President Donald Trump’s aggressive immigration policies are having unexpected economic consequences—most notably, a dip in beer sales, according to Constellation Brands, the company behind popular labels like Modelo and Corona.
Since taking office, Trump has rolled out strict measures aimed at curbing immigration, including invoking rarely used wartime powers. In some instances, these efforts have led to mistakes, such as the accidental deportation of a Salvadoran man.
Constellation Brands, whose U.S. customer base is about 50% Hispanic, says that many in the Latino community are now hesitant to attend social gatherings or dine out, driven by fears of immigration enforcement. This has had a direct impact on beer consumption, especially in public settings.
“There’s a lot of concern among Hispanic consumers right now,” said Constellation CEO William Newlands during a call with analysts. “Social events, where beer is often enjoyed in these communities, are seeing a decline because of these broader anxieties.”
This shift in consumer behavior contributed to a 1% decline in the company’s beer shipments last quarter. The slowdown was particularly noticeable at stores located in predominantly Hispanic neighborhoods.
Newlands also noted in an interview that many Latino shoppers are now choosing larger retail chains over small local stores and bodegas, believing it’s safer to blend in with the crowd. As a result, businesses that traditionally cater to Hispanic customers are seeing decreased foot traffic.
Trump’s policies on immigration are adding to the broader pressures companies already face, including economic instability linked to tariffs and potential recession fears.
Other companies have reported similar trends. Burlington, Foot Locker, Colgate-Palmolive, and Monster have all cited weakened sales from Hispanic customers in recent weeks.
Colgate-Palmolive’s Vice President John Faucher mentioned the impact at a recent conference, stating, “We’ve observed lower traffic from Hispanic consumers, which is clearly affecting demand.”
According to market research from Circana, discretionary spending among Hispanic shoppers has declined more sharply than that of non-Hispanic consumers so far this year.
Nik Modi, an analyst at RBC Capital Markets, echoed this in a recent note to clients: “A recurring theme in recent months has been increased pressure on Hispanic consumers due to immigration policy concerns. This has resulted in reduced retail activity within this demographic.”