Your Leading Source for Insights, Research and Intelligence on the Hispanic Market October 2012 ABOUT ACENTO ADVERTISING Founded in 1983, Acento Advertising is a full-service, total-market agency that specializes in the Hispanic Market. www.Acento.com RESEARCH & INSIGHTS HISPANIC-AMERICANS OVER-INDEX IN COFFEE CONSUMPTION According to the National Coffee Association, Hispanic-Americans drink significantly more coffee than their non-Hispanic neighbors. As detailed in the report "Ethnicity and Coffee," 74% of HispanicAmericans drink coffee daily, 12% ahead of the rest of the population. Additionally, Hispanic-Americans appear to drink more premium coffee types than non-Hispanic-Americans. 46% say they drink gourmet coffee beverages daily versus 29% of non-Hispanics and, for daily espresso consumption, 32% versus 11%. HISPANICS ARE CORE CONSUMERS FOR HEALTHCARE BRANDS As highlighted in an article by Liz Sanderson from Univision, consumer healthcare brands know that Hispanics are a core consumer for their brands. And, as Global Insights points out Hispanics spent more than $32 billion in total healthcare purchases last year. When you focus just on the over the counter (OTC) category, that number was $2.5 billion or 12% of total sales. Price tends to be less of an issue among Hispanics as they place a greater focus on value; 44% of Hispanic adults claim they will pay just about anything when it concerns their health versus 33% of non-Hispanics. Furthermore, Hispanics tend to be trusting consumers and that trust extends to name brands. HISPANIC WOMEN SHOP FOR SAVINGS MORE CREATIVELY THAN OTHER DEMOGRAPHICS Findings from WSL/Strategic Retail's new report "How America Shops MegaTrend report, Moving On 2012 reveals that Hispanic women, who represent the most passionate and proactive shopper segment searching for the best deals across all retail channels, are early adopters of the future of shopping. Findings in the report include that nearly 60% of Hispanic women use apps to search for the lowest price; 53% make it a point to search online before going shopping; 53% are using their mobile devices in-store to find electronic coupons, sales and discount codes; 75% are using traditional coupons, 54% only buy items that are on sale; 63% will travel farther to shop at a store where they can save money, and 43% will buy a pre-owned product if it lets them get a brand that they couldn't afford new. HISPANICS CREATE HYBRID MEALS WITH FROZEN FOODS According to Univision's "Hispanic Path to Purchase" study, Hispanics are significantly less inclined than non-Hispanics to rely on frozen foods to create an entire meal (46% vs 59% of non-Hispanics). However, 42% of Hispanics will incorporate frozen products into traditional meals, creating "hybrid meals." HISPANIC MARKET HOLDS KEY FOR ISSUERS OF CREDIT, DEBIT AND PREPAID CARDS Latino consumers are a bright spot in an otherwise dreary picture for issuers of credit, debit and prepaid cards, according to Consumer Payments in the U.S.: The Latino Market, a recently released report from Packaged Facts. Latino spending is especially beneficial to credit card issuers. Between 2004 and 2011, the number of non-Latino American consumers who owned credit cards fell 7%. Over the same time span, Latino card holders increased 23%. The number of Latinos with debit/ATM cards more than doubled between the same period, increasing 115%. In contrast, non-Latinos with debit/ATM cards increased only 51%. HISPANICS ARE TAKING THEIR BUYING POWER ONLINE According to Boostability, an online marketing company based in Utah, there are now more than 30 million Hispanics actively online, and businesses across the country are now catering to this growing online segment. A study by global research firm OTXX found that 78% of Hispanics use the Internet as a primary source of information with 84% of Hispanics using search engines to find that information. They also found that 54% of these searches led to in-store purchases. WHO'S DOING WHAT NATIONAL PORK BOARD ROLLS OUT SPANISH FACEBOOK PAGE The National Pork Board recently announced the launch of a Spanish-language Facebook page in addition to a revamped Spanish-language website. With these online properties the board is conducting a social media sweepstakes for Hispanic Heritage Month, which runs from September 15 through October 15. Among the 36 prizes, a 17-piece cookware set will be given away along with the "Sabores Yucatecos a Culinary Tour of the Yucatan" cookbook. MILLER LITE FORGES PARTNERSHIPS FOR EDUCATION Miller Lite partnered with the Dallas Cowboys and the Adelante! U.S. Education Leadership fund for a new campaign titled "Scoring for Education." During Hispanic Heritage Month, the brewer will make a donation to Adelante! when select cans of Miller Lite are sold. The initiative, which is part of the NFL and its 32 teams' Hispanic Heritage events, will feature educational workshops hosted by former Dallas Cowboys Defensive Lineman Tony Casillas, with the overall goal of promoting higher education. TARGET PARTNERS WITH LATIN MUSIC PRODUCER Target announced a partnership with Grammy Award-winning music producer Emilio Estefan. Through the partnership, Estefan will work with Target to curate a special selection of his favorite music, movies and books titled "Emilio Estfan's Pics" which will be available at Target stores. Estefan will also leverage his strong relationships and pulse on the industry to help create Target-exclusive Latin music artist partnerships. COMCAST ROLLS OUT HISPANIC TRIPLE PLAY Comcast has rolled out a triple-play offer targeting U.S. Hispanics. "Xfininity Triple Play MultiLatino" package includes high-speed internet service, home telephone and the MultiLatino TV Video Tier. This is a first for the industry. The package includes 300 international phone minutes per month to landlines in Mexico and other Latin American countries, as well as discounted rates for calling mobile phones in the region. LEXUS' NEW AD CAMPAIGN TARGETS MULTICULTURAL AS WELL AS GENERAL MARKET Here's yet another example of a luxury brand reaching out to Hispanic consumers. Lexus' new marketing campaign which introduces the 2013 Lexus ES, its top-selling sedan, reaches out to Hispanics who are some of the most coveted auto-buyers in the market. Other Lexus news... the brand is backing the Hispanic-focused HBO documentary "The Latino List: Volume Two" with co-sponsor AT&T. The documentary, which features a series of high-profile Latinos speaking about their lives and challenges growing up, examines what it means to be Latino. CORONA KICKS OFF NEW HISPANIC CAMPAIGN Corona Extra rolled out a new Spanish-language campaign with the tagline "Los Latinos Tenemos Algo Extra," (We Latinos Have Something Extra) and that "extra," that's not going unnoticed, is the Hispanic consumer's affinity for beer. Industry-wide, larger domestic and import companies are dedicating greater attention and marketing dollars towards selling Hispanic consumers imported brands. U.S. ARMY PARTNERS WITH HISPANIC HERITAGE FOUNDATION The U.S. Army is partnering with the Hispanic Heritage Foundation's (HHF) Latinos on the Fast Track (LOFT) program to ensure Hispanic students and young professionals are aware of the education and career opportunities in science, technology, engineering and math fields the Army provides. The HHF LOFT program is designed to promote education, leadership and career opportunities in these key areas with the goal of helping solve the nation's shortage of qualified workers. HONDA EXCLUSIVE AUTO SPONSOR OF THE ALMA AWARDS Honda partnered with NBC for it's new 2013 Accord campaign via the 2012 National Council of La Raza ALMA awards. The televised awards, which honor Latinos in entertainment, showcased Honda via crosspromotional on-air and digital elements. Honda's auto exclusive sponsorship also included biographical vignettes, profiling select ALMA nominees, as well as 60-second Spanish-language spots exclusively airing on the ALMA awards. PEPSI REACHES OUT TO HISPANICS WITH NEW PRODUCT AND TAGLINE "Vive Hoy," a translation of Pepsi's new tagline "Live for Now" will be featured in the brand's new Hispanic campaign featuring Lionel (Argentine superstar soccer player) and Nicki Minaj, among other famous names. Straying from previous campaigns which featured the likes of Sofia Vergara and other Hispanic celebrities, the new campaign is focusing on a deeper dive into Hispanic lifestyle. XOOM SPONSORS LATIN MUSIC TOUR Xoom Corporation, a global online money transfer provider, recently announced a sponsorship of Harmonia do Samba's upcoming four-city U.S. tour. The band is known for their warmth and positive energy. TIDE GOES WITH BILINGUAL COMMERCIALS Tide created its first bilingual commercials for national English and Spanish TV stations. The :30 and :15 second bilingual spots feature Tide VIVID White + Bright and Boost and are part of a broader bilingual campaign that includes other advertising vehicles such as iMedia, broadband and social media. COX COMMUNICATIONS CELEBRATES HISPANIC HERITAGE MONTH Cox is celebrating the culture and contributions of Hispanic Americans during Hispanic Heritage month by offering culturally relevant programming available On DEMAND and on the Music Choice Network. Additionally, Cox launched a new Spanish-language page of its Internet safety site. COCA-COLA COMPANY AND RETAIL PARTNERS PROVIDE SCHOLARSHIP AWARD The Coca-Cola Company recently announced a campaign with the Hispanic Scholarship Fund (HSF) awarding more than $300,000 in scholarships during Hispanic Heritage Month. The "Destapa Su Furturo" (Uncap Your Future) initiative, working with participating retailers, will help the HSF promote closing the Hispanic college attainment gap. To be considered for a scholarship, students who are 16 years of age or older can apply by answering three thought-provoking essay questions. Students must reflect on how their heritage affects their career goals, the importance of education in their lives and their community service experiences. GENERAL MILL'S "QUE RICA VIDA" RELAUNCHES WITH BIG NUMBERS General Mill's established Hispanic platform, "Que Rica Vida," which is published 6-times a year, has increased its circulation from 250,000 to 1 million strong. A shift in language strategy to include Bicultural Latinas has helped push the magazine to the highest circulation of any U.S. magazine targeting Latinas. Que Rica Vida will be mostly distributed through Hispanic newspapers with a focus on the top5 Hispanic DMA's (Los Angeles, Houston, New York, Chicago and Miami). The relaunch also includes changes in content strategy with a new focus on Food Culture. OLE AVOCADO CELEBRATES NATIONAL GUACAMOLE DAY? Didn't know there was such a day, did you? Well, Ole Avocado celebrated National Guacamole Day on September 16 by giving guacamole enthusiasts a chance to win H-E-B gift cards, branded items and a guacamole mashing kit. The "I LOVE MY GUACO" photo contest, which runs throughout Hispanic Heritage Month, encourages guacamole lovers to share how they use guacamole. MAKITA PARTNERS WITH SOCCER ANNOUNCER In its ongoing efforts to reach Hispanic consumers, Makita recently partnered with soccer broadcaster Fernando Fiore who is perhaps the most recognized voice in Spanish-language sports media. Makita plans to leverage the partnership with Flores across a number of platforms including on the job site, instore and with promotions such as giving Hispanic contractors a chance to attend an upcoming Mexican National Soccer team match with Flores. TECATE INTRODUCES POPULAR MEXICAN BEER COCKTAIL Heineken is introducing to the Latino community its new Tecate Michelada, a popular Mexican beer cocktail made with lime, salt, spices and hot sauce. Promotion will include point-of-sale, out-of-home and in-store promotions. CONAIR GOES SPANISH WITH ITS WEBSITE Conair recently announced the launch of its new Spanish-language website which will offer customers inlanguage exposure to it's full line of products, both online and in-store. MEDIA LATINOS ADAPT QUICKLY TO SOCIAL MEDIA As mentioned in ClickZ, Latinos are fast adopters, rather than early adopters, when it comes to social media. They weren't the first to adopt Facebook, but when Latinos discovered Facebook, their adoption rate tripled in one year, reaching penetration levels higher than those of the general population. And Pinterest is no different; penetration among Latinos grew twice as fast as the general market (8,056%) in the past 12 months. Although women make up the majority of users (64.4%) male users are growing, too. Actually, there's a higher incidence of men among Latino Pinterest users (35.6%) compared to nonHispanic whites (25.0%). Almost half of Latinos on Pinterest (48.3%) are 25-55 years old with 53.3% having children. BIG GAINS FOR SPANISH-LANGUAGE PROGRAMMING While spending on TV advertising rose 4.4%, according to Kantar Media, and Cable TV spending rose 4.2%, Spanish-language TV spending rose 17.8%, with big gains in direct response, consumer packaged goods and auto. AHAA CHAIRMAN'S CORNER - ROBERTO ORCI AHAA: THE VOICE OF HISPANIC MARKETING ADDS THREE NEW MEMBERS TO ADVISORY BOARD AHAA Chairman and Acento President Roberto Orci recently announced three new members to the AHAA Advisory Board, which was created early this year to provide thought leadership and insights representative of the broad Hispanic marketing spectrum and to help AHAA's board of directors set its long-term strategy. The newly appointed board members include: Michael Moore, Executive Vice President and Chief Marketing Officer, SUPERVALU; Jerry McGee, Executive Vice President, Western Region, AAAA; and Berry Jasin, Vice President of National Sales, SBS. They join a diverse roster of AHAA advisors including Mark Addicks, SVP, CMO, General Mills; David Lawenda, President, Unvision; Mike Fernandez, CCO, Cargill; Lino Garcia, General Manager, ESPN Deportes, among other distinguished executives. TASTING AWAY IN MARGARITAVILLE PUMPKIN MARGARITA Fall is here and it seems appropriate to share a pretty cool and festive margarita recipe that fits the season. No, you don't have to drink the pumpkin margarita out of a hollowed out pumpkin, although you could, especially if you had a few too many... but this margarita suits a glass just fine. Okay, let's get started. ~ Ingredients: 2 ozs Reposado tequila, 1 oz fresh lime or lemon juice, splash of pumpkin puree, sesame seeds, and a lime wedge. ~ Directions: Rim a cocktail glass with lime juice and sesame seeds. Mix ingredients in a shaker with ice and shake well. Strain into a cocktail glass and garnish with lime wedge. Salud!