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The rapidly developing spat between Mexico and Canada and a trading partner has been warned of potential price hikes and beer and mainstream manufacturers.
On Monday, 25%of the tariffs between Mexico and Canada returned quickly by President Donald Trump after President Donald Trump negotiated on the 30th. Despite the temporary suspension, experts and industry insiders are trying to trade war, just as Trump is trying to use tariffs as a negotiation tool with other countries.
The beer industry, which relies heavily on Mexico’s imports, will be especially vulnerable when tariffs come into effect. According to statista data, about 81%of US beer income came from Mexico in 2023.
Constellation, which owns Mexican beer brands such as Corona, Modelo and Pacifico, is popular with the best seller brew. Mexican imports account for about 85%of constellation sales, according to a memo from Michael Lavery, a senior research analyst at Piper Sandler.
The challenge to the constellation is to balance the price increase without providing benefits to competitors such as Anheuser-Busch and Molson Coors. Bill Newlands, CEO of Bill Newlands, said last month that investors will change their approach depending on how the tariffs are going on. The constellation did not respond to the request.
Consumers can switch more options between beer brands, but The choice of souls because the industry is more related to location. Kentucky Bourbon, Mexico Tequila and other symbolic alcohols related to the country or region are one of the risks of tariffs.
Under Trump’s tariff threat, Prime Minister Justin Truddo responded to the prospect of retaliation for the soul produced in the Republican voting country.
TOM MADRECKI, vice president of the consumer brand’s supply chain, said, “It is clear that the symbolic American brand, such as SPIRITS such as Kentucky’s Burburn, will be selected and selected as a symbolic status of the United States. association.
Patrón Tequila owned by Bacardi.
Scott Olsen through Getty Image
Geographical factors
The United States sees tariffs as a way of accelerating domestic manufacturing, but many producers can not simply move their operating base. According to Spiros Malandrakis, a head alcohol researcher at EUROMONITOR, in most cases, their location is most important for the reason why they were initially successful.
Regulatory constraints also add more complications. According to the Mexican law, tequila can only be produced in Harley Sko in the area of the area. In the United States, Kentucky Bourbon is tied to the Lord because of the unique weather conditions that give a flavor to the drink.
Madreci said, “Consumers on both sides… Because the two products are different, they want the two products, so they increase the cost of everyone.
Malandrakis says alcohol producers can try to reproduce some regional products, but there is a risk of alienating consumers in the process.
Malandrakis said, “You must produce a part of the brand identity and the reason why consumers buy alcohol must be produced completely elsewhere.”
Nevertheless, due to the chaotic and unpredictable trade war characteristics, Malandrakis warned domestic alcohol producers to not see tariffs as benefits to their business. He said that inflation can completely reduce alcohol spending by lowering cash flow.
Malandrakis said, “When people have little money in their pockets, they do not see the domestic beer or California wine producers capitalized.
