Threat of Tariffs Crush Corona/Modelo Beer Sales: Constellation Brands Share Price Already DOWN 27% YTD

Introduction

President Trump’s announced tariffs on Mexican imports have sent shares of alcoholic beverage giant Constellation Brands (STZ) tumbling – down to its lowest level since April, 2020. Mexican beer brands, Modelo and Corona have been adversely affected in a major way especially Modelo Especial which had been the top-selling beer in the U.S. since 2023, when it surpassed Anheuser-Busch InBev’s Bud Light following a boycott over the latter’s relationship with transgender social media influencer Dylan Mulvaney.

Analyst Projections

The potential impact of the sanctions, coupled with less than an optimistic outlook in its Q3 financial report  warning that it sees more “normalized spending” by consumers in the future, have led Piper Sandler to downgrade the stock to “neutral” from “overweight,” and slash the price target to $200 from $245, according to reports.

The MunAiMarkets Conservative “Cannabis” Stocks Portfolio

STZ is a constituent in said portfolio which consists of the following 5 tobacco/beer/wine/spirits companies that have invested heavily in cannabis companies in the past few year, namely:

• • Altria Group (MO) with a 45% stake in Cronos Group (CRON);
  • Anheuser-Busch InBev (BUD) with a $100 million joint venture with Tilray Brands (TLRY);
  • British American Tobacco (BTI) with a C$346M product development partnership with Organigram Holdings (OGI);
  • Constellation Brands (STZ) with a 39% stake in Canopy Growth (CGC); and
  • Imperial Brands (IMBBY) with a 19.9% stake in Auxly Cannabis Group (CBWTF).