In a recent interview with CNBC’s Jim Cramer, Bill Newlands, CEO of Constellation Brands, downplayed concerns regarding the potential for increased tariffs on imported goods, which former President Donald Trump has threatened to impose if he returns to the presidency.
Newlands noted that during Trump’s previous administration, Constellation Brands experienced significant growth, reporting double-digit increases in business. He highlighted that a substantial portion of the company’s inputs are sourced from the United States, processed into beer in Mexico, and expressed skepticism that tariffs would ultimately target American farmers negatively.
Constellation Brands is well-known for its Mexican beer imports, including popular brands like Modelo, Corona, and Pacifico, in addition to its wine and spirits division, which features SVEDKA vodka.
Trump has suggested implementing blanket tariffs of up to 20% on imports from all countries, a move that could mirror the tariffs on Chinese goods from his previous term that sparked a lengthy trade war, causing disruptions in global trade and financial losses for Americans.
CEO of Constellation Brands Bill Newlands Dismisses Tariff Worries While Highlighting Growth and Strategic Focus
During the interview, Newlands emphasized the company’s commitment to maintaining the authenticity of its Mexican beers, stating that they must be produced in Mexico to uphold their identity.
He also shared insights from a recent meeting with Claudia Sheinbaum, Mexico’s new president and the first woman to hold the office, mentioning her focus on “shared prosperity” and highlighting Constellation Brands’ strong relationships with both federal and local governments in Mexico. The company is preparing to open a new brewery in Veracruz, further solidifying its presence in the region.
Constellation Brands recently reported mixed quarterly results, achieving earnings above expectations but falling short on revenue targets. The company’s beer segment has performed well, yet its wine and spirits division continues to struggle, impacting overall business performance.
In response to these challenges, Newlands indicated that the company is actively working to enhance its wine and spirits offerings and is beginning to see positive results from these efforts.
Newlands explained that the company has readjusted its marketing strategies, focusing on more tactical spending to boost critical brands such as The Prisoner, Kim Crawford, and Meiomi. He noted that these adjustments are starting to pay off, with signs of recovery in the wine and spirits segment, indicating that Constellation Brands is on a path toward improvement despite facing some headwinds in the market.
