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Modelo Brewer Constellation Brands reports its quarterly beer sales fell for the first time in more than a decade
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It cited the Trump administration crackdown on illegal immigration as the key reason
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Just recently, in 2023, Modelo Especial, an import from Mexico, became number one in beer sales in the United States, surpassing Bud Light
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Constellation says about half of Modelo's customers are Hispanic. It acquired the rights to sell Modelo, Corona and Pacifico in 2013 and had been on a winning streak
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But sales fell by one percent in the first quarter of 2025
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The Wall Street Journal citing beer distributors reports in Southern California and Texas where many immigrants reside
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They are avoiding liquor stores because they have to show identification to purchase beer
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The journal says some immigrants have also avoided going to the supermarket at night for fear of an immigration raid
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In addition, the CEO of Constellation, Bill Newlands, says Latino or Hispanic shoppers are going to larger retail chains in order to blend in
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rather than go to small convenience stores that cater to the Latino or Hispanic customer
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Another concern, according to Constellation, is possible job losses in industries that employ immigrants and higher prices
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Trump tariffs on aluminum imports mean a 25 percent levy on beer cans
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The Journal reports that could mean $1 billion in cost per year for Constellation
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It says independent beer distributors are also concerned about the tariffs and the reduction in Hispanic customers and subsequent effect on prices
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