Beer is not just an American favorite; it is also the drink of choice for many Hispanics. From birthday parties to sporting games, social events, and more—Hispanics love to celebrate with friends and family. It is part of their culture, fueled by emotions, heritage, and pride. And for many, a cold beer is a refreshing part of that celebration.
According to the Nielsen report, “Hispanics Hop on the Latest Beer Trend,” beer represented nearly half of Hispanics’ beverage alcohol sales in 2014 (45% of all Hispanic households compared to 38.8% of non-Hispanics).
Hispanics love all types of beers. However, above-premium beer grew more than 9.5% year over year compared to 7.8% with non-Hispanics, according to this report. Imported beers are among their favorites, reaching 31% of the market share. Mexican imports have gained 86% of their volume from premium lights and it currently tops their choices.
Since the Hispanic market has become the new trendsetting mainstream, these figures represent a huge business opportunity for manufacturers, distributors, bars, clubs, and restaurants. Besides Mexican import beers, which represent half of the top 10 brands within this segment, Hispanics also prefer flavored offerings, such as fruit infusions, ciders, and shandies. Hispanic Millennials are more likely to purchase flavored beer compared to Generation X (those consumers between 35-54 years old who usually prefer imports).
Hispanics are a young and vibrant community. It is estimated that 65% of this group are Millennials. Their average age is 27 years old, which is 10 years younger than white non-Hispanics. As of today, Hispanics represent over 21% of total U.S. Millennials. By 2020, 52% of Millennials will be multicultural. So, it is clear to say that U.S. Hispanics and Millennials are the consumers you need to focus on if you want to stay in the beverage business in the years to come. While more Hispanic consumers turn 21 years old, more white non-Hispanics hit retirement age. So the Hispanic demographic will likely remain at the forefront of the latest trends.
Hispanics tend to buy more food and beverages together when they dine out (90% vs. 76% of non-Hispanics). This is a great opportunity for restaurant chains and beer distributors to partner together on specific promotions, offering special menu combos that cater to this booming consumer audience.
Price and proximity are key purchase decision factors for Hispanics when it comes to different brews, according to Nielsen. Within convenience stores that skew Hispanic, beer dollar volume is up 5.8% from the previous year, compared to a growth rate of just 2.2% for the channel as a whole.
Hispanics are becoming significantly influential in this economy. Understanding their culture and how to engage with them will be crucial to ensure your business growth, brand strength, and ultimate success. In the past decade alone the number of bilingual Hispanic speaking individuals has increased to 73%, beating out English dominant. Whether you reach out to them in English or Spanish, you must develop and execute a culturally relevant strategy with messaging that has been created specifically for them. Only then will you achieve genuine brand engagement, new growth, and outstanding results.
The clock is ticking. You must understand and figure out how to sincerely engage with this new mainstream customer. If you do it right, you will have a lot to celebrate.
