By James Davey
LONDON, July 1 (Reuters) – Associated British Foods said the U.S. cooking oils market has declined and trading conditions are unlikely to improve going into its next financial year, with its CEO blaming pressure on its core Hispanic customer base.
George Weston said the U.S. cooking oils market, where AB Foods sells its Mazola brand, was posting mid-single-digit volume declines this year.
“Our heavy use consumer is that Hispanic population who are under financial pressure, who are under pressure from ICE (Immigration and Customs Enforcement) and are feeling a bit miserable,” Weston said on an analysts call after the group’s third-quarter trading update.
Anti-immigration raids championed by U.S. President Donald Trump have affected Hispanic communities, prompting some consumers to switch to online shopping.
Weston said Hispanic customers were also re-using cooking oil more frequently.
“Typically that population will be using oils three times before they throw it out, we think it’s gone to four in many cases,” he said.
“We don’t think that that’s going to change into 2027.”
Weston also said Stratas Foods, AB Foods’ U.S. joint venture supplying oils to the foodservice sector, was being affected by the rapid uptake of appetite-suppressing drugs.
“We are undoubtedly seeing the consequences of GLP-1s on foodservice demand, particularly for fried food,” he said.
AB Foods’ overall grocery sales rose 1% in its third quarter, with lower U.S. oils sales offset by growth in brands such as Twinings.
(Reporting by James Davey. Editing by Mark Potter)
