Tag: packaged beverages

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Hispanic Brand Loyalty

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Hispanics are expected to number 66 million and make up 19% of the population by the year 2020, according to the U.S. Census and other source. On average, Hispanics are younger and have larger households compared to non-Hispanics.

In part to see how those elements might affect retail trends, ThinkNow Research, Burbank, Calif., surveyed U.S. Hispanics and non-Hispanics via its ThinkNow Research National Hispanic Omnibus Survey with field dates of Jan. 13 to 24, 2014, and Feb. 10 to 21, 2014.

The survey found Hispanics express more optimism about the U.S. economy compared to non-Hispanics, with 37% of those Hispanics surveyed saying they expect the economy in 2014 to be better than last year, while only 27% of non-Hispanics said the same.

On questions of brand loyalty, the survey found if Hispanics' usual brand is not available where they normally shop, they are more likely to go to a different store to find it or to come back a different day, particularly for food/beverage products.

Brand loyalty is also clearly strongest among the least-acculturated segment of Hispanics. The less-acculturated are particularly prone to leave your store if the item they’re looking for isn’t there, according to the survey.

ThinkNow Research discussed the survey results during CSP's Driving Impulse Sales meeting in April.

Source: ThinkNow Research Omnibus Study: March 2014

Shopping Preferences By Acculturation

Usage of convenience stores for buying snacks is consistent across acculturation levels for Hispanics.

If you were out running errands one day, got hungry and decided to get a snack, what would be your first choice of place to go if you could go anywhere--to a grocery store, a convenience store, a fast food restaurant, a drug store, a donut shop, or anywhere else?

Top Places Less Acculturated Bicultural More Acculturated
Fast-food restaurant 27% 32% 43%
Grocery store 29% 20% 19%
Convenience store 11% 13% 13%
Starbuck's 14% 13% 11%
Bakery 8% 5% 2%

Source: ThinkNow Research Omnibus Study: February 2014

Buy Snacks at C-Stores by Gender

Hispanic males are nearly twice as likely to buy snacks at c-stores vs. Hispanic females.

  Male Female
Hispanic 16% 9%
Non-Hispanic 19% 13%

Source: ThinkNow Research Omnibus Study: February 2014

Types of Snacks Purchased

At convenience stores specifically, salty snacks are the most popular types of snacks among both Hispanics and Non-Hispanics.

Hispanics are more likely to buy sodas/cold beverages vs. non-Hispanics. This is driven mainly by males. Hispanics are also more likely to seek energy/granola bars at c-stores.

  Convenience Store   Overall*  
  Hispanics Non-Hispanics Hispanics Non-Hispanics
Salty snack 30% 25% 11% 8%
Soda/cold beverage 18% 7% 10% 6%
Candy bar 15% 14% 4% 5%
Hot food item 10% 12% 23% 28%
Ready-to-eat sandwich 6% 9% 12% 13%
Pastries 5% 3% 12% 8%
Meat snack 5% 6% 2% 2%
Energy/granola bar 5% -- 2% 1%
Trail mix 4% 1% 2% 1%
Yogurt 2% -- 2% 1%
Coffee/hot beverage 1% 3% 7% 5%
Fruit 1% 1% 3% 3%
Ice cream 1% -- 3% 3%

Source: ThinkNow Research Omnibus Study: February 2014

*Includes c-stores, grocery stores, fast-food restaurants, coffee/doughnut shops and others

Which Snacks?

If Hispanics had to choose one snack to buy at a convenience store, salty snacks and candy bars are the most popular. Hot food items rank third. Also, Hispanics are 2.5 times more likely than non-Hispanics to seek out yogurt at a convenience store.

If you were out running errands one day, got hungry and decided to get a snack, and your only choice was to get something at a convenience store, what one snack would you be most likely to pick?

  Hispanics Non-Hispanics
Salty snacks/chips 15% 19%
Candy bar 15% 19%
Hot food items 11% 12%
Ready-to-eat sandwich 10% 9%
Salty nuts 7% 5%
Energy/protein bar 7% 5%
Fruit 5% 4%
Yogurt 5% 2%
Ice cream 5% 2%
Meat snack 4% 7%
Trail mix 4% 4%
Pastries 3% 2%
Protein shake 2% 1%

Source: ThinkNow Research Omnibus Study: February 2014

By Acculturation Level

Certain convenience store snacks are especially popular among the least-acculturated segment of Hispanics, including ready-to-eat sandwiches, fruit and yogurt.

Regarding sandwiches, the more-acculturated group is lost to QSR’s; offering QSR-type amenities at convenience stores may retain some as loyal customers.

If you were out running errands one day, got hungry and decided to get a snack, and your only choice was to get something at a convenience store, what one snack would you be most likely to pick?

  Less Acculturated Bicultural More Acculturated
Ready-to-eat sandwich 15% 9% 6%
Candy bar 15% 14% 15%
Salty snacks/chips 11% 14% 18%
Hot food items 9% 13% 8%
Energy/protein bar 8% 5% 10%
Fruit 8% 5% 4%
Yogurt 8% 5% 3%
Salty nuts 5% 8% 7%
Ice cream 5% 4% 5%
Meat snack 2% 4% 5%
Trail mix 2% 4% 5%

Source: ThinkNow Research Omnibus Study: February 2014

Snack Foods Consumed in Past 3 Months

hen Hispanics are asked what snacks they consume in general, potato chips and tortilla chips are the most common, followed by popcorn and peanuts.

Source: ThinkNow Research Omnibus Study: February 2014

ThinkNow Research
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Data: Beverage Sales Rise 4.3% As Weather Warms

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NEW YORK -- Beverage sales are up 4.3% in convenience stores so far during the second quarter, according to a Wells Fargo Securities survey of convenience retailers.

The increase "is significantly higher than the retailer expectations of a 1.3% increase for Q2 last year," analyst bonnie Herzog wrote in a summary of the survey. "This year, 46% of respondents indicated an expectation of a rise of over 5% vs. last year, when just over 30% of respondents indicated that beverage sales were expected to be up over 5% in Q2 2013 vs. 2012."

Isotonics, energy drinks, flavored waters and single-serve soda (likely driven by multi-purchase promotions) have led this growth, and have helped offset weakness in multi-packs.

"One retailer that indicated sales were down in his stores suggested that 'losses are all coming from CSDs. The water category and non-carb (energy/tea/coffee drinks) are both up high single digits.' While we are encouraged by the overall improvement in beverage sales in the c-store channel, we remain concerned about the health of CSDs," Herzog wrote.

A look at some of the survey results by major manufacturer: Coca-Cola, Pepsi, Dr Pepper Snapple Group and Monster.

Wells Fargo
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