1517 ET - Alcoholic beverages companies would take the biggest hit from potential tariff hikes in Mexico on the consumer space, Citi analyst Filippo Falorni tells WSJ. Constellation brands, the owner of Modelo and Corona beers, would be the company most affected by the tariffs, given that it imports all of its beers from Mexico, Farloni says. "The biggest issue is around the alcohol space, particularly aroundbeer and tequila." There could be some exceptions for Constellation Brands in tariffs after the DOJ enforced it to continue to manufacture in Mexico as part of the deal for the U.S. rights to its Mexican beer portfolio. "I think they have a strong case to ask for an exemption," he says. Farloni doesn't expect Trump's potential anti-inflation measures to offset tariff hikes in pricing, though. He forecasts a 5% to 10% increase in Constellation Brands' beers. Shares fall 0.9% to $182.74. (sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
January 21, 2025 15:17 ET (20:17 GMT)
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