Associated British Foods (ABF) has reported a decline in cooking oil sales in the United States, citing economic challenges and immigration enforcement actions affecting Latino consumers. George Weston, ABF’s chief executive, highlighted these pressures during a briefing with City analysts, noting that the company’s core cooking oil market largely comprises Hispanic households.

Weston attributed the downturn to financial strain and the impact of Immigration and Customs Enforcement (ICE) raids, which have been notably intensified under policies favored by former President Donald Trump. These enforcement measures, he said, have disproportionately affected Latino communities, prompting changes in consumer behavior. Among these changes are increased reliance on online shopping and more frequent reuse of cooking oil. Typically, this demographic discards cooking oil after three uses, but Weston indicated that some are now extending this to four or more cycles.

The company expects these trends to persist through at least 2027. In addition to household consumption shifts, ABF’s US joint venture, Stratas Foods, which supplies oils to the food service industry, faces a separate challenge. Weston noted that the growing adoption of GLP-1 appetite-suppressing drugs is reducing demand for fried foods, dampening sales in this sector.

Despite the challenges in the US cooking oil market, ABF’s overall grocery sales increased by 1% in the quarter ending June 20, driven partly by stronger performances from other brands such as Twinings. The company’s total sales rose 3% to £5.3 billion during the period. Growth at Primark, ABF’s retail brand, contributed as well, posting a 3% rise when adjusting for currency fluctuations.

However, not all divisions experienced gains. Sugar sales declined 4%, while agricultural supplies fell sharply by 14%. ABF described the broader consumer environment as "challenging" across most of its markets, reflecting ongoing economic headwinds and evolving consumer habits.