Constellation Brands, owner of Modelo and Corona beers, lowered sales and profit outlook due to declining high-end beer purchases in the U.S. Hispanic consumers are making fewer trips and spending less per trip, impacting the company’s business significantly. Modelo Especial leads in U.S. retail beer sales.

Constellation has been selling Modelo and Corona in the U.S. since 2013 under an agreement with antitrust regulators. The company also owns wine brands like Robert Mondavi and spirits like Casa Noble tequila. Hispanic consumers have been under financial pressure, affecting spending habits.

Constellation warned in April about the financial concerns of Hispanic consumers, affecting various categories including beer. The company now expects beer sales to decline by 2-4% in fiscal year 2026, with adjusted earnings per share between $11.30 to $11.60, down from previous estimates. Shares fell over 6% in trading.

President and CEO Bill Newlands highlighted the impact of consumer concerns on spending habits, particularly among Hispanic consumers, leading to a decline in beer sales. Modelo Especial has overtaken Bud Light in sales, reflecting changing consumer preferences. Constellation faces challenges in meeting financial targets for the year.

Read more at Yahoo Finance: Modelo seller Constellation Brands lowers sales forecast as US consumers buy less beer