Constellation Brands CEO says the Modelo-maker is feeling the squeeze from softer economy, fewer drinkers

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Newlands told Yahoo Finance's Opening Bid.The company's stock is down nearly 36% year to date. Over the same period, shares of Coors Light maker Molson Coors (TAP) are down 20%, while Bud Light maker Anheuser-Busch's (BUD) stock is up 19%.Headwinds like consumer caution are major factors. According to a Constellation Brands survey, 80% of consumers are worried about socioeconomic issues, and 70% are concerned about personal finances. Newlands cited healthcare and rent as areas of concern.Read more: What is consumer confidence, and why does it matter?"The way that has generally played out, particularly with the Hispanic consumer, is they're going out less," Newlands said. "They're going to bars and restaurants less, and they're having less occasions at home when they would consume our products."Regional trends compound the challenge. California, Constellation's largest market, has seen subdued construction jobs — traditionally, those workers' high-intensity days often end with a beer."When the construction industry is soft, the impact to us is there's less consumption," Newlands said.During the company's Oct. 7 earnings call, he described the state as "the single biggest problem."Rebuilding efforts after last year's fires in Los Angeles have been slower than expected due to insurance delays, although activity is expected to pick up over time, he added.Macro policy pressures are also adding to the strain. Newlands noted that President Trump's immigration policies are affecting demand among Hispanic consumers. Meanwhile, tariffs are increasing production costs."We'll have roughly $90 million in annualized cost this year around tariffs," Newlands said. "So, certainly, that's a financial challenge."Modelo Especial beer, brewed by Constellation Brands, is displayed for sale in a grocery store in Los Angeles, California. (Mario Tama/Getty Images) · Mario Tama via Getty ImagesBroader demographic and cultural trends aren't helping. US alcohol consumption hit a near-90-year low, with only 54% of adults reporting drinking, according to Gallup. Younger adults are drinking less, a trend influenced by health-conscious lifestyles and changing social habits.Constellation's second quarter results showed a 15% year-over-year drop in sales. Beer volumes slipped across some of its core brands: Modelo Especial sales fell more than 4%, Corona Extra dropped over 7%, and Modelo Chelada declined roughly 3%. 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