Modelo is toppled as No. 1 beer, an unexpected casualty of Trump crackdown

"Many Latino consumers, both legal and undocumented, are fearful of venturing out in public to stores, restaurants and bars due to the immigration enforcement blitz, according to customer surveys, companies and market research. Big parties and celebrations where beer often flowed have been scaled back or canceled. Job cuts in industries with large immigrant workforces have squeezed finances, as has a broader cost-of-living crunch."

"The sales of owner Constellation Brands have plunged. Modelo lost its top-selling beer spot to Michelob Ultra, and Constellation stock has dropped nearly 40% this year, making it one of the worst-performing companies on the S&P 500. The company's struggles illustrate how President Donald Trump's immigration policies have ricocheted to unexpected corners of the economy and corporate America, upending years of wagers by some of America's largest companies on the growing purchasing power of Latino consumers."

"These pressures have hit Constellation harder than most companies because Latinos make up roughly half of Constellation's beer customers by far the largest concentration in the industry. California, home to the largest Latino population in America and a primary target of raids by US Immigration and Customs Enforcement, is also Constellation's biggest market. Hispanic consumers are the single-most important consumer group for our beer business, a Constellation executive said last year. They have been the foundation of how we've been able to drive growth."

Constellation Brands built growth around Latino consumers by acquiring U.S. rights to Grupo Modelo beers including Corona and Modelo. Intensified immigration enforcement and deportation efforts have scared many Latinos—both documented and undocumented—into avoiding stores, restaurants, and bars. Canceled celebrations, layoffs in immigrant-heavy industries, and broader cost pressures have reduced beer consumption and spending. Constellation has seen plunging sales, loss of Modelo's top-selling spot to Michelob Ultra, and a nearly 40% stock decline this year. Latinos constitute roughly half of Constellation's beer customers, and California, hit by raids, is its largest market, amplifying the impact.

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