Non Alcoholic Beverages
Hispanic Market Weekly
November 2, 2005
Hispanics are big consumers of non-alcoholic drinks – sodas, waters and juices – and generally consume more fruit-flavored beverages than their non-Latino counterparts. One phenomenon that impacts what Latinos drink is the length of time they have lived in the U.S. and their degree of acculturation. For many soft-drink makers looking to connect with Latino consumers, the challenge is developing a message that works with the more acculturated Hispanics who grew up stateside on a diet rich in sodas as well as with the more recent arrivals whose penchant is for juices and fruit-flavored drinks. Drinks tailored to Latino taste buds have become a big trend with tropical-flavored beverages such as Pepsi’s Dole Aguas Frescas juice drinks in mango and tamarind flavors and Nestle’s Kerns Aguas Frescas, a line of fruit drinks.
Are They Investing?
Non-alcoholic beverages are among the most active categories in Hispanic media, consistently coming in within the top five spenders to the market. In 2004, non-alcoholic beverage companies invested roughly 11 percent of their overall media budgets on Hispanic television and print vehicles, according to the Hispanic Media Investment Trends study conducted last year by the Santiago Solutions Group for AHAA. Two fairly recent entrants into the Hispanic market are Cadbury Schweppes Americas Beverages and Novamex, the Mexican packaged goods company.
In summer, Cadbury launched a new Hispanic-focused campaign for Dr. Pepper (HMW 6/27/05. Two Languages. One Message). The campaign's debut came six months after Cadbury selected a new Hispanic agency of record – San Antonio-based The Cartel Group – and tapped Stephanie Bazán as its Hispanic marketing manager. The Dr. Pepper brand first entered the Hispanic market with a Texas-only campaign in 1997 (HMW 5/5/97. Let's Project It). In 2003, the soft drink aired a Latino-focused commercial featuring Paulina Rubio and Celia Cruz during the Latin Grammy Awards (HMW 9/8/03. CBS Is). Other Cadbury brands that are gearing up to boost their Hispanic activities in 2006 are 7Up, Sunkist, Squirt and Hawaiian Punch.
Two Hispanic agencies currently handle the Novamex four brands' account: Los Angeles-based Acento Advertising manages the creative component while Austin-based Amistad Media Group is responsible for media planning and buying. Dr. Pepper and Coca-Cola are among the advertisers that currently sponsor the Texas Rangers baseball team and their Spanish-language play-by-play initiatives as well as community outreach efforts aimed at Latinos. In addition to its dedicated Latino campaigns, Pepsi has included Spanish-language wording in its non-Hispanic national commercials.
Who's Spending What?
From January to August, the leading beverage marketers have invested $82.4 million on Hispanic television, newspapers and magazines. Leading the pack are the carbonated soft drinks where companies like PepsiCo, Coca-Cola and Cadbury Schweppes. These are followed by the non-carbonated soft drink makers and fruit juice or fruit-flavored drink manufacturers. Here's a closer look at what the industry leaders are spending on Hispanic television and print:
Top 10 non-alcoholic beverage advertisers
Parent
Jan - Aug 2005
Pepsico Inc $38,380,000
Coca-Cola Co $20,295,000
Cadbury Schweppes Plc $8,415,000
Altria Group Inc $4,917,000
S&P Co $3,770,000
Jw Childs Assoc Lp $3,212,000
Ocean Spray Cranberries Inc $1,463,000
Nestle Sa $825,000
Procter & Gamble Co $689,000
Coca-Cola Co/Nestle Sa $446,000
Source: TNS Media Intelligence
Based on Hispanic TV and Hispanic Print
Who Handles What?
Many of the soda, juice and fruit-flavored drink makers have tasked Hispanic advertising agencies with getting their messages out to Latino consumers. Here's a closer look at some of the agencies that handle Hispanic marketing for the non-alcoholic beverage makers and brands:
Pepsi – Dieste Harmel & Partners
Coca-Cola – Lápiz Integrated Marketing and García 360
Cadbury Schweppes – The Cartel Group
Altria – Lápiz Integrated Marketing
Kraft – The Bravo Group
Ocean Spray – Ornelas & Associates
Dole Aguas Frescas – Castells & Asociados
Kern's Beverages - Ethnic Marketing Group
Ocean Spray Cranberries – Ornelas & Associates
Procter & Gamble - Bromley Communications, Conill Advertising and Dieste Harmel & Partners
Nestle – Bromley Communications and Casanova Pendrill
