09Aug2009
Caramba! Mexican Foods are Hot!
NEED ANOTHER GOOD reason to focus more attention on Hispanic shoppers? According to the U.S. Census Bureau, nearly one in six U.S. residents is Hispanic. What’s more, 25% of children under the age of five are Hispanic.
Okay, we’ll concede that Mexican food has gone mainstream, but there’s still a strong Hispanic core of users that help drive the business. And as Hispanics become more acculturated, they do less scratch cooking and buy more frozen foods. So where are we in terms of sales?
Unfortunately, there’s not as much detailed data on the Mexican food market as we all might like. Our friends at The Nielsen Company break out frozen Mexican entrees, showing dollar sales up by 3.2% to $955.6 million in the food, drug and mass channels, including Wal-Mart, for the 52 weeks ended June 16. Units dipped by 6.7% to 418.6 million. But that doesn’t reflect many of the appetizers that have been flying off the shelves nationwide, and of course definitions of appetizers vs. entrees vs. dinners vary all over the lot. Whatever.
We thought it would be useful to ask some manufacturers what’s out there in the way of new products and strategies that can help you build incremental sales in the category. Here’s what they told us.
RUIZ FOODS
Consumer requests were behind both of the newest launches at Ruiz Foods, Dinuba, Calif.
El Monterey two-pack burritos, in six flavors, come in microwavesafe film and are “perfect for quick on-thego snacks as well as for sit down meals; they’re easily accompanied by fresh fruit or salad,” says Bryce Ruiz, president and COO. He notes that the line enables small households to enjoy a convenient, flavorful meal for under $1.25 per person.
El Monterey Tornados hit supermarket shelves after grab-and-go C-stores shoppers said – on the company’s website and in focus groups – that they wanted to buy the products in stores for home use. The success in C-stores spread to supermarkets immediately.
Bryce Ruiz, president and COO, says supermarkets can maximize category opportunities with hot pricing and displays designed to capitalize on different eating occasions. To gain incremental sales from home entertaining opportunities such as the Super Bowl, Mardi Gras and graduations, retailers can merchandise condiments such as guacamole, salsa and sour cream with El Monterey Taquitos, Quesadillas and Burritos, Ruiz says.
He adds that the company targets families with young children or teenagers, focusing on quality, taste and value to ensure repeat business. Ruiz says the company’s team members eat the product at home themselves, “And that goes for each one of us as members of the Ruiz family as well. My kids, and my sister Kim’s (Ruiz Foods Co-Chair) kids may have their favorite flavors of El Monterey Burritos, Taquitos or even our El Monterey Family Meals but, believe me, you’ll always find a wide variety of our products in our home freezer at any given time whether it’s for snacks, dinners, or entertaining.”
AMY’S KITCHEN
Amy’s Kitchen, Santa Rosa, Calif., recently launched tamales, made from fresh masa and formed by hand. Sales of the three-item line have risen to the level of the company’s best-selling Mexican Enchiladas. Also finding quick success: Amy’s new Enchilada Verde Whole Meal, the company’s first enchilada with the popular “verde,” or green tomatillo sauce.
With the relatively recent addition of Amy’s Tortilla & Black Beans Casserole and Amy’s Mexican Casserole, the company now has 15 Mexican meals and burritos in its lineup.
Amy’s Mexican meals sell best when grouped together in the main freezer section for a stronger brand message, according to Steve Warnert, director of sales and marketing. While most retailers set their shelves this way, he says, some place Amy’s product next to other leading frozen Mexican brands, which can also be effective.
“Because Mexican food is so popular and growing, we recommend retailers place Amy’s Mexican meals front and center with their other Mexican assortment,” Warnert adds. “Amy’s is the perfect opportunity to trade consumers up to a more profitable, and delicious Mexican food experience for the retailer.”
He notes that the Mexican food category appeals to almost everyone, cutting across age groups, income levels and ethnicity. “Mexican food raises the spirit and is seen as ‘fun food,”’ Warnert says. “Whether it is ‘taco night’ at home, a make-your-own burrito party, or simple chips & salsa, Mexican food always finds a place where people gather.”
DON MIGUEL MEXICAN FOODS
Don Miguel Mexican Foods, Anaheim, Calif., is introducing two lines keyed to value and convenience, says John Signorino, president and CEO. The company’s new line of 10-pack tacos comes in: beef; spicy beef; beef, bean & cheese; bean & cheese; and chicken. Microwavable and billed as a fast snack or meal, the 20-ounce packages carry a suggested retail of $2.99-$3.49.
Also new: large-bag appetizers, including 48-count beef & cheese mini tacos, 36-count beef taquitos and 36-count beef & cheese minis (think empanadas). The 33- to 36-ounce bags are designed to retail at $6.99-$8.99.
With the slow economy, “Families are eating and entertaining more at home,” Signorino explains. “Largebagged appetizers and 10-pack tacos fit this trend.” He sees the present economy giving retailers a chance to recapture share lost to foodservice, noting that many retailers margined up” over the past five years and drove shoppers to alternate channels and restaurants.
To win shoppers back, he adds, supermarkets need to provide convenience, value and fun – all strong points for frozen Mexican foods. Quick-prep snacks and meals – if merchandised and promoted properly – can be real traffic generators, Signorino says.
He urges refocusing on the right everyday and promotional prices, and running themed events around family meal solutions. Cross-merchandising Mexican appetizers with guacamole, salsa, cheese, sour cream and the like can quickly create a family meal of party foods, while building store traffic, according to Signorino.
“When it comes to the Super Bowl or a holiday, there’s always a rush to get chips, salsa and sodas on the endcaps, but sound and aggressive promotions built around frozen Mexican foods can satisfy unmet shopper needs and build incremental sales,” he notes.
