Trump’s Immigration Crackdown Is Hitting Modelo and Corona Sales, Says CEO
Constellation Brands, the company behind popular beers Modelo and Corona, says it’s feeling the sting of President Trump’s hardline immigration policies — and it’s showing up in the sales numbers.
According to CEO William Newlands, Latino customers — who make up nearly half of Constellation’s U.S. consumer base — are pulling back from typical social activities, like dining out or attending gatherings. The reason? Growing fears of immigration raids and deportations under Trump’s administration.
“A lot of consumers in the Hispanic community are concerned right now,” Newlands said during a recent earnings call. “Social gatherings, an area where the Hispanic consumer often consumes beer, are declining today as part of these overarching concerns that they have.”
This shift in behavior contributed to a 1% drop in beer shipments last quarter. The dip was most evident in Hispanic neighborhoods, where store traffic has slowed significantly.
In a follow-up interview with The Wall Street Journal, Newlands explained that many Latino consumers are now avoiding local convenience stores and bodegas — typically go-to spots for beer purchases. Instead, they’re opting for larger retail chains where they feel safer blending into the crowd.
Constellation Brands isn’t the only company noticing a downturn among Hispanic consumers:
- Colgate-Palmolive, Foot Locker, Burlington, and Monster Beverage have all reported softer sales in recent weeks, particularly in Hispanic markets.
- John Faucher, VP at Colgate-Palmolive, acknowledged the shift, saying, “There obviously is an impact on Hispanic demand, as we’ve seen, lower traffic from Hispanic consumers.”
Data from market research firm Circana shows that Hispanic consumer spending on non-essentials has declined more sharply than that of non-Hispanic consumers this year.
Market analyst Nik Modi of RBC Capital Markets echoed the trend, noting in a recent client note:
“A consistent theme we have heard over the last several months has been mounting pressure among Hispanic consumers stemming from concerns on immigration policy. This has manifested in pullback from retail.”
Beyond the headlines, Trump’s immigration crackdown is adding yet another stressor to an already shaky economic environment for businesses. The administration’s use of aggressive enforcement tactics — even invoking wartime authority in some cases — has created a chilling effect on communities and commerce alike.
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Source: CNN – Trump’s immigration crackdown is hurting Modelo and Corona sales, CEO says
