Dean Best
5 min read
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The sentiment among Hispanic beer drinkers in the US, concerned about the economy and immigration policy, is showing signs of improving, Constellation Brands has said.
Last month, the Modelo and Pacifico brewer said unease among Hispanic consumers in the US had put pressure on its sales of beer, with, for example, fewer visits to bars and restaurants. Constellation’s comments at the time were also echoed by Dutch brewing giant Heineken.
Speaking at the Goldman Sachs Global Staples Forum in New York yesterday (13 May), Jim Sabia, the president of Constellation’s beer business, said retail outlets had seen custom decline significantly in recent months but suggested the anxiety among shoppers was easing.
“I’ve been out of retail a lot recently going out to California, going to some of these accounts where two years ago at one o'clock it was packed,” Sabia said. “This year at one o'clock, very few people.
"There is a fear of the ICE [Immigration and Customs Enforcement] raids. There’s a fear out there, so these consumers are changing their behaviour. That’s in the off-premise trade. In the on-premise trade, they’re cutting back on social events. They’re cutting back on restaurants.”
Sabia said 35% of Constellation’s beer sales, when measured in volumes, were to Hispanic consumers. That increases to around 50% for Modelo Especial.
“We’re starting to see it get better,” Sabia said. “Even the day labourers we’re starting to see come out more. We’re confident that this is non-structural and our brands are healthy, consumers love our brands and we’re going to continue to do what we control.”
In Constellation's current 2025/26 financial year, the company sees net sales from its beer business being flat at best up to 3% higher year on year.
Last month, the company also provided guidance to investors for its 2027 and 2028 financial years. The company sees its net sales growing by around 2-4% each year. Beer net sales are forecast to rise at the same amount, versus an earlier prediction of growth of 7-9%.
Sabia said Constellation was continuing to invest in advertising. “We spent more money in marketing last year,” he said. “We’re going to continue to do what we’ve done that has made us successful for the last fifteen years. When this consumer comes out and which we think they will – the Hispanic consumer but also the general market consumer – we’re going to be positioned in a really good spot.”
Bonnie Herzog, the Goldman Sachs analysts who hosted Constellation’s session at the event, asked if the company thought its beer business could “ultimately return to the high single-digit net sales growth” it had generated in recent years. “Is that just unrealistic given the base has become so large?” she asked.
