A Great Disturbance in the Force: Hispanic Consumers Retreat, Leaving the Empire's Profits Vulnerable!

The Dark Side of the Grocery Aisle

I sense a disturbance in the Force a great pulling back... of wallets! Recent reports indicate that Hispanic consumers a vital sector of the North American economy are reducing their spending. This news is most troubling. Coca Cola Constellation Brands even Colgate Palmolive have reported a dip in sales among these shoppers. It seems the fear is strong with them.

A Demographic Sith uation

According to the U.S. Census Bureau Hispanics comprise a significant portion of the population. Their economic power is not insignificant contributing trillions to the U.S. economy. To see them falter…it is like watching the Death Star lose power. The Latino economy grew to $3.6 trillion in 2022 up from $3.2 trillion the prior year. Their consumer packaged goods spending used to outpace that of non Hispanic consumers according to market research firm Circana. But now they retreat. I find their lack of spending disturbing.

Immigration: The Phantom Menace on Spending

The White House's immigration stance and broader economic unease appear to be the catalysts. Some say stricter immigration policies are the primary driver. The fear of the unknown is a powerful weapon more powerful than any lightsaber. A research note from Goldman Sachs indicated a sharp decline in consumer net purchase intent in January. This is unacceptable! Perhaps they need a more…persuasive leader.

Modelo's Rise and Fall: A Beer y Sad Tale

Constellation Brands maker of Modelo Especial benefited greatly from Hispanic consumers. Now even their profits are threatened. CEO Bill Newlands cites tariffs and diminished spending as reasons for a weaker than expected outlook. The Latino unemployment rate ticked up to a seasonally adjusted 5.2% in April. The ability to destroy a planet is insignificant next to the power of economic downturn. If only they had followed the Dark Side they would foresee this perhaps this could be avoided.

Beyond Beer: The Empire Strikes Back (at Beverages)

It isn't just beer. Keurig Dr Pepper is also feeling the pinch. Fewer trips and lower spending per trip among Hispanic consumers are impacting their business. Coca Cola despite its efforts to court the Latino market is facing challenges. Rumors of reporting undocumented workers have damaged their image. The Force is weak with this one. Perhaps a taste of the Dark Side would help them regain their market share.

A Widespread Rebellion in the Aisles

The pullback extends beyond beverages. Even cooking oil sales are suffering. Associated British Foods maker of Mazola cooking oils reports decreased sales due to nervous and fearful Hispanic consumers. Colgate Palmolive echoes these concerns. However Walmart claims to be unaffected. A bold faced lie! No one is immune to the Force or the lack thereof. Perhaps the Emperor should send a Star Destroyer to…encourage them. It is their destiny. What is thine?