Constellation Plunges as Mexico Trade War Threatens Modelo (1)

Modelo and Corona are now in the trade war’s cross hairs, and that’s bad news for Constellation Brands Inc.

The alcohol giant’s shares plunged May 31 after U.S. President Donald Trump threatened to put tariffs of as much of 25% on goods coming across the border from Mexico. That would include the beer and tequila brands produced by Constellation, which has gotten a boost in recent years from the rising popularity of Modelo in the U.S.

Bottles of Corona beer sit on display for sale inside a store in Walnut Creek, California.

Photographer: David Paul Morris/Bloomberg

Constellation generates about two-thirds of its revenue from beer and produces the “vast majority” of it in Mexico, according to Ken Shea, an ...