Conservative backlash forces Corona Brewer to dump DEI commitments

By willowt // 2025-04-15

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The U.S. distributor of Corona, Modelo and Pacifico halted its diversity, equity and inclusion (DEI) programs, banned employee activism and cut ties with the Human Rights Campaign (HRC). The move follows pressure from conservative activist Robby Starbuck and aligns with Trump-era policies cracking down on DEI.
Over 30 major companies, including Walmart and Ford, have scaled back DEI efforts since Trump’s executive order prohibiting federal contractors from using taxpayer funds for DEI training. Courts, including the Supreme Court, have weakened the legal foundation for race-based hiring practices.
Firms like IBM and Goldman Sachs abandoned racial hiring quotas, while Disney rebranded DEI programs to avoid backlash. Investors like Bill Ackman pressured companies to abandon DEI, and declining sales of HRC-backed products (e.g., Constellation’s "Pride Pack") reinforced business concerns.
HRC defends DEI as promoting inclusion, but critics like Starbuck call it "Marxist" social engineering. Companies like Constellation now focus on "market-driven values," banning paid activism while allowing voluntary employee groups.
With 40% of S&P 500 firms removing DEI from earnings reports, the trend signals a broader shift away from corporate progressivism. Activists and shareholders now clash over whether profitability or ideological alignment should drive business decisions.

In a sweeping reversal of corporate wokeism, Constellation Brands — the U.S. distributor of Corona, Modelo and Pacifico beers — has halted its diversity, equity and inclusion (DEI) initiatives, banned employee activism and severed ties with the Human Rights Campaign (HRC). The move, announced April 10, 2025, follows aggressive pressure from conservative activist Robby Starbuck and reflects a broader retreat by America’s largest companies from DEI mandates after President Donald Trump’s second-term executive orders cracked down on such policies.

A conservative tide sweeps through Corporate America

The decision by Constellation, revealed in an internal memo to employees, represents one of the most prominent corporate withdrawals from DEI to date. The company will eliminate its supplier diversity program, discontinue participation in the HRC’s “Corporate Equality Index,” and revise its workplace culture initiatives to focus on “inclusive” but non-political practices. Starbuck, a former music video director turned free-market advocate, claimed direct credit for the shift. “No woke company is safe,” he declared. “We’re a new, energized movement using financial power to end the poisonous reign of wokeness.” His campaign scrutinized Constellation’s HRC membership, transgender inclusion pledges and use of the term “Latinx” — an HRC-sanctioned term many conservatives view as politically divisive. The backlash goes beyond Constellation. Over 30 major corporations, including Walmart, Harley-Davidson and Ford, have scaled back or abandoned DEI programs since Trump’s January 20, 2025, executive order banning federal contractors from using taxpayer funds for DEI training. The order also directed agencies like the Justice Department to penalize private companies that discriminate in hiring via race or gender preferences.

Trump’s executive orders turn the tide

The administration’s push has been bolstered by court rulings that weakened DEI’s legal foundation. In June 2023, the U.S. Supreme Court struck down affirmative action in Students for Fair Admissions v. Harvard, a landmark decision that Trump’s policies now seek to extend to corporate hiring practices. “Merit-based hiring prevails under this administration,” said Heritage Foundation senior fellow Salena Zughni, noting that Trump’s crackdown has already spurred 47 states to introduce legislation banning government-backed DEI initiatives. Private companies, fearing legal liability, are heeding the warning. Constellation’s reversal aligns with broader industry trends. IBM scrapped racial/gender hiring targets in March 2025, citing “inherent tensions” between DEI and traditional business values. Meanwhile, Goldman Sachs eliminated diversity requirements for IPO-bound companies, and Disney renamed its DEI initiatives to focus on “talent strategies.” U.S. Attorney General Pam Bondi also vowed to investigate private-sector DEI programs receiving federal funds, citing violations of Title VII anti-discrimination laws.

Behind the woke U-turn: Financial realities

While Starbuck’s grassroots campaigns amplified pressure, many companies reversed policies to avoid financial penalties. Investors, fearing liability under new regulations, slashed funding for DEI-aligned firms. Constellation’s shift, for instance, comes amid record low sales of its HRC-endorsed “Pride Pack” six-packs, which fell 62% since 2023. Conservative investors like hedge fund manager Bill Ackman have weaponized shareholder proposals to dismantle DEI. In 2024, Ackman’s firms pressured Harvard and Tiffany & Co. to overhaul DEI spending, arguing the initiatives prioritized ideology over profit. Yet DEI’s undoing faces resistance. Costco shareholders overwhelmingly rejected a proposal to audit its DEI programs, arguing inclusion drives customer loyalty. Apple CEO Tim Cook mocked critics, stating, “If you want me to do things only for ROI reasons, you should get out of this stock.”

A battle for corporate soul

The fight over DEI has ideological stakes. HRC defends its Corporate Equality Index as a “voluntary benchmark for LGBTQ inclusion,” but critics call it a tool to “socially engineer” businesses. Starbuck called it a “Marxist mafia” leveraging corporate largesse to advance radical agendas like trans bathroom policies. Constellation’s withdrawal leaves the HRC with a weakened influence. Other defections — the MLB, Coca-Cola and Bank of America—took similar steps, slashing HRC partnerships to avoid backlash. For Constellation, the pivot signals a return to market-driven values. CEO Rick Sands stated in the memo, “Our focus remains on producing quality beverages, not advancing social agendas.” Employees may still form LGBTQ resource groups, but DEI-linked paid advocacy or political lobbying is prohibited.

The woke recession deepens

Constellation’s retreat underscores a seismic shift in corporate America: DEI is no longer a buzzword for progress but a liability. With 40% of S&P 500 firms eliminating DEI sections from 2024 earnings reports, the trend suggests lasting change. Starbuck and like-minded activists insist this is only the beginning. “We’re changing not just policies, but cultural norms,” he said. For Constellation’s imbibers, however, the question remains: Will post-DEI Coronas still draw crowds—or will pleasure-seeking unwoke millennials flee to DEI-sponsoring breweries like MillerCoors? As shareholders weigh profit versus principle, one thing is clear: The era of corporate wokeism is ending, one frosty six-pack at a time. Sources include: LifeSiteNews.com Forbes.com Bloomberg.com