MW Why a weaker construction market has become a problem for Constellation Brands' beer business

By Bill Peters

The Corona maker said it 'saw continued pronounced weakness amongst the Hispanic consumer cohort specifically'

Constellation Brands said weaker construction activity had weighed on beer demand.

Constellation Brands said Wednesday that economic stress among its large segment of Hispanic consumers and a weaker construction market continued to weigh on beer demand - though the Corona maker's fiscal third-quarter results still topped Wall Street's estimates.

Constellation shares $(STZ)$ were up 3% after hours on Wednesday.

"The U.S. consumer continued to face ongoing socioeconomic headwinds during the quarter, and we saw continued pronounced weakness amongst the Hispanic consumer cohort specifically," company executives said in prepared remarks.

"This has an outsized impact on our beer business compared to the broader beer category given higher levels of exposure to Hispanic consumers within our brand portfolio," they continued.

Jobless rates ticked higher from the previous quarter, Constellation said, while consumer sentiment fell. Unemployment rates among Hispanic consumers, it added, were elevated compared with the broader U.S. population.

Executives also said that weaker activity in what they called "4,000-pluscalorie" jobs - or energy-intensive jobs like construction - had weighed on beer demand. They noted growth in total construction employees continued to slow, while declining in California.

Constellation, which sells beers including Corona and Modelo in the U.S. along with wine brands like Kim Crawford, reported adjusted earnings per share of $3.06 for its third quarter, which ran through November. That was above FactSet analyst forecasts for $2.63. Sales of $2.22 billion beat Wall Street's estimates for $2.15 billion, while net sales for beer during the quarter fell 1% year over year.

The company stuck with its full fiscal-year forecast for adjusted earnings per share of $11.30 to $11.60. But it said it still expects sales for beer, wine and spirits to fall over that period.

Constellation's stock is down around 36% over the past 12 months. That drop has followed concerns about a broader wellness-minded shift away from alcohol consumption, and difficulties with Constellation's business itself.

In April, company executives said that Hispanic consumers accounted for around half of its beer business. Many of those consumers, CEO Bill Newlands said at the time, were concerned about "immigration issues" amid the U.S.'s aggressive deportation drive. Newlands said they were also concerned about "job losses in industries that have a high Latino employment base," with those concerns having weighed on shopping behavior and social gatherings.

At a conference in September, Newlands elaborated on the construction industry's impact on Constellation's business.

"If you think about 4,000-calorie jobs that we often like to talk about, those are down," he said. "Construction is a great example - that's down year on year. Those [industries] tend to be positive for the beer industry."

-Bill Peters

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January 07, 2026 18:30 ET (23:30 GMT)

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