Constellation Brands warns of consumer sensitivity to price increases

Modelo and Corona brewer Constellation Brands, said the company plans “more muted” price increases in its current fiscal year after recent hikes slowed demand. Constellation CEO Bill Newlands told Wall Street analysts on an earnings call last week consumers are “overly sensitive to pricing actions” and that company needs “to be careful in balancing our growth profile and our pricing profile.” While beer has shown signs of being immune to price increases affecting the broader economy, Constellation’s remarks show consumers are scaling back on purchasing their favorite brews or turning to lower-priced offerings to save money.