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"We would always be ready" if Trump adds Mexican beer tariffs



President Donald Trump threatened to beat all Mexican imports at the end of May. He was later supported by the threat after signing a trade agreement with the country.

But Constellation Brands CEO Bill Newlands said on Friday that the Corona and Modelo brewer would be ready if the tariffs ceased.

"If something were to happen, we would always be ready," he told CNBC's "Power Lunch." "We wanted to reduce it to some extent."

Investors were worried about Constellation's profit if Trump moved forward, shares shipped nearly 6% trading session after Trump announced the 5% tariff proposal. Analysts at Morgan Stanley and BMO Capital Markets estimate that the company imports at least three-quarters of its beer from Mexico.

And Constellation's Mexican beer is among the best players in the portfolio. The Brewer attributed the 7% sales of the beer segment during the first quarter, partly to the success of Modelo Especial. While US beer consumption has declined in recent years, Mexican imported beer has surpassed the rest of the industry in 201

8, according to the industrial research firm IWSR.

Newlands said he believes that the Mexican tariffs are no longer a problem. [19659002] The result of our Mexican portfolio has been excellent, he says.

Constellations stocks climbed more than 5% Friday afternoon after it had reported earnings before the clock. Constellation topped analysts' quarterly revenue and revenue estimates and increased its budget 2020 perspective.


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