The Unexpected Way Donald Trump Has Impacted Beer Sales In America

Recent news in the beer industry shows that the current American political climate is definitely having an impact on sales — and no, it's not what you might be thinking. This has nothing to do with government workers drowning their sorrows during the shutdown (or celebrating a six-week vacation, depending on their circumstances), even though some D.C.-area bars did offer happy hour specials for feds. Instead, it has to do with slumping sales experienced by Mexican beer brands that may be blamed in part on immigration crackdowns.

According to Constellation Brands, which owns and distributes several Mexican beers like Modelo Especial and Corona in the United States, profits are way down this year; the company's stock has lost nearly 40% of its value. There seems to be several reasons for this but some of them are immigration-related. 

For one thing, fearful immigrants are not going out to bars and restaurants as they did in the days before ICE raids became a regular threat. For another, many immigrants have been laid off from their jobs, since employers don't want to deal with ICE raids. There's also the issue that items at the grocery store are getting more expensive, and while many of us are struggling to make ends meet, immigrants — and Latinos in general — have been especially hard-hit by increasing economic insecurity.

Modelo Especial has been replaced as America's favorite beer by Michelob Ultra, which is certainly a blow to the brand. Corona Extra was also recently dethroned by Bud Light in a different ranking of America's favorite beers (this one from Statista). For Corona, however, it's kind of a "been there, done that" situation, as it also took a hit the last time Donald Trump was in office. (No, not the incident involving glass fragments in bottles, an alcohol recall that affected millions; that took place during the last year of the Obama administration). Once news of the COVID-19 pandemic hit in early 2020, Corona experienced a bit of a backlash due to similarities between its brand name and the virus (COVID-19 was an abbreviated version of its full name, coronavirus 2019).

A survey by SW Publications, released in February 2020, found that 38% of Americans were shunning the beer brand, while a surprising 16% wondered if it was, in fact, related to the virus. Ultimately, the negative publicity withered away, and by May 2020, the brand's sales had recovered. Unfortunately, the current sales slump isn't related to anything as ephemeral as public opinion or rumors. As long as ICE raids continue and immigrants live in uncertainty (economic and otherwise), Corona, Modelo, and other Mexican lager brands may keep struggling.