Constellation Brands Stock Plummets in 2025 Amid New Mexican Beer Tariffs – Price Drops Below $200
Discover how the 2025 tariffs on Mexican imports are impacting Constellation Brands, the leading importer of Modelo and Corona beers, and what this means for investors.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, spearheading teams that deliver impactful news coverage on major global events.
Essential Insights
- In 2024, President Trump's tariffs on Mexican imports triggered a sharp decline in Constellation Brands' stock value.
- Constellation Brands, known for its popular Modelo and Corona beers, faces new challenges as these products become subject to import tariffs.
- Since 2023, Modelo Especial has dominated the U.S. beer market, surpassing Bud Light to become the top-selling beer.
Constellation Brands (STZ), the major alcoholic beverage company importing Mexican beers Modelo and Corona, experienced a 4% stock drop following the U.S. government's announcement of a 25% tariff on Mexican and Canadian imports, alongside a 10% tariff on Chinese goods.
These sanctions prompted Piper Sandler to downgrade Constellation Brands from "overweight" to "neutral," reducing the stock price target from $245 to $200.
Mexican beer sales have been a significant revenue driver for Constellation Brands. Modelo Especial overtook Anheuser-Busch InBev's Bud Light as the best-selling beer in the U.S. in 2023, fueled by consumer boycotts linked to Bud Light's association with transgender influencer Dylan Mulvaney.
In its fiscal third-quarter 2025 report, Constellation Brands posted a 3% increase in beer sales year-over-year, although wine and spirits revenue declined by 14%. The company also revised its full-year outlook downward, anticipating more normalized consumer spending patterns.
As a result, Constellation Brands' shares have fallen to their lowest point in over four years.
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