Coca-Cola and other companies losing sales as Hispanic residents stay home and skip shopping over arrest fears
Coca-Cola and other major brands have seen sales slip in recent months, partly due to Hispanic customers pulling back from stores and staying home amid 'a fear of Immigration and Customs Enforcement raids.'
The soft drink giant expressed concern after its sales volume in North America fell 3 percent in the first quarter of 2025.
While there is no data that unequivocally links Hispanics' immigration fears to pulling back from spending, executives at big brands acknowledged those concerns are likely having some impact on sales, The Wall Street Journal reports.
The company emphasized the importance of the 64 million U.S. Hispanic consumers who hold $2.1 trillion in spending power.
'In addition to challenges with severe weather and calendar shift, volume was impacted by weakening consumer sentiment as the quarter progressed, particularly among Hispanic consumers,' Coca-Cola's CEO James Quincey said during an earnings call on April 30.
'Some of the geopolitical tension and Hispanic pullback also affected the Mexican [market], particularly the border region, which is very connected to the U.S.,' Quincey added on the call.
The sentiment was backed by Jim Sabia, the president of Constellation Brands, which owns Modelo and Corona. Sales of Modelo, which overtook Bud Light as America's best-selling beer in 2023, have also dipped slightly lately.
'There is a fear of the ICE raids,' Sabia said at the Goldman Sachs Global Staples Forum last month. 'There's a fear out there, so these consumers are changing their behaviour,' Sabia said of Hispanic consumers. 'That's in the off-premise trade. In the on-premise trade, they're cutting back on social events. They're cutting back on restaurants.'
President Donald Trump's trade tariffs are also likely impacting Hispanic consumers' shopping habits.
In one of the company's monthly surveys earlier this year, Hispanic consumers said they were worried about the Trump administration's immigration crackdown and inflation from the tariff war. The survey found 75 percent of Hispanic consumers were scaling back on eating out and going to social gatherings where beer was served, The Journal noted.
Likewise, the retailer JD Sports said it was noticing a 'huge decline in traffic' in its Shoe Palace stores, which have a large Latino customer base. CEO Regis Schultz said he could 'definitely' see the impact of the immigration policy on footfall.
Coca-Cola's CEO said the company was also suffering following false rumors the company laid off Latino staff and reported them to ICE agents. The fake claims prompted Hispanic customers to boycott the drinks.
'It wasn't the first piece of misinformation, disinformation, or anything else nefarious about the Coca-Cola brand, and I'm sure it won't be the last,' Quincey said. 'But we are very focused on recovering from it.'
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Miami Herald
30 minutes ago
- Miami Herald
Florida Democrats look to stop the bleeding during annual political conference
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Business Upturn
an hour ago
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USA Today
an hour ago
- USA Today
Are Latin American travelers still coming to the US for vacations?
Even though Karen Aguayo lives in central Mexico – a short flight away from the United States – she has yet to visit, and has no plans to. The 35-year-old Mexican national was hoping to make her first trip to the U.S. this year to visit her uncle, and even has a visa to visit the country. However, given the political climate, it feels like too much of a gamble for her safety. She went to Italy instead. Under President Donald Trump's flurry of executive orders signed in January, the goal was to "strengthen national security," including cracking down on immigration, increasing scrutiny at our borders, and imposing a travel ban on numerous countries. Earlier this year, the president also ignited a trade war between the U.S. and China, Mexico, Europe and Canada when he announced a skyrocket in tariffs – a move that upset nationals. 'Don't know how we should behave': Is the US South LGBTQ friendly? Aguayo said she's worried about being denied entry at the airport, along with how she may be treated while in the U.S., such as possible anti-Mexican sentiment. "It's not only me, I believe that many people think the same. They'd rather feel welcome in other countries," said Aguayo, who posts videos about travel in Mexico on her YouTube channel La Karencita. "Now I'm in Europe because I feel that people are more open to make you feel welcome and safe; nothing happens here." Since Trump's inauguration it feels like conflict and policies within the U.S. have been constantly changing, Aguayo said. "Maybe this is not the time to go." A recent example that deters her from visiting is the U.S. Immigration and Customs Enforcement raids that swept through the greater Los Angeles area in response to Trump's vow of 1 million annual deportations of undocumented immigrants. Subsequent days-long protests against ICE escalated into violence between law enforcement and demonstrators, resulting in the president deploying the U.S. National Guard. While some Latin Americans are moving forward with their trips to the U.S., others are holding back due to safety concerns, a potentially hostile atmosphere or disagreement over the volatile political landscape under the Trump administration. A slowdown from this group of travelers could have a lasting impact on the U.S. economy. The U.S. has long been a popular destination for Latin Americans, with Mexico standing out as the second-largest demographic of visitor arrivals after Canada and contributing to an estimated $21 billion toward the American economy in 2018, according to the U.S. Travel Association. These travelers pausing their U.S. visits aren't swearing off the U.S. forever, but their hesitation shows the country's current political actions aren't going unnoticed. Latin American travelers conflicted over US travel Although some Latin American travelers are reconsidering visiting the U.S., many continue with their travel plans, especially Mexican nationals. Arrival and Departure Information System (ADIS) data between March 2024 and 2025 for Mexican arrivals to the U.S. showed a growth of 14.9% – comprising 26.7% of international visitors to the country, just slightly under Canadians. According to Expedia, many of the top U.S. destinations are still popular with Mexican travelers. For travel between May and June 30, lodging searches by Mexican nationals focused on cities like New York, Las Vegas, San Diego, Anaheim and Orlando. Emerging destinations showing increased interest include Charlotte, San Jose, Atlanta, Fort Lauderdale and Fort Worth. For the same travel period, airfare to the U.S. from Mexico is averaging below $575, with fluctuations depending on the arrival state. In some parts of Latin America, travel to the U.S. is on the decline. Although data from the National Travel and Tourism Office's International Visitor Arrivals Program (ADIS) shows U.S. travel demand for 2025 remains strong in countries like Brazil and Argentina, overall visitor numbers from South and Central America have dropped. From this past March to last, South American arrivals decreased by around 6% and over 35% for the Central Americans. 'We are seeing varying trends in demand for US travel across Latin America," the online booking platform Skyscanner said in a statement. "What we do know is that since the pandemic travelers are more engaged with travel warnings and advisories and these will likely influence demand." 'Everything is changing so fast' Alan Estrada, a 44-year-old Mexican travel content creator who shares his journeys under Alan Around the World, frequently travels to the U.S. for work. He recently attended the opening of the new theme park Epic Universe in Orlando and was also in Washington, D.C., earlier this month for the World Pride Music Festival. In July, the Mexico City-based traveler will visit New York for an event with one of his sponsors. Most of Estrada's U.S. visits are for work reasons, and he said he doesn't have any upcoming leisure trips planned. This is not only due to tensions like the ICE riots, but also the potential for other U.S. issues to escalate, like involvement in the war between Israel and Iran. "I'm not saying I won't do it," he said about going to the U.S. for pleasure. It's just that now is not the right time, he said. Although he's never had any issues with immigration, border control or hostility from Americans, the U.S. political landscape is on Estrada's radar. "Everything is changing so fast and can escalate from one day to another really, really quickly," said Estrada. "So, we have to be informed and aware all the time." About half of Estrada's audience is Mexican and most others live throughout Latin America. Lately, he's noticed a majority of comments on his social media channels and website – where people can call or email for travel advice – are about visiting the U.S. "There are some people in the comments saying like, 'is it safe to go to the U.S.' or 'please don't go to the U.S.,' depending on the political views of my followers," he said. "I can feel the people kind of worry a little bit about what's happening right now." Estrada believes the rise in concern comes from a mix of being more "cautious," disagreeing with American politics, and not finding the high price of travel to the U.S. to be worth it. As many situations remain unresolved, these travelers' decision to visit the U.S. is in the air. "The thing that I would need to see is not seeing people protesting because I think that's one sign that everything is getting uncomfortable, and not seeing the president talking about immigrants, about changing the rules," Aguayo, of La Karencita, said. Although Aguayo has never been to the U.S., it's not a priority for her either. In the meantime, she's content traveling the rest of the world.
