Attracting the Hispanic Market

We are seeing trends that suggest non-Hispanic consumers are highly familiar with key “Hispanic” brands and incorporating these items into their shopping trips and experimental cooking at home. The majority, over 70 percent, of Americans are familiar with key Hispanic brands such as Jarritos, Jumex, and LaCostena. The current buying power of the Hispanic shopper is over $1.7 trillion and is expected to climb to over $2 trillion in the next two years, combined with the non-Hispanic shopper of the same brands is a win for the grocery channel. The consumption of Mexican food in restaurants and at home is growing with non-Hispanic consumers gravitating to hot or spicy foods, including Mexican food. In the U.S., tortillas and canned jalapenos are the two most popular Mexican food items for all ethnic groups and consumers make their decision based on:

1. Pepper use occasion
2. Pepper type
3. Serving Size
4. Brand
5. RETAILER
6. Price

Price, In a nutshell, grocery outlets must be ready to meet the needs of the Hispanic and non-Hispanic consumers with the right items. Who is the Hispanic consumer? Hispanic is a generalized term that incorporates people from different countries of origin; all with their own culture, flavors, and favorite brands. There are 5 primary geographical markets:

1. The California-Mexican origin group is most influenced by promotions and brands from Mexico.
2. The Texas-Mexican origin group prefers one-stop shopping at their favorite local store.
3. Illinois-Mexican prefers to shop at a “Hispanic” food store
4. New York-Puerto Rican and Dominican are very price conscious. Beans and nectar are a part of their weekly diet.
5. Florida-Puerto Rican and Cubans are the largest market for beans and nectar and prefer to shop with lists.

How to attract Hispanic shoppers

The Hispanic shopper is highly brand loyal as well as loyal to their local grocery store that supports the Hispanic heritage and key Hispanic brands.

Here are some key ways to attract and retain the Hispanic shopper:

• Make me feel invited, a place that is familiar and comfortable
• Spanish and/or bilingual signage and marketing
• The “right” brands for me, those I am familiar with and that my mother and grandmother used
• Displays and signage of familiar and popular items
• Loyalty and reward programs for an enhanced value-added shopping experience
• Online/Curbside pick-up, make the shopping experience easier and more efficient for the acculturated consumer

With the emerging trends, many brands that have traditionally marketed to the Hispanic market, now have a place with a mainstream audience. For example, cross merchandise La Costena peppers within the traditional pepper set, the same could be done for salsa and beans. Jarritos and Topo Chico can be cross merchandised as chilled, single-serve in the deli or front-end coolers.