Constellation Brands, owner of Corona and Modelo, reported declining beer demand linked to economic headwinds affecting Hispanic households and a reduced construction sector, with same-store sales dropping 3.2% in Q4 2025. The company attributed the slump to lower discretionary spending and reduced on-premise consumption.
- Same-store beer sales fell 3.2% in Q4 2025 for Constellation Brands
- On-premise beer sales declined 5.4%, linked to reduced construction sector activity
- Hispanic consumer segment represents 41% of Constellation’s U.S. beer customer base
- New housing starts dropped 12.7% year-over-year through December 2025
- Full-year 2025 revenue: $8.3 billion, down 2.1% from 2024
- Company revised 2026 outlook to flat to slightly negative beer segment growth
Constellation Brands recorded a 3.2% decline in same-store beer sales during its fourth quarter of fiscal 2025, marking the third consecutive quarter of contraction. The drop was primarily driven by weakened consumer spending among its core Hispanic demographic, which represents approximately 41% of its U.S. beer customer base, and a downturn in the residential construction sector. Industry data indicates a 12.7% year-over-year contraction in new housing starts through December 2025, directly impacting demand for packaged beer in social and hospitality settings. The company noted that on-premise sales—particularly in bars, restaurants, and event venues—fell by 5.4% during the period, reflecting reduced foot traffic and lower promotional activity linked to construction workers and related industries. Meanwhile, off-premise volumes showed a modest 0.8% decline, suggesting that household consumption remained relatively stable but did not offset overall market weakness. Constellation Brands’ fiscal 2025 full-year revenue came in at $8.3 billion, down 2.1% compared to the prior year. The company revised its 2026 outlook, projecting flat to slightly negative organic growth in its beer segment amid persistent macroeconomic pressure, including inflationary costs and lower household disposable income. The stock reacted with a 4.3% decline in after-hours trading, signaling investor concern over long-term demand sustainability. The shift underscores a broader trend in consumer behavior: as construction employment fell to 7.6 million in December 2025—its lowest level since 2021—related spending on alcohol and dining out has diminished. This has disproportionately affected brands with high visibility in working-class and Hispanic communities, where beer consumption is traditionally tied to social gatherings and weekend leisure.