Constellation Reports Decline in Beer Sales Amid Hispanic Consumer Pressure

Constellation Brands, the owner of Modelo Especial, is experiencing a decline in beer sales as demand from Hispanic consumers decreases, attributed to socio-economic pressures exacerbated by Trump's immigration policies. The company reported that Latino customers, who make up over half of Modelo's demographic, have reduced their participation in social gatherings, which are critical occasions for beer consumption. CEO Bill Newlands noted that rising food prices and job losses in sectors heavily employing Latinos have contributed to this shift. Despite previously strong sales growth, the company is now projecting a smaller-than-expected annual profit due to these challenges. This sentiment was echoed by analysts who believe the brand's earlier success was linked to more favorable immigration conditions. As Constellation Brands looks to adjust its strategy, it has also announced plans to sell off lower-end wine brands to streamline operations.