While the country has been grappling with what it means to now live under the shadow of president-elect Donald Trump, the Mexican beer industry is bracing for potentially tough times ahead.
Constellation Brands—the U.S. parent company of imported Mexican beers like Corona, Modelo, and Pacifico—watched its stocks dip drastically on Wednesday due to Trump’s victory over Hillary Clinton in the presidential election. According to the Chicago Tribune, the company’s loss largely outpaced other major beer companies, and by the end of the day Constellation’s stock was down 7.6 percent, clocking in at $153.91 per share.
Over the course of the last several months, Trump has made his feelings on Mexico abundantly clear, famously threating to build a wall along the U.S. border, and calling immigrants “killers and rapists.” Given the rhetoric from the president-elect, the fact that Wall Street is having some doubts over Constellation’s future success makes sense.
“It’s way too early to understand how [Trump’s] positions on Mexican trade and immigration will affect our business. We’ve all heard the campaign rhetoric and we all have our own thoughts on that,” Rob Sands, the CEO of the company, said at an investors meeting, adding that a business-friendly, Republican government could actually be beneficial to their goals. “But I don’t expect it to affect our business in the short term, and as new policies are presented, we will respond accordingly.”
At the end of the day, Mexican beers probably aren’t going anywhere. But if you want to keep paying pennies for your Modelos, this may be the time to buy out your local bottle shop.