A loyalty to the beer brands can help the company amid signs of cracking for consumers, the firm said.
Hispanic consumers will likely continue buying Constellation Brands beer even as they tighten their purse strings, according to Jefferies. And that can help the company while many shoppers experience economic stress. More than 40% of households purchasing Constellation's beer brands like Corona and Modelo are Hispanic, per analyst Kaumil Gajrawala. That easily trumps the 15% average seen for all beer makers.
But the Hispanic consumer base appears to tighten their belts elsewhere within their budgets and keep up their Constellation spending, the analyst found. Gajrawala said this makes sense given the group is more "loyal" to the company given its "authentic roots" within the community. In fact, Jefferies data shows total beer spend across brands from Hispanic buyers is down 9% from 13 weeks ago.
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