Issue link: http://osercommunicationsgroup.uberflip.com/i/694818
P r o d u ce S h o w D a i l y Tu e s d a y, Ju n e 2 1 , 2 0 1 6 6 UNDERSTANDING THE HISPANIC CONSUMER By Albert Rodriguez, Senior Vice President of Operations, Nogales Produce Inc. Today's grocery industry understands the statistical trends of the ever-growing Hispanic consumer market, but many establishments from the mom and pop stores to national retail chains, although they may get a passing grade for appreci- ating the scientific statistical data, still struggle to understand the art of actually connecting with Hispanic customers. The Science of the Numbers The Hispanic population remains the fastest-growing demographic in the U.S. and is expected to increase from 17 per- cent of the population to 26 percent by 2050, according to the Pew Research Center, a preeminent public policy and research organization. With that popula- tion growth there is a surging undercur- rent of Hispanic buying power. Hispanics in the U.S. are an eco- nomic powerhouse. According to a Nielsen study, the buying power of the U.S. Hispanic market was $1.3 trillion in 2014 and reached $1.5 trillion in 2015. There has been a gain of 155 percent since 2000. By 2019, the Selig Center for Economic Growth estimates that Hispanics will account for 10.6 percent of total U.S. buying power. The Art of Understanding They say that science and numbers don't lie. So why are businesses – especially in the grocery industry – still challenged to truly understand and properly market to the Hispanic consumer? As the Senior Vice President of Operations for Nogales Produce, a leading nationwide distributor of Mexican produce, Hispanic grocery dry goods and restaurant supplies, as well as a leading consultancy specializing in connecting businesses with the Hispanic market, I have learned that when it comes to the art of connecting with the Hispanic market, the grocery industry and all businesses must look through a cultural lens to understand Hispanic con- sumers' needs. For instance, a 2014 Nielsen study found that Hispanics place a high value on fresh foods. It also revealed that Hispanics spend on the average $175 more than the national average on fresh foods per year. Why fresh foods? According to the study, Hispanics found fresh foods to be an indicator of quality and health. A 2013 study conducted by the NDP Group, a leading global marketing information and advisory services firm, found that Hispanics in the U.S. are more likely to purchase groceries, dairy items and bread from c-stores than non- Hispanics. The study also revealed that U.S. Hispanics, on average, make almost two more visits per month than non-Hispanics to major chain conven- ience stores. The NDP study also cor- roborated the Nielsen study regarding the Hispanic consumers' desire for fresh food. Connecting with the Hispanic Consumer Market: A True Art Form Businesses have to become better at the art of truly understanding the Hispanic consumers' culture which helps define their buying habits. Even the big guys still get it wrong. CNN Latino, the network's Spanish language programming ven- ture, failed. NBCLatino.com shut down. They did not fold because CNN and NBC did not understand the num- bers. They failed because on some level they couldn't connect with the Hispanic market. In order to succeed in connecting with the Hispanic con- sumer, businesses have to look closely through a cultural lens with precise accuracy to truly understand their cus- tomers' needs. At Nogales Produce, we know how important it is to turn that into an art form. Visit Nogales Produce in booth #1354. For more information, call 214.275.3550, email albert.rodriguez@nogalesproduce.com or visit www.nogalesproduce.com. GROW YOUR FLORAL SALES INSIDE AND OUT Supermarkets are growing their business in more ways than one. OutFront Portable Solutions, a North American leader in pop-up garden centers with the popular slogan "Think outside the store," can also help you with your indoor floral needs. The outdoor garden centers known as "pop-ups" have become a seasonal extension of the store for many progres- sive supermarket chains and independ- ents alike. In addition, many are now enjoying supplemental sales by fitting small and medium sized floral fixtures inside the store. OutFront Indoors There are different shapes and sizes to suit most any location, and stores are finding that floral can be an excellent impulse buy. A small bouquet stand near the entrance allows shoppers to grab a bouquet and add it to the cart without going out of their way. There are end aisle options that can do very well, espe- cially in the spring. Don't think all floral fixtures are too big for indoors. OutFront offers a number of small and niche fix- tures that can be located just about any- where. OutFront Outdoors For a low investment, stores are realizing high returns. A good rule of thumb: three months of garden center sales equals 12 months of indoor floral sales. A garden center creates a new opportunity for the store to service its customers, reach a broader customer base and prevent them from going to a competitor. OutFront Portable Solutions' products and services are used across North America by more than 1,000 garden centers, ranging from national grocery chains, department stores, DIY big box, mass merchants and many local, regional and independent retailers. With almost 20 years of experience helping clients achieve their goals, the company has acquired a sound and proven knowledge base of what works and the expertise to help make it hap- pen. Don't have the room for a full gar- den center? No problem. You can still capitalize on floral profits. OutFront sells stand- alone fixtures for the store- front and related areas that will allow you to boost sales without a lot of effort. Can't leave product outside at night? No worries. Many of the designs are on wheels to allow you to easily bring them in at night. Worried about buying seasonal fixtures? Many of OutFront's designs can be utilized throughout the year for non-floral merchandise. With manufacturing facilities in both Buffalo, New York and an hour away in Beamsville, Ontario, Canada, OutFront Portable Solutions services its customer base across North America. To learn more, visit booth #2620 at the FMI. LACERTA OFFERS UNIQUE PACKAGING An interview with Ali Lotfi, President and Co-owner, Lacerta Group, Inc. PSD: Tell our readers about Lacerta. AL: We are a family-owned business, started over 20 years ago. We have two facilities: one in Massachusetts with design, mold-making and thermoforming capabilities, and one in Mexico with ther- moforming and injection molding capa- bilities. We manufacture packaging for a variety of industries, with a focus on food. PSD: What would you say makes your business unique? AL: Our ability to get our customers to market much faster than our com- petitors, with a lower capital invest- ment. Customers are often surprised at how quickly we can get their prod- uct to shelves. Customer service is core to our culture, our flexibility and ease of doing business, and makes us unique. PSD: Are you introducing any new prod- ucts? AL: We are expanding our new tamper- evident line, Fresh n' Sealed. We are introducing smaller sizes from 1.5 to eight ounces, multi-compartment con- tainers, and direct print on the packages (e.g. logo, labels and other graphics). We are also introducing a two-piece tamper- evident produce tray with multiple com- partments for cut produce; it is the per- fect party platter for any event. PSD: What products do you see as being hottest this year? AL: We have a tamper-evident two- compartment container that I think people will really love. It has two 12-ounce compartments that are per- fect for offering two types of fruits or veggies; it's a unique package and offers consumers variety. We also have tamper-evident round bowls that can display face- up or on its side to create multiple options for merchandising. PSD: How do you adapt your products to your customers' needs? AL: There are many ways. Sometimes we have a stock container a customer loves but needs a different capacity or lid. We are able to design a new pack- age to fit the product and our cus- tomer's needs. Also, because we work with a wide range of materials, we can provide our customers many options to fit the application and the price point they need. PSD: How do you see your company's future in terms of econo- my, sales, technology and product evolution? AL: In terms of growth, we are expecting double- digit growth for the next three to five years. We plan to continue investing in technology, with automa- tion to improve efficiency and capabilities and to maintain our speed to market and flexibility. We are going to continue to develop packages that differentiate our customers' products and meet the needs of the market. PSD: What will be your greatest chal- lenges in the industry? AL: Maintaining our flexibility and understanding our customers' needs and the different trends in the market. Also, building our infrastructure so we can maintain our growth. For more information, go to www.lacerta .com or call 508.339.3312.