From the start of his second presidential campaign, President Donald Trump emphasized a strong stance on addressing illegal immigration and has begun implementing this agenda after assuming office once more. These policy changes, alongside plans for mass deportations, have increased concerns within the Hispanic community in the United States.
The Hispanic population, faced with challenges like rising costs of essential commodities and high unemployment rates, has become more cautious with their expenditures. The Hispanic community accounts for around 19.5% of the U.S. population, making it the largest racial minority and a significant part of the economy. These spending pullbacks have begun to affect businesses that rely heavily on Hispanic consumers.
Constellation Brands, a leading global producer and marketer of beer, wine, and spirits since 1945, owns popular brands such as Modelo, Corona, Especial, and Pacífico. The Hispanic community plays a crucial role in the demand for these brands, comprising about 50% of Constellation Brands’ beer business. However, recent immigration policies and economic uncertainty have pressured Hispanic consumers, resulting in flat net beer sales and a nearly 2% decrease in shipments during the fourth quarter of fiscal 2025, as reported in the company’s earnings.
Constellation Brands CEO Bill Newlands highlighted the decline in social gatherings, a setting where Hispanic consumers often enjoy beer, attributing it to the broader concerns within the community. Despite these challenges, Newlands expressed optimism that sales would improve as the situation stabilizes. Constellation Brands plans to continue focusing on distribution, innovation, and enhancing brand awareness to manage the current slowdown.
The company remains committed to maintaining and increasing its marketing investments, planning to allocate an additional $200 million over the next 2.5 fiscal years to support business growth. Given the uncertain landscape, Constellation Brands has adjusted its fiscal 2026 guidance, forecasting beer sales growth at a flat to 3% rate, down from the previously predicted 7% to 9%. The company estimates the overall beer industry to remain stable or decline by 2%.
