Expo Comida Latina 2008

Exhibitors, key buyers and attendees across retail, foodservice and manufacturing came together in Los Angeles on October 13th and 14th for a vibrant and successful Expo Comida Latina tradeshow.

With more than 300 exhibitor booths and over 3500 national and regional retailers, distributors, manufacturers, foodservice professionals and suppliers, the show provided the Hispanic food and beverage industry the in-person event in which to showcase their products and network. Educational sessions and culinary demonstrations were well attended, and many companies reported meeting their goals of establishing connections for marketing and distributing their products.

Education is key in order to grow and prosper; this year Expo Comida Latina introduced a revitalized education program, with an emphasis on where the market is going and how to capture that market. The participants in the sessions were a who’s who of industry influencers. For example, successful manufacturers such as Alex Pena of BakeMark/Trigal Dorado provided practical help in the session entilted “Building Bakery Sales with Hispanic Products”. Each session was geared to help with maximizing sales, getting new customers, and understanding Hispanic and Asian food trends.

This year’s culinary demonstrations joined together creative talents such as celebrity Chef LaLa and Marilyn Tausend, best-selling author, as they presented “Healthy Ethnic Flavor” creating authentic Latino cuisine with a focus on recipes that are better for you nutritionally.

Following is a review of the education and culinary program:

Bringing Mainstream Customers into the Ethnic Food Aisle

Lisa Duke of Duke Marketing discussed how to increase customer awareness by incorporating products, partners and promotional ideas into the retail environment to engage and bring mainstream customers into the ethnic food aisle and drive product sales.

Duke highlighted the rising trend of U.S. consumers looking for more ethnic tastes and flavors. “Poblano chiles are being used a lot – many items that used to be considered primarily ethnic food have really transcended across all customers in the U.S. and beyond. The Food Network and Travel Channel have done a good job sharing the cuisine of different regions and of different countries, showing consumers how to cook and try some unique flavors. Mainstream customers are starting to be really curious about some of these ethnic products.”

Duke also emphasized the importance of incorporating ethnic food products into the mainstream retail environment. “It’s a mistake now to just market Hispanic food in the Hispanic food aisle when you can integrate your menu items or products throughout the entire store. If you’re doing an end cap display for a particular menu item, why not have some of the recipe ingredients all grouped together as well?” Duke cited the example of Kroger supermarkets’ transition from having an ethnic food aisle to spreading ethnic foods throughout their store so shoppers would notice ethnic ingredients to incorporate in their everyday cooking.

Duke cited the need to support the customer by providing bilingual in-store representatives who are knowledgeable about ethnic products. “If there was someone in the aisle who spoke the language or knew the ingredients really well, then perhaps you might be more apt to say ‘yes I am looking for something additional.’ It’s really about getting familiar with the cuisine, working those ethnic foods into your grocery store and being comfortable with the products and how they’re used.”

Lisa Duke’s tips for bringing customers into the ethnic food aisle:

• Hire multi-lingual clerks or product representatives who are informed about the products
• Engage the customer with the product through sampling (e.g. bring in a fresh tortilla machine and make them in store)
• Plan promotions and events and provide incentives for customers (coupons, giveaways with display)
• Tie in equipment with your promotion (e.g. display a wok next to a Japanese food sample)
• Invite local chefs to showcase your promotion
• Plan promotions around cultural holidays
• Include recipes throughout the store (have customers provide their favorite recipes)

Capitalize on one of the Biggest Consumer Trends – Healthy Eating

Erica Bohm, Vice President of Healthy Dining and HealthyDiningFinder.com, gave an educational talk on how to capitalize on the healthy food trend. Healthy Dining helps restaurants and retailers publicize and market their nutritional information by partnering with health organizations, The National Restaurant Association and Google Maps, to help businesses take advantage of their health and nutrition marketing opportunities.

Stocking with Authenticity

Arturo Escalante, President of Integra MDC Mexico, discussed how a retailer can provide ethnic products to the appropriate customers by identifying, marketing and distributing their product with the right market. The key is for manufacturers and suppliers to identify and communicate their products to the growing Hispanic market in their own language and to offer product demos from knowledgeable product representatives. He also cited the importance of cultural traditions and holidays to the Hispanic and Asian American market. “Hispanics and Asian Americans are the most important minorities in terms of purchasing power and both markets are loyal to their traditions. Retailers should stock and promote products to take advantage of sales volumes from the holidays and try to satisfy those customers’ values.”

The Generational Buying Shift with Kevin Coupe, Content Guy for Morning News Beat

Panelists:

Katya Ramirez – La Opinion writer
John Corella – Ventana Salud
Raymond – Chef, BJs restaurants
Fernando Gomez – Maya Entertainment
Kirk Whistler – Latino Print Network

Kevin Coupe moderated a panel focusing on generational marketing and the future of buying and selling products to the next generation of consumers, whose demands and short attention require different marketing strategies. Coupe began by explaining the Three Second Rule: the amount of time a young person will wait on a website before moving on to another site.

According to Coupe, “Younger generations’ personal rules of acquisition have changed. They’re going to bring assumptions to our marketplace and we have to start developing stores and retail environments that are going to appeal to these customers. They want products where they want it, when they want it, how they want it, at a price they think is appropriate and if you’re not there to give it to them they will go elsewhere to find it. ”

Coupe highlighted Amazon.com as a retailer who has mastered the art of engaging the customer. “Amazon has mastered cross-market merchandising and the automatic fulfillment process to lock in customers so they won’t have to fulfill their needs in a store. They’re now testing Amazon Fresh in Seattle, which delivers grocery items to your door the next morning.”

Coupe suggested the following ways to meet the consumer demands of younger generations:

• Engage the customer very quickly and not always with the same thing
• Create a retail environment that’s going to be enticing to young people and pay attention to the Three Second Rule
• Use the internet as a resource to talk to the consumer in a different way about your products

With Coupe, the panelists further discussed the buying habits and trends of Hispanic consumers. Here are some of the more salient points:

Katya: In Hispanic culture, food buying is a cultural experience. Kids come to the store with their parents to buy food.

John: For Hispanics, expectation is higher when it comes to food. Example: American kids’ eat a bologna or peanut butter & jelly sandwich vs. his Guatamalan mom who made big homemade lunches (kids wanted to trade lunches with him at school). Also, Hispanic food that used to be available only in restaurants is now available to people at home. Example: The largest retailer in Houston now sells homemade tortillas on the shelves.

Raymond: Eating has changed. You see more items in the Asian and Hispanic aisle and it’s now a treat to stay at home and eat dinner versus going out to eat, whereas it used to be the opposite. So restaurants are changing and serving food all day long (i.e. breakfast all day) because people want what they want all the time, they want instant gratification. People want comfort food and the food they grew up with and they’re looking for authenticity. You must keep products affordable for the younger generations.

Kirk: Readership studies from Hispanic publications indicate that 60% of readers under 30 years old wanted more ethnic recipes, 53% of those who are 30-49 years old and 58% of those over 50 years old want recipes.

Fernando: Every 20 seconds a Latino is added to the U.S. Hispanic market. It’s imperative to understand that these are U.S.-born Latinos who are going to be acculturated into American society. Technology is where the difference lies between generations.

Kevin: Why is there the problem of diabetes and health among Hispanics if Hispanics are connecting to and eating their traditional foods?

Katya: The problem is the quantity of food consumed and the lack of exercise.

John: Lower income Hispanics are eating better because they have less money to spend. Also melanin in Hispanics’ skin adds to insulin resistance.

Raymond: There is less time for kids to eat and sit down at the table, so restaurants are challenged with making a complete meal and portion control. There is more nutritional legislation now that will create change and there’s also more capacity to serve people with various nutritional needs.

Fernando: There is more nutritional food information available via technology (e.g. you can lookup calories online).

Kirk: There’s been a trend in the last couple of years toward healthier Latino foods; exhibitors are introducing newer healthier Hispanic foods.

The Hispanic Market is Changing, Are You Keeping Up?

Kirk Whistler’s FactPack (compiled by the Latino Print Network)

• There’s been a 31% increase in the Hispanic population in the U.S. in 2 years (vs. a 9% increase for other ethnic populations)
• 495% increase in Hispanic’s income vs. 131% growth in Hispanic population, shows income is increasing faster than population increase
• Latinos represent over 50% of all the immigrant births in the U.S.
• New York would have a negative growth rate if it weren’t for the Hispanic population growth
• Between 2040-2050, Hispanics will comprise at least 25% of the U.S. population
• Less than 20% of all U.S. Latinos operate in a Spanish-only world, less than 20% operate in an English-only world
• Over 60% of Hispanics are bilingual (they might read a Spanish newspaper and watch English language TV – they pick and choose because they want to be bilingual)
• Food Marketing Institute shows Spanish newspapers were most influential in food purchasing decisions, Spanish TV was 2nd, English language newspaper was 3rd, English TV 4th - shows the switching back and forth between media
• Percentage of all U.S. families married with kids is 24% (Hispanics 36%, Asians 33%, non-Hispanic whites 23%, African Americans 16%)
• 56% Hispanic households read Hispanic print news on a weekly basis
• Latino and Asian-American markets are the majority of the U.S. family marketplace, they have higher birth rates. The average household size in the U.S. is 2.1 people, but the average Hispanic household size is 4.1.
• Single biggest segment of non-Hispanic adults in the U.S. is 60+ years old, whereas the single biggest segment of U.S. Hispanic adults is between the ages of 18-29
• Fast food dining as a percent of meals away from home for young people under 30 is 60% vs. 53% for those 50+ years old
• 7.9% percent of Hispanic household income is spent away from home
• Overall 19.5% of Hispanic household income is spent on food at home vs. 14% for U.S. overall
• Overall 57% Hispanics want ethnic recipes, 60% for those under 30 years old (to stay in touch w/ cultural food)
• Latino Print Networks works with over 600 Hispanic newspapers and magazines around the U.S., in 44 states, 109 marketing areas and 164 MSAs (doubled in 8 years compared to 84 in 2000)
• FMI showed Hispanics’ home expenditure was greater than out of home expenditure
• Hispanics spend more on non-alcoholic beverages than alcoholic beverages (they spend ½ of what the national average spends on alcohol)
• Sales for tortillas are up 6.5% in the last year, while unit volume sold has only risen 2.5% (revealing that customers are buying higher quality tortillas)
• Hottest products for Hispanics in the next four years will be: more specific regional foods, fruits and vegetables (14% rise), milk & milk-style beverages (20% rise), yogurt and dairy drinks (14% rise), entrees and handheld items (19% rise), meat (16% rise)
• Latino food items grew from 5.7 billion in 2006 to 6.3 billion in 2007 and are predicted to rise to 8.4 billion by 2011

Building Bakery Sales with Hispanic Products, with BakeMark

BakeMark has created an ethnic Hispanic bread line, Trigal Dorado, based on traditional Hispanic breads that are hundreds of years old. Some of the traditional breads, named after their creative shapes include: Nidos (nests), Volcanes, (volcanos), Nubes (clouds), Novias (meaning bride in Spanish, named for their resemblance to a wedding dress), Patos (ducks), Hojas (leaves), Cuernitos (bull horns), Elotes (corn), Tortugas (turtles), Limas (limes), Conchas (seashells), Pelones (bald spot). With Trigal Dorado, BakeMark has developed mixes that are easy to make, authentic and have the presentation that they would many years ago. Product shelf life has also been extended with the mixes.

According to BakeMark, the key to merchandising is to know your customer. What kind of customer comes into your shop? Identify who they are before you introduce a new product. Some tips to creating and merchandising a successful product are:

• Ask what can your bakery offer the customer? For example, is it the ambiance, a special recipe, coffee or the service? Owners most of the time walk in through the back of the store and we always recommend coming to the front of the store to see how your shop is working.
• The key is that the customer has a great experience. Competitiveness is about the quality of the product you sell.
• Bring consistency to the product. With less bakers available today, BakeMark made the Trigal Dorado mixes to create consistency throughout a chain.
• Have a quality product and quality service and introduce new products over time to increase variety and diversity of product line.
• Always have samples for the customers to try your products. BakeMark has a tech team who will come to your site and teach you how to use the products. BakeMark also manufactures their own products and works with private label requests.

Managing Your Business and Surviving a Tough Economy

Expert Panelists: Natalie Orta, Chief of Business Development for the Los Angeles district of the U.S. Small Business Administration; Jesus Arguelles, Sr. Managing Director of Arguelles Capital Access L.L.C.; Sal Mendoza, Senior Vice President Community Reinvestment Manager, City National Bank and Gee Padilla, Vice President of Comerica Bank.

This panel discussion focused on how to start and maintain a healthy business during a tough economic climate. Panelist experts offered tips and advice to potential and current business owners on the best strategies for starting a business, obtaining financial support and managing a thriving business despite economic downturn.

Initial Steps
• Shop around for a bank/lender that is right for your business
• Develop a good relationship with your bank/lender
• Develop a good business plan and always think toward the future
• Utilize the free resources available through the SBA (SCORE, free consulting & financial planning services, www.sba.gov)
• Find a team of people who understand your business (non-profits, accountants, financial planner, banker, etc.)
• When you approach a lender you need to be able to tell them: how much money you need, what you need the money for, and how you’re going to pay them back
• If you’re starting a business, no lender is going to risk 100% of the capital you need. You have to be willing to risk some of your own capital to get a loan from the bank, that’s anywhere from 1/4 to 1/3 of your startup capital that has to come from your savings. You also have to be willing to pledge your home/real estate.

Financial Tips
• Get your finances in order (tax returns, financial statements, accounting)
• Don’t underreport your income; it will hurt your business growth
• Save 30-50% of what you’ve been spending
• Make sure you have the ability to repay any loan you take out
• Report your financial growth slowly, increasing percentages year after year
• Concentrate on 80% of your clients who generate 20% of your revenue
• Take care of your credit & credit report
• Banks look at many components when lending money (familiarize yourself with these components)

Managing your business
• Determine who your best clients are (sometimes you have to let the smaller clients go)
• Take a step back and analyze your business to find out where you need to trim/cut spending and where you need to focus your efforts
• Go back to school/brush up on skills and build an infrastructure to be more successful with your business
• Build a solid business infrastructure and have good management skills (to manage money, clients and accounting)

Culinary Highlights

Healthy Ethnic Flavor, with Chef LaLa and Marilyn Tausend
Chef LaLa and Hispanic food author and culinary expert, Marilyn Tausend, combined forces to create healthy authentic Mexican dishes. Chef LaLa is a certified nutritionist, with special interest in the obesity and diabetes crisis in urban America. Tausend has toured Mexico, Central America, and the Southwestern United States, gaining knowledge of Hispanic food traditions and history. Tausend made sopa de platano (plantain soup) which Chef LaL paired with pan fried quail topped with spicy arugula. Tausend also made sopa de cilantro (cilantro soup) which Chef LaLa paired with birria de chivo (Jalisco-style goat). Tausend wanted to prepare soups becase she felt that they were an important parto f Mexican cuisine and often overlooked in Mexican restaurants in the U.S. To compliment, Chef LaLa paired the soups with meats that are commom in Mexico but not often used in the U.S. Chef LaLa also used the soups as plating sauces for her dishes to show the diverse capacity of soups.

Making Bulk Food with Consistency, with Del Real Foods Chef Pablo
Chef Pablo from Del Real Foods showed the audience how to prepare Del Real’s authentic pre-packaged Hispanic food. Del Real is a family-run company that has grown from a small foodservice company to become the leading seller of pre-packaged Hispanic food, distributing to large retailers like Sam’s Club, Costco and Cardenas markets. In just two years, Del Real grew from a 15,000 square foot warehouse to 150,000 square foot warehouse. Their initial strategy was to start in foodservice and then move into retail, selling to distributors like U.S. Foods to create a presence in universities, hospitals and schools. Chef Pablo remarked that Del Real’s greatest challenge has been “to change the mind of people who believe they can’t eat good Mexican food that’s pre-prepared, because many Latinos don’t think prepared food can be good.” Del Real’s goal is to reach the first and second generation Hispanics, to help to minimize time and labor for cooking while maintaining quality of taste, providing nutritional information needed to control portion sizes and enable serving a large quantity of people.

El Restaurante Mexicano’s Sassiest Salsa Competition sponsored by Red Peck Tomatoes
Chef Michael Diegas from Phoenix, AZ won this second annual competition and a prize of$500. After the award presentation, Chef John Sedlar (aka the Tortilla King and founder of the Tortilla Museum in Los Angeles) prepared Chef Diegas’ salsa verde, prepared with tomatoes, tomatillos, onions and jalapenos. He also made a delicious salsa quemada with tomatoes, serrano chiles and garlic, noting that the best Hispanic salsa flavor comes from the charring of chiles that are cooked on an open flame.

Expo Comida Latina and All Asia Food will join with All Things Organic™ in Chicago at the McCormick/Lakeside Convention Center on June 17-18, 2009. More detailsabout Expo Comida Latina and All Asia Food 2009 in the coming weeks. For more information, please stay tuned to www.expocomidalatina.com and www.comidanews.com.