Constellation Brands, the U.S. distributor of Modelo Especial, is blaming President Donald Trump’s crackdown on illegal immigration for declining beer sales. In a recent earnings call, Constellation CEO Bill Newlands said that Latino consumers—who make up roughly half of Modelo’s customer base—are scaling back on restaurant visits and social events, traditionally key moments for beer consumption.
Newlands cited company research showing that Hispanic communities have been hit by job losses in industries with high Latino employment. He claimed these economic shifts have reduced beer demand in key markets. J.P. Morgan analyst Andrea Teixeira echoed the sentiment, saying “We think the quick change in tone/outlook at least partially reflects the likely reality that the company was benefiting over the past number of years from loose immigration policy.”
Constellation Brands’ financial outlook has also taken a hit, with lowered profit projections and warnings about possible price hikes due to new U.S. tariffs on imported goods such as aluminum. Despite this, the company plans to expand manufacturing—not in the United States—but in Mexico, revealing intentions to invest heavily in its third brewery in Veracruz.
While President Trump calls for companies to reshore jobs and facilities to the U.S., Constellation’s continued investment abroad underscores a contradiction. The company forecasts nearly $9 billion in operating cash flow from 2026 to 2028, with most of that tied to its Mexican operations.
Adding to the political overtones, Constellation is a direct partner with UnidosUS, a left-leaning group that advocates for amnesty and immigration reform. In September 2024, CEO Bill Newlands met with Democrat Senator Dick Durbin—one of the Senate’s most vocal proponents of amnesty—to discuss immigration reform and inflation.
“It was great meeting with Bill Newlands, CEO Constellation Brands. We discussed the need for immigration reform and plans to combat high grocery prices,” Durbin wrote online.
Constellation’s stance and public comments position the beer giant at odds with the direction of Trump-era immigration and economic policies. While businesses claim market challenges, conservatives view this as the result of years of misaligned priorities and reliance on a labor pool vulnerable to policy shifts.
