Trump’s deportations are hurting Constellation Brands’ beer sales

Trump’s deportations are hurting Constellation Brands’ beer sales


Bottles of Modelo beer are displayed on a shelf at a BevMo store on January 05, 2024 in San Rafael, California.

Justin Sullivan | Getty Images

Constellation Brands’ beer sales fell 2% in its latest quarter as President Donald Trump’s deportations and consumers’ broader economic fears weighed on demand.

In April, Constellation CEO Bill Newlands said that Hispanic consumers are spending less due to their concerns about Trump’s hardline immigration policy and possible job losses in industries with high Latino employment bases. During Wednesday’s earnings conference call, Newlands acknowledged that raids by U.S. Immigration and Customs Enforcement were making it difficult to predict consumer behavior moving forward, although he demurred about tying the beer division’s slowdown to Hispanic shoppers specifically this quarter.

“When you see a fair amount of change, both Hispanic and non-Hispanic consumers are concerned about inflation and about cost structure,” Newlands told analysts.

Hispanic consumers are a core part of Constellation’s customer base. The brewer, which owns Modelo, Corona and Pacifico, says that roughly half of its beer sales come from Latinos in the U.S.

Constellation’s earnings and revenue for the quarter ended May 31 fell short of Wall Street’s estimates, hurt by weaker beer demand and higher aluminum costs from Trump’s tariffs. Still, the company reiterated its full-year outlook, signaling confidence that it can achieve its financial targets despite economic uncertainty.

Constellation isn’t the only packaged food and beverage company to report weaker demand from Hispanic consumers. Last quarter, Coca-Cola and Colgate-Palmolive were also among the companies that tied a slowdown in U.S. sales to a pullback from Hispanic shoppers.



Source

Tesla, GM lead record U.S. EV sales this year as federal incentives end
Business

Tesla, GM lead record U.S. EV sales this year as federal incentives end

A Tesla Cybertruck and GMC Sierra Denali EV First Edition next to one another. Michael Wayland | CNBC DETROIT – Tesla and General Motors are leading the U.S. automotive industry this year in record domestic sales of all-electric vehicles, as consumers hurried to buy EVs before up to $7,500 in federal incentives for each purchase […]

Read More
The wealth of the top 1% reaches a record  trillion
Business

The wealth of the top 1% reaches a record $52 trillion

A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. The top 10% of Americans added $5 trillion to their wealth in the second quarter as the stock market rally continued to benefit […]

Read More
Property tech ‘winter’ is over, but climate investment is still struggling, says Fifth Wall CEO
Business

Property tech ‘winter’ is over, but climate investment is still struggling, says Fifth Wall CEO

Fifth Wall co-founder and CEO Brendan Wallace. Courtesy of Fifth Wall A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign […]

Read More