The Surprising Impact of Donald Trump on Beer Sales in America

Recent developments in the American beer market reveal an unexpected connection between politics and sales trends. Contrary to popular assumptions, the shifts are not linked to government employees reactions to shutdowns or extended leave periods, even though some D.C.-area bars offered specials for federal workers.

Instead, the decline in sales is particularly noticeable among Mexican beer brands, partly influenced by stricter immigration enforcement. Constellation Brands, which distributes popular Mexican beers such as Modelo Especial and Corona in the U.S., has reported a sharp drop in profits this year, accompanied by nearly a 40% fall in its stock value.

Several factors contribute to this downturn, many tied to immigration policies. Immigrants, fearing raids by ICE, are less likely to visit bars and restaurants. Additionally, job losses among immigrant communities have increased, as employers aim to avoid complications with immigration enforcement. Rising grocery prices have further strained finances, hitting Latino populations especially hard and reducing discretionary spending, including on beverages.

Meanwhile, brand preferences in America are shifting. Modelo Especial has been overtaken by Michelob Ultra as a top choice, while Corona Extra recently lost ground to Bud Light in another national ranking. This is not the first time Corona has faced challenges: during the COVID-19 pandemic, the similarity between the beers name and the coronavirus led some consumers to avoid it, though the effect was temporary and sales eventually rebounded.

Currently, the slump for Mexican lagers is tied to ongoing political and economic uncertainties rather than fleeting public perception. Until immigration policies stabilize and affected communities regain confidence, brands like Corona and Modelo may continue to experience lower sales in the U.S.

Author: Benjamin Carter