Constellation Brands, the brewer of America’s No. 1 beer, Modelo, says its sales were down in the first quarter of 2025. It believes the Trump administration’s crackdown on illegal immigration is leading to fear, which is keeping customers away.
Constellation says half of Modelo customers are Hispanic, and some are avoiding liquor stores because they have to show identification to buy beer.
Another concern for Constellation is the impending cost of tariffs on aluminum, specifically for beer cans.
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Modelo brewer Constellation Brands reports its quarterly sales fell for the first time in over a decade. It cited the Trump administration’s crackdown on illegal immigration as the key reason.
Constellation says about half of Modelo’s customers are Hispanic. It acquired the rights to sell Modelo, Corona and Pacifico in 2013 and had been on a winning streak. However, sales fell by 1% in the first quarter of 2025.
The Wall Street Journal, citing beer distributors, reports that in Southern California and Texas, where many immigrants reside, some people are avoiding liquor stores because they have to show identification to purchase beer. The Journal says some immigrants have also avoided going to the supermarket at night out of fear of an immigration raid.
What are the shopping trends?
In addition, Constellation CEO Bill Newlands says Hispanic shoppers are going to larger retail chains to blend in rather than spending time at small convenience stores that cater to Latino or Hispanic customers.
According to Constellation, other concerns include possible job losses in industries that employ migrants and higher prices on goods.
Are tariffs having any effect on Modelo or its brewer?
President Donald Trump’s tariffs on aluminum imports will result in a 25% levy on beer cans. The Journal reports that this could cost Constellation $1 billion in extra costs per year.
It says independent beer distributors are also concerned about the tariffs and the reduction in Hispanic customers, as well as the subsequent effect on prices.
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