A look into consumer macro trends affecting the Hispanic consumer

1. HISPANIC MACRO TRENDS AP+R APRIL 24, 2008

2. CULTURAL AUTHENTICITY LATINA POWER DOLLAR & SENSE EL VERDE ES VIDA

3. Cultural Authenticity

5. Why ?

6. Latinos are Looking…

7. Authentic

8. Flavors Textures Aromas Colors

10. Spanish The emotional language

11. Brands responding…

12. Latin American brands invasion

13. The landscape is changing…

14. 125 in Phoenix

15. Culturally friendly environments

16. What can we do?

17. Reach out Fla vor ful experience Appeal Love for brand +

19. Latina Power 2007 $806 billion

20. Bicultural 58k Affluent Time crunch

21. 62% Blogs, Chats, forums, banking, dating, online communities 43% Uses the Internet during the weekend Source: Simmons NCHS Adult study, Agee 23-35

22. 1997 to 2007 # of businesses owned by Latinas 121% 856,782 today $67 billion Source: Center of Women’s Business Research, 2007

23. How do we keep talking to them ?

24. Empowerment Confidence Celebrate her moment Indulge Positive reaction toward the brand +

26. Already there…

27. “ El verde es vida”

28. Consumer segmentation by level of “greenness” People Behavioral Greens : Consumers who think and act green. They have negative attitudes towards products that pollute the environment and incorporate green practices on a regular basis. Aware Think Greens : Consumers who think like green consumers but don't always necessarily act green. Potential Greens : Consumers who neither behave nor think along particularly environmentally conscious lines but remain on the fence about key green issues . True Browns : Consumers who are not environmentally conscious and may actually have negative attitudes about heavy environmental focus. Source: Simmons Research, 2008

30. Consumer segmentation by level of “greenness” People Behavioral Greens : Consumers who think and act green. They have negative attitudes towards products that pollute the environment and incorporate green practices on a regular basis. Aware Think Greens : Consumers who think like green consumers but don't always necessarily act green. Potential Greens : Consumers who neither behave nor think along particularly environmentally conscious lines but remain on the fence about key green issues . True Browns : Consumers who are not environmentally conscious and may actually have negative attitudes about heavy environmental focus. Source: Simmons Research, 2008 LATINOS ?

31. 72% USH 47% NWH Acculturation Education Affluence

32. Organic = Green 13.8 billion business in 2006

34. The Hispanic organic consumer USH and NWH are consuming equally organic/natural foods 25% Hispanics 23% NWH Spanish dom. Bilingual 21-59 35% 29% Source: Simmons Spring 2007 NHCS Adult Full Year

35. Watch out Diet ≠ organic/natural 11.6% USH 11.3% NWH Source: Simmons Spring 2007 NHCS Adult Full Year

36. 1. Fruit and vegetables 2. Cereal and breads 3. Milk, Yogurt and dairies 4. Packaged goods

37. $300 million 2007 No. 3 in the U.S . Environmental values 1% USH

39. How de we talk to the Latino green consumer? Health Flavor We can save the environment cultural & personal benefits of going green + Empower Latinos to buy the brand

40. Dollar & sense era

41. Source: AAA AVG. MILK PRICE $3.6 p/g GAS PRICES CALIFORNIA FLORIDA TEXAS $ 3.8 p/g $ 3.5 p/g $ 3.4 p/g

42. “ Recession affects my economy” 60% 75% USH 78% AA 68% NWH

43. Recession Tighter budgets Selectivity of brands

44. Source: A retailers report ‘dismail’ holiday sales as buyers cut back, Associated Press, 2008 Latinos likely to trade down, not out Loyal Pragmatic Rational Downsize Downgrade Trade out

45. CAKES YOGURT ICE CREAM COOKIES FRUIT 26.4% 9.9% 8.9% 5.6% 4.1% % of Individual Hispanic Afternoon Snack Meals Source: National Eating Trends Hispanics, 2004 Over index 186 to non-Hispanics

46. YOGURT POPCORN ICE CREAM COOKIES FRUIT 26.8% 11.5% 6.4% 5.5% 3.3% % of Individual Hispanic Morning Snack Meals Source: National Eating Trends Hispanics, 2004 Over index 289 to non-Hispanics

47. What to do ?

50. ?