Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Hispanics can provide growth—even in high-penetration beverages
- Value and convenience determine Hispanics’ retail outlet choices for buying non-alcoholic beverages
- Diversity among Hispanics calls for local marketing strategies
- Acculturation and retro-acculturation—large factor in communicating with Hispanics
- Language remains a barrier between Hispanic consumers and marketers
- Hispanics present growth potential in fruit juice category
- Hispanics continue to drive growth in whole milk category
- Coffee remains the favorite hot beverage for Hispanics
- Hispanics—ideal target population for regular carbonated beverages
- Sports and energy drinks—the biggest growth potential from Hispanic consumers
- Hispanics continue to prefer imported beer over domestic beer
- Hispanic wine consumption differs greatly by demographics
- Targeting specific Hispanic demographics—key to increasing penetration
- Language can be a barrier to new product trials
Insights and Opportunities
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- Hispanics gravitate towards value shopping; price promotions play important role in building traffic in the beverage aisle
- What does a change in acculturation level mean for beverage marketers?
- Taking inspiration from products popular in Latino countries
- Non-alcoholic beverages
- Fruit and vegetable juices
- Milk, and milk flavorings
- Coffee and tea
- Alcoholic beverages
- Beer
- Other alcoholic beverages
Fast Forward Trends
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- Trend: Non-standard society
- Mexicans drink tequila; Cubans and Puerto Ricans don’t
- Getting specific with the country of birth
- Trend: Brand Name Game
- What does a brand name mean to Hispanics? Pride, nostalgia or flavor?
- Domestic brands take cues from foreign (Hispanic) brands
An Overview
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- The Hispanic population—the fastest-growing minority group; the growth in numbers presents an opportunity for the beverage market
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- Figure 1: Population, by race and Hispanic origin, 2003-13
- Age distribution among Hispanic population bodes well for future growth in the beverage market
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- Figure 2: Young adults aged 18-34, by Hispanic origin, 2003-13
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- Figure 3: Incidence of drinking sports and energy drinks, by ethnicity, May 2006-June 2007
Income
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- Low median income underscores the importance of price promotion and value beverage shopping
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- Figure 4: Labor force participation, by Hispanic origin, 2005
- Figure 5: Median household income, by race and Hispanic origin, 2006
- Due to the low household income, Hispanics are likely to gravitate towards value shopping
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- Figure 6: Choice of retail outlets to purchase beverages, January 2008
- This underscores the importance of price promotions to attract Hispanic consumers to the beverage aisle
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- Figure 7: Important considerations in purchasing non-alcoholic beverages, January 2008
- Hispanics have high collective purchasing power; reaching a larger base of consumers is crucial for growth
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- Figure 8: Hispanic disposable income, 1990-2012
- Expand consumer base to tap into collective purchasing power
- Hispanics exhibits higher growth in spending on non-alcoholic beverages, compared to non-Hispanics
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- Figure 9: Per capita expenditures on dairy, non-alcoholic beverages and alcoholic beverages, by Hispanic origin, 2005 and 2006
Country of Origin and Nativity
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- Figure 10: Hispanics, by country of origin/heritage, 2006
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- Figure 11: Consumption of wine by Hispanics, by heritage, May 2006-June 2007
- Nativity creates difference in beverage preferences and purchase behavior
- Native-born Hispanics are likely to mirror beverage preferences and purchase behavior close to the general population
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- Figure 12: Native-born/foreign-born Hispanics, by country of origin/heritage, 2006
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The Hispanic Household
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- Hispanics’ above-average households will help drive growth in non-alcoholic beverages
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- Figure 13: Households, by presence of children and Hispanic origin, 2006
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- Figure 5: Average household size, by Hispanic origin/race of householder, 2001 and 2006
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- Figure 14: Households, by number of persons in the household—Hispanics vs. non-Hispanics 2006
- Hispanic families shop together; harness children power to drive growth
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- Figure 15: Shopping companion preferences—Hispanics vs. non-Hispanics, May 2006-June 2007
Culture and Enculturation
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- Culture—an important aspect in marketing to Hispanics
- Enculturation, acculturation and retro-acculturation
- Length of residence in the U.S.—an important acculturation assessment metric
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- Figure 16: Personal incidence of drinking carbonated beverages and household incidence of drinking milk, by length of stay in the U.S., May 2006-June 2007
- Language—a key indicator in assessing the level of acculturation of Hispanics
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- Figure 17: Level of acculturation, by language, May 2006-June 2007
- Level of acculturation by region
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- Figure 18: Language Hispanics speak in the home, by U.S. region, May 2006-June 2007
Geographic Concentration
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- Five states account for 68% of the total Hispanic population
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- Figure 19: Hispanic population in top five states, by country of origin, 2006
- Hispanics tend to live in big communities; top ten markets can serve as launch pad for the new beverages
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- Figure 20: Metropolitan areas with the largest number of Hispanic residents, by country of origin, 2006
- Figure 21: Largest Hispanic Markets, by Hispanic disposable income, 2005
- Hispanic population by four major regions
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- Figure 22: Hispanic population in four regions, by country of origin, 2006
Innovation and Innovators
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- Fruit and vegetable juices
- Milk, and milk flavorings
- Coffee and tea
- Carbonated soft drinks
- Other non-alcoholic beverages
- Beer; new products imitate Hispanic taste palate
Advertising and Promotion
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- Heineken Premium light lager
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- Figure 23: Heineken Premium light lager, 2007
- Jose Cuervo Tequila
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- Figure 24: Jose Cuervo Tequila, 2007
- Smirnoff Ice
- Miller Lite
- Heineken
- Coca-Cola
The People: Non-alcoholic Beverages
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- Fruit and vegetable juices—Hispanic households have potential to drive growth in this segment
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- Figure 25: Household consumption of fruit and vegetable juice, by Hispanic origin, May 2006-June 2007
- Figure 26: Household consumption of fruit and vegetable juice by Hispanics, by language spoken at home, May 2006-June 2007
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- Figure 27: Household consumption of fruit and vegetable juice by Hispanics, by number of people in household, May 2006-June 2007
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- Figure 28: Household consumption of fruit and vegetable juice by Hispanics, by heritage, May 2006-June 2007
- Milk, and milk flavorings
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- Figure 29: Household consumption of milk, by Hispanic origin, May 2006-June 2007
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- Figure 30: Hispanic household consumption of milk, by nativity, May 2006-June 2007
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- Figure 31: Household consumption of milk by Hispanics, by language spoken at home, May 2006-June 2007
- Coffee and tea
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- Figure 32: Household consumption of coffee and tea, by Hispanic origin, May 2006-June 2007
- Figure 33: Household consumption of coffee and tea by Hispanics, by nativity, May 2006-June 2007
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- Figure 34: Household consumption of coffee and tea by Hispanics, by heritage, May 2006-June 2007
- Carbonated soft drinks
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- Figure 35: Individual consumption of carbonated soft drinks, by Hispanic origin, May 2005-June 2006
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- Figure 36: Individual consumption of carbonated soft drinks by Hispanics, by language spoken at home, May 2006-June 2007
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- Figure 37: Individual consumption of carbonated soft drinks, by heritage, May 2006-June 2007
- Other non-alcoholic beverages
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- Figure 38: Individual consumption of other non-alcoholic beverages, by Hispanic origin, May 2006-June 2007
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- Figure 39: Individual consumption of other non-alcoholic beverages by Hispanics, by nativity, May 2005-June 2006
The People: Attitudes and Motivation
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- Important product attributes and considerations in purchasing non-alcoholic beverages
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- Figure 40: Important product attributes and considerations in purchasing non-alcoholic beverages, by age, January 2008
- Influence of marketing and promotions on non-alcoholic beverage purchase
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- Figure 41: Influencers in non-alcoholic beverage purchase, by age, January 2008
- Supermarkets have opportunities to drive growth by increasing penetration
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- Figure 42: Choice of retail outlets to purchase beverages, by level of acculturation, January 2008
The People: Alcoholic Beverages
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- Beer
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- Figure 43: Incidence of personal beer consumption, by Hispanic origin, May 2006-June 2007
- Distilled spirits
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- Figure 44: Incidence of Hispanics’ consumption of distilled spirits and cordials/liqueurs, by heritage, May 2006-June 2007
- Figure 45: Consumption of distilled spirits and cordials/liqueurs by Hispanics, by income, May 2006-June 2007
- Wine
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- Figure 46: Consumption of wine, by Hispanic origin, May 2006-June 2007
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- Figure 47: Consumption of wine by Hispanics, by nativity, May 2006-June 2007
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- Figure 48: Consumption of wine by Hispanics, by heritage, May 2006-June 2007
- Other alcoholic beverages
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- Figure 49: Consumption of other alcoholic beverages by Hispanics, by nativity, May 2006-June 2007
Cluster Analysis
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- Cluster 1: TV watcher
- Cluster 2: Convenience store shopper
- Cluster 3: Hispanic store shopper
- Cluster distribution and demographics
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- Figure 50: Hispanics and beverages clusters, January 2008
- Figure 51: Hispanics and beverages clusters, by gender, January 2008
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- Figure 52: Hispanics and beverages clusters, by age, January 2008
- Figure 53: Hispanics and beverages clusters, by income, January 2008
- Methodology
Custom Consumer Groups
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- Traditional Hispanics may rely on family/friend recommendation; but packaging in English can deter sales
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- Figure 54: Influencers for trying a new non-alcoholic beverage, by level of acculturation, January 2008
- Important product attributes and considerations in purchasing non-alcoholic beverages
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- Figure 55: Important attribute considerations in purchasing non-alcoholic beverages, by level of acculturation, January 2008
- Spanish-speaking store associates and bilingual packaging crucial in garnering sales from un-acculturated Hispanics
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- Figure 56: Choice of retail outlets to purchase beverages, by level of acculturation, January 2008
Appendix: Other Useful Consumer Tables
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- Fruit and vegetable juices
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- Figure 57: Household consumption of fruit and vegetable juice by Hispanics, by presence of children in household, May 2005-June 2006
- Milk and milk flavorings
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- Figure 58: Household consumption of milk by Hispanics, by presence of children in household, May 2006-June 2007
- Coffee and tea
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- Figure 59: Household consumption of coffee and tea by Hispanics, by income, May 2006-June 2007
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- Figure 60: Household consumption of coffee and tea by Hispanics, by language spoken at home, May 2006-June 2007
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- Figure 61: Household consumption of coffee and tea by Hispanics, by presence of children, May 2006-June 2007
- Carbonated soft drinks
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- Figure 62: Individual consumption of carbonated soft drinks by Hispanics, by nativity, May 2006-June 2007
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- Figure 63: Individual consumption of carbonated soft drinks by Hispanics, by gender, May 2006-June 2007
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- Figure 64: Individual consumption of carbonated soft drinks by Hispanics, by income, May 2006-June 2007
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- Figure 65: Individual consumption of carbonated soft drinks by Hispanics, by presence of children in household, May 2006-June 2007
- Other non-alcoholic beverages
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- Figure 66: Individual consumption of other non-alcoholic beverages by Hispanics, by language spoken at home, May 2006-June 2007
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- Figure 68: Individual consumption of other non-alcoholic beverages by Hispanics, by gender, May 2006-June 2007
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- Figure 69: Individual consumption of other non-alcoholic beverages by Hispanics, by presence of children in household, May 2006-June 2007
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- Figure 70: Individual consumption of other non-alcoholic beverages by Hispanics, by region, May 2006-June 2007
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- Figure 71: Individual consumption of other non-alcoholic beverages by Hispanics, by age, May 2006-June 2007
- Alcoholic beverages
- Beer
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- Figure 72: Incidence of personal beer consumption by Hispanics, by nativity, May 2006-June 2007
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- Figure 73: Incidence of personal beer consumption by Hispanics, by language spoken at home, May 2006-June 2007
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- Figure 74: Incidence of personal beer consumption by Hispanics, by gender, May 2006-June 2007
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- Figure 75: Incidence of personal beer consumption by Hispanics, by income, May 2006-June 2007
- Distilled spirits
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- Figure 76: Consumption of distilled spirits and cordials/liqueurs, by Hispanic origin, May 2006-June 2007
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- Figure 77: Consumption of distilled spirits and cordials/liqueurs by Hispanics, by nativity, May 2006-June 2007
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- Figure 78: Consumption of distilled spirits and cordials/liqueurs by Hispanics, by language spoken at home, May 2006-June 2007
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- Figure 79: Consumption of distilled spirits and cordials/liqueurs by Hispanics, by gender, May 2006-June 2007
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- Figure 80: Consumption of distilled spirits and cordials/liqueurs by Hispanics, by age, May 2006-June 2007
- Wine
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- Figure 81: Consumption of wine by Hispanics, by gender, May 2006-June 2007
- Other alcoholic beverages
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- Figure 82: Consumption of other alcoholic beverages, by Hispanic origin, May 2006-June 2007
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- Figure 83: Consumption of other alcoholic beverages by Hispanics, by gender, May 2006-June 2007
Appendix: Trade Associations
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