Major consumer companies like Coca-Cola, Constellation Brands, and Colgate-Palmolive are reporting weaker North American sales due to reduced spending by Hispanic shoppers.
Why It Matters
Hispanic Americans represent about 20% of the U.S. population and are the second-largest and second-fastest-growing demographic group. Their spending has historically outpaced non-Hispanic consumers, especially on consumer packaged goods.
What’s Behind the Decline
Executives point to rising economic anxiety and stricter immigration policies under the Trump administration as reasons for the shift. A Goldman Sachs note highlighted a sharp dip in Hispanic net purchase intent in January, citing fear around immigration as a key factor.
Beer Sales Hit Hard
Constellation Brands, known for Modelo and Corona, has seen notable pullback. Modelo Especial, the top-selling U.S. beer, owes much of its success to Hispanic consumers—more than 50% of its drinkers identify as Hispanic. But in 2024, CEO Bill Newlands said consumer anxiety, job concerns, and fewer social gatherings have dampened spending.
Non-Alcoholic Beverages Feel the Impact
Keurig Dr Pepper and Coca-Cola also reported decreased spending from Hispanic shoppers. Keurig noted fewer trips and smaller purchases. Coca-Cola pointed to false social media rumors about reporting undocumented workers, which hurt traffic in Southern states.
Beyond Beverages: Grocery Staples See Drop
Associated British Foods, maker of Mazola cooking oil, and Colgate-Palmolive both experienced reduced purchases by Hispanic shoppers. ABF’s CEO George Weston described the market as “recessionary” in Hispanic-heavy regions of the U.S. Colgate reported a 2.3% volume drop in North America in Q1.
Walmart Stays Neutral
Despite the trend, Walmart has not seen significant changes tied to immigration policy. CEO Doug McMillon called it a “nonevent” so far.
The Bigger Picture
The Latino economy reached $3.6 trillion in 2022, but current pressures may reshape how companies connect with Hispanic consumers. While some brands are adjusting strategies, the long-term importance of this demographic remains clear.
Keep up with the impact of Latinos on the U.S. economy with us on Que Onda Magazine.