Aluminum costs are surging, drinking occasions are falling--and Constellation's margins may be caught in the crossfire.

Constellation Brands missed Wall Street's estimates for quarterly earnings and revenue, as the Modelo owner saw lower demand and paid higher aluminum tariffs.

Constellation’s leading brands include Modelo, Corona and Pacifico beer, all of which are brewed in and imported from Mexico. While alcohol imports remain exempt from tariffs, beer packaged in aluminum is subject to the added tax. President Donald Trump initially imposed a 25% tariff on steel and aluminum, then doubled that to 50% last month.