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?
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Mexican beers such as Corona are growing the US beer market – but can their maker adapt to a new world of trade?
Soon, it might become a lot more expensive for you to enjoy a bottle of your favorite import beer. U.S.-based Constellation Brands, best known for selling Mexican beer Corona in the U.S., is one of the world’s largest importers and producers of beer, wine, and spirits. The potential renegotiation of the North America Free Trade Agreement (NAFTA), espoused by Trump and his isolationist policy agenda, could drastically hurt Constellation’s business, as almost its entire import beer portfolio is manufactured in Mexico.
Can American alcoholic beverage giant Constellation Brands continue producing beers in Mexico amidst mounting momentum for protectionist trade policies in the new Trump era?