Hispanics and Alcoholic Beverages - US - December 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Hispanic expenditures on alcoholic beverages expected to double between 2011 and 2021
The issues
Hispanics’ consumption of alcoholic beverages is below average
Figure 1: Hispanics’ consumption of alcoholic beverages, indexed to all, April 2015-June 2016
Not all alcoholic beverages are seen equally
Figure 2: Hispanics’ perceptions of different alcoholic beverages, October 2016
Fun trumps taste
Figure 3: Hispanics’ motivations for consuming alcoholic beverages, indexed to all, October 2016
The opportunities
Alcoholic beverages are “social currency”
Figure 4: Hispanics’ attitudes toward socially drinking alcoholic beverages, October 2016
Understanding which attributes to own
Figure 5: Hispanics’ perception of beer, by level of acculturation, October 2016
Figure 6: Hispanics’ perception of spirits, by level of acculturation, October 2016
Figure 7: Hispanics’ perception of wine, by level of acculturation, October 2016
Placing the product in front of Hispanics
Figure 8: Top locations where Hispanics buy alcoholic beverages, October 2016
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Hispanics spend $22.1 billion on alcoholic beverages
Hispanics gravitate toward biculturalism
Alcoholic beverages are discretionary
Other factors affecting how Hispanics consume alcoholic beverages
MARKET SIZE AND FORECAST
Hispanics’ expenditures on alcoholic beverages show healthy growth
Figure 9: Total expenditures and fan chart forecast of Hispanic consumers on alcoholic beverages, at current prices, 2011-21
Figure 10: Total expenditures and forecast of Hispanic consumers on alcoholic beverages, at current prices, 2011-21
MARKET FACTORS
Hispanic market is young and bicultural
Figure 11: Population by Hispanic origin and generation share, 2017
Low unemployment can give Hispanics confidence to spend
Figure 12: Hispanic unemployment (seasonally adjusted), January 2007-October 2016
Lower median household income can hinder discretionary spending
Median household income for Hispanics significantly below national median
Figure 13: Median household income, by race and Hispanic origin of householder, 2015
Figure 14: Median household income, by race/Hispanic origin of householder, in inflation-adjusted dollars, 2005-15
Figure 15: Household income distribution, by race and Hispanic origin of householder, 2015
MARKET PERSPECTIVE
Hispanics are very social
Figure 16: Frequency of family gatherings among Hispanics, by level of acculturation, November 2014
Hispanics are less likely to consume alcoholic beverages when dining out
Figure 17: Hispanics’ consumption of alcoholic beverages at restaurants, by language spoken at home, April 2015-June 2016
STRATEGIC MOVES – WHAT YOU NEED TO KNOW
Knowing your target
Making moments of truth count
Competition is all around
STRATEGIC MOVES
Segmenting the market
Figure 18: Tecate “#TecateBeerWall” TV ad, September, 2016
Figure 19: Dos Equis “Meet the new most interesting man in the world” TV ad, September, 2016
Going beyond Mexican brands
Connecting with Hispanics on premise
Figure 20: Where Hispanics consumed beer in the past 30 days, indexed to all, April 2015-June 2016
Figure 21: Where Hispanics consumed spirits in the past 30 days, indexed to all, April 2015-June 2016
Figure 22: Where Hispanics consumed wine in the past 30 days, indexed to all, April 2015-June 2016
Standing out in a very fragmented market
THE CONSUMER – WHAT YOU NEED TO KNOW
Hispanics are less likely to consume most alcoholic beverages
Hispanics associate different alcoholic beverages with different attributes
Imported beer is a big hit among Hispanics
In spirits, Hispanics gravitate toward tequila
Hispanics lack “wine culture”
Taste is secondary for Hispanics; relaxation, fun and refreshment come first
Enthusiasm for drinking fades with age
The alcoholic beverages Hispanics choose communicate how much they care
HISPANIC CONSUMPTION OF ALCOHOLIC BEVERAGES
Hispanics under index for consuming alcoholic beverages
Figure 23: Hispanics’ consumption of alcoholic beverages, indexed to all, April 2015-June 2016
Figure 24: Hispanics’ consumption of alcoholic beverages, by language spoken at home, April 2015-June 2016
HISPANICS’ PERCEPTION OF ALCOHOLIC BEVERAGES
Different alcoholic beverages mean different things for Hispanics
Figure 25: Hispanics’ perception of different alcoholic beverages, October 2016
Hispanics have a positive perception of beer
Figure 26: Hispanics’ perception of beer, indexed to all, October 2016
Spirits/liquors can be fun
Figure 27: Hispanics’ perception of spirits, indexed to all, October 2016
Wine goes well with food
Figure 28: Hispanics’ perception of wine, indexed to all, October 2016
BEER
Hispanic over index for imported beer
Figure 29: Hispanics’ consumption of beer, indexed to all, April 2015-June 2016
Figure 30: Hispanics’ consumption of beer, by language spoken at home, April 2015-June 2016
Imported beer resonates with unacculturated Hispanics, but…
Figure 31: Hispanics’ attitudes toward imported beer, by gender, age, level of acculturation, and household income, October 2016
Hispanics may be unaware of craft/microbrewed beer
Figure 32: Hispanics’ attitudes toward craft/microbrewed beer, by gender, age, level of acculturation, and household income, October 2016
Hispanics may welcome familiar flavors
Figure 33: Hispanics’ attitudes toward special flavors in beer, by gender, age, level of acculturation, and household income, October 2016
SPIRITS/LIQUOR
With exception of tequila, Hispanics under index for most spirits
Figure 34: Hispanics’ consumption of spirits, indexed to all, April 2015-June 2016
Figure 35: Hispanics’ consumption of spirits, by language spoken at home, June 2016
Spirits and the connection to country of origin
Figure 36: Hispanics’ attitudes toward spirits and their country of origin, by gender, age, level of acculturation, and household income, October 2016
Hispanics may welcome direction about how to mix/prepare spirits
Figure 37: Hispanics’ attitudes toward mixing spirits, by gender, age, level of acculturation, and household income, October 2016
Hispanics don’t feel spirits have too much alcohol
Figure 38: Hispanics’ attitudes toward spirits and alcohol, by gender, age, level of acculturation, and household income, October 2016
WINE
Hispanics under index for wine consumption
Hispanic women more likely than men to consume wine
Wine consumption increases with acculturation
Figure 39: Hispanics’ consumption of wine, indexed to all, April 2015-June 2016
Figure 40: Hispanics’ consumption of wine, by gender, April 2015-June 2016
Figure 41: Hispanics’ consumption of wine, by language spoken at home, April 2015-June 2016
Hispanics perceive wine as being healthy
Figure 42: Hispanics’ attitudes toward wine as healthy, by gender, age, level of acculturation, and household income, October 2016
Wine may be good with certain dishes only
Figure 43: Hispanics’ attitudes toward wine and food, by gender, age, level of acculturation, and household income, October 2016
Younger Hispanics more likely to know which brand of wine is good
Figure 44: Hispanics’ attitudes toward wine brands, by gender, age, level of acculturation, and household income, October 2016
DRINKING MOTIVATIONS
Hispanics more likely to value the “fun factor”
Figure 45: Hispanics’ motivations for consuming alcoholic beverages, indexed to all, October 2016
With acculturation, the focus turn to oneself
Figure 46: Hispanics’ motivations for consuming alcoholic beverages, by level of acculturation, October 2016
Younger Hispanics drink for the fun of it
Figure 47: Hispanics’ motivations for consuming alcoholic beverages, by age, October 2016
THE JOY OF DRINKING ALCOHOLIC BEVERAGES
Hispanics like variety
Drinking beyond the social context
Figure 48: Hispanics’ attitudes toward drinking alcoholic beverages - likes, October 2016
Enthusiasm for drinking decreases with age
Figure 49: Hispanics’ attitudes toward drinking alcoholic beverages  Likes, by age, October 2016
Lower disposable income can hinder enjoyment
Figure 50: Hispanics’ attitudes toward drinking alcoholic beverages  Likes, by household income, October 2016
ALCOHOLIC BEVERAGES IN A SOCIAL CONTEXT
Hispanics show appreciation through alcoholic beverages
Figure 51: Hispanics’ attitudes toward socially drinking alcoholic beverages, October 2016
Hispanics decide what to serve with their guests in mind
Figure 52: Hispanics’ attitudes toward socially drinking alcoholic beverages, by age, October 2016
More-affluent Hispanics have higher expectations
Figure 53: Hispanics’ attitudes toward socially drinking alcoholic beverages, by household income, October 2016
ALCOHOLIC BEVERAGES AND HEALTH
Drinking in moderation is good
Figure 54: Hispanics’ perception of alcoholic beverages and health, by gender, age, level of acculturation, and household income, October 2016
ALCOHOLIC BEVERAGES SHOPPING LOCATION
Hispanics buy alcoholic beverages in multiple places
How Hispanics shop for alcoholic beverages may mirror how Hispanics shop for groceries
Figure 55: Places where Hispanics buy alcoholic beverages, October 2016
Not all Hispanics shop at the same stores
Figure 56: Places where Hispanics buy alcoholic beverages, by level of acculturation, October 2016
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Expenditures data
Fan chart forecast
Consumer survey data
Definitions of terms
A note on acculturation
APPENDIX – CONSUMER DATA
Consumption alcoholic beverages
Figure 57: Hispanics’ consumption of beer, by gender, April 2015-June 2016
Figure 58: Hispanics’ consumption of beer, by age, April 2015-June 2016
Figure 59: Hispanics’ consumption of beer, by household income, April 2015-June 2016
Figure 60: Hispanics’ consumption of spirits, by age, April 2015-June 2016
Figure 61: Hispanics’ consumption of spirits, by age, April 2015-June 2016
Figure 62: Hispanics’ consumption of spirits, by household income, April 2015-June 2016
Figure 63: Hispanics’ consumption of wine, by age, April 2015-June 2016
Figure 64: Hispanics’ consumption of wine, by household income, April 2015-June 2016
Place of consumption
Figure 65: Where Hispanics consumed beer in the past 30 days, by age, April 2015-June 2016
Figure 66: Where Hispanics consumed beer in the past 30 days, by household income, April 2015-June 2016
Figure 67: Where Hispanics consumed beer in the past 30 days, by language spoken at home, April 2015-June 2016
Figure 68: Where Hispanics consumed spirits in the past 30 days, by age, April 2015-June 2016
Figure 69: Where Hispanics consumed spirits in the past 30 days, by household income, April 2015-June 2016
Figure 70: Where Hispanics consumed spirits in the past 30 days, by language spoken at home, April 2015-June 2016
Figure 71: Where Hispanics consumed wine in the past 30 days, by age, April 2015-June 2016
Figure 72: Where Hispanics consumed wine in the past 30 days, by household income, April 2015-June 2016
Figure 73: Where Hispanics consumed wine in the past 30 days, by language spoken at home, April 2015-June 2016