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features First-of-Its-Kind Craft Beverage Industry Trade Show Debuting in May 2014 in San Jose, Calif. Craft Beverage Expo, a comprehensive trade show and conference designed to help participants across all segments of the growing craft beer, wine and spirits industry, is launching at the San Jose Convention Center, May 6-8, 2014. Organizers of the Expo will bring together the entire craft beverage industry to look at best practices from all vertical beverage markets. The forum will also provide attendees a unique opportunity to exchange ideas, fostering a community of collaboration based on common goals and a shared commitment to quality over quantity. The multi-billion dollar craft beverage industry, which is comprised of boutique wineries, craft breweries, craft distilleries and other producers of small batch handmade alcoholic beverages, had not previ- ously been served collectively by a trade show or association. "We want to give a voice to the craft beverage producers whose needs are very different from traditional large-scale producers," said Kellie Shevlin, Executive Director of Craft Beverage Expo. "Our mission is to help producers in each market segment find solutions tailored to the size and scope of their operation. Craft Beverage Expo will provide the access they need to distributors and vendors that want to work with smaller beverage producers." "Because craft producers cannot compete on price or scale, competition for distribution is a constant struggle," said Michael Kaiser, Director of Communications for WineAmerica. "Craft Beverage Expo can help fill a void by providing valuable ways for many of the smaller producers to stand out, create a compelling marketing package and get products in front of consumers." Organizers say changes in governmental regulations have now allowed for more craft beverage producers to enter the marketplace, making the need for Craft Beverage Expo even more important. "This is an exciting time for our industry because small producers just starting out and many others who are crossing over into other segments will be provided with a variety of avenues and solutions to stay competitive and gain access to new markets," said Scott Harris, Founder, Catoctin Creek Distillery. "Craft Beverage Expo is the only event that I'm aware of that unites all segments of our industry at one time in one place," said Tom McCormick, Executive Director, California Craft Brewers Association. "It's a tremendous opportunity for craft beer, wine and spirits producers to get the tools and education they need—especially on the business, sales and marketing end—to compete effectively in the marketplace and be successful." Craft Beverage Expo was created to be the leading trade and conference exposition event for the entire craft beverage industry, with the primary goal of creating and defining a cohesive craft beer, wine and spirits market. As the premier show for the industry, Craft Beverage Expo will offer education, marketing strategies and turnkey solutions to problems facing craft beverage producers today. For more information, visit www.craftbeverageexpo.com. n Younger Americans, Households with Children Fueling Growth in Market for Ethnic Foods Young Americans and those with children like to spice things up in the kitchen. This is according to a study on the U.S. ethnic foods market conducted by market research company Mintel. According to the study, nine in ten adults between the ages 25 and 34 say they prepared ethnic food at home in the past month. This compares to just 68 percent of those aged over 65 who claimed to have done so. In addition, 91 percent of Americans with children under the age of 18 in the home cooked ethnic food compared to 78 percent of those without children. "The ethnic food category has had a very strong performance during the recession, followed by a still positive but slightly lower growth trend, likely driven by a return to restaurants. However, the category is forecast to grow in the future due to its heightened popularity," said John N. Frank, Category Manager of Consumer Packaged Goods Food & Drink at Mintel. "As Americans, especially younger people, have palates that are becoming more adventurous and sophisticated, they are also eager to explore lesser-known cuisines with unique flavor combinations." The ethnic food category experienced solid yearly sales performance, especially during the recession, with an overall growth of 12 percent from 2007 to 2009. This performance was likely driven by the migration from restaurant eating to in- creased food store purchases for at-home dining that precipitated from restricted budgets. However, starting in 2010, sales have increased by only 4.5 percent from 2010 to 2012. This is a much lower rate than what was seen previously during the recession. Nevertheless, according to Mintel, the ethnic food market is forecast to grow by 20.3 percent from 2012 to 2017, likely to be driven by continued consumer interest and more focused product development in this food category. While households with children continue to over-index on consumption of all types of ethnic foods prepared at home, Hispanic food is the most popular, with 72 percent of respondents from households with children preparing this cuisine at home in the past month. This compares to only 50 percent of those without children. In addition, Hispanic food is the most popular with all home cooks, as 58 percent say they prepared it within the last month versus 55 percent who whipped up Italian fare and 44 percent who cooked Asian food. "The popularity of Hispanic food is likely due to how mainstream it has become in the U.S. and the ease and convenience of preparing it," said Frank. "The endless supply of Mexican, Cuban and other Hispanic-based restaurants have given home cooks infinite possibilities for recreating these restaurant-style meals at home." n Global Consumers More Likely to Buy New Products from Familiar Brands According to a new study by global market research firm Nielsen, sixty percent of consumers surveyed prefer to buy new products from a familiar brand rather than switch to a new brand. The Nielsen Global Survey of New Product Purchase Sentiment surveyed more than 29,000 Internet respondents in 58 countries, revealing that brand familiarity is one of several key characteristics that resonate strongly with consumers worldwide. "Innovating on established brands that are already trusted by consumers can be a powerful strategy," said Rob Wengel, Senior Vice President for Nielsen Innovation Analytics. "Companies spend millions of dollars on new product innovation, yet two out of every three new products will not be on the market within three years. Marketers and retailers can deliver successful new products by ensuring they uncover unmet consumer needs, communicate with clarity, deliver distinct product innovations and execute an optimal marketing strategy." Half of all respondents to the Nielsen survey said they are generally willing to consider a new product purchase, with respondents in North America and the Middle East/Africa most enthusiastic about making a switch. In addition, the survey shows that proof-of-concept makes a difference for prospective consumers. Twothirds of respondents stated that they will wait until a new innovation has proven itself before considering purchase. "Consumers are enthusiastic about adopting new product innovations but somewhat apprehensive about embracing new brands," said Wengel. "In order for consumers to adopt new brands, marketers need to launch very strong awareness and trial-building campaigns, supported by a positive product experience. Generating positive word-of-mouth endorsements are important, because negative experiences can significantly diminish the likelihood of new product success." Economic factors also play a role in purchase decisions, as 45 percent of global respondents report that challenging economic conditions make them less likely to try a new product. Meanwhile, four in ten respondents indicate a willingness to pay a premium price for a new product. Finally, Nielsen's survey shows that distinctions exist with regard to preferences for local and global brands. Forty percent of global respondents say they are partial toward local options, with North Americans most in favor of local brands (47 percent). Asia-Pacific respondents are less likely to make a local purchase. More than one-quarter (26 percent) say they do not prefer to buy local brands over large global brands. "There is no one-size-fits-all approach to successfully developing and marketing a compelling new product," said Wengel. "By focusing on unmet needs, creating a distinct solution, and developing a marketready offer, marketers and manufacturers will create the best opportunity to ensure their product delivers on core demand insight and is ultimately adopted by consumers. However, ensuring consumers are aware of the product and can find it on store shelves is just as critical as coming up with that winning new product idea." For more information on Nielsen and the Global Survey of New Product Purchase Sentiment, visit www.nielsen.com. n May/June 2013 C onvenienceRETAILER 9

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