Constellation Brands to invest US$100M to boost U.S. farmer profitability
Constellation Brands is expanding support for U.S. growers through a five-year investment focused on agricultural resilience, market access and stronger farming communities.
USA – Constellation Brands, the maker of Modelo and Corona beers, will invest $100 million over five years to support U.S. farmers who grow hops, barley and other ingredients used in its beer production.
The investment will include additional purchases from farmers in Idaho, Montana and North Dakota, along with initiatives designed to improve market access, agricultural resilience and the economic strength of farming communities.
The company said it will work directly with growers to identify opportunities for long-term support across its agricultural supply chain.
Constellation Brands will also establish Farmers Future, a grower-led advisory committee bringing together farmers, agricultural trade organizations and community leaders.
The committee will provide guidance on investment priorities and help identify measures to strengthen the domestic agricultural supply chain.
The initiative comes as the American Farm Bureau Federation describes the U.S. farm economy as facing a generational downturn. Higher production costs, rising debt and continued weather challenges are placing pressure on farm finances, while more producers are relying on government aid to stabilize their balance sheets rather than expand operations.
For Constellation Brands, the program focuses on three agricultural commodities essential to beer production: barley, hops and other key ingredients.
The company said the effort will address challenges including declining acreage, changing consumer demand, higher input costs and weather-related pressures.
“We have deep respect for the persistence and expertise of these growers, especially after several challenging years for American farming, and we remain committed to continuing to support this foundational part of our supply chain,” said Nicholas Fink, president and CEO of Constellation Brands.
Barley production is particularly important in Idaho, Montana and North Dakota, which are significant agricultural producers with established barley industries supporting rural economies.
Officials in the three states welcomed the investment and highlighted the importance of barley growers to the U.S. economy and beverage industry.
The US$100 million commitment adds to more than US$750 million Constellation Brands says it already invests annually with U.S. farmers and suppliers. The company purchases approximately 80% of all U.S. barley exports, making domestic agricultural production a significant component of its beer operations.
Constellation Brands said its U.S. operations support more than 100,000 jobs across its supply chain and contribute more than us$4.2 billion annually through employee wages, capital expenditures and U.S. taxes.
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