Cultural Demand
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Cultural Demand
by Pamela Accetta Smith
Processors respond to the burgeoning Hispanic dairy
market.
The Hispanic
population is making its presence known and influencing overall trends
throughout the food and beverage marketplace. To the point, the evolution
of this group represents a sea of change in the dairy industry.
Many processors are launching products
specifically targeted to Hispanics, from exotic fruit-flavored yogurts to
authentic Mexican cheeses. And it was only a matter of time —
Hispanics are among the largest per capita consumers of dairy products,
with California being the country’s leading producer and consumer of
Hispanic-style cheeses.
According to Siboney USA, a New York-based advertising agency,
70 percent of all U.S. Hispanics reside in six states, thus making them easier
to reach. Despite new growth in the Southeastern and Northwestern states, 31.1
percent of the U.S. Hispanics reside in California, 18.9 percent in Texas, 11.3
percent in New York and New Jersey, 7.6 percent in Florida, 4.3 percent in Illinois
and 26.8 percent in other states. Projected to reach 56 million by 2010, the
U.S. Hispanic population currently towers at 43.5 million (14.7 percent of total
U.S. population), the largest single multicultural segment in the United States.
In terms of retail activity, Siboney reports,
there is no single primary channel among Hispanics, unlike the general
market, in which supermarkets play a leading role. Compared to the general
market, convenience and mass outlets vie more closely with supermarkets
particularly for household commodity items. Supermarkets generate the
highest average per-occasion dollar spending among Hispanics.
In 2003, the growing Hispanic population in the United
States spent $675 billion in the marketplace, according to recent
statistics. That’s a projected growth rate of 12 percent annually
— more evidence this demographic continues to influence food
marketers. And processors are meeting the demand of this key audience with
new product introductions and marketing campaigns.
Marketing to Hispanics
Supporting the surge of new Hispanic dairy
products are marketing campaigns that increasingly target Hispanic
consumers — often developed with a cultural knowledge and
communicated through Spanish language outlets. Marketing campaigns often
are just as important as the products themselves when it comes to reaching
out to the Hispanic population.
In order to speak and be heard, processors must
communicate with its target market in their language through their preferred medium — whether that’s
print advertising, television, coupons or in-store point-of-purchase
displays. Answering the call, many companies have developed
Spanish-language — or at least bilingual — packaging,
advertising and promotional and educational materials.
A popular way in which processors are reaching
Hispanic consumers is through television. According to a recent report by
Chicago-based Information Resources Inc. (IRI), Hispanic TV is twice as
effective and three times more efficient than general market TV at driving
Hispanic sales.
The California Milk Processor Board (CMPB),
established in 1993 to make milk more competitive and increase milk
consumption in California, has long examined consumption and cooking habits
among Hispanic consumers. While the well-known “got milk?”
campaign has been licensed nationally since 1995, a separate
Spanish-language campaign has been running in California since 1994. The
National Milk Mustache “got milk?” campaign is jointly funded
by America’s milk processors and dairy farmers; The Milk Processor
Education Program (MilkPEP) in Washington, D.C.; and Dairy Management Inc.,
Chicago. The goal of the multi-faceted campaign is to educate consumers on
the benefits of milk and to raise milk consumption.
Historically, the CMPB has looked at ways to
capitalize on both new and authentic uses for fluid milk. Last year, for
example, the CMPB promoted licuados, a drink made from milk, ice and fresh
fruit, to foodservice operators and market owners throughout the state of
California, and published a guide to making and marketing different
varieties of this authentic Hispanic beverage. Part of the Hispanic
culture, licuados now have widespread popularity thanks to the
organization.
The CMPB has also created Spanish-oriented
advertising programs for nearly a decade and continues to use Spanish and
bilingual communications. MilkPEP, which picked up California’s
“got milk?” campaign several years ago, started
Spanish-language ads in 2001. Currently, MilkPEP is sponsoring ads through
Spanish-language print and television media in the country’s top
markets, along with other communications tools. According to a new study,
the ads earned the campaign unprecedented recognition among Hispanic
consumers.
In addition to utilizing fine marketing strategies,
manufacturers such as Rosa’s Original LLC, Cacique Inc., Tillamook
County Creamery Association, Marquez Brothers International Inc. and Kraft
Foods Inc. all produce dairy products specifically targeted to the Hispanic
population.
The Producers
Glenview, Ill.-based Rosa’s Original LLC is the
first company to commercially market horchata, a traditional milk-based
Hispanic beverage. Influenced by time-honored secret recipes containing
rice, cinnamon and vanilla, Rosa’s Original Horchata targets the
Latino market with tradition and convenience.
Available in select retail outlets in Atlanta; Chicago; Dallas;
Kansas City, Mo.; Madison, Wis.; Milwaukee; and New York City, the shelf-stable,
15-ounce resealable glass bottles brought horchata to the supermarket for the
first time. Described as a “fiesta in a bottle,” Rosa’s Original Horchata is
the first single-serve beverage of its kind available in the United States.
A natural antidote to the spices often found in Mexican and Asian cuisines,
the beverage is available in traditional cinnamon, melon and strawberry flavors.
Cacique Inc., La Puente, Calif., is one of the nation’s largest
Hispanic-style dairy products manufacturers. The company, founded by Gilbert
and Jennie de Cardenas, offers a wide array of Hispanic-style dairy products
coast to coast.Although the majority of Cacique’s consumers are Hispanic, the
company has become more popular with other cultures due to growing enthusiasm
for ethnic cooking. The company was founded when the de Cardenas family moved
to the West Coast and discovered there were few high-quality, authentic Hispanic
dairy products available.
Today, Cacique operates a 200,000-square-foot
state-of-the-art facility outside of Los Angeles. Although the
company’s main focus is cheese, it also offers other dairy products
such as cream and Hispanic-style drinkable yogurt.
Tillamook County Creamery Association, Tillamook, Ore., a
95-year old Oregon dairy cooperative owned and operated by nearly 145 dairy
families, markets its cheese products to the Latino population. “In fact, our
Monterey jack and pepper jack cheeses are particularly popular among Hispanics,”
says Kathy Holstad, marketing director. “Monterey jack seems to be the most
popular because it’s a cheese that works well in a lot of Latino dishes — it
is known for its creamy texture and uniform melting. Also, we’ve done quite
a bit of research and found that while the cheese used for cooking in many Latino
dishes is fairly mild, our pepper jack is also quite popular because it already
incorporates jalapeños, an ingredient often used in these dishes.”
In mid-2003, the company rolled out a new Latino
advertising and public relations campaign in the Los Angeles area
incorporating television, radio, outdoor (billboards, bus shelters and wild
postings), print, Internet and grassroots efforts that focus on family and
community — values that Tillamook and the Latino community
appreciate, says Holstad. “We are continuing this successful campaign
in Southern California and extending it to other markets this year as
well,” she says.
With the Latino population steadily increasing in areas throughout
the United States, Holstad believes the Hispanic-marketing trend will grow more
and more strong in the industry. “We believe there is a big growth opportunity
here — particularly with cheese — because traditional Hispanic meals tend to
incorporate quite a bit of it,” she says. “And when our cheese is used in these
recipes, it is very well received.”
Reportedly the largest Hispanic cheese manufacturer in
the United States, Marquez Brothers International Inc., is a family-owned corporation with affiliates in the United
States dedicated to the production and distribution of Mexican-style dairy
products, meat items and canned goods. In addition to its own distribution
network in the West and Midwest, Marquez Brothers has the support of major
distributors in all regions of the United States, Canada and Europe.
The company began producing Mexican-style cheese
in 1981 in a small plant in San Jose, Calif. Today, the company operates
from a state-of-the-art facility in the heart of California’s prime
dairyland. In December 1998, the company moved its international
headquarters and San Francisco Bay distribution center to a new location in
south San Jose. By early 2002, both Central and Southern California
divisions had moved into new facilities.
The company’s El Mexicano brand has fast
become a dairy market leader. In fact, the company says it takes pride in
producing the most authentic dairy products in the category. Manufactured
in the traditional way to maintain the appearance, flavor, texture and
packaging of Mexico, the company’s most popular dairy products
include El Mexicano Queso Fresco Casero — a soft white cheese easily crumbled by hand
that’s mild, slightly salty, most popular among Hispanics, and is
used for chile rellenos, enchiladas, tostadas or grated over Mexican foods;
El Mexicano Crema Mexicana & Crema Fresca
Casera — rich semi-sour and sweet
creams, respectively, used as toppings on hot Mexican foods, fruit or
desserts; El Mexicano Queso Cotija — a cheese made with whole milk and then aged
that’s dry, salty and used as a condiment, grated over food or
salads; and an authentic Mexican-style drinkable yogurt available in
regular and nonfat strawberry, mango, guava, guanabana and piña
colada flavors.
The El Mexicano brand is heavily advertised in Spanish language
media. Similarly, Marquez Brothers introduced English language television advertising
in 2000. The company has an entertainment division called Promociones Marquez
that produces events featuring some of the top Latin talent in the world. This
not only places the El Mexicano brand name in front of hundreds of thousands
of consumers, the company says on its Web site, but it unites the community
— Hispanics and all others who enjoy the cuisine, music and culture of Mexico.
Recognizing the rapid growth of the Hispanic cheese category, the company says
it is pleased to be a part of America’s growing interest in Mexican food products.
Northfield, Ill.-based Kraft Foods Inc. has enjoyed the successful
launch of its manchego cheese offering, introduced in late 2002. A popular semi-firm,
mild cheese known for its meltability, manchego originated in Spain and was
later brought to Mexico. Kraft Singles Manchego, sold in a 10.5-ounce package
with bilingual wording, is produced in the United States and marketed to Hispanic
consumers, primarily mothers and other gatekeepers. Available nationally, the
product was developed, says Kraft, with its Hispanic consumers in mind.
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