In today’s global market, political decisions and societal issues can have a significant impact on businesses. One such example is Constellation Brands, the owner of popular Mexican beer brands Corona and Modelo, which is facing challenges due to President Donald Trump’s hardline immigration policies.

According to Constellation CEO Bill Newlands, the company has observed a decline in sales of its Mexican beers among Hispanic populations, who represent roughly half of the company’s beer sales. The threat of deportations and potential job losses have led to decreased spending among this demographic, creating uncertainty and impacting Constellation’s business.

Despite experiencing growth in its Mexican beer sales over the past three years, Constellation is now facing new challenges as a result of geopolitical decisions and consumer concerns. Modelo, in particular, became America’s top-selling beer brand in 2023, but the current landscape has created headwinds for the company.

To address these challenges, Constellation is focusing on expanding its marketing efforts for Modelo beyond the Hispanic market. By increasing its advertising spend, the company aims to attract a broader consumer base and mitigate the impact of declining sales among Hispanic consumers.

Analysts, such as TD Cowen’s Robert Moskow, have noted a decline in Constellation beer purchases among Hispanic consumers in 2025. This trend is expected to persist as immigration and employment issues continue to affect the demographic. Internal data from Constellation also reveals concerns among Hispanic consumers regarding food prices and Trump’s immigration policies, further complicating the company’s outlook.

In response to these challenges, Constellation has adjusted its sales growth projections for its beer business and is closely monitoring consumer behavior and market trends. The company reported flat growth in net sales and a decline in shipments in its most recent financial quarter, underscoring the impact of external factors on its business performance.

One key issue exacerbating Constellation’s challenges is President Trump’s tariff policies, which have a direct impact on the company’s import-heavy business model. With imports accounting for nearly 85% of its annual revenues, Constellation is considered vulnerable to fluctuations in trade policies and tariffs imposed by the government.

In conclusion, Constellation Brands’ experience highlights the interconnectedness of political decisions, societal issues, and business operations in today’s global economy. By adapting its marketing strategies, closely monitoring consumer behavior, and navigating geopolitical uncertainties, Constellation aims to overcome current challenges and sustain its position in the competitive beer market.