Friday, September 6, 2013

US Hispanics and Consumer Product Innovation

We are seeing increasing business media coverage on the US Hispanic segment.  The Financial Times recent article on US Hispanics focuses on how leading consumer packaged goods companies are innovating to better serve the needs of this increasingly important consumer segment.  Brands from the home country must innovate to stay in sync with both the evolution of US Hispanics and remain competitive at the retail shelf.

From FT:
"Nestl√© began importing Abuelita hot chocolate and La Lechera condensed milk to the US from Mexico in the 1990s. However, Carlos Velasco, president of its international brands division, says it also has to develop new innovations to keep the brands relevant to “acculturated” Mexican-Americans as well as non-Hispanics."

"It offers Abuelita as a quick-stir powder for busy consumers who do not have time to use its traditional chocolate tablet, which can take up to 15 minutes to make a drink. Under the La Lechera name, it is now selling baking kits for Mexican-style cheesecakes.

And as developing economies slow down businesses are now realizing the opportunities of one of the most dynamic emerging markets, right here in the USA.

"But as economic growth in the developing world slows, companies are becoming more eager to win extra business from the group (US Hispanics), which some see as an emerging market within the world’s biggest economy."

Link to FT article here.

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