Commentary: Selling Wine To Hispanics

David Eddy

A provocative economic analysis was recently
released with the title, “Marketing Wine To Hispanics,”
and subhead “The 50 Million Case Growth Opportunity.”

The author, Rabobank’s Stephen Rannekleiv, says that because Hispanics are projected to be the fastest growing ethnic minority, and they don’t drink that much wine on average, they represent a fantastic marketing opportunity. If their wine consumption could be brought up to that of the average U.S. consumer, consumption among Hispanics will increase by nearly 50 million cases over the next 20 years.

“By Rabobank calculations, that increase of 50 million cases could be as much as 40% of the total growth in U.S. wine consumption over that period,” Rannekleiv writes. “Furthermore, learning how to market to U.S. Hispanics may provide brand owners with insights to help penetrate other Latin American markets (e.g. Mexico) in the future.”

But, as the author notes, there are some huge hurdles that must be overcome in marketing wine to Hispanics. One big one is that 65% of U.S. Hispanics are Mexican, and relatively few people think wine goes well with Mexican food.

That reminds me of a wine-tasting trip to Napa years ago. At one winery, a multi-generational Hispanic family asked a tasting room employee what wine would go well with Mexican food, and he replied that he only drinks beer with Mexican food. The family patriarch smiled politely, but from his quizzical look I could tell he was thinking the same thing I was thinking: “Why aren’t you trying to sell your product?”

But the tasting room worker is in the mainstream, and the study notes that as a result it can be difficult to get any wine at a Mexican restaurant, except for maybe a couple of house pours and sangria.

Teach Your Parents Well

But there was also good news to be found in the study. Research shows that while many younger Hispanic consumers reported they were introduced to wine by their parents, the reverse was also often true. Younger Hispanics, like other millennials (ages 21-34), are drinking more wine, and they are introducing it to their parents. It stands to reason, then, that marketers should target Hispanic millennials.

What does that mean for winegrape growers? We have reported in the past on the renewed interest in wine among young people. Research shows that they don’t have the same taste in wines as their parents, who generally prefer traditional varietals, dry reds and whites like Cabernet Sauvignon and Chardonnay. Millennials on the whole prefer sweeter wines, and the same is true of Hispanics as a whole. That means the future looks savory for a varietal like Moscato, a sweet white made from the Muscat grape.

Despite many new plantings over the past few years, some industry analysts expect a shortage of the wine in the future, which is reportedly the drink of choice for many young women in particular. For winegrape growers in California’s San Joaquin Valley, who produce about half the nation’s total, it’s especially welcome because Muscat flourishes in the valley heat. Sales of sweet red wines, which also fare well in warmer climes, have likewise soared.

Marketing to Hispanics makes sense because they are underserved now, and just think of the future. In 2000, they comprised 12% of the U.S. population, now it’s 16%, and in 2033 it’s projected to be 22%. That’s 20 years from now, which is the average high-yielding lifespan of a grapevine. Sure, most growers don’t — or shouldn’t — plant a variety without a contract, but it’s food for thought.

Topics: ,

Leave a Reply

Fruits Stories
Western Growers'  Center for Innovation & Technology is a technology incubator designed to bring innovative entrepreneurs together with growers to facilitate creative solutions to the biggest challenges facing agriculture.
Fruits
August 30, 2016
Western Growers Opens AgTech Innovation Arena Competition
Startup companies can apply to compete for ag industry resources. Read More
Photo credit: Dan Cantliffe
Berries
August 29, 2016
New Source For High And Low Tunnel Berry Growers
TunnelBerries project offers resources for growers, Extension agents, and those interested in berry production under cover. Read More
gmo apple
Apples & Pears
August 29, 2016
Public Comments Now Accepted For ‘Arctic Fuji’ Apple
APHIS releases determination to extend deregulation to third release from Okanagan Specialty Fruits. Read More
Workers picking in a Florida strawberry field
Food Safety
August 29, 2016
10 Takeaways From The Center For Produce Safety’s Research Symposium
A couple of the key points from the symposium include knowing the importance of sampling irrigation water sources correctly and knowing the difference between validation and verification. Read More
Wafler apple harvester
Apple Grower of the Year
August 27, 2016
Rock Steady U.S. Apple Crop Forecast
USApple predicts 2016 output will be just slightly higher than in 2015. Read More
UC Cooperative Extension Viticulture Advisor Lindsay Jordan installs a solar “Paso Panel.” (Photo Credit: Matthew Fidelibus)
Grapes
August 27, 2016
Managing Water In California Vineyards
National viticulture symposium provides insights into estimating vineyard irrigation requirements. Read More
A Concord model grape vineyard with a two-tier cordon system. (Photo credit: Tom Zabadel)
Grapes
August 26, 2016
Model Vineyard Looks To Maximize Concord Production
Watching Michigan ‘‘Concord’’ grape growers struggle with stagnant and sometimes declining prices, a team of researchers at Michigan State University Read More
The Latest
Crop Protection
August 30, 2016
New Biopesticide Available From BioWorks
Mycoinsecticide has quick knockdown effect and multiple modes of action. Read More
Citrus
August 30, 2016
Monsanto And Bayer Merger Talks Advancin…
Sources says companies have addressed initial issues from initial conversation. Read More
Fruits
August 30, 2016
Minnesota Governor Restricts Neonicotino…
Executive order issued to reverse, minimize negative impact on bees and other insect pollinators. Read More
Fruits
August 30, 2016
Western Growers Opens AgTech Innovation …
Startup companies can apply to compete for ag industry resources. Read More
Food Safety
August 29, 2016
10 Takeaways From The Center For Produce…
A couple of the key points from the symposium include knowing the importance of sampling irrigation water sources correctly and knowing the difference between validation and verification. Read More
Crop Protection
August 25, 2016
Better Biocontrol Options Becoming Avail…
New bio-based solutions to effectively control weeds and pests are cropping up. Read More
Citrus
August 24, 2016
Meet Florida’s 2016 Woman Of The Year In…
Dedication to fostering the state’s farming future defines the latest winner of longtime honor. Read More
Berries
August 24, 2016
Researchers Unravel Genetic Ancestry Of …
A genetic analysis conducted by New Hampshire Agricultural Experiment Station researchers aims to improve modern cultivation efforts of strawberry growers. Read More
Fruits
August 24, 2016
Don’t Underestimate The Value Of P…
Sure, you can see and talk with virtually anyone in the world through your smart phone, but you can’t shake their hand. Read More
Farm Management
August 24, 2016
Swaying Views On GMO Foods No Easy Task
Featured speaker for the upcoming FFVA Annual Convention says tides are slowly turning in how people digest the concept of genetic modification. Read More
Fruits
August 23, 2016
New Insecticides Geared To Give Growers …
Check out three unique chemistries from several of the industry's leading crop protection suppliers. Read More
Fruits
August 19, 2016
Parts Of New York Now In Extreme Drought
Water deficits starting to cause concern for fire, water shortages in the Empire State. Read More
Citrus
August 19, 2016
Rough Winter In Store For Much Of The U.…
The Old Farmer’s Almanac and its competitor The Farmers’ Almanac predict the 2016-2017 winter will be cold for much of the country. Read More
Citrus
August 18, 2016
Trump Campaign Announces Agricultural Ad…
Just three of the 64 are directly involved with fruits and vegetables, all three are Californians. Read More
Fruits
August 16, 2016
Growers Optimistic Despite Drought
Growers say continued heat could cause early ripening, still expect season to progress as planned. Read More
Crop Protection
August 15, 2016
New Study Shows Neonicotinoids Pose Litt…
Washington State University researchers reveal the controversial pesticides aren’t dangerous for bees in the real world. Read More
Crop Protection
August 14, 2016
Improving Drought Resilience And Reducin…
Soil health experts gain ground on standardized measurements and identify future research needs. Read More
Citrus
August 12, 2016
Second Half Of Atlantic Hurricane Season…
After a relatively sluggish start to the campaign, revised forecast foresees increased tropical activity ahead. Read More
[gravityform id="62" title="false" description="false"]