Constellation Brands Inc., a US producer of beer, wine, and spirits, foresaw that aluminum tariffs would cost the company about US$20 million for the rest of its fiscal year, which ends in February. The 50% US tariffs on imported aluminum directly affect companies using aluminum cans for packaging. Although many Mexican alcohol imports remain exempt, beer in aluminum packaging is subject to the new tariff.

Chief Financial Officer Garth Hankinson said that the tariff did not impact the results in the first quarter, ending May 31, but will reduce future margins by approximately 20 basis points. The company does not expect to fully offset this added expense.

Despite the beer division being Constellation's largest revenue source, margins face pressure from rising costs and weaker consumer demand. President and Chief Executive Officer Bill Newlands noted that consumers are engaging in fewer social occasions, which affects beer consumption.