The world's largest tequila producer has pointed to President Donald Trump's aggressive immigration enforcement policies as a primary factor behind a notable downturn in its sales figures. Proximo Spirits, the US distribution arm for Becle which owns the iconic Jose Cuervo brand, reports that heightened fear within Hispanic communities is keeping potential customers at home rather than visiting bars and restaurants.
Marketing Chief Cites 'Difficult Atmosphere' for Consumers
Lander Otegui, Head of Marketing at Proximo Spirits, explained the challenging commercial environment to The Financial Times. "The tension of the immigration policies has created a very difficult atmosphere with consumers, especially with immigrants, with Hispanics, [who] obviously make up a big portion of our particular business," Otegui stated. He emphasised that this apprehension extends even to those with legal status.
"Consumers are afraid, even [if they] are legal," Otegui said. "You're just afraid because you don't want to get in trouble... So they don't want to go out to restaurants. They don't want to go out to bars."
Immigration Enforcement Tactics Amplify Community Anxiety
The Trump administration's immigration raids have formed a central pillar of policy during his first year back in office. Reports of masked federal agents conducting operations at courthouses, outside schools, and even near retail locations like grocery stores and Home Depot outlets have contributed to a climate of fear. Several mistaken arrests of US citizens have further eroded trust within communities.
Otegui noted that these enforcement actions have a direct impact on social habits and, consequently, on beverage sales. "The general atmosphere is very, very delicate right now," he observed. "And when people stay home they tend to consume less."
Sales Data Reveals Significant Declines Across Categories
Financial reports from major producers substantiate these concerns with hard data. According to Becle's figures, its three-month sales ending in December across the US and Canada fell by 6.4 percent compared to the previous year, with revenue dropping a more substantial 12.2 percent.
This trend is reflected in broader market data. NielsenIQ reported that US tequila sales fell by 6.5 percent year-over-year in December. The decline is not confined to spirits; Constellation Brands, which sells the popular Mexican beer Modelo Especial, reported a 3 percent dip in its distributor's beer sales for the three months ending November 30.
Broader Economic Pressures Compound the Situation
The sales downturn arrives during a period of existing strain for the beverage industry. Liquor producers are already grappling with declining numbers partly driven by inflation and an ongoing affordability crisis that forces many Americans to choose between discretionary spending on entertainment and essential costs like groceries and rent.
Bill Newlands, Chief Executive of Constellation Brands, provided further context regarding shifting consumer priorities. "Seventy five per cent of the Hispanic consumers are very concerned about the socio-economic environment and they're being much more careful about their spending patterns, spending much more on what you would call consumer essentials versus other categories," he told The Financial Times.
Geographic Volatility Linked to Local Immigration Policies
Newlands highlighted that the sales impact exhibits significant regional variation, closely tied to local immigration enforcement climates. Beer sales proved weakest in communities where more than a fifth of residents identify as Hispanic.
"You see a lot of volatility state by state depending on what is going on with immigration policy in particular markets," Newlands explained, indicating that the commercial consequences of federal policy are being felt unevenly across the national landscape.
The combined testimony from industry leaders paints a clear picture: immigration enforcement actions are creating a chilling effect that extends beyond their intended targets, influencing consumer behaviour and spending within Hispanic communities, with measurable repercussions for major beverage brands.
