The news: Modelo Especial and Corona maker Constellation Brands cut its full-year forecast, blaming weak consumer demand in a difficult macroeconomic environment. The slowdown has been most pronounced among its core Hispanic demographic, who are cutting back on high-end beer.

• The company now expects organic net sales to fall 4% to 6%, versus prior guidance of a 2% decline to 1% increase.
• It expects beer sales to fall 2% to 4%, compared with a prior projection of flat to up 3%.
• It projects earnings per share of $11.30 to $11.60, down from the earlier range of $12.60 to $12.90.

The context: CEO Bill Newlands noted during the company’s Q1 earnings call that Hispanic consumers—who account for about half of Constellation’s beer sales—were cutting back more sharply than the broader market.

• In Q2, he added that inflation is weighing on both Hispanic and non-Hispanic consumers, leading to fewer restaurant visits and smaller gatherings at home.
• The trend extends beyond Constellation. Molson Coors has also highlighted disproportionate pressure on Hispanic beer drinkers, while Ross Stores reported weaker sales in Hispanic-heavy markets.

Our take: At the start of the year, Hispanic consumers looked like a growth engine—they accounted for one-fifth of the US population, $2.8 trillion in purchasing power, and outsize influence in categories from consumer packaged goods to food and beverage. But the Trump administration’s tariffs and mass deportations have chilled that momentum, with roughly 1 in 5 (21% of) Hispanic consumers report having felt unsafe in their local market due to their ethnicity, per The Asian American Foundation. Companies that banked heavily on Hispanic spending may now find that bet falling short.