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LATINO LOYALTY

As store manager of an H.E. Butt Grocery unit in Houston, Robert Puente knows how difficult it is to get Hispanics to try a new food or beverage.He sees first-hand how most of the nation's largest minority group stick to brands they've bought for years. So when a new product is introduced, Puente is a big supporter of in-store sampling."Once you get Hispanics to see, smell and taste a new product,

As store manager of an H.E. Butt Grocery unit in Houston, Robert Puente knows how difficult it is to get Hispanics to try a new food or beverage.

He sees first-hand how most of the nation's largest minority group stick to brands they've bought for years. So when a new product is introduced, Puente is a big supporter of in-store sampling.

"Once you get Hispanics to see, smell and taste a new product, they're much more receptive to it," Puente told SN.

It's well worth the effort for retailers to cater to the country's largest minority group through sampling. By the year 2020, Hispanics are projected to exceed 60 million.

Likewise, their buying is predicted to soar from $686 billion in 2004 to $992 billion in 2009, according to the Selig Center for Economic Growth, University of Georgia, Athens.

This has big implications for supermarkets because, despite their lower average income levels, Hispanic households spend 20% more on in-home foods than non-Hispanic households, according to the Food Marketing Institute's 2005 "El Mercado" study on U.S. Hispanic shopping behaviors.

Sampling is a valuable promotional tool because Hispanics typically don't stray far from brands sold in their countries of origin, said Boris Rabinovici, executive director, Rabinovici & Associates, Miami, an advertising and marketing firm.

"Most Hispanics are tied to the brands they know," he said.

Sampling is a way to reach Hispanics because they are risk-adverse, said Noemi Ricalo, vice president, Panavista, Dallas. Panavista is the Hispanic division of Ryan Partnership, Wilton, Conn., a marketing services firm.

"Hispanics don't want to waste money on something unless they feel assured the product is superior to the one they already buy," Ricalo said.

Conversely, if they like a food or beverage, they don't mind paying more for it. Nelson Tarke, national sales director, Badia Spices, Miami, said Hispanics are unique in that they're less price-sensitive than the general population.

"Hispanics don't care about the cost. If they like something, they'll buy it and become loyal to it," he said.

Indeed, every time a product is sampled, sales exceed expectations, Puente of H-E-B said. About 45% of his store's shoppers are Hispanic.

Puente's store and other H-E-Bs are currently sampling Mojo marinade from Badia Spices. Mojo is a citrus-based marinade used for chicken, pork and beef.

The demos are conducted in the front of the store, near a Wall of Values, where the marinade is sold at two for $3. They involve samples of marinated meat so customers can taste the mojo for themselves.

"Once they try it, most Hispanics will buy it," Puente said.

Sampling is playing a major roll in the launch of Unilever U.S.A.'s new Knorr bouillon cubes with 25% less sodium.

As part of a Hispanic Heritage Month promotion, the bouillon is being sampled in chicken, rice and other dishes.

While Hispanics recognize the Knorr brand and are aware that they should reduce their sodium intake, sampling is key because many Hispanics won't buy a product based simply because it's healthier. Rather, they need to be assured that it tastes good.

"Yes, Hispanics are concerned about health issues, but they're not willing to sacrifice taste for health," said Ricardo Martinez, director, multicultural marketing, Unilever U.S.A., Englewood Cliffs, N.J.

As an incentive, consumers who sample the bouillon get a free 35 millimeter camera if they buy at least three Unilever brands. Unilever chose a camera as the premium because it ties in with the company's mission of adding "vitality to life."

Along with in-store events, Unilever is sampling at community events, such as festivals, fairs and Hispanic-oriented celebrations like Cinco De Mayo.

Unilever has other initiatives in place to help it better reach Hispanics. Bilingual packaging is one.

The effort so far targets key brands that over-index with Hispanics, including Hellmann's, Ragu and Country Crock. New bilingual packaging will roll out in the next 12 to 18 months, according to Martinez. In addition to product packaging, Unilever also uses bilingual personnel, signage and coupons.

"Everything we do is bilingual so that we don't alienate anyone," he said.

Caroline Cotten Nakken, president and chief executive officer, Mass Connections, Cerritos, Calif., a provider of retail-marketing services and promotions, also stressed the importance of using bilingual personnel and promotional materials.

"What good is a coupon if they can't read it," Cotten Nakken said. Hispanic sampling currently accounts for 20% of Mass Connection's business, up from about 5% a year ago.

Along with bilingual promotional materials, consumer product firms are beefing up Hispanic marketing by teaming with non-competing brands and showcasing meal solutions. The goal of this is to reach out to the growing number of Hispanics who still do most cooking from scratch, but are nevertheless looking for shortcuts in the kitchen.

Likewise, many foreign-born Hispanics are eager to prepare American food that their children have grown accustomed to here in the U.S., said Ricalo of Panavista.

"Lasagna may not be a meal that was part of their original family custom," she said. "But since their kids are experiencing Italian foods here, Hispanic moms want to satisfy their children's food cravings."

Panavista works with Mott's, Rye Brook, N.Y., a division of Cadbury Schweppes, for national sampling events involving Clamato, a juice made from a blend of tomatoes, onions, celery, spices and clams.

El Rancho Market, Chandler, Ariz., samples Mott's Clamato three days a week, according to Phil Vigil, store manager. Nearly 85% of its customers are Hispanic.

El Rancho even created its very own "Clamato Preparado" mobile sampling bar so that it can reach customers both inside and outside the store.

While Hispanics can easily identify Clamato, sampling shows them how to incorporate it in new recipes, Vigil said. El Rancho samples it as part of seafood, salsa and beverage recipes.

Interstate Bakeries Corp., Kansas City, Mo., is using sampling to introduce Hispanics to Las Delicias de Hostess, a new line of Hostess cakes marketed at Hispanics.

Ten new Las Delicias de Hostess products are currently available in San Diego, Dallas and Phoenix. A national rollout is planned for next year.

The line includes such products as "Pastelitos de Pina," pineapple and coconut-covered cake with creamy filling. Bilingual packaging is used for each product.

"We wanted to be a brand that says we understand this consumer and the fact that many still speak Spanish," he said.

While Hispanics eat more of Hostess' core line than general population, this is the company's first product formulated specifically for Hispanic taste profiles, said Kevin Kaul, Hostess brand manager.

"Las Delicias de Hostess offers great tasting sweet snacks with unique flavors and textures that are both appealing and familiar to Hispanic consumers," Kaul said.

Because of this, Hostess is placing strong emphasis on sampling. Consumers who buy any four snack-size cakes get a free gallon of milk. The goal of this is to get as many cakes into their hands as possible, so that Hispanics can appreciate the authenticity of the cakes, Kaul said.

"Hostess is already a brand that they know and trust, but we still need to convince them that we can deliver a Hispanic product," Kaul said.

Hostess is also conducting a major sampling program at supermarkets. Hostess vans packed with samples are visiting retailers in San Diego, Dallas and Phoenix. Coupons and premiums are included.

K.V. Mart, Carson, Calif., was among the participating retailers. Irma Trias, grocery buyer, told SN that sampling is a good way to promote a new brand in its 23 stores. K.V. Mart will merchandise the cakes in its main snack-food section, she said. Sampling is also taking place at festivals and concerts and other community gatherings.

"Since family is so important to Hispanics, we knew it was important to immerse ourselves at the community level, not just at the store," he said.

General Mills, Minneapolis, has also recognized the need for community involvement. The company sampled Cheerios cereal at the National Council of La Raza event in Philadelphia over the summer. The council is one of the largest Hispanic advocacy organizations in the U.S.

"Sampling is an important tool to reach Hispanic consumers especially as they are familiar with our categories but not always with our brands," said Adrienne Daniels, multicultural marketing manager, General Mills.

General Mills has also increased its dedicated Hispanic media spending. Likewise, two of its main Web sites -- BoxTops4Education.com and Pillsbury.com -- have recently been translated entirely into Spanish to make programs more accessible to Hispanics.

Big Spenders

By 2009, nearly one person out of every six living in the U.S. will be of

Hispanic origin -- creating immense buying power

Hispanic Buying Clout

1990: $222 billion

2000: $504 billion

2004: $686 billion

2009: $992 billion

Source: Selig Center for Economic Growth