The first time the craft beer brewery has been closed, according to the Brewers Association.
Constellation Brand We lowered our outlook for this fiscal year as consumer demand for beer weakened amid the “challenging” economic situation, particularly due to the high-end purchases of beer.
US importer constellations Corona and modelrevised beer net sales downwards to a 2%-4% decline as previous outlook showed positive growth in the 0%-3% range. It cited progressive macroeconomic headwinds that influence consumer demand as an important factor in change.
The company’s beer operating profit was revised from a 7% to 9% decline as its previous outlook showed profits in the range of 0% to 2%. The impact of lower volumes, additional tariffs, and operational removal was cited as driving shifts.
“We have continued to navigate a challenging macroeconomic environment since the first quarter of 2026 that has weakened consumer demand and made consumer purchasing behavior even more precarious.”
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Constellation Brands said sales of beers like Corona and Modelo have been slowing, cutting the outlook. (Kevin Carter/Getty Images/Getty Images)
“Over the past few months, high-end beer purchase rates have been slowing down one after another as both travel frequency and travel spending have decreased,” Newlands said.
“The decline in high-end beer purchase rates among Hispanic consumers, especially is more pronounced than the general market decline, which has a major impact on the beer business compared to the broader beer category,” he added.
Bump Williams, CEO of Bump Williams Consulting, told Fox Business that the main reason behind the decline in beer consumption is on the rise Health concerns Consumers who reach legal drinking age who are interested in organic and natural products such as cannabis and health drinkers, with little social gatherings in public places where beer is sold.
Modelo Special Beers is one of the key products in Constellation’s portfolio. (Gabby Jones via Getty Images/Gabby Jones/Bloomberg)
“Although all beer brands suffer from these distractions, the biggest volume/share declines are older legacy brands such as BUD, Miller, Coors (the exception to Coors Banquet). “Flavored beer brands (twisted tea, Mike’s hard, Sminov ice), healthier attributes (Michelob Ultra, Eight, Yuengling Flight), and non-alcoholic brands (Michelob Ultra Zero, Heineken 0.0, Athletic’s Portfolio) are finding ways to win.”
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| stz | Constellation Brands Inc. | 151.25 | -10.71 |
-6.61% |
Williams said that for major constellation brands like Corona and Modelo, the loss or decline of business by Hispanic family shoppers “had a negative impact on the constellation portfolio due to their affinity with Mexican families.”
“Constellation has won retail at Pacifico, Corona Premier, Sun Brew, Victoria and the familiar Pacifico. But the big profits from these winners have not offset the big brand’s losses,” he added.
Legacy beer brands, including Bud and Coors, have seen the biggest drop in sales, Williams said. (Alex Tai/Sopa Images/Lightrocket bygetty Images/Getty Images)
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Economic factors have also contributed to a decline in beer sales, with Williams saying that beer brands are unable to attract more shoppers and have failed to buy more shoppers more often or buy more products.
“Consumers feel in trouble. Prices at retail are highernot only in the beer, but also in the entire consumer packaged goods industry. Beer is always labelled “affordable,” but when it comes to paying $40 per person for your favorite beer brand, that’s just a pinch point,” he said.
“What we saw is Consumer trading Sizes range from 24 or 30 packs to small packages such as single service offerings and 12 packs. This is a way for consumers to enjoy their favorite beer at an affordable price,” he said.
One factor that contributes to a decline in beer sales is the lack of social gatherings. (Getty Images/Getty Images)
Williams said consumers who are away from beer have changed from drinks promoting health benefits, energy drinks, spirits and cannabis-derived snacks to a variety of alternatives.
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“What I think makes me sick the most: we are losing our consumers to energy drinks, water, pre/post/probiotics, healthier drinks, all-natural juices, vitamin-rich recovery drinks, low carb/low calorie/low sugar drinks, and gluten-free alternatives,” he said.
“The biggest winners of lost beer shoppers were the ready-to-take business based on spirits led by Surfside, Sun Cruiser, VMC, NutRL, Cutwater, Noon and countless other players,” Williams said. “The other big winners are Cannabis/THC Drinks And I think this particular offering has a long path to growth before that. ”
