Constellation Brands slashes its medium-term forecast in the wake of the Trump administration’s Mexico tariffs

The challenge: Constellation Brands—parent company of Modelo, Corona, and Pacifico—imports all its beer from Mexico, with its beer portfolio accounting for 78% of net sales in FYQ4.

• As a result, the company has been hit hard by the Trump administration’s 25% tariff on imported canned beer and empty aluminum cans.
• It's also seeing signs of weakness among Hispanic consumers, who have concerns about high prices, immigration issues, and potential job cuts, the company noted during its earnings conference call.