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(Reuters) - Brewer Constellation Brands on Wednesday forecast fiscal 2026 profit below analysts' estimates, expecting steep levies imposed by the Trump administration to hit its beers and spirits business.
Shares of the Corona beer maker fell about 4% in extended trading as it also lowered its medium-term projections for net sales.
For the fiscal year 2026, it forecast adjusted profit per share in the range of $12.60 to $12.90, compared with estimates of $13.97, according to data compiled by LSEG. The outlook included an anticipated impact of the tariffs announced by the U.S. on April 2 and the Canadian government in March.
The liquor maker also announced the sale of several of its wine brands such as Cook's and Meiomi to California-based The Wine Group for an undisclosed amount, and said it will review its organizational structuring.
The second-largest U.S. beer company has struggled with persistently muted demand across its wines and spirits categories as price-sensitive consumers have cut back on liquor.
President Donald Trump has slapped a 25% levy on all beer imports and added beer cans to existing aluminum tariffs, hitting labels such as Mexican-made Corona and Dutch Heineken. The levies went into effect on April 4.
The move would potentially drive up prices of cocktails, champagne and foreign beers and wipe out jobs in the spirits industry, according to drinks industry bodies and analysts.
Late on Wednesday, Trump said he would temporarily lower the hefty duties he had just imposed on dozens of countries while further ramping up pressure on China.
Constellation Brands also projected annual enterprise organic net sales between a 2% decline and 1% growth, while forecasting wine and spirits income to slump up to 100%.
Beer sales made up nearly 82% of total fiscal 2024 revenue for Constellation Brands, while wine was about 16%.
It posted fourth-quarter net sales of $2.16 billion, beating estimates of $2.13 billion.
(Reporting by Savyata Mishra in Bengaluru; Editing by Maju Samuel)
