Not many see the opportunity between Hispanics and the wine industry.
Even though the size and rapid growth of the U.S. Hispanic market should be reason alone to target this affluent demographic, Hispanics actually consume wine just as much as beer —31.6% and 31.4% respectively — as shown in research by Wine Business Monthly. Despite this, wine and Hispanics are not usually associated with one another. Since Nielsen estimates Hispanic buying power will reach $1.7 trillion by 2020, this is a missed opportunity for the wine industry.
It is estimated that annual Hispanic wine consumption has the potential to grow to nearly 95 million cases if advertisers invest in reaching the 58 million Hispanics in the United States, according to Rabobank. In order to succeed, brands will need to understand how this audience interacts with wine and how younger, more bicultural Hispanics are impacting wine consumption.
Unlike other consumers who are introduced to wine by older generations, Hispanics’ interest in wine is being influenced by their children. This change in trend could be explained by the general youth of the entire U.S. Hispanic market: In fact, 61% of Hispanics are 35 or younger with 81% of them being native-born — making Hispanics the youngest minority group in the nation, according to Pew.
Younger Hispanics, especially those born in the U.S., have the benefit of being accustomed to their culture and traditions as well as American culture. With U.S. wine consumption at 949 million gallons and sales totaling $62.2 billion (Statista), it is no wonder that bicultural Hispanics are picking up an interest in wine and sharing it with their loved ones.
Friends and families are held in high regard in Hispanic culture: With the application of digital, this has translated to Hispanics being more receptive to word-of-mouth marketing and recommendations from social influencers and people they trust. Hispanics spend more time on social media sites than non-Hispanics — 52% vs. 38% — and are 46% more likely to share their opinions or reviews on products online (Nielsen).
For advertisers, this highlights the importance of tailoring advertising campaigns to resonate with the Hispanic market, which some brands have begun to recognize.
In 2018, we helped Korbel create an integrated approach to better connect with Hispanic millennials with its “This Is Mi Cultura” campaign, surrounding Hispanic Heritage Month, which celebrates the history, cultures, and contributions of Hispanic Americans.
“This Is Mi Cultura” featured three social media tastemakers from different nationalities who had never been to their country of origin. Korbel amplified its product through digital and social touchpoints, showcasing the richness of Latino culture and using culturally relevant storytelling to reach Hispanic millennials, who would see themselves reflected.
Korbel gained insight into the things that matter most to Latinos like family and traditions while increasing brand awareness — and, perhaps most importantly, brand loyalty.
Nielsen found that 80% percent of Hispanics agree that when they find a brand they like, they stick to it. Coupled with their youth and years of effective buying power, younger Hispanics are a profitable target for the wine industry, who stand to gain loyal, lifetime consumers if they take the time to understand them.