Constellation Brands stock dropped 7% after cutting fiscal year outlook, citing declining high-end beer sales to Hispanic consumers. This is the second warning that President Trump’s immigration policies are impacting demand, with core Hispanic consumers making up half of the company’s business.

Modelo Especial overtakes Bud Light as the top-selling beer in the US in 2023. Constellation Brands expects fiscal year 2026 net beer sales to decline 2% to 4% due to macroeconomic headwinds affecting consumer demand.

Consumers are making fewer beer purchases and spending less. Earnings per share expectations are cut to $11.30-$11.60 for fiscal year 2026. Hispanic consumers are staying home more, impacting beer consumption occasions.

Beer industry faces pressure as Americans drink less alcohol. Only 54% of drinking-age Americans consume alcohol, the lowest since 1939, with even drinkers reducing their consumption by nearly half. Industry under unprecedented pressure, says Bottle Raiders VP.

Read more at Yahoo Finance: America’s most popular beer maker cuts fiscal outlook as Trump’s immigration crackdown hits demand