Constellation Brands Faces Steep Decline Amid Shifting Consumer Trends and Tariff Pressures

Constellation Brands (STZ -0.66%), a global leader in beer, wine, and spirits, has seen its stock plummet nearly 40% in 2025. The decline reflects broader challenges in the alcohol industry, particularly among younger consumers who are drinking less beer due to health and economic concerns.

Hispanic consumers, who account for half of Constellation's beer sales, are cutting back on discretionary spending amid immigration issues and tariff impacts on key industries. The TRUMP Administration's recent hike in aluminum tariffs from 25% to 50% further squeezes margins.

Investors are divided on whether the stock's sharp drop presents a buying opportunity or signals deeper structural issues. The company's reliance on imported Mexican beers like Corona and Modelo leaves it vulnerable to trade policy shifts and changing consumer preferences.