Dive Brief:
- Constellation Brands will invest $100 million over five years to boost U.S. farmer profitability in states that produce hops, barley and other ingredients in the Modelo and Corona maker’s beers.
- The investment will include additional purchases from farmers in Idaho, Montana and North Dakota, plus initiatives to improve market access and economic resiliency.
- The beer maker will also establish a farmer-led advisory committee that will provide insight on how the investments can best support growers in the company’s agricultural supply chain.
Dive Insight:
The farm economy is facing a “generational downturn,” according to the American Farm Bureau Federation, as increased production costs and sustained weather challenges strain financials.
Rising debt and higher production expenses have made it difficult for farmers to build their businesses. More producers are relying on government aid to stabilize balance sheets instead of expanding their operations, highlighting broader financial weakness, the Farm Bureau said.
Constellation said the investment in barley, corn, and hops farms will strengthen the company’s domestic agricultural supply chain in the long term.
“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,” Nicholas Fink, president and CEO of Constellation Brands, said in a statement.
Constellation said it invests more than $750 million annually in American farmers and suppliers, including the purchase of approximately 80% of U.S. barley exports. The company’s operations support more than 100,000 U.S. jobs across its supply chain, it said.
