In an interview with CNBC’s Jim Cramer, Constellation Brands CEO Bill Newlands downplayed concerns about potential tariffs proposed by former President Donald Trump, should he regain office. Newlands pointed out that during Trump’s previous term, Constellation experienced double-digit growth despite tariff increases on Chinese goods. The company’s beer production involves U.S. agricultural inputs processed in Mexico, which, according to Newlands, would make impactful tariffs unlikely. He emphasized the authenticity of their Mexican beer brands, such as Modelo, Corona, and Pacifico, asserting the necessity of brewing them in Mexico.
Newlands also highlighted his positive meeting with Mexico’s new President Claudia Sheinbaum, expressing confidence in their shared economic goals. He noted Constellation’s effective partnerships with Mexican authorities and announced the upcoming opening of a brewery in Veracruz.
Constellation Brands posted mixed quarterly results, with earnings surpassing expectations but revenue slightly below forecasts. The beer segment proved successful, while the wine and spirits division continued to challenge the company. Newlands shared the firm’s strategy of reallocating marketing resources towards key wine brands like The Prisoner, Kim Crawford, and Meiomi, which is beginning to yield positive outcomes.
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Original Story https://www.cnbc.com/2024/10/04/constellation-brands-ceo-downplays-concerns-about-trump-higher-tariffs.html
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