Plus: Victoria’s Secret issues statement fending off activist investor demands; Buc-ee’s brand lands primo NYT placement.
One out of every five people in the United States is of Hispanic origin. Their GDP is equivalent to that of Italy. But concerns over immigration raids and general economic malaise have seen Hispanics altering their purchasing behavior in a major way – and companies are seeing it impact the bottom line.
According to extensive report in the Wall Street Journal, brands ranging from Coca-Cola to Colgate-Palmolive to Wingstop have seen sales declines in recent months that they attribute to a demographic that is frightened of aggressive Immigration and Customs Enforcement efforts or simply tightening their belts amid an uncertain economy.
Some undocumented Hispanic people have effectively gone into hiding, the report says, stopping regular restaurant consumption or shopping. In some cases, their fear is so great that they send their U.S. citizen children to the store to purchase necessities like eggs and milk.
Even some citizens are worried, telling the Journal that they’ve reduced outings and now always carry their passports or other citizenship paperwork.
A survey conducted by beer maker Constellation found that 75% of Hispanic customers were cutting down on visits to restaurants this year. They were also less likely to attend social gatherings where beer is served, further cutting into the bottom line.
“Across the board, consumers are a little wary,” Constellation Chief Executive Bill Newlands said during an investor conference. “That’s doubled down if you’re a Hispanic consumer.”
Coca-Cola faces unique challenges: for years it has actively courted the Hispanic market, to great success, but the consumer pullback, coupled with a rumor (which Coca-Cola flatly denies) that the company called ICE to remove workers have had a noticeable impact on their sales.
In response, the soda company has reimagined its Argentinian “Para Todos” campaign with a new bilingual effort called “For Everyone.”
Why it matters: Changes to the immigration crackdown will deeply impact many aspects of American life. Many businesses are already contending with worker raids, but the sales side of the equation is also being impacted.
The Hispanic market in the United States is far too large for most national brands (and many regional brands) to ignore. Amid this changing environment, companies that wish to retain this vital customer base must find ways, like Coca-Cola, to rebuild trust and show cultural understanding. But today, even running a campaign in Spanish can be seen by some to be a political statement, though 41 million people in the United States speak the language at home.
Understand who your customers are. Understand who you can’t afford to lose and how you can reassure them, even amid difficult times, that your brand is there to help them through it. Even if that’s just with a good meal and a drink.
Editor’s Top Reads:
- Victoria’s Secret is the latest major brand to deal with activist investors. Barington Capital Group said that it now owns 1% of the lingerie maker’s stock and plans to keep buying, the Wall Street Journal reported. In a letter to the company’s CEO, Barington said that it plans to push for a new board and a focus on the core bra business to improve sales. Barington specifically said that it believes chief Hillary Super lacks the experience to lead the company back to profitability. And there’s reason for Super to fear for her job: Axios reports that activist investors helped oust 27 CEOs in 2024. A Victoria’s Secret spokesperson responded with a statement that reasserted its trust in leadership: “While we have more work to do, we are already delivering meaningful progress, including exceeding revenue and adjusted operating income guidance in the first quarter. We are confident that executing our strategy under the new and experienced leadership team will continue to unlock value for our shareholders.” It’s a polite but clear sign that the company isn’t going to change its leadership without a fight and a signal to the investors that the board won’t go quietly. These communications are always delicate, but can help set the tone for the relationship between the company and activists moving forward.
- It isn’t every day that a gas station opening in Mississippi gets an extensive writeup with tons of photos in the New York Times. But then Buc-ee’s isn’t just any gas station. It’s an experience, with BBQ sandwiches, tons of swag and spotlessly clean bathrooms. After nearly 30 years as a Texas-exclusive brand, the beaver-mascoted rest stop began expanding outside the Lone Star State in 2018 and now has a cult following across much of the Southern U.S. Their success in landing such a media hit lies in one of the best PR tactics there is: having a great product. By having a consistent, fun, helpful product that people will drive hours to enjoy, they’ve created a dedicated team of brand ambassadors who give amazing quotes to journalists, like: “I might get cremated and have my ashes distributed at one of these Buc-ee’s.” PR is separate from product, of course, but by acting as the voice of the customer and encouraging high standards and unique offerings, the function can help create these raving fans who in turn, attract major media.
- Journalists for the Washington Post were the targets of an apparent cyberattack, potentially by agents of a foreign government, reports say. While it was unclear exactly which country may have executed the attack, the journalists who were targeted cover national security and economic policy, including several who focus on China. The intruders may have been able to access emails, though the extent of the breach is unclear. You already know, of course, that you need to be careful with what you say because it may wind up in print. But even off-the-record emails could wind up in very powerful hands. It’s also a good reminder to brush off your own crisis plan for a hack or a data breach – it’s not a question of if it happens, it’s a question of when.
Allison Carter is editorial director of PR Daily and Ragan.com. Follow her on LinkedIn.
The post The Scoop: Companies try to court Hispanic consumers as immigration crackdown, economic woes sting appeared first on PR Daily.
