The Trump administration’s widespread crackdown on illegal immigration has contributed to major brands taking hit on their bottom lines as ICE-wary Latinos cut back on traditional purchases, the Wall Street Journal reported Thursday.
Massive international labels such as Coca-Cola, Colgate-Palmolive, Modelo brewer Constellation Brands, and restaurant chains like Wingstop and El Pollo Loco have seen a decrease in sales. Coca-Cola has seen its North American sales drop 3% in the first quarter of 2025 with the company’s executives citing fewer Hispanic customers as a key driver.
The trend has been most noticeable in Southern states, where large populations of illegal immigrants have built up communities and are now being asked to prove citizenship or risk deportation.
Coca-Cola also has dealt with a social-media rumor that the company actively encouraged ICE to deport any of its employees found to be illegal immigrants, a charge the company calls “unequivocally false.” Coca-Cola’s CFO John Murphy lamented the rumor, which has led to calls for a boycott of the company.
“Misinformation is unfortunately a fact of digital life,” he said.
JD Sports, which owns the retail chain Shoe Palace, told analysts in May that ICE raids have affected his company’s bottom line.
“We have seen a huge decline in traffic,” said CEO Régis Schultz.
Shoe Palace, which operates in 12 states and markets to Latino customers, has been directly affected by President Donald Trump’s policies.
“You can see definitively the impact,” Schultz said.
Modelo took over as the top selling beer in America after Bud Light’s experiment with transgender influencer Dylan Mulvaney. Yet in 2025, Constellation said sales of Modelo have dripped 1% since first quarter, and Chief Executive Bill Newlands said the crackdown on illegal immigration crackdown has affected Hispanic customers, who represent about half of sales.
“If that consumer has concerns, issues, et cetera, that’s a big deal for us,” Newlands said at an investor conference this month. “Across the board, consumers are a little wary. That’s doubled down if you’re a Hispanic consumer.”
Big-box stores have been hit the hardest since the Trump administration announced plans to start taking illegal immigrations seriously. Walgreens has seen a 10.5% drop in Hispanic shoppers since first quarter, Home Depot is down 8.7%, and Dollar General is down 6.1% with the same demographic, according to a May report from market researcher Kantar.
In Los Angeles, where ICE-related protests became riots, some businesses have seen their sales drop by 90% if their store or restaurant is located in ground-zero for the unrest.
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