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The
trend is most pronounced among Hispanic consumers, Newlands
said. The company said in a recent conference call with
investors that Hispanic buyers account for about half of
Constellation’s business.
So far this year, Modelo Especial is the top-selling beer brand
by dollar sales at U.S. retail stores, according to NIQ data
compiled by Bump Williams Consulting. Modelo overtook Bud Light
in 2023 after Bud Light was criticized for sending a
commemorative can to a transgender influencer.
Constellation has been licensed to sell Modelo and Corona in the
U.S. since 2013 as part of an agreement with antitrust
regulators after Bud Light parent AB InBev bought Mexico’s Grupo
Modelo. Constellation also owns wine brands like Robert Mondavi
and Kim Crawford, and spirits like Casa Noble tequila.
Constellation warned in April that Hispanic consumers were under
pressure. At the time, Newlands said research indicated
two-thirds of Hispanic buyers were concerned about higher prices
on food and other essentials and half were concerned about
immigration issues. Many were also worried about the job market,
he said.
“That has tended to mean that the consumer has pulled back on
spending on a number of categories,” Newlands said during a
conference call with investors. “Beer is quite a ways down the
list, but it’s certainly on the list because things like social
gatherings, an area where the Hispanic consumer often consumes
beer, are declining today as part of these overarching concerns
that they have.”
Rochester, New York-based Constellation said Tuesday it now
expects its net sales of beer to fall between 2% and 4% in its
2026 fiscal year, compared to its previous forecast of up to a
3% increase. Constellation’s fiscal year ends Feb. 28, 2006.
The company also expects adjusted earnings per share of $11.30
to $11.60 for the year, compared to its previous forecast of
$12.60 to $12.90.
Constellation’s shares fell more than 6% in afternoon trading
Tuesday.
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