HISPANIC MARKET SPECIALIZATION
STAR Brokerage – Texas #1 Hispanic Broker
We are Texas #1 Hispanic food broker – the trusted source for marketing Hispanic brands and accurately targeting Hispanic consumers in the retail grocery industry. Since 1991, our regional market expertise, customer knowledge, and client experience has allowed both, manufacturers and retail customers become better marketing partners in achieving mutually beneficial outcomes in CPG Hispanic brand development.
Interestingly, our Hispanic market specialization began when the marketplace perception was this consumer segment was only a small niche; investing resources was an option. Today, in the south-central trade market region, involving the Hispanic consumer in your go-to-market strategy is a requirement, whether your the retailer or the supplier. Several industry sources as well as our own data shows that greatest top line volume growth for CPGs comes from tapping into the Hispanic segment.
TX Hispanic Population Data & Projections
It’s no secret that the Hispanic consumer segment is increasingly the target demographic of CPG foods brands and retailers, especially in Texas – where Hispanics make up 40% of the total population.
- Texas’ largest metro trade markets including: Houston, Dallas, San Antonio, and Austin represent 30% plus.
- Houston is the 4th largest city in the United States – 2013 population of 6.5 million with 37% of Hispanic origin and 78% of Mexican origin. (Source: Geoscape American Marketscape DataStream 2013.)
- By 2020, the Texas Hispanic population will outnumber all other groups due to the exponential growth rates. Between 2000-2040, the Texas’ Hispanic population will triple in urban areas, from 5.9 to 17.2 million. In rural areas, its expected to double, from 777,000 to 1.6 million (US 2010 Census).
Hispanic CPG Brand Development
We connect manufacturers, food suppliers, and importing distributors to customers that sell to the Hispanic end consumer. Access the latest marketplace trends, Hispanic consumer insights, and tap into the Hispanic focused customer network. Trough extensive customer profiling coupled with trade market demographic data, we accurately build the marketing and merchandising strategies that work. We provide a full-service go-to-market solution with a Hispanic market specialization, direct-to-consumer advertising, and a Hispanic dedicated retail merchandising department, the only one in Texas.
CPG Market Trends
Our Hispanic CPG portfolio represents all categories within the grocery store. Categories heavily indexed for Hispanic consumers as follows: canned beans, canned jalapenos, dry beans, rice, candy, Hispanic flavored beverages, seasonings, and spices. We have found Mexican heritage center store categories are the most competitive due to the aggressive promotional prices driven by the abundance of new products launched into the marketplace.
Growth for the Hispanic segment occurs in the following scenarios:
• CPGs market mainstream products to Hispanic consumers with culturally relevant packaging and marketing. In this space, really understanding culture, values, and attitudes is critical. For example, embracing community, families, and education is typically important. Household size is larger, the population is younger, and Hispanics index to eat at home more often. One way we help you is to break down the consumer segments into clusters based on language preference and acculturation.
• CPGs rollout Hispanic inspired product lines and enhance flavors. In many mainstream categories, Hispanic brands outsell the American staple. Tortillas outsell bread – hot sauce outsells ketchup. For example, we recently expanded the product mix for client- Jolly Time launching Jalapeño Butter Popcorn into the market.
• Import and Hispanic CPGs market brands to the general market consumer. Due to vast impact of the Hispanic culture in our region, Hispanic cuisine (ranging from Tex-Mex, to traditional Mexican, and Latin fusion inspired) have become daily staples, causing the preference for culturally authentic flavors to explode. Foodie culture in urban metro areas has multiplied the demand. For example, we helped a client change its product position within the store. We found that import distributor, Market 5201 sells more of their Zaaschila salsa brand in upscale retail formats targeting the affluent consumer segment.
•Import and Hispanic CPGs market brands for the Hispanic consumer. The largest percentage of sales in Hispanic CPG industry is in the Mexican category. Hispanic consumers choose brands they recognize and relate to, such as Klass Time, La Costeña, and Jumex. Leverage our influence and extensive portfolio in this category.
Grocery Retailers Hispanic Marketing
In the country’s south-central region, our customer relationships with buyers for Hispanic departments at the retail and wholesale headquarters go unrivaled, due primarily to years of productive and profitable outcomes. We work with Hispanic focused retailers: traditional supermarkets to value-oriented warehouse formats and neighborhood meat markets. We help retailers specially design their stores to become the preferred shopping location, expanding their product mix, etc.
Retail customer, La Michoacána, one of the fastest growing retailers in U.S. is a strategic marketing partner in Hispanic brand development. Working directly with lead buyer, Alex Cisneros, we have supported him to develop a successful line of Hispanic private label products, serving as the key link to the suppliers. We help CPG navigate the entire process involving the presentation, logistics, pricing, consumer insights, negotiation, and on-going trade promotion and merchandising management, thereafter.
Currently, Hispanic brand development distribution opportunities are available in the new Hispanic market frontier including: Oklahoma, Missouri, Tennessee. We are the key marketing partners working with wholesalers and retail customers, helping them expand Hispanic CPG categories – all in effort to remain competitive and maximize sales potential by meeting the needs and wants of their new consumer.