Constellation Brands reported a drop in shipments last quarter.
Transcript:
Tariffs have taken a toll on the alcohol industry, but one of the biggest beer-makers in the U.S. says its sales are declining for another reason: immigration. Constellation Brands, which owns beer brands Corona and Modelo, saw a 1% drop in beer shipments last quarter. And CEO WIlliam Newlands says that’s directly tied to President Trump’s immigration crackdown.
Speaking with analysts, Newlands said “A lot of consumers in the Hispanic community are concerned right now. Social gatherings, an area where the Hispanic consumer often consumes beer, are declining today as part of these overarching concerns that they have.”
He also said that a large part of that 1% drop was seen in areas with large Hispanic populations.
According to market research firm Circana (SIR-CON-UH), discretionary spending in general among Hispanic shoppers has fallen at a higher rate than non-Hispanics.
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