Constellation Brands Slashes 2026 Outlook Amid Plummeting Beer Demand, Shares Dive

Constellation Brands, the powerhouse behind popular U.S. beer brands Modelo and Corona, announced a significant cut to its full-year sales and profit outlook on Tuesday, sending its shares down over 6% in afternoon trading. The company attributes the revised forecast primarily to a sharper-than-expected decline in demand, particularly among its crucial Hispanic consumer base.

President and CEO Bill Newlands highlighted a trend of reduced high-end beer purchases over recent months, with consumers making fewer and less expensive trips to buy beer. This shift is most pronounced among Hispanic consumers, who account for roughly half of Constellation’s total business. Newlands noted that ongoing concerns about higher prices for essentials, immigration issues, and job market worries are leading these consumers to pull back on discretionary spending, including social gatherings where beer consumption is common.

For its 2026 fiscal year, which concludes on February 28, 2026, Constellation Brands now anticipates a net sales decline of 2% to 4% for its beer segment, a stark reversal from its previous forecast of up to a 3% increase. Adjusted earnings per share are also expected to fall significantly, from an earlier projection of $12.60 to $12.90 down to a new range of $11.30 to $11.60. This downgrade comes despite Modelo Especial holding its position as the top-selling beer brand by dollar sales in U.S. retail stores this year.

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