Beer sales from Modelo Especial owner Constellation Brands are taking a hit as demand from the Latino population in key U.S. states has slowed amid a government crackdown on immigration, company executives said Thursday.
President Donald Trump launched an anti-immigration campaign after taking office in January, increasing pressure on Latino consumers already suffering from rising food prices and high unemployment rates.
Modelo Especial is brewed exclusively in Mexico and imported and marketed in the U.S. by Constellation Brands. The brand has enjoyed tremendous popularity over the past two years, surpassing Bud Light as the best-selling beer brand in the U.S. in 2023.
However, the momentum is slowing, and Constellation has seen a significant drop in demand in key states and ZIP codes with larger Latino populations.
After markets closed Wednesday, the brewer projected a lower-than-expected adjusted annual profit, as it expects the tariffs to impact its business.
Latino customers, who make up about half, have avoided social gatherings, a key occasion for beer consumption, according to Constellation Brands CEO Bill Newlands.
Newlands said the company’s research also found that Latino consumers were under pressure from job losses in the sectors that employ them the most.
