Trump's immigration policy is weighing on beer sales, Constellation Brands CEO says

Core Insights - Constellation Brands is facing challenges due to President Trump's tariffs on Mexican imports and his immigration policies, which are negatively impacting beer sales among Hispanic consumers [1][3] - Approximately 50% of Constellation's beer sales are derived from Hispanic consumers, and while the company has successfully marketed to non-Hispanic drinkers, the Hispanic demographic remains crucial, accounting for 78% of total revenue in the fiscal fourth quarter [2][3] - Concerns within the Hispanic community regarding immigration and job losses are leading to reduced spending on various sectors, including beer, which is affected by declining social gatherings [3][4] Financial Outlook - Constellation Brands provided a weaker-than-expected outlook for fiscal 2026 and reduced its medium-term forecasts, factoring in the impact of new tariffs, including a 25% aluminum tariff on canned beer imported from Mexico [5] - Despite the disappointing forecast, the company reported better-than-expected earnings and revenue for the quarter and announced a strategic divestment of cheaper wines to focus on higher-end brands [6] - Following the announcement, Constellation's shares fell less than 1% in afternoon trading, with a total decline of over 23% since Trump's election [6]