Hispanic consumers across the United States are reducing their grocery spending, creating ripple effects through major consumer goods companies and retailers.
Leading brands including Coca-Cola, Constellation Brands, and Colgate-Palmolive report declining sales among Hispanic shoppers, who represent about 20% of the U.S. population and command $3.6 trillion in economic power as of 2022.
The spending pullback spans multiple grocery categories. Beer companies are seeing fewer social gatherings that typically drive Hispanic beer consumption. Constellation Brands, maker of Modelo Especial and Corona, notes that over half of their Hispanic customers express concerns about immigration policies. The company recently provided lower financial projections, citing reduced Hispanic consumer spending as a factor.
Beyond alcoholic beverages, companies like Keurig Dr Pepper report Hispanic shoppers making fewer store trips and spending less per visit. Coca-Cola faced additional challenges after false social media rumors about immigration reporting hurt traffic, particularly in Southern states.
The trend extends to household staples. Associated British Foods saw declining sales of Mazola cooking oils, while Colgate-Palmolive reported lower Hispanic customer traffic across product lines.
Several factors appear to be driving the shift. The Latino unemployment rate rose to 5.2% in April, up from 4.8% a year earlier. Immigration policy changes under the current administration have increased detention numbers by 10% compared to the previous administration, creating uncertainty in Hispanic communities.
Despite these broader patterns, some retailers see limited impact so far. Walmart CEO Doug McMillon described the effect of immigration policy changes as "a nonevent" for the retail giant.
The spending decline carries weight given Hispanic Americans' traditionally higher spending on consumer packaged goods compared to non-Hispanic shoppers. As companies adapt to these shifting dynamics, many are developing targeted strategies to reconnect with this key consumer segment.