The U.S. Market for Hispanic Foods and Beverages

Table of Contents

Chapter 1 Executive Summary

• Scope and Methodology
  • Market Parameters
  • Report Methodology
  • A Note About Nomenclature
• The Products
  • Latin Food Fever Spreads Across States
  • Three Primary Segments
  • First Segment: Mainstream Mexican
  • Second Segment: Authentic Hispanic
  • Third Segment: Nuevo Latino
  • Segment Overlap
• Size and Growth of the Market
  • 2006 Ended with Sales of Almost $5.7 Billion
  • Sales to Reach $8.4 Billion by 2011
  • Table 1-1 U.S. Sales of Hispanic Foods and Beverages, 2002-2011 (in million $)
  • Leading Product Categories
  • Table 1-2 Top 10 Hispanic Food and Beverage Sales Categories, 2002-2006 (in million $)
  • Product Categories Driving Growth
  • Factors Affecting Market Growth
• The Marketers
  • All Types of Marketers
  • Most Ideas Start in Foodservice
  • Sales Outlets and Distribution Methods
    • Traditional Supermarkets Losing Share to Large Retail Outlets
    • Distribution Methods
    • The Consumer
      • The Hispanic Population Boom
      • Table 1-3 Growth of Hispanic Population in the United States, 2005-2006
      • Where Most Hispanics Reside
      • This Hispanic Market Skews Young
      • Figure 1-1 Projected U.S. Population Growth by Age, 2005-2015
      • Hispanic Population Attitudes
      • New Products and Trends
        • What' s Driving Hispanic New Products and Trends?
        • The Ins-and-Outs on Flavor Trends
        • Times Changing for Many, But Not for All

Chapter 2 The Products

• Key Points
• Market Scope
• Products Outside Scope
• Hispanic Foods and Beverages
  • A Note About Nomenclature
  • What Are Hispanic Foods and Beverages?
  • Country Preferences Define Hispanic Category
  • Table 2-1 Ingredients Characterized as Hispanic
  • Products on the Rise
  • Figure 2-1 Hispanic Food and Beverage-Related Products on the Rise, 2000-2020 (projected % increase in quantities consumed)
  • Food and Beverage Marketers on Top of the Trends
  • Latin Food Fever
  • Foodservice Catches the Fever, Too
• Product Breakouts
  • Mainstream Mexican
  • Authentic Hispanic
  • The Importance of Authenticity
  • Nuevo Latino
  • Convenience and Familiarity Create Overlap
  • The Opportunity for Healthier Options
  • Hispanic Packaging Preferences
• Government Regulations
  • Regulatory Agencies
  • Labeling Overview
  • Provide the Facts: Nutritional Information Musts
  • Exempt Products
  • Bilingual Labels
  • Figure 2-2 Example of Single Nutrition Facts Box in English and Spanish
  • Country of Origin
  • Nutrition Regulations in Foodservice
  • Health, Nutrient Content and Structure/Function Claims
  • Significant Scientific Agreement Health Claims
  • Qualified Health Claims
  • Nutrient Content Claims
  • Structure/Function Claims
  • Allergen Issues
  • Product Recalls
  • Table 2-2 A Sampling of Hispanic Food and Beverage Recalls, 2003-2007
  • Figure 2-3 Example of a Product Recall Press Release
  • How a Recall Impacts Consumers and Businesses
  • Strong Brands Weather Storms

Chapter 3 The Market B

• Key Points
• Market Size and Growth
  • 2006 Sales of Almost $5.7 Billion
  • Table 3-1 Total U.S. Retail Sales of Hispanic Foods and Beverages, 2002-2006 (in million $)
  • Figure 3-1 Total U.S. Retail Sales of Hispanic Foods and Beverages, 2002-2006 (in billion $)
  • How Estimates Were Formed
  • Included Products and Brands
  • What' s Not Included? Chili, Chips and Booze
  • Table 3-2 U.S. Retail Sales of Hispanic Foods and Beverages by Category, 2002-2006 (in million $)
  • Top 10 Hispanic Food and Beverage Categories
  • Tortillas
  • Salsa
  • Entrees/Handheld Items
  • Bakery Items
  • Rice/Rice Mixes
  • Cheese
  • Table 3-3 Top 10 Hispanic Food and Beverage Categories by U.S. Retail Sales, 2002-2006 (in million $)
  • Beverages Lead in Growth
  • Table 3-4 Top 10 Fastest-Growing Hispanic Food and Beverage Categories by U.S. Retail Sales, 2002-2006 (in million $)
  • Market Composition: Tortillas Dominate
  • Figure 3-2 Market Share of Hispanic Food and Beverage Categories by U.S. Retail Sales, 2006
  • Table 3-5 Market Share of Hispanic Food and Beverage Categories by U.S. Retail Sales, 2006
  • Regional Variation
  • South of the Border Beers Are Hot; Salty Snacks Go Cold
  • Table 3-6 U.S. Retail Sales of Select Hispanic-branded Beer, 2002-2006 (in million $)
  • Table 3-7 U.S. Retail Sales of Select Salty Snacks, 2002-2006 (in million $)
• Market Growth Factors
  • Hispanic Population and Purchasing Power Growth
  • Hispanics Want Authentic Products; Non-Hispanics Spice It up
  • Convenience Is a Market Driver
  • Market Players on Top of the Trends
• Projected Market Growth
  • Sales to Reach $8.4 Billion by 2011
  • Table 3-8 Projected Total U.S. Retail Sales of Hispanic Foods and Beverages, 2007-2011 (in million $)
  • Figure 3-3 Total Projected U.S. Retail Sales of Hispanic Foods and Beverages, 2007-2011 (in billion $)
  • Five Categories Will Experience Double-Digit Growth
  • Table 3-9 Projected U.S. Retail Sales of Hispanic Foods and Beverages by Category, 2007-2011 (in million $)
  • Table 3-10 Projected CAGRs for U.S. Retail Sales of Hispanic Foods and Beverages by Category, 2006-2011 (in million $)

Chapter 4 The Marketers

• Key Points
• Competitive Overview
  • All Types of Marketers Serve the Industry
  • Table 4-1 U.S. Retail Hispanic Foods and Beverages: Select Leading Marketers, Brands and Products Offered, 2007
  • Table 4-2 U.S. Foodservice Hispanic Foods and Beverages: Select Leading Marketers and Format, 2007
  • Leading Hispanic Food and Beverage Advertisers
  • Table 4-3 U.S. Grocery Consumer Packaged Goods Manufacturers and Mass Merchandisers, as Ranked in the Top 50 Hispanic TV and Print Media Advertisers, 2006
• Retail Marketer Overview
  • Almost Every Marketer Competes in Retail
  • Two Broad Types of Marketers
  • Leaders in Each Category
  • Table 4-4 Leading U.S. Hispanic Food and Beverage Retail Marketers, by Product Category, 2007
  • Without a Doubt, Goya Is the Most Recognized
  • Kraft Foods Markets Aggressively to Hispanic Consumer
  • Kellogg Takes “Healthy Beginnings” to the Hispanic Market
  • General Mills Drives Trial with Free Goodie Bags
  • La Cocina Betty Opens its Doors
  • Unilever Increases Hispanic Marketing Efforts
  • The Flavor Challenge
  • ViveMejor Campaign
  • Knorr Brand Now Includes Mexican Cooking Sauces
  • Heinz' s Delimex Scores with Large and Hispanic Households
  • Ruiz Foods' El Monterey Brand #1 in Sales
  • Smaller Players
  • Windsor Frozen Foods
  • TreeHouse Foods
  • El Bravo Tamale
  • Jay' s Potato Chips
• Competitive Profile: Authentic Specialty Foods, Inc. (Chino, CA)
  • Company Overview
  • Why La Victoria Is a Western Brand
  • La Vic Club Debuts for Today' s Marketplace
• Competitive Profile: Bimbo Bakeries USA, Inc. (Fort Worth, TX)
  • Company Overview
  • Read Beyond the Name
  • The Story Behind Bimbo' s Trademark Bear
  • Aggressive Growth Plans
  • Corporate and Cultural Philosophies Assist in Growth Efforts
  • Generating Innovation and Investment
  • Guidance in Growth Plans
• Competitive Profile: Goya Foods, Inc. (Secaucus, NJ)
  • Company Overview
  • Goya Creates Its Own Store Within a Store
  • The Day the Nephews Took Over
  • The Family Moves On, Around the Country and Abroad
  • Baseball, Burritos and Beans
  • Productos Nativo Partnership
  • Goya Launches Advertising Campaign and E-commerce Site
  • Goya Goes Organic
• Competitive Profile: Gruma Corp. (Irving, TX)
  • Company Overview
  • Gruma Goes by “Mission” in the U.S.
  • New Facility Opens in China
  • McDonald' s Is Key U.S. Wrap Account
  • Marketing Includes Recipes and Menu Ideas Made with Tortillas
  • “Baker of the Year” for 2006
• Competitive Profile: Ruiz Foods, Inc. (Dinuba, CA)
  • Company Overview
  • Focusing on Frozen Growth
  • A Whirlwind of Innovation
• Competitive Foodservice Overview
  • Chain Restaurants Focus on Controlled Growth
  • Table 4-5 Top 20 U.S. Hispanic Foodservice Chains, by Systemwide Sales and Number of Units Worldwide, 2003 vs. 2006
  • The Time Is Right to Think Hispanic
  • #1 Taco Bell Posts $6.5 Billion in Sales
  • Three Hispanic QSRs to Watch
  • Del Taco
  • Taco Time
  • Taco Del Mar
  • Baja Fresh Gets a New Owner
  • And the New Owners Buy La Salsa
  • Hispanic Chicken Chains Take Off
  • El Pollo Loco Targets Hispanics with New Ads
  • Pollo Tropical' s Menu Gets a Makeover
  • A New Player Enters the States
  • Full-Service Hispanic Restaurant Developments
  • Abuelo' s Takes Flavor of Mexico Nationwide
  • Chevy' s Survives, Thanks to Real Mex
  • Brinker Sells Off Company-Owned Chili' s Restaurants
  • Mexican Ice Cream Shops Booms
  • Carlos Santana Enters the Restaurant Biz
  • At Authenic Restaurants, Hispanics Should Be the Greeters
  • Mainstream American Restaurants Adjust Strategies
  • Better Targeting of the Hispanic Population
  • Spicing Up the Breakfast Menu …
  • … And the QSR Menu Too
  • The Sharing Nature of Pizza Appeals to Hispanic Families
  • ACON Investments Acquires Peter Piper
  • Pizza Chain Stirs Up Controversy by Accepting Pesos
  • Soft Drink Marketers Try to Help Chains Better Serve Hispanics
• Competitive Profile: Chipotle Mexican Grill, Inc.
• (Denver, CO)
  • Company Overview
  • Parting Ways with the Golden Arches
  • Chipotle Kicks Off 2007 with Flying Colors
  • Peppers and More … and Booze Too
  • Chipotle Becomes a Picky Pork Buyer
  • That Pickiness Carries Over to Sour Cream Selection
• Competitive Profile: Qdoba Restaurant Corp. (Wheat Ridge, CO)
  • Company Overview
  • So Much More Than Burritos
• Competitive Profile: Taco Bell Corp. (Irvine, CA)
  • Company Overview
  • Few Ingredients, But Many Unique Combinations
  • E. Coli Outbreak on the Northeast

Chapter 5 Foodservice

• Key Points
• Foodservice Continues to Grow
• Consumer and Menu Trends
• Full-Service and Quick-Service Operational Trends
• How Foodservice Establishments Get Their Wares
• Table 5-1 Top 10 U.S. Foodservice Distributors by Dollar Sales, 2006
• Many Places to Enjoy Hispanic Foods and Beverages
• Fast-food Outlets and QSRs Dominate
• Kiosks and Pushcarts Make Products Available Anywhere
• Vending Machines Big for Handheld Items
• C-Stores Are a Big Foodservice Venue for Hispanic Foods
• Foodservice Menu Items
• Beyond Taco Salad and Quesadillas
• Convenience: Delivery and Takeout
• Restaurant-Quality Mexican Cuisine Delivered to
• Customers' Homes
• At Restaurants, Takeout Takes Off
• The Tasty Handheld Torta
• Baseball, Apple Pie … and Tacos!
• Serving More Hispanics and Aging Boomers
• Hispanics Want “Their” Coffee Their Way

Chapter 6

• Key Points
• Retail Outlets
  • Shopping Options Are Plentiful
  • Where Are Consumers Shopping for Groceries?
  • Where Do Consumers Shop for Hispanic Foods and Beverages?
  • Figure 6-1 U.S. Retail Sales of Hispanic Foods and Beverages to the Total Population, by Outlet, 2007
  • Figure 6-2 U.S. Retail Sales of Hispanic Foods and Beverages to the Hispanic Population, by Outlet, 2007
  • Retailers Stocking More Hispanic Foods
  • Who Are the Leading Retailers?
  • Table 6-1 Top Five U.S. Supermarket Chains, by Dollar Sales and Number of Stores, 2007
  • Table 6-2 Top Five U.S. Discount-Style Food Store Chains, by Dollar Sales and Number of Stores, 2007
  • Banner Year for Leading Chains
  • Changes in the Competitive Landscape
  • A New Retail Player Is Entering the Scene

• Appealing to Hispanic Consumers
  • Tips to Help Retailers Reach Out to Hispanics
  • How Retailers are Appealing to Hispanic Shoppers
  • Wal-Mart
  • Texas-based Retailers
  • Other Regional Retailers
  • C-Stores Welcome Hispanics
  • Table 6-3 Top 15 Categories for Hispanic Shoppers at U.S. Convenience Stores, 2007
  • Unique Drugstore Concept Focuses on Hispanics
• Retail Prices
  • Table 6-4 U.S. Hispanic-Style Salty Snack Foods: Suggested Retail Price of Selected Brands, 2007
  • Table 6-5 U.S. Hispanic Sauces and Canned Tomatoes: Suggested Retail Price of Selected Brands, 2007
  • Table 6-5 (cont.) U.S. Hispanic Sauces and Canned Tomatoes: Suggested Retail Price of Selected Brands, 2007
  • Table 6-6 U.S. Tortillas: Suggested Retail Price of Selected Brands, 2007
  • Table 6-7 U.S. Taco Shells and Taco/Other Hispanic Meal Kits: Suggested Retail Price of Selected Brands, 2007
  • Table 6-8 U.S. Refried Beans and Hispanic Canned Vegetables: Suggested Retail Price of Selected Brands, 2007
  • Table 6-9 U.S. Hispanic Cheeses and Other Dairy Products: Suggested Retail Price of Selected Brands, 2007
  • Table 6-10 U.S. Frozen/Prepared Hispanic Meals and Handheld Foods: Suggested Retail Price of Selected Brands, 2007
  • Table 6-11 U.S. Non-alcoholic Hispanic Beverages: Suggested Retail Price of Selected Brands, 2007
  • Table 6-11(cont.) U.S. Non-alcoholic Hispanic Beverages: Suggested Retail Price of Selected Brands, 2007
  • Table 6-12 U.S. Hispanic Bakery Products: Suggested Retail Price of Selected Brands, 2007
  • Table 6-13 U.S. Hispanic-Style Rice and Rice Mixes: Suggested Retail Price of Selected Brands, 2007
  • Table 6-14 U.S. Hispanic Seasonings, Spices and Condiments: Suggested Retail Price of Selected Brands, 2007
  • The Club Store Price Advantage
  • Multi-Packs and Family-Size Products
  • Club Stores Offer the Most Savings
  • Table 6-15 U.S. Packaged Hispanic Foods and Beverages: Suggested Retail Price of Selected Brands and Club Store Price vs. Supermarket Price, 2007
  • Table 6-15 (cont.) U.S. Packaged Hispanic Foods and Beverages: Suggested Retail Price of Selected Brands and Club Store Price vs. Supermarket Price, 2007
• Distribution Methods
  • Direct-store Delivery
  • Warehouse Distribution
  • How Most Products Get to Their Destination
  • Table 6-16 Top 10 U.S. Grocery Wholesalers by Dollar Sales, 2006
  • Some Marketers Work Through Brokers
  • Distribution Is Second Highest Cost Next to Production
  • Electronic Data Aids in Restocking

Chapter 7 The Consumer

• Key Points
• Hispanic Consumers
  • Minority Population Tops 100 Million
  • Where Minorities Are the Majority
  • Hispanics the Largest, Fastest-Growing Minority Group
  • Table 7-1 Growth of Hispanic Population in the United States, 2005-2006
  • Where Most Hispanics Reside
  • And They Keep Growing
  • Figure 7-1 Projected U.S. Total Population and Hispanic Population Growth, 2005-2015
  • Hispanic Population Skews Young
  • Figure 7-2 Projected U.S. Total Population and Hispanic Population Growth by Age, 2005-2015
  • “Hispanic” Is Not All-Encompassing
  • National Origins Are Very Diverse, But Mexico Rules
  • Figure 7-3 U.S. Hispanic Population by Country of Origin, 2000
  • Who Are These “Other Hispanics?”
  • Many Places to Come From in Central and South America
  • Are Hispanics Undergoing the Melting Pot Experience?
  • Foreign-born vs. U.S.-born Hispanics
  • Once They Come Here, Where Do They Live?
  • Figure 7-4 Regional Distribution of U.S. Hispanic Population, 2000
  • Figure 7-5 Top 10 U.S. Cities with the Highest Percentage of Hispanics, 2000
  • Hispanic Purchasing Power
  • Hispanics: The Perfect Market
  • Understanding Hispanic Shoppers
  • Hispanics Spend on Family, Friends and Heritage
  • Unilever Conducts Groundbreaking Study
  • Hispanic Shoppers Are Planners
  • Grocery Shopping Patterns
  • Hispanics More Likely to Frequent Specialized Independent Stores
  • Brand Loyalty Diminishes As Hispanics Become Acculturated
  • Four Types of Hispanic Grocery Shoppers
  • Food and Taste Preferences
  • By Country of Origin
  • By Level of Acculturation
  • Special Dietary Needs
  • Latinos More Likely to Buy Organic
  • Marketing to Hispanic Consumers
  • Product Scanner to Track Hispanic Purchases
• Hispanic Food and Beverage Consumers
  • Latin Influence on Mainstream Consumers
  • Simmons Consumer Survey
  • Mexican Food Usage Levels
  • Table 7-2 Percentage of U.S. Adult Consumers Who Use Mexican Foods and Ingredients, by Product Type and Brand
  • Nationwide Usage Steady Over Time
  • Table 7-3 Percentage of U.S. Adult Consumers Who Use Mexican Foods and Ingredients by Product Type, 2003-2006
  • Northeast Usage Picks up in Some Categories
  • Table 7-4 Usage of Mexican Foods and Ingredients by U.S. Adult Consumers in the Northeast, by Product Type, 2004 vs. 2006
  • Kids and Pacific/Southwesterners Love Mexican Food
  • Table 7-5 Demographic Indicators Favoring Any Type or Brand of Mexican Food
  • Who Goes for Convenience?
  • Nacho Kits and Taco Dinner Kits
  • Table 7-6 Demographic Indicators Favoring Nacho Kits and Taco Dinner Kits
  • The Makings of a Taco Bar
  • Table 7-7 Demographic Indicators Favoring Taco Fixings: Shells, Sauce and Seasoning Mix
  • Prepared Foods: Burritos, Enchiladas, Tamales
  • Table 7-8 Demographic Indicators Favoring Mexican Prepared Foods: Burritos, Enchiladas and Tamales
  • Feeling the Heat in Condiments
  • Table 7-9 Demographic Indicators Favoring Mexican Condiments: Green Chilies, Jalapeños, Refried Beans and Salsa
  • Tortillas Becoming Quite Mainstream
  • Table 7-10 Demographic Indicators Favoring Tortillas: Corn vs. Flour
  • Some Brands Dominate Certain Parts of the Country
  • Table 7-11 Percentage of U.S. Adult Consumers Who Use Mexican Foods, by Brand and Region

Chapter 8 New Products and Trends

• Key Points
• What' s Driving New Products and Trends?
  • Growing Sophistication of Non-Hispanic Consumers
  • Latin Flavors Are Hot
  • Retailers
  • Manufacturers and Food Processors
  • Ingredient Suppliers
  • Times Are Changing, But Not for All
• New and Noteworthy Products
  • Mainstream Mexican Gets More Americanized … and Vice Versa
  • Figure 8-1 Taco Bell Home Originals Flavors Taco Shells
  • Figure 8-2 Taco Bell Home Originals Bowlz Meals
  • Figure 8-3 Sunshine Cheez-It Fiesta Crackers
  • Figure 8-4 Boca Breakfast Wraps Southwestern Flavor
  • Move Over Margaritaville
  • Figure 8-5 Coco Loto Coconut Juice Drink
  • Figure 8-6 Aguas Frescas Drink Concentrate
  • Figure 8-7 Caballo Negro Energy Drink
  • Figure 8-8 Uno Mas Energy Drinks
  • Figure 8-9 Tampico Energy Drink
  • Figure 8-10 Exto Energy Drink
  • Cooling Off with Big Names
  • Figure 8-11 Jarritos Frozen Beverage
  • Milking the Market with Meaningful Brands
  • Figure 8-12 LaLa Milk and Drinkable Yogurts
  • Figure 8-13 La Yogurt Sabor Latino
  • Figure 8-14 Goya Breyers Ice Cream and Frozen Novelties
  • On the Meaty Side of the Business
  • Going Organic in the Ethnic Aisle
  • Figure 8-15 La Preferida Organic Refried Beans
  • A Boost of Whole Grain
  • Figure 8-16 Snyder' s of Hanover MultiGrain Jalapeno Red Tortilla Strips
  • Figure 8-17 Dora the Explorer Cereal
  • Convenience “Para Su Casa”
  • Figure 8-18 Tambobamba Side Dishes and Meals
  • Frozen Foods
  • Figure 8-19 Goya Mexican Kitchen Taquitos
  • Figure 8-20 T.G.I. Friday' s Chicken Quesadillas
  • Just Add Water

Appendix Addresses of Selected Marketers