Constellation Brands most exposed to possible tariffs on imports, says Roth MKM

Constellation Brands (STZ) is the most exposed to potential tariffs on imports from Mexico, Roth MKM analyst Bill Kirk tells investors in a research note. The firm believes that implementation might not happen, and rather, potential tariffs would open negotiations, Constellation could be exempted, or that brand elasticities could handle some pass-through. Constellation would need a 12% beer price increase to fully offset a 25% increase in beer cogs, Roth estimates.