Corona and Modelo maker's CEO: Trump policies are impacting beer sales

Beer elephantine Constellation Brands (STZ) is taking aggregate hits from the Trump administration.

"Well, the user is acrophobic astir a fig of things ... The pricing and costs of things, inflation. They're acrophobic astir immigration, peculiarly consumers that person had friends oregon household who person been progressive with issues astir immigration. How that's translating is that radical are spending less. They're retired little successful restaurants. They're spending little connected user goods and consumables," Constellation Brands CEO Bill Newlands said connected Yahoo Finance's Catalysts.

Newlands added, "Fortunately, brew is beauteous acold down the list, but there's an wide interest successful that [Hispanic] community. Less societal gatherings ... Those are brew moments. So for us, that creates a spot of a challenge."

Constellation Brands is the shaper of fashionable beers Corona and Modelo. The company's net this week shed airy connected its challenges.

The institution guided to fiscal twelvemonth net of $12.60 to $12.90 a share, good beneath expert estimates of $13.97 a share. The anemic guidance reflects the interaction of tariffs and sluggish user spending.

The institution sees mid-single-digit to low-double-digit EPS maturation successful FY27. In FY28, it anticipates low-single-digit to mid-single-digit EPS growth. Previously, the institution modeled for low-double-digit EPS maturation for some fiscal years.

While Trump has enactment a 90-day intermission connected reciprocal tariffs, the abatement doesn't use to sector-specific duties. The 25% tariff connected imported canned brew and bare aluminum cans that went into effect connected April 4 remains successful place.

Constellation imports each of its brew from Mexico. Its brew portfolio, which besides includes Pacifico, accounted for 78% of the company’s nett income during the quarter.

"To beryllium fair, 4Q25 results were mixed (beer top-line/depletions missing, but with robust borderline delivery), and FY26 guidance was well-below our estimates crossed brew and vino and spirits arsenic the existent macro scenery exacerbates an already brushed request environment. However, FY26 brew maturation expectations look prudent (+0-3% connected the apical line)," said Deutsche Bank expert Steve Powers successful a probe enactment this week.

"Moreover, with respect to tariffs, the company's outlook for its Mexican import brew portfolio and vino & spirits (the second of which has sizeable vulnerability to Canada, Australia, and New Zealand) embeds expected outgo headwinds from announced tariffs by the US from past week (which person seemingly been deferred astatine slightest successful portion until July arsenic of today)."