The rigorous migratory policies implemented by the Trump government are generating unexpected impacts on the US consumer market.
According to Constellation Brands, a US owner of the Mexican brands of model and corona beer, sales of their products suffered a 1% drop in the last quarter, especially in regions with high concentration of Hispanic consumers.
The company’s CEO, William Newlands, attributed the decline to the growing fear between the Latin community, which has avoided social meetings and frequented fewer restaurants due to the fear of deportations.
About half of Constellation’s customer base in the US is made up of Hispanic consumers, an audience that traditionally consumes beer in social gatherings. However, the increase in migratory inspection actions has led many to change their consumer habits.
“Many consumers are concerned and, as a result, social meetings are decreasing,” Newlands said in a teleconference with analysts.
In addition, there are evidence that Latin consumers are preferring large retail networks where they can mix with the crowd rather than frequent small local trades such as goats.
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The impact of migratory policies is not limited to the beverage sector. According to CNN, companies such as Burlington, Foot Locker and Colgate-Palmolive also reported falls in sales between Hispanic consumers.
According to Cirna, a market research company, discretionary purchases of this population has reduced at a faster pace than among non -Hispanic consumers.
Analysts point out that fear of deportations and economic uncertainty are leading to a retraction in consumption, directly affecting the performance of companies that depend on this public.