The maker of Modelo—America’s top-selling beer—claims that fewer dollars from Hispanic consumers have slashed beer sales amid immigration raids, compounded by the expense of President Donald Trump’s tariff hikes.
Constellation Brands, which also distributes Corona, projected a more than 10 percent decline in earnings for the current fiscal year, according to a Financial Times analysis of the company’s Tuesday press release. Whereas it had earlier predicted growth between 0 and 3 percent, the company now expects beer sales to decline between 2 and 4 percent this fiscal year.
Hispanic consumers make up about half of the company’s beer sales. According to CNN, Immigration and Customs Enforcement has deported nearly 200,000 people, many of whom are Latin American, since Trump took office. The Daily Beast has reached out to the White House and Constellation Brands for comment.
Modelo became America’s number-one beer in the wake of conservative backlash against Bud Light after it partnered with transgender activist and actress Dylan Mulvaney in 2023. Now, Modelo is under immense financial pressure, as the FT reports that its free cash flow forecast, one of the key predictors of a company’s financial health, will decline by $200 million.
Hispanic consumers slowed spending immediately after Trump announced that his administration would conduct large-scale immigration raids. In April, Constellation Brands Chief Executive William Newlands told the Financial Times, “The fact is a lot of consumers in the Hispanic community are concerned right now. Two-thirds of them are concerned about higher prices on things like food, gas, and other essentials. Over half are concerned relative to immigration issues.”
“A number of them are concerned about job losses in industries that have a high Latino employment base,” he told the outlet, citing statistics that show gaps in employment in construction and agriculture.
The decline in Modelo sales is compounded by stubborn inflation and an across-the-board drop in sales as consumers worry about rising prices amid Trump’s aggressive tariffs. As Newlands claimed in the press release, the current economic fallout has resulted in an “outsized” impact on his beer business.
