Hispanic shoppers are spending less on groceries, putting pressure on consumer companies

Core Insights - Hispanic consumers are reducing grocery spending across various categories, impacting companies like Coca-Cola, Constellation Brands, and Colgate-Palmolive [1][4][19] - The U.S. Latino economy grew to $3.6 trillion in 2022, indicating significant purchasing power among Hispanic consumers [3] - Concerns over immigration policies and economic conditions are leading to decreased consumer confidence and spending among Hispanic shoppers [4][5][7] Company Impact - Constellation Brands reported a weaker-than-expected outlook for fiscal 2026, attributing it to tariffs and reduced spending from Hispanic consumers [6] - Coca-Cola is experiencing decreased traffic from Hispanic shoppers, partly due to a boycott linked to immigration policy concerns [14][15] - Colgate-Palmolive noted a 2.3% decline in North American volume for Q1, with lower traffic from Hispanic consumers affecting overall business [19] Market Trends - Hispanic consumers are driving a decline in consumer net purchase intent, with a notable drop in spending on non-alcoholic beverages and cooking oils [4][11][17] - The Latino unemployment rate increased to 5.2% in April, contributing to consumer concerns and spending pullback [7] - Social gatherings, a key area for Hispanic consumers' beer consumption, are declining, further impacting sales in the beverage sector [8]