Corona has a Trump-Mexico problem

1/17/2017 CNN Money

Photo by Flikr user LyfetimeCorona is going through a serious Trump hangover. Just one day after Donald Trump was elected president, the U.S. company that distributes Corona took a 7% dive in the stock market — and it hasn’t recovered.

Constellation Brands’ stock remains down 10% since the election, seriously missing out on Wall Street’s big Trump rally. The post-election slump is largely driven by fears that Trump’s aggressive stance towards Mexico will ricochet against Constellation’s portfolio of Mexican beer brands Corona, Modelo and Pacifico.

Constellation (STZ) is the largest imported beer company in the U.S., so it makes sense that shareholders are concerned about Trump’s threats to tear up NAFTA, slap big tariffs on Mexican imports or install a “border tax.”

Trump’s immigration rhetoric or policies could also hurt the beer company’s customer base. Constellation could lose 1.5 million to 2 million consumers if undocumented workers voluntarily leave the U.S. due to heightened enforcement fears, Evercore ISI analyst Robert Ottenstein estimates.

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