President Donald Trump's hardline immigration policy is still hurting Constellation Brands' beer sales as Hispanic shoppers pull back their spending.
The brewer, which owns Modelo, Corona and Pacifico, says that roughly half of its beer sales come from U.
Constellation's earnings and revenue for the quarter May 31 fell short of Wall Street's estimates.
In this TZ your favorite stocksCREATE FREE ACCOUNTBottles of Modelo beer are displayed on a shelf at a BevMo store on January 05, 2024 in San Rafael, California.
Justin Sullivan | Getty ImagesConstellation Brands' beer sales fell 2% in its 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 Trump's hard-line 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.
Immigration and Customs Enforcement were making it difficult to predict consumer behavior moving forward, although he demurred tying the beer division's slowdown to Hispanic shoppers specifically during the company's fiscal first-quarter call.
"When you see a fair amount of change, both Hispanic and non-Hispanic consumers are concerned inflation and 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.
Constellation's earnings and revenue for the quarter 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-Palmo were also among the companies that tied a slowdown in U. Sales to a pullback by Hispanic shoppers.
Don’t miss these insights from CNBC Bank of America says buy these five stocks that are set to rally in the second halfStay away from these two big U.
Banks as valuations grow stretched, Baird saysJosh Brown reveals largest stock position personally, expects benefit from autonomous boomWhy bitcoin isn't rallying even with billions of dollars in ETF inflows.