Global Beverage Companies at Risk Amid Potential Trade War

Key Points:

* Trump's tariffs on Mexico, Canada, and China could impact global beverage companies.
* Companies with significant exposure to Mexican and Canadian imports may face revised forecasts.
* Diageo, Pernod Ricard, Campari, AB InBev, Brown-Forman, Constellation Brands, Molson Coors, Heineken, and Becle are among the affected companies.

Affected Companies:

Diageo:

* 46% exposure to Mexican and Canadian imports.
* Tequila production in Mexico.
* $1.6 billion in tequila shipped to the US in 2022.

Pernod Ricard SA:

* 6.3% of sales from Mexican and Canadian imports.
* Production sites in Canada, Mexico, and China.

Campari:

* Tequila sales in the US account for 7% of group sales.
* Production facilities in Canada and Mexico.

Anheuser-Busch InBev:

* Large portion of portfolio sourced from within the US.
* Significant earnings from Mexico, which could be impacted by tariffs.

Brown-Forman:

* Tariffs on tequila portfolio in Mexico.
* Subject to retaliatory tariffs from Canada and Mexico.

Constellation Brands:

* 85% of consolidated sales from Mexican beer.
* Potential 20-25% impact on earnings per share if no price or cost-saving measures are taken.

Molson Coors Beverage:

* Exposure through Molson Canadian.
* Minimal impact expected from retaliatory Canadian tariffs.

Heineken:

* Low-single digit percentage of sales from Mexican imports.
* Modest impact expected.

Becle:

* Dominates the US tequila market with Diageo.
* Relies heavily on US tequila sales for growth.
* $1.6 billion in tequila and mezcal sales in the US in 2022.