A Sobering Situation: Constellation Brands & NAFTA Renegotiations

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Constellation Brands produces some of the most famous Mexican beers in the world. Its Mexican beer portfolio, comprised of Corona, Pacifico, and Modelo, brings in the lion’s share of revenue for the $42.5B market cap business and is produced and packaged within Mexico. Under the Trump administration, the United States faces major changes to terms of trade with other countries. What do potential border tariffs and NAFTA renegotiations mean for Constellation, a U.S.-based conglomerate with a Mexican-based supply chain that brings in 52.6% of the company’s revenue?