Designing for the Hispanic Market

  "Marketers must understand that the three largest Hispanic groups are the Mexicans, Puerto Ricans and the Cubans, who comprise three-fourths of the total U.S. Hispanic population," says Morton Winsberg, a professor of geography at Florida State University in Tallahassee. "However, we also have to be aware of the 'other' Hispanic cultures who constitute one-fourth of the estimated $170-billion Hispanic consumer market."

  These "other" groups -- such as the Nicaraguans, Salvadorians, Peruvians and Colombians -- have been growing since 1970.

  As with the population in general, Hispanics tend to live in urban and coastal areas, and around large cities. By the year 2000, Hispanics will be the largest population group in Los Angeles (surpassing even the non-Hispanic whites) and will constitute the largest ethnic group in New York City. Designing products for the Hispanics in these regions requires awareness of the Hispanic segments there.

  Companies interested in serving the Hispanic population must be aware that while some foods and flavors have mass appeal through the Hispanic market, each country of origin can form a visible and desirable target market.

  Goya Foods, the largest Hispanic-owned company in U.S. provides products and basic flavorings that appeal to the mass Hispanic cultures. "Certain foods and ingredients cross over with each Hispanic group even though each group has certain preferences and cooking styles," says Joe Perez, vice president of purchasing. "For example, fruit nectars containing guanabana, pineapple and mango are enjoyed by all Hispanics from Mexico, Caribbean, Central and South America."

  Seasonings such as achiote, sazon and sofrito add traditional flavor and color to foods from many Hispanic regions. Basic flavorings that are enjoyed by all segments of the Hispanic group have variations based on heat, spiciness, pungency, sourness, sweetness, color or texture. Sofritos, which are used to flavor beans, rice, fish and stews, vary in flavor depending upon which region they come from. The Spanish sofrito is sweet with tomatoes, the Puerto Rican is pungent with culantro, the Yucatan is peppery with habañero peppers, and the Cuban one is mild with parsley. Goya Foods markets a basic sofrito of chopped onions, garlic, tomato and green bell peppers, and customers in each Hispanic segment can add any ingredient they prefer.

  "A traditional recipe for a particular Hispanic segment is researched through travel, cookbooks, special holidays and how they are celebrated," says Perez.

  The preparation of corn flour varies in Hispanic countries depending on the end product. In Mexico, it is put through a lime bath to prepare masa harina, which contributes unique flavors and textures to tortillas. In Venezuela, it is precooked through a special process to yield harina pan, which gives different texture and mouthfeel for arepas.

  Don Miguel Mexican Foods Inc. (Anaheim, CA), marketer of authentic Mexican prepared foods, makes its flour tortillas from a special recipe in order to prepare the "traditional" and "fajita"-style floor tortillas for its burritos and fajitas.

  "Not all Hispanic foods taste hot," says Leslie Medina, a home economist consultant of Cuban background. "Cuban, Puerto Rican, and the Dominican Republic use more seasonings consisting of oregano, tomato, garlic and black pepper rather than chilies to flavor their foods." Chilies, if used at all, are very mild.

  "Oaxaca region, influenced by a culturally diverse population, has the most diverse cuisine of Mexico," says Zarela Martinez. Born and raised in northern Mexico, Martinez is the chef/owner of Zarela restaurant in New York City. "They have their unique moles, which vary in color, flavor and texture, and not all of them contain chocolate."

  Mexican food (confused sometimes with Tex-Mex food) has been one of the most popular ethnic foods for the last 10 to 15 years. Now we are looking into the "authenticity" of regional Mexican foods, which differ in their flavors and beat levels. In northern Mexico the food is milder, but as you go down south, toward Oaxaca and the Yucatan regions, spicier and hotter foods predominate, with influence of the Caribbeans and the Mexican Mayans.

  Beans, legumes or pulses -- with different flavors and colors -- are marketed based on the eating preferences of the different Hispanic cultures. They are also called by different names: frijoles by Cubans, and habichuelas by Puerto Ricans. Goya markets 34 different varieties of dried and canned beans for the different Hispanic segments in United States, the Caribbean, Central and South America, and Spain. Traditionally, Hispanics have used beans as snacks, dips and sauces; with rice; in stews; fried or pickled. Black beans are typically eaten by Cubans, southern Mexicans from Oaxaca and Yucatan regions, and Venezuelans; pinto beans by Northern Mexicans, Dominicans and Puerto Ricans; red kidney beans by Cubans and Caribbeans; and black-eyed peas by Puerto Ricans and Caribbeans.

  It is important to note that the U.S. Hispanic market is not static, nor are all Hispanic customers interested only in foods from their country of origin.

  For example, generational differences and adaptation to "newer" cultures must be considered when developing Hispanic foods. The first generation has eating patterns and buying behaviors that are different from the second, third and later generations who have adjusted to a new culture and language. This is where fusion blends present a challenge for the food and beverage industries, creating unique products for Hispanic consumers who desire a "taste of home" along with American cooking styles or flavors.

  "Goya Foods has products that preserve the traditional savor of the regional Hispanic favorites for mainstream Hispanics. And, to challenge the Hispanics of the next generation, an added factor such as convenience in preparation will be important," says Perez.

  It is also important to recognize that the increased diversity in the United States is making Hispanic ingredients, spices and foods such as nopalitos, canela, achiote, tostones, mojos, chayote, tamarind, and yucca readily available to the mainstream American consumer. 'Thus, we see not only an increased demand for authentic regional Hispanic foods, but also fusion foods, which combine Hispanic flavors with other traditional flavors or preparation styles. This creates varied, flavorful and healthy foods for the mainstream American consumer and the emerging mainstream Hispanic consumer.

  The boom in salsas may bring more authentic and fusion-type salsas that use ingredients from Hispanic and other cultures. These sweet, spicy-hot tangy sauces vary by region, whether they are served fresh (uncooked) or cooked, with tomatoes, spices, chilies or avocados. Chimichurri in Argentina, salsa de aji in Peru, pico de gallo nortena in Mexico, pebre in Chile or salsa Criollo in Puerto Rico all vary depending on the ingredients and spices used in the salsa or the cooking and preparation techniques involved. Similarly, empanadas, pasteles or saltenas -- used as snacks in all of Latin America -- vary in flavor based on the type of pastry, fillings and condiments they are served with or the preparation techniques involved.

  In order to develop and market products that will meet consumers' changing tastes, we must look at the differences between and within the Major Hispanic groups, such as Mexicans, Cubans and Puerto Ricans, and at the "other' Central and South American, and Caribbean Hispanic groups. We must look harder and closer at specific consumer tastes. By investing time and money in marketing strategies and product development efforts geared to the creation of foods for specific ethnic groups, we can compete successfully in the local and global marketplace, thereby yielding major profits tomorrow.

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