Sigma, Shuanghui offering to acquire Campofrio 12/23/2013 - by Keith Nunes

MONTERREY, MEXICO — Mexican Food processor Sigma Alimentos and Hong Kong-based Shuanghui International Holdings are joining together to acquire Spain’s Campofrio Food Group, Madrid. The joint offer is for €6.90 ($9.45) per share of Campofrio Food Group stock, for a total investment of approximately €700 million ($958 million).

The two companies currently own approximately 82% of Campofrio’s outstanding shares. Through its acquisition of Smithfield Foods, Inc. on Sept. 26, 2013, Shuanghui International indirectly acquired approximately 37% of the outstanding shares of Campofrio. Following its acquisition of Smithfield Foods it was not clear how Shuanghui management would address the company’s ownership stake in Campofrio.

In a series of purchases from Nov. 13, 2013, to Nov. 27, 2013, Sigma acquired approximately 45% of the outstanding share capital of Campofrio.

With annual sales of €1.9 billion, Campofrio is one of the largest meat processors in Europe. The company has eight interdependent operating companies in France, Spain, Germany, Italy, Belgium, Portugal, The Netherlands, the United States and a joint venture with Caroli Foods in Romania.

Infographic: Changing the food service channel 12/18/2013 - by Monica Watrous

CHICAGO — Convenience stores are robbing restaurants of traffic, according to a recent report from market research firm Technomic, Inc.

Nearly a third of consumers said they would have visited a restaurant had they not purchased prepared foods from a convenience store on their most recent visit, and 26% indicated they would have visited a fast-food restaurant.

Click the infographic for a closer look at food service usage at convenience stores.

Fifty-three per cent of consumers surveyed buy food from convenience stores once a week or more, compared with 57% who visit a restaurant on a weekly basis, according to Technomic. The survey included an on-line panel of 4,000 convenience store shoppers.

“Due to location and speed of service, c-stores are always going to be a dining option,” said Darren Tristano, executive vice-president of Technomic. “Recently, however, we’ve seen a concerted effort to improve the quality of food and service provided at these locations. If c-stores can continue enhancing these areas, they can look to drive traffic from restaurants.”

Leading the chains for food service usage is 7-Eleven, where 39% of survey participants purchased food within the previous two months. The chain expanded its food options this year with breakfast empanada bites, Pillsbury cinnamon rolls and a healthy snack section featuring such items as dry-roasted edamame, organic trail mix, vegetable chips and dried fruit and nut blends.

Circle K and Chevron follow in food service patronage, each with 17% of consumers buying food in the past two months.

Nine out of 10 convenience store users consider food quality and flavor when deciding which store to visit. Wawa earned the highest food and beverage ratings, trailed by Quick Trip, Sheetz, Stripes and Kwik Trip.

Nigel Travis, chief executive officer of Dunkin’ Brands, discussed the emerging competition from convenience stores during an Oct. 24 earnings call.

“We do see convenience chains thinking about food and beverage — that’s something we’re very aware of,” Mr. Travis said. “Most of these competitors are very good. They’ve invested new concepts — you’ve seen that from everyone from Race Trac, Wawa, 7-Eleven. We’re aware of all these. Our franchisees are highly aware of them. And we talk about competitors like these all the time with our franchisees.”

Private label vs. brands: Can’t we all get along 12/18/2013 - by Keith Nunes

CHICAGO — Private label is here to stay, according to Information Resources, Inc. (I.R.I.), and it would be in the best interest of both private label and national brand food and beverage marketers to identify ways to coexist and benefit mutually. I.R.I. staked its position on the subject in its latest Times & Trends report “Private label and national brands: Paving the path for growth together.”

“While some industry experts believe private label has ‘had its day,’ I.R.I. believes that private label and national brand marketers can enjoy mutual growth by not simply co-existing, but rather evolving and working together to serve the full spectrum of consumers’ needs and wants,” said Susan Viamari, editor of Times & Trends for I.R.I. “Of course, consumers are shopping conservatively and looking for money-saving options, so they have embraced private label. However, national brands remain critical. In this environment, manufacturers and retailers must work together to provide a balanced assortment of national and private label solutions, targeted at the store level, to offer the best overarching value.”

The market research firm said private label sales inched up slightly during 2013 when compared to 2012. But despite the fact the market appears to be holding steady, there has been category movement within specific retail channels. Private label performance within the drug channel, for example, has been strong during the past year. Unit share grew one point, to 17.6%, while dollar share climbed less sharply, to 16.9%. Though private label share inched up slightly in the convenience channel during the same time period, it remains well below industry average, at 2.4% and 1.7%, respectively.

Private label’s strength across the drug and convenience channels is attributable to a number of factors, including retailer efforts to broaden and enhance private label programs, according to I.R.I.

The club channel is demonstrating the strongest private label share growth —growth that is occurring across both heavy and light purchasers of private label products. The growth brought the channel nearly $1.4 billion more in private label sales from heavy and light buyers in 2013 compared with 2010.

In the coming months and years, consumers will continue to look to both national brands and private label solutions to find the best value, according to I.R.I. To deliver, marketers from both sides must focus on one or more growth strategies, including deepening penetration, fracturing concentration and strengthening of price and promotion strategies.

“Private label is clearly here to stay,” Ms. Viamari said. “For private label to prosper, it is critical for private label marketers to understand the role of their brands in relation to competing national brands. And, national and private brand marketers must step up their collaborative focus, directing their efforts to retailer/manufacturer partners that ‘best fit’ their strategic goals and objectives.

“This type of strategic collaborative marketing partnership will increase sales and strengthen customer loyalty by getting the right products to the right place at the right time, with a targeted value proposition.”

Darden casting off Red Lobster 12/19/2013 - by Monica Watrous

ORLANDO, FLA. — Red Lobster is off the hook.

As part of a comprehensive plan to increase shareholder value, the board of directors for Darden Restaurants, Inc. has approved a tax-free spin-off or sale of the seafood chain.

Other components of the review include reducing unit growth at Olive Garden and LongHorn Steakhouse, lowering capital expenditures and forgoing acquisitions of additional brands. The company expects to increase cost savings through aggressive operating support cost management and enhanced cost efficiencies in order to increase return of capital to shareholders through dividends and its share repurchase program. Compensation and incentive programs for senior management will be refined to emphasize same-restaurant sales growth and free cash flow.

“In developing this plan we assessed a number of alternative ways to segment our portfolio of brands and leverage our other assets, including our real estate,” said Clarence Otis, chairman and chief executive officer, during a Dec. 19 conference call with financial analysts. “We’re excited about the plan we’ve chosen because it enables us to continue to benefit from the complementary strengths of our brands.”

The announcement comes at a time of increasing sales volatility for the casual-dining segment. Darden has implemented other recent changes that have included reducing workforce, slashing operating costs and overhauling its Olive Garden brand to restore sales momentum for the Italian restaurant chain. Darden also this year tested an express-lunch model in some of its Red Lobster restaurants that was dismantled after a few months. On Sept. 23, Barington Capital Group, L.P., which owns 1.4% of Darden’s outstanding common stock, wrote a letter to the board of directors recommending the company split its restaurant operations and real estate properties.

With 705 restaurants in the United States and Canada, Red Lobster had annual sales of approximately $2.6 billion in fiscal 2013. Amidst changing consumer dynamics, the company said Red Lobster’s competitive position and priorities have diverged significantly from those of Darden’s other brands, which also includes The Capital Grille, Yard House, Bahama Breeze, Seasons 52 and Eddie V’s Prime Seafood.

“We talk about pockets of consumer strength,” Mr. Otis said. “One example is more financially secure consumers. Another is younger consumers, even just the sheer size of that category. With the exception of Red Lobster, all of our brands are having success increasing their relevance to these various pockets of strength.”

Following the separation, Kim Lopdrup, president of Specialty Restaurant Group and New Business for Darden, will become chief executive officer of Red Lobster, and Harald Herrmann, president of Yard House, will succeed Mr. Lopdrup as president of the Specialty Restaurant Group in January. Salli Setta, who was named president of Red Lobster in July, will continue in that role.

If Red Lobster is spun off, Brad Richmond, senior vice-president and chief financial officer of Darden since 2006, will become chief financial and administrative officer of Red Lobster upon completion of the transaction. The completion of the contemplated spin-off is subject to customary conditions and is expected to close in early fiscal 2015, which begins May 26, 2014.

Following the separation, Darden expects it will achieve higher and more consistent same-store sales and earnings per share growth and generate significant free cash flow. The company expects to save at least $60 million annually beginning in fiscal 2015, which represents a $10 million increase over its previous projection of $50 million.

“The spin-off will transform Darden into two independent public companies that can each focus on their different opportunities,” Mr. Otis said. “New Darden’s core strategic focus will be on retaining to core customers and expanding our customer base. … New Red Lobster’s focus will largely be on retaining its core customers and on using its strong and consistent cash flow generation to support what will be a more stable rather than growing return of capital to shareholders.”

Strong same-store sales for LongHorn Steakhouse and solid momentum for the Specialty Restaurant Group chains helped offset a drop in second-quarter income due to costs from recent reduction efforts, as well as legal and financial advisory costs associated with the announced strategic review.

For the quarter ended Nov. 24, net earnings fell 41% to $19.8 million, equal to 15c per share, from $33.6 million, or 26c per share, during the same prior-year period. Food and beverage expenses, including an unfavorable price increase driven by higher shrimp and land-based protein costs, negatively impacted profits. Net sales increased 5% to $2,049.9 million from $1,960 million during last year’s second quarter, but same-restaurant sales and guest counts fell below expectations.

During the quarter, Red Lobster’s sales dipped 5%, while LongHorn Steakhouse sales grew 17%, Olive Garden sales climbed 2%, and the Specialty Restaurant Group sales advanced 21%.

For the first half of the fiscal year, net earnings slipped 38% to $90 million, equal to 69c per share, from $144.4 million, or $1.12 per share, during the same period of the previous year. Net sales for the six months grew 5% to $4,208.4 million from $3,994.8 million.

Yogurt, Protein Lead Dairy Case Trends

Dairy is one of the most frequently shopped grocery departments, at 36 trips per year. New product introductions are robust at approximately 12,000 to 13,000 products annually.

That's according to What’s in Store 2014, the latest edition of the annual trends publication of theInternational Dairy-Deli-Bakery Association (IDDBA).

Also among dairy case highlights in the group's latest report:

• Yogurt shows strong growth trends. Sales projected to 2017 show an anticipated 17 percent growth (an estimated $9.1 billion USD). It’s a growing breakfast and snack category.
• Three macro factors impacting the dairy case are: decreasing U.S. middle-income households, diversity of shoppers by age and ethnic group, and access to smart technologies (encouraging unprecedented levels of transparency).
• Watch for dairy processors to boast protein content and treatment of health issues, messages about dairy’s nutrients beyond calcium and weight management, which tout dairy as an excellent agent for prebiotics and probiotics, and stress satiety effects.
• Dairy to-go trends include products with longer shelf-lives, as well as occasion-specific desires (mid-morning snacks), and complete convenience (serving utensils included).

Well-being is an overarching trend shaping product offerings in the dairy case, according to the report. "Many refrigerated dairy case products boast natural nutritional properties, protein and vitamin content, satiety characteristics, and the ability to provide energy, in addition to functional additives. Some of these new products readily meet lifestyle claims, too," the report states.

Dairy products are uniquely positioned as a medium for functional additives, the report asserts: "Today’s dairy case includes products to address protein consumption, digestive health, cardiovascular health, immune system support, relaxation, beauty and skin health, and life-stage nutritional needs. Dairy products continue to provide an excellent medium for fortification."

Globally, the leader with 20 percent of new dairy product introductions is the spoonable yogurt category, followed by hard and semi-hard cheeses (11.7 percent), and drinking yogurts (10 percent). Greek yogurt sales continue to grow, as current data indicated that Greek yogurt accounts for 35 percent of sales, according to Packaged Facts.

Political, economic and supply uncertainty lead to a shrinking middle class. According to the Innovation Center for U.S. Dairy, the decline is predicted to drive a reduction in mid-priced brands and retailers. Dairy producers and retailers will need to address the new markets (high-end and low-end) and better meet the needs of consumers’ new definitions of value.

Growth of minority groups, such as Hispanic consumers, coupled with an aging population will pose challenges for the dairy industry. Our youth demographic will become more diverse and prominent and the aging population will pose new health needs. These trends will require new product formulation, micro-targeting and marketing. Smart technology will continue to develop and allow consumers to demand unprecedented levels of information and transparency. Dairy manufacturers and retailers will need to address these needs with product information and packaging.

Extended-shelf-life packaging offers on-the-go convenience and expands consumption opportunities. Single-serve packaging expands the opportunities for milk consumption and increased flavor varieties.

What’s in Store 2014, IDDBA's 28th edition, is a 230-page trends report that details consumer and industry trends affecting the in-store dairy case, cheese case, bakery, deli and foodservice departments. It's supplemented by What’s in Store Online, a collection of more than 150 downloadable tables, as well as white papers and trends articles.

Latin Love...

From tropical to traditional, supermarkets look south to satisfy consumers' appetite for fresh produce.

FRESH FIELDS Avocado groves stretch into the distance on a farm in Peru, which is boosting its imports of the fruit to the United States.

These days, talk of food trends invariably turns south – as in Argentina, Brazil and Peru. South American cuisine is on nearly everyone's list of the hottest foods to watch, with the region's produce gaining particular attention.

Earlier this year, Chicago-based research and consulting firm Technomic called South America "the next frontier." Restaurant-goers who've long favored Mexican food will be seeking out new Latin flavor experiences from countries like Brazil and Argentina, the firm predicted.

South American fruits and vegetables are unmistakably at the heart of this heightened interest in Latin flavors. NBCLatino, which reported "6 Latin Food Trends for 2013," says people will be savoring the sour flavors of passion fruit, tamarind and lime. It also sees health-conscious younger Hispanics looking for traditional superfoods like nopales (a dish made from prickly pear) and chayote squash.

Tempting Tropicals 
The nation's love affair with fusion food, as well as a growing ethnic population, is also bringing more South American flavors and produce to the table.

In the U.S., there's a boom in fusion restaurants that integrate tropical products into different dishes." –Marion Tabard, Turbana Corp.

"In the U.S., there's a boom in fusion restaurants that integrate tropical products into different dishes," notes Marion Tabard, marketing director for Turbana Corp. "Taking into account the increase in Hispanic and Asian populations in the U.S., chefs are innovating and adding tropical flavors to popular dishes to invite all kind of cultures into their dining establishments."

The Coral Gables, Fla.-based produce importer recently introduced a program for its Tropicals line that's designed to help retailers capture the growing ethnic market. Turbana cites recent Nielsen data indicating that the U.S. Hispanic and Asian populations increased 47.3 percent and 51 percent, respectively, between 2000 and 2012. Nielsen expects that increase to triple by 2050.

Making this demographic all the more important to supermarkets, notes Tabard, is the frequency with which ethnic consumers cook from scratch and eat at home (four to five times per week).

To help retailers capture this home-cooking consumer's buying power, Turbana is offering a mobile application that allows retailers to log in to learn more about ethnic tropical produce, as well as the demographics for each of its market areas. Certain items in Turbana's tropical line, which includes yucca, chayote, eddoes, batata, malanga lila, calabaza, yellow yam, dry coconut, ñame, aloe vera, malanga coco and malanga blanca, will also feature QR codes linking to creative recipes.

Traditional Tastes 
As an independent upscale grocer, West Point Market, in Akron, Ohio, is well versed in exotic produce and gourmet ingredients. But when the economy took a nosedive, so did its customers' willingness to pay more for, say, cherimoyas versus cherries.

"Americans got a little tighter in their belts, and exotic produce was an easy thing to let go," says Produce Manager David Lukens. "As the economy picks up, we're starting to see more interest from customers wanting to try something new again."

TROPICAL CHOICE Turbana Corp. imports a wide variety of produce from Latin America.

Exotics aside, West Point is selling 50 percent to 60 percent more South American fruit than five years ago, estimates Lukens. Grapes, apples, pears, citrus, bananas and cherries from South America are all strong sellers for the grocer.

Grapes are West Point's most significant South American product. "My big thing is keeping them fresh and keeping them reasonably priced," says Lukens. "Most bags are so highly printed, so I merchandise them with the backside up to show how nice and fresh the grapes are. ... Off-season apples, early-summer Fuji and Grannies, also do really well."

Thanks to better shipping and storage practices, says Lukens, "you can't tell the difference in quality between peak-season South American fruit and peak-season fruit from the U.S."

Jason Kazmirski, produce/floral director at Northwest Grocers, in Tukwila, Wash., agrees. "The quality of products from Chile has really improved over the years, and we're definitely seeing more Chilean produce in our stores, because people are feeling more comfortable with the quality of it," he says. "Customers come back and want to buy more."

Chilean grapes are also among Kazmirski's biggest South American sellers. "Chile is doing a great job with grapes, and their season fills a nice gap in our grape program," he says. "When Chilean grapes are at peak season, they are fantastic, and there's a lot of sales to be made there."

"When Chilean grapes are at peak season, they are fantastic, and there's a lot of sales to be made there." –Jason Kazmirski, Northwest Grocers

Color From Chile 
In addition to quality, Kazmirski is excited about the welcome color break that Chilean produce provides in the dead of winter. Last year, Northwest Grocers ran a blueberry display contest with the help of the Chilean Fresh Fruit Association and invited all of its stores to participate.

"We wanted to create something exciting in January and February, when you feel like you've been doing nothing but citrus for months," explains Kazmirski. "The promotion helped drive sales for our stores and the product itself. It was a win-win."

"U.S. per capita consumption of blueberries has more than doubled since 2005, and consumption continues to grow," says Karen Brux, managing director of the Sonoma, Calif.-based Chilean Fresh Fruit Association. "The availability of Chilean blueberries from November through March enables consumers to enjoy blueberries 12 months a year and contributes significantly to category growth."

In the summer, citrus is a novelty, so Northwest Grocers recently decided to run a similar display contest among its stores that was tied to Chilean citrus. "It gets the produce managers involved, and then they use their creativity and tell the story about the product," notes Kazmirski.

Monumental Avocado Introduction 
It's no secret that avocados have experienced explosive growth in the past decade. According to the Hass Avocado Board, in Irvine, Calif., Hass avocados – which represent more than 94 percent of the U.S. avocado market – accounted for $1.4 billion in 2012 retail dollars.

Unprecedented demand for this lusciously textured fruit has caught the attention of Peru, which just happens to cultivate Hass avocados. "The U.S. market is growing from all suppliers cementing consumption of avocados. In some months, demand is higher than supply," says Xavier Equihua, CEO of the Peruvian Avocado Commission (PAC).

Washington, D.C.-based PAC made its foray into the U.S. avocado market with the "Monumental Taste" campaign in 2012, and is planning to increase its market presence substantially in 2014.

The campaign included demos at more than half of Costco's locations, promotions with Stop & Shop and Giant, and radio tags with Walmart, the last of which represented a first for the avocado category, notes Equihua.

Future promotional efforts are expected to include a new website slated to debut in May/June 2014 at the start of the Peruvian avocado season, which typically runs from June to September.

FDA to ban trans-fats?

The Food and Drug Administration (FDA) released a new proposed rule to effectively eliminate trans-fat from all food products in the United States. The proposal is open to a 60-day comment period with a twofold objective: to certify that trans-fat, specifically partially hydrogenated oils (PHOs), are not safe for human consumption; and to orchestrate a gradual elimination of trans-fats from food products over several years.

The Independent Bakers Association (IBA) is reviewing the proposal and investigating the potential impact on the baking industry. IBA members are encouraged to share thoughts, opinions or questions about the proposal via e-mail (independentbaker@yahoo.com), fax (202-337-3809) or mail (P.O. Box 3731, Washington, DC 20027-0231).

A statement from the FDA and the proposal are available here. IBA will evaluate the proposal and share elements significant to the baking industry with our members.

H-E-B Puts Families First With Normal Thanksgiving Hours

As part of its continued commitment to support the well-being of families throughout Texas, H-E-B will close early on Thanksgiving Day and will re-open the following morning at normal store hours. The San Antonio-based retailer’s decision, which is contrary to the increasingly common practice of accelerating Black Friday events earlier and earlier each year, is based on its conviction to put family first this holiday season and honor the cherished traditions held by families throughout Texas.

"At H-E-B, we believe that family matters more than anything else, especially during the holiday season," said H-E-B President Craig Boyan. "We feel strongly that our customers and partners should have the opportunity to spend quality time with their loved ones."

H-E-B Thanksgiving Day store hours are as follows:

• Thurs., Nov. 28 - stores will close at 2 p.m.
• Fri., Nov. 29 - stores will open at 6 a.m. and resume normal operating hours with Black Friday deals in all H-E-B plus! locations. (Black Friday deals exclusive to H-E-B plus! stores)

"Our customers can once again expect to see amazing Black Friday deals in all H-E-B plus! locations on their favorite brands and products in electronics, toys, housewares and more," said Bill Anderson, H-E-B’s group VP of general merchandise. "Our everyday commitment to low prices is especially paramount this holiday season, and we look forward to providing each community with opportunities to save without having to sacrifice time with those they care about most during this special time of year."

H-E-B, with sales of more than $19.4 billion, operates more than 350 stores in Texas and Mexico. Known for its innovation and community service, H-E-B employs more than 80,000 partners and serves millions of customers in more than 150 communities.

FDA’s Nutrition Facts Overhaul Spurs CPG Resource

FoodMinds LLC, Nutrition Impact LLC and EAS Consulting Group LLC have developed Food Label Compass for food and beverage companies, inspired by the Food and Drug Administration’s (FDA) plans to update its 20-year-old Nutrition Facts label policies “based upon the latest science-based nutrition recommendations.”

According to the consultancies, the new resource offers “a specialized suite of nutrition analysis, regulatory consulting and strategic services to guide food and beverage companies in understanding the impact, complying, communicating, and capitalizing on the new FDA guidelines.”

These “essential services” are in-depth analyses of the food and nutrient content of clients’ brands in relation to the new guidelines, identifying potential changes to the serving-size rules, and assessing the impact of potential changes to Daily Values (DVs) and how nutrition claim criteria may be affected; developing regulatory recommendations and guidance to create labels reflecting the new requirements, validating claim opportunities, answering questions on compliance, and ensuring the information is presented in an approved and consumer-friendly manner; and the development of a strategic road map for the client’s product portfolio and brand messaging to position and plan around new labels that will effectively communicate the new nutrition information.

“From a practical standpoint, we have learned a lot in the past 20 years about the world of food labeling, and how companies should meet regulatory requirements balanced with helping consumers make informed choices,” said Robert C. Post, chief science officer of Chicago-based FoodMinds. “Through our new Food Label Compass, we have effectively packaged a mind-trust of science-based analysis, regulatory counsel, and marketing communications experts to provide clients an edge to successfully navigate and capitalize on this opportunity.”

“While the nutrition label has been an invaluable tool to educate consumers, it is overdue for an update so that it can reflect current science and dietary recommendations,” noted Victor Fulgoni, SVP at Battle Creek, Mich.-based Nutrition Impact. “The trick for food and beverage industry will be how to successfully navigate upcoming changes proactively, and then clearly communicate this new information to their consumers.”

As well as changes to how nutrition label information will be presented, the expected FDA changes will include guidance for claims on labeling, which will present a challenge for the industry. “Understanding where there may be new claim opportunities and what scientific research will be needed to validate them is just one area,” explained Edward A. Steele, chairman and CEO of Alexandria, Va.-based EAS Consulting Group. “Just as important is how to be confident that any proposed new labeling is correct.”

According to the FDA, consumer use of the Nutrition Facts label continues to grow, with the percentage of consumers reporting that they often use the label rising from 44 percent in 2002 to 54 percent in 2008.

The Most Wonderful Time of the Year By Gustavo Guerra

With consumers on the hunt for everything they’ll need to prepare for the holidays, the next few months can be the most wonderful time of the year for retailers. The holiday season, starting with Halloween and ending with New Year’s, provides them with several opportunities to connect with shoppers and make an impact on sales of everything from candy to turkeys and even beer. In fact, Halloween and Christmas are in the top six beer-selling holidays in the United States, with a total volume of more than 51 million and 54 million cases, respectively, in only a two-week period.¹

So how can grocers make an even bigger impact on sales this holiday season? Many of them will look for programs that specifically target the fastest-growing segment of the U.S. population: Hispanics. Not only are Hispanics more driven to purchase by celebrations and holidays than their general market counterparts² , they’re also more likely to increase spending for these types of celebrations.³ Furthermore, anchoring retail programs to relevant Hispanic holidays and traditions can effectively extend the sales period by several days.

Día de los Muertos

Día de los Muertos (Day of the Dead), a holiday celebrated throughout Latin America on Nov. 1-2, has increased in popularity among bicultural U.S. Hispanics and even among their general market counterparts. An occasion to remember loved ones who have passed away, the holiday is usually observed by gathering with family and friends for special meals and to highlight the items that their ancestors enjoyed in life, including -- you guessed it -- beer.

Brands have started to notice the popularity of Día De Los Muertos, and many have already leveraged the holiday to connect with shoppers through their passion points of culture, tradition and art. It doesn’t hurt that Día de los Muertos extends the high beer-selling period for two days after Halloween.

Within the Heineken USA portfolio, Indio beer recently wrapped up its Day of the Dead retail program, which took over small- and large-scale retail accounts across California, Texas, Chicago, Las Vegas and Phoenix. Thematic POS materials educated shoppers on the holiday by highlighting key visual elements of the celebration such as cempasuchil (marigold flowers), photo frames and papel picado (perforated tissue paper banners). Throughout the four-week program, the dark Mexican lager brand encouraged Hispanic bicultural Millennials 21 and older to “Do Their Thing” and celebrate the holiday in their own way with Indio.

Maratón Lupe-Reyes

Christmas and New Year’s Eve are the pinnacles of the holiday season for most retailers, and the last chance of the year to generate sales. So why not extend it as much as possible?

Retailers can leverage a tradition in Mexico known as the Maratón Lupe-Reyes, a string of holiday celebrations that kicks off Dec. 12 and ends Jan. 6. Yes, that’s 14 separate occasions within a three-week period for Hispanic consumers to celebrate with family and friends.

To keep shoppers coming back to the store throughout Lupe-Reyes, Tecate and Tecate Light are providing grocers with a program comprising a variety of elements designed to give men of carácter everything they need to “survive” the Maratón season. For example, the attention-grabbing POS goes beyond price cards, cooler decals and case stackers to include a calendar-format “Survival Guide” poster with tips for consumers to make it through the celebrations responsibly. There’s also a text-to-win sweepstakes of branded items, such as glasses and domino sets.

Additionally, Tecate is partnering with brands like Guerrero tortillas and Tajín seasoning to offer consumers enticing mail-in and instant rebates on these holiday party essentials, while expanding Tecate’s visibility outside of the beer aisle and driving cross-merchandising purchases for higher basket rings.

These retail holiday programs have been well received in the market, as they give large- and small-scale retailers the opportunity to extend the most wonderful holiday shopping period and connect with their Hispanic customers in relevant and impactful ways.

[1] National Retail Federation and BIGInsight Research; "Nielsen Top Beer Holidays," 2011

[2] "Nielsen Top Beer Holidays," 2011

[3] "Mintel Holiday Study," 2012

Gustavo Guerra is brand director for Tecate Franchise and Indio at White Plains, N.Y.-based Heineken USA.