President Donald Trump’s hardline immigration policies are impacting sales of popular Mexican beers Corona and Modelo, according to Constellation Brands. The company’s CEO, Bill Newlands, revealed to investors that deportation threats and potential job losses have led to decreased spending among Hispanic populations, which make up roughly half of Constellation’s beer sales.
Despite seeing significant growth in its Mexican brews in the U.S. over the past three years, with Modelo becoming the country’s top-selling beer brand in 2023, Constellation is now facing challenges due to geopolitical decisions and consumer uncertainty.
To overcome these difficulties, Constellation is focusing on expanding the marketing of Modelo beyond the Hispanic market where it already has a strong presence. Newlands emphasized the company’s increased marketing spend and the positive returns it has generated for the business.
Analyst Robert Moskow highlighted Nielsen data showing a decline of 7% to 9% in Constellation beer purchases among Hispanic consumers in 2025. He predicted that immigration and employment issues within this demographic could continue to impact the company for years to come.
Internal data from Constellation revealed that two-thirds of Hispanic consumers are concerned about food prices, while half are worried about Trump’s immigration policies. The CEO noted that social gatherings, where Hispanic consumers often consume beer, are declining due to these overarching concerns.
As a result of these challenges, Constellation revised its anticipated sales growth for its beer business to 0% to 3%, down from the previous projection of 7% to 9%. In the most recent financial quarter, the company’s beer business experienced flat growth in net sales and a 1.8% decline in shipments.
In addition to declining demand, Constellation is also facing pressure from Trump’s tariff policies, as imports account for nearly 85% of its annual revenues. This vulnerability to tariffs adds another layer of uncertainty for the company’s future performance.
Overall, Constellation Brands is navigating a complex landscape shaped by political decisions and consumer sentiment. The company is adapting its strategies to mitigate the impact of these challenges and ensure its long-term success in the competitive beer market.
