CUB FOODS TARGETS HISPANICS WITH NEW INITIATIVE

SARAH MULHOLLAND

STILLWATER, Minn. -- Cub Foods here, the retail division of the Eden Prairie, Minn.- based Supervalu, has committed to a new Hispanic marketing initiative to be launched this fall.

The program will initially be concentrated in the Denver and Chicago markets, according to Monica Schierbaum, director of retail advertising for Cub Foods. The number of stores has not yet been determined, but the program may expand in time, she added.

"The Hispanic market is the largest-growing ethnic market in the country," Schierbaum said. "We have to make sure we are communicating with them effectively."

At this point, Schierbaum could not divulge any details about changes that may be made to the existing merchandising scheme and product mix.

Cub Foods is working with the Hispanic advertising and marketing agency, The San Jose Group (SJG), Chicago, on the project.

SJG will assist Cub Foods during the discovery process, analyzing distribution channels, product mixes and the chain's branding within the Hispanic community.

The campaign will be supported by a fully integrated media mix, said Michelle Tucker, public relations director for the agency.

According to the 2000 Census, the Hispanic population increased by 57.9% over the 1990 figure. The total Hispanic population was estimated at 35.3 million, or 12.5% of the total population.

"It is simply smart business sense," Tucker said. "Cub Foods is taking it very seriously."

Nash Finch, Minneapolis, is also taking it seriously. The company recently opened the first Avanza unit in Denver, a retail arm designed to accommodate the needs of the Hispanic consumer (SN, May 13).