Winter (of Profits) is Coming: Will Constellation Brands Survive the Tariff Storm?

A Lannister Always Pays Their Debts (But Can Constellation Pay Their Tariffs?)

My loyal subjects your Khaleesi brings tidings though not of the fire breathing kind. Constellation Brands purveyor of fine brews like Corona and Modelo – drinks fit for a Khal or at least a Dothraki wedding – has reported disappointing quarterly earnings. It seems even giants can stumble when faced with the harsh realities of… tariffs! President Trump's trade duties on aluminum have hit them harder than a Dothraki charge. It appears even a dragon cannot burn through red tape let alone aluminum tariffs!

Fire and (No) Blood: The Numbers Don't Lie

The numbers are grimmer than a White Walker's smile. Earnings per share were down revenue fell short and net income took a dive steeper than a dragon swooping down from the clouds. Operating margins shrank and the dragon sized tariffs on aluminum are partly to blame. 'When you play the game of thrones you win or you die.' In this case it seems Constellation Brands is merely… bruised. A slight flesh wound one might say.

Hear Me Roar (About Weak Beer Demand!)

The people of Westeros or rather the consumers of America are drinking less beer! Can you imagine? Is this the Long Night come again? CEO Bill Newlands blames 'non structural socioeconomic factors.' A vague explanation indeed! Some speculate that Trump's policies on immigration have scared off Hispanic consumers who apparently enjoy their cerveza. I say let them drink! Let them celebrate! A happy populace is a loyal populace.

Winter is Coming... For Their Profits?

The company insists that despite this setback they remain confident in their long term forecast for fiscal year 2026. They believe they can still hit their financial targets. Such confidence! Such bravado! It reminds me of my own journey across the Narrow Sea. 'I will take what is mine with fire and blood!' – though hopefully Constellation Brands can achieve their goals without quite so much… incineration.

The Bud Light Breaker?

In brighter news Modelo Especial has dethroned Bud Light as the top selling beer in the U.S. A victory worthy of a dragon’s hoard! But even with a best selling beer Constellation Brands must navigate the treacherous waters of trade wars and changing consumer habits. It's a battle more complex than any I faced against the Lannisters.

That is what I do. I drink and I know things

CEO Bill Newlands adds that consumers aren't eating out or hosting as much which is leading to them drinking less beer. The real question is what drink are they consuming instead? Water? I shudder at the thought. But as Daenerys Stormborn of the House Targaryen First of Her Name Queen of the Andals and the First Men Protector of the Seven Kingdoms the Mother of Dragons the Khaleesi of the Great Grass Sea the Unburnt the Breaker of Chains I suggest Constellation adapts. Find new ways to reach the people. Perhaps a dragon shaped beer bottle? I would certainly buy one!