider economic fears of consumers are in high demand.
In April, Constellation CEO Bill Newlands said Hispanic consumers were cutting their spending due to concerns about Trump’s hard-hit immigration policies and potential job losses in industries with high Latino employment bases. During a revenue call Wednesday, Newlands acknowledged that U.S. immigration and customs enforcement attacks make it difficult to predict that consumers will advance actions, but he hinders the quarterly slowdown specifically with Hispanic shoppers in the beer sector.
“When we see a significant amount of change, both Hispanic and non-Hispanic consumers are worried about inflation and cost structure,” Newlands told analysts.
Hispanic consumers are a central part of Constellation’s customer base. Brewers who own Modelo, Corona and Pacifico say about half of their beer sales come from Latinos in the US
Constellation revenue and revenue for the quarter ended May 31st did not reach Wall Street estimates. Still, the company repeated its full-year outlook, signaling its confidence that it could achieve its financial goals despite economic uncertainty.
Constellation is not the only packaging food and beverage company that reports weak demand from Hispanic consumers. Last quarter, Coca-Cola and Colgate Palmolib were among the companies that linked the slowdown in U.S. sales to pullbacks from Hispanic shoppers.
