Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
- The issues
- Relaxation yes, but there has to be something else
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- Figure 1: Hispanics’ top reasons for drinking alcoholic beverages, indexed to all, December 2017
- Brand is really important
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- Figure 2: Reasons important to Hispanics when choosing beer – Select reasons, indexed to all, December 2017
- Drinking occasions are key
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- Figure 3: Correspondence analysis – Association of alcoholic beverages and occasions, December 2017
- The opportunities
- Leveraging current drinkers
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- Figure 4: Hispanics’ consumption of alcoholic beverages, by language spoken at home and household income, July 2016-August 2017
- The potential of bilingual/bicultural Hispanics
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- Figure 5: Hispanics’ consumption of spirits, by language spoken at home, July 2016-August 2017
- The importance of defining drinking reasons
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- Figure 6: Top factors influencing Hispanics when choosing spirits – Select factors, indexed to all, December 2017
- What it means
The Market – What You Need to Know
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- Hispanics’ expenditures on alcoholic beverages are growing but still below fair share
- It is a young market
- Hispanics are value oriented
- Hispanics have 20 countries of origin
- Hispanic drinkers are not all the same
Market Size
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- Hispanics spend $21.8 billion on alcoholic beverages
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- Figure 7: Expenditures by Hispanic households for on-premise and off-premise alcoholic beverages, at current prices, 2012-17
- Figure 8: Expenditures by Hispanic households for on-premise and off-premise alcoholic beverages, at inflation-adjusted prices, 2012-17
Market Factors
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- The Hispanic market is young
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- Figure 9: Population by Hispanic origin and generation, 2018
- Hispanics’ median household income is lower
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- Figure 10: Median household income, by race and Hispanic origin of householder, 2016
- Figure 11: Household income distribution, by race and Hispanic origin of householder, 2015
- Low unemployment can give Hispanics confidence to spend
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- Figure 12: Hispanic unemployment (seasonally adjusted), January 2007-November 2017
- Hispanics’ country of origin/descent includes 20 countries
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- Figure 13: Hispanic population, by country of origin/heritage, 2015
Alcoholic Beverages Attitudinal Segments
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- There are four segments for Hispanics and alcoholic beverages
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- Figure 14: Hispanics and alcoholic beverages dining out attitudinal segments, December 2017
- Social Justifiers (32%)
- Opportunities
- Characteristics
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- Figure 15: Profile of Hispanic Social Justifiers, December 2017
- Relaxed Drinkers (29%)
- Opportunities
- Characteristics
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- Figure 16: Profile of Hispanic Relaxed Drinkers, December 2017
- Pragmatic Moderates (19%)
- Opportunities
- Characteristics
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- Figure 17: Profile of Hispanic Pragmatic Moderates, December 2017
- Averse Drinkers (20%)
- Opportunities
- Characteristics
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- Figure 18: Profile of Hispanic Averse Drinkers, December 2017
What’s Happening? – What You Need to Know
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- Hispanics may be an important target for flavored launches
- New cocktail recipes can be a way to connect with Hispanics
- Having a presence at the multiple retailer types is important
- The importance of being creative
What’s Happening?
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- Hispanics are more open to try flavored alcoholic beverages
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- Figure 19: Consumption of flavored beer, by race and Hispanic origin, indexed to all, August 2017
- Hispanics over index for trying new cocktail recipes
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- Figure 20: Attitudes toward spirits, by race and Hispanic origin, indexed to all, August 2017
- Hispanics buy alcoholic beverages in multiple places
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- Figure 21: Purchase location for spirits, by race and Hispanic origin, indexed to all, August 2017
- Promoting categories
- Finding creative ways to stand out
The Consumer – What You Need to Know
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- Taste is not a priority
- The challenge to grow consumption of spirits and wine
- Younger Hispanics are key for beer brands
- Brand is so important in beer
- The importance of bilingual Hispanics to spirits
- Spirits are for special occasions
- Imported beers are suffocating craft/microbrewed beer
Why Do Hispanics Drink Alcoholic Beverages?
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- Fun can trump taste
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- Figure 22: Hispanics’ reasons for drinking alcoholic beverages, indexed to all, December 2017
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- Figure 23: Hispanics’ reasons for drinking alcoholic beverages – Select reasons, by gender and age, December 2017
- “Focus on self” increases with acculturation
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- Figure 24: Hispanics’ reasons for drinking alcoholic beverages – Select reasons, by level of acculturation, December 2017
What Alcoholic Beverages Do Hispanics Drink?
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- Hispanics’ consumption of alcoholic beverages is discretionary
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- Figure 25: Hispanics’ consumption of alcoholic beverages, indexed to all, July 2016-August 2017
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- Figure 26: Hispanics’ consumption of alcoholic beverages, by language spoken at home and household income, July 2016-August 2017
Hispanics and Beer
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- Hispanic over index for imported beer
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- Figure 27: Hispanics’ consumption of beer, indexed to all, indexed to all, July 2016-August 2017
- Beer consumption decreases with age
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- Figure 28: Hispanics’ consumption of beer, by age, July 2016-August 2017
- More affluent Hispanics have more sophisticated tastes
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- Figure 29: Hispanics’ consumption of beer, by household income, indexed to all, July 2016-August 2017
Important Factors When Choosing Beer
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- Brand matters
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- Figure 30: reasons important to Hispanics when choosing beer, indexed to all, December 2017
- Does local resonate with Hispanics?
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- Figure 31: importance Hispanics give to local breweries when choosing beer, by key demographics, December 2017
- Does low-alcohol-content beer resonate with Hispanics?
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- Figure 32: Importance Hispanics give to low alcohol content when choosing beer, by key demographics, December 2017
Hispanics and Spirits/Liquor
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- What can other spirits learn from tequila?
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- Figure 33: Hispanics’ consumption of spirits, indexed to all, July 2016-August 2017
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- Figure 34: Hispanics’ consumption of spirits, by language spoken at home, July 2016-August 2017
Important Factors When Choosing Spirits
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- There has to be a reason
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- Figure 35: Factors influencing Hispanics when choosing spirits, indexed to all, December 2017
- The influence of ingredients at home
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- Figure 36: Factors influencing Hispanics when choosing spirits – Ingredients I already have at home, by key demographics, December 2017
Associations of Beverages and Occasions
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- Little differentiation in beer types highlights the importance of brand
- Occasions for spirits are narrower
- Wine is all about food
- Opportunities for spirits and wine
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- Figure 37: Correspondence analysis – Association of alcoholic beverages and occasions, December 2017
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- Figure 38: Association of alcoholic beverages and occasions, December 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- What is acculturation?
Appendix – The Consumer
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- Figure 39: Hispanics’ consumption of beer, by age, indexed to all, July 2016-August 2017
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- Figure 40: Hispanics’ consumption of beer, by household income, indexed to all, July 2016-August 2017
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- Figure 41: Hispanics’ consumption of spirits, by age, indexed to all, July 2016-August 2017
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- Figure 42: Hispanics’ consumption of spirits, by household income, indexed to all, July 2016-August 2017
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