Unexpected consequences of Trump’s anti-immigrant policy: beer sales in the US have fallen
17 April 16:42
Trump’s anti-immigrant policy has unexpectedly led to a drop in beer sales in the United States, "Komersant Ukrainian" reports, citing Bloomberg.
As it turned out, many beer brands relied on this group of consumers. However, Latinos have been buying less beer lately not only because they lost their jobs due to anti-immigrant policies. Many of them leave the house less often to avoid being seen by ICE migration patrols.
Going out for a beer is not an option
According to Bump Williams Consulting, which was provided to Bloomberg, only eight of the top 25 beer brands in the United States are showing growth this year. Industry experts point out that Hispanic consumers have always been the cornerstone of the beer market’s growth. Economic pressure, anxiety about immigration policy and changing consumer habits among this demographic are negatively affecting sales.
“Due to the threat of ICE raids, Hispanic consumers are afraid to go out shopping. Therefore, we are seeing a significant drop in the comfort level and number of shopping trips among the Hispanic community,”
– the company noted.
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A recent study of 200 Hispanic households conducted by the company found increased anxiety about going to the grocery store, putting additional pressure on a category that is already facing increased competition from spirits and non-alcoholic alternatives.
According to Brian Sudano, CEO of S&D Insights, the market decline may be even deeper than it seems at first glance.
“There is definitely a fear factor in the market. This is reflected in slower traffic in places where many Spanish-speaking customers usually buy beer, such as small stores,” he said,
– he said.
Companies are losing money
U.S. sales of beer, flavored malt beverages and cider fell 4.6% year-over-year in the 12-week period through mid-April, a sharper drop than the 3.3% decline seen in early March, according to a Bernstein research note. The later celebration of Easter this year (April 20 compared to March 31, 2024) may have skewed the most recent comparisons. However, analysts note that the overall trend was already pointing to a decline.
Molson Coors Beverage Co.’s sales fell by 7%, with a drop in all of its brands – Miller Lite, Coors Light, and Blue Moon. AB InBev SA’s volumes fell by 4.6%, roughly in line with the overall market, but Bud Light experienced a 10% drop. And while Constellation Brands Inc. used to outperform other breweries, it is now starting to sell slightly less beer than a year ago.
This slowdown is affecting financial results. Heineken reported weak demand in the U.S. in the first quarter, noting that lower spending among Hispanic customers and the late Easter holiday negatively impacted sales. Sales in the US declined by a high single-digit percentage.
Constellation, which sells Modelo Especial and Corona brands in the US, reported that beer sales were subdued in key states with large Hispanic populations. The company noted that it is seeing higher unemployment and cautious spending. While Modelo remains the top-selling beer in the US, its momentum has begun to slow.
More than half of Modelo’s consumers are Hispanic, and recent cuts in social activities such as dining out have weighed on the brand’s performance, CEO Bill Newlands said on a call with analysts last week.
