Mexican tariffs will hurt Constellation, tequila producers -JPM

Becle SAB de CV

31/05/2019 08:00

** JP Morgan analysts point to potential trouble for U.S.
brewers and distillers with exposure to a Mexican portfolio from
latest Trump move on tariffs. 
    ** New tariff round threatened from June likely to hit
Constellation's  STZ.N  Mexican import portfolio and Jack
Daniels-maker Brown-Forman's  BFb.N  tequila brands
    ** JPM says ~73% of Constellation revenue comes from Mexican
imports
    ** "It is plausible that STZ could increase shipments across
the U.S. border over the next 10 days and ahead of subsequent
increases in order to lessen the impact," brokerage says.
    ** Mexican tequila producers including Jose Cuervo
 CUERVO.MX  also likely to see disruption

 (Reporting by Karina Dsouza in Bengaluru)
 ((Karina.Dsouza@thomsonreuters.com))