By Tom Burfield, contributing editor
Issue Date: September 2008, Posted On: 9/02/2008
A 2006 U.S. Census Bureau report indicated that about 44 million people in the United States are of Hispanic descent, and 15 million are Asian. Together, consumers of Hispanic and Asian descent account for more than half of the minority category in the United States.
If you don't want to lose these groups-both of which are major consumers of produce-to your competition, experts advise you to do some snooping, find out what the ethnic consumers in your market want and decide what you can do to make their shopping experience a pleasant, rewarding one.
"I would never recommend a cookie cutter store for any of the locations," says Emily Fragoso, marketing manager at Coast Produce Inc., Los Angeles. "Things change with the ZIP code."
Hispanic consumers flock to the 14 Food Bazaar and Food Dimensions stores operated by Bogopa Service Corp., Brooklyn, N.Y., largely for their extensive selection of peppers, herbs and items native to the Hispanic culture, says spokeswoman Suzanne Kuczun.
A Bogopa store might have up to eight kinds of yams from several countries, she says.
The latest trend among Hispanics is batidos-a smoothie-type drink made with milk, sugar and fresh mangoes or other fruit, she says.
The look of Bogopa's stores also provides a sense of familiarity to ethnic shoppers. Stores are set up to resemble outdoor markets with herbs displayed in bunches on long tables and yams merchandised in bins in the center of the produce department.
"We try to mimic the marketplaces of the countries we represent," Kuczun says.
Store employees are bilingual, as are most signs that identify the produce.
Bogopa's produce buyers determine what products they'll stock by visiting other countries and relying on input from the stores' employees and customers, many of whom come from the countries whose products are represented, Kuczun says.
Shuttle service
Besides an extensive selection of Hispanic fruits and vegetables, the 24 San Fernando, Calif.-based Vallarta Supermarkets locations offer the convenience of a shuttle service, says John Marquis, general manager.
The stores provide transportation from stores to customers' homes for shoppers whose purchases reach a certain dollar amount, which varies by store location and distance.
"The vans are busy most of the day," Marquis says. "Customers really appreciate the service."
The stores offer bilingual signs, prices competitive with other area supermarkets and a larger selection of produce that Hispanic shoppers prefer, like chayote squash, cactus and sugar cane, Marquis says.
Cinco de Mayo is one opportunity to promote your Hispanic produce line, along with Mexican Independence Day, Sept. 16, and Hispanic Heritage Month, Sept. 15 to Oct. 15, says Robert Schueller, director of public relations for Melissa's World Variety Produce Inc., Los Angeles.
Aiming at Asians
Asians are another ethnic group that is worth catering to.
"There's such a large growth of the Asian population in the U.S. that it's a force you shouldn't ignore," says Fragoso of Coast Produce.
The U.S. Asian population grew 49 percent from 1998 to 2000 and 29 percent from 2000 to 2006, she says, citing figures from a Consumer Trends '08 survey from the Produce Marketing Association.
"Asians buy a whole lot of produce," she adds, spending $814 dollars a year on fruits and vegetables, surpassing all other groups, including Hispanics, who spend $640.
Although the two Chandler, Ariz.,-based Lee Lee Oriental Supermarket locations cater to Asian shoppers, owner Meng Truong says Caucasians as well as customers of South American, European and even Middle Eastern descent visit his stores.
Bok choy, bok choy sum, gai lon, napa cabbage, yo choy and up to eight kinds of mint are featured, but Truong says his Asian customers also thrive on mangoes, tropical fruit and green onions.
His stores look like any mainstream supermarket, he says. The only difference is the product offerings.
"We have the product people are missing from back home," he says.
For example, he stocks a variety of ayli pear that is similar to what the Chinese were eating 100 years ago.
The produce departments are about 1,000-square-feet and display about 100 items, he says.
Student shoppers
During the school year, more than half the shoppers at the Econofoods store in Houghton, Mich., are of Asian descent, says produce manager Steve Davis.
Many of them come from nearby Michigan Technological University.
Freshness is a main concern of Asian consumers, Davis has found.
The Econofoods store receives a load of Melissa's brand specialty produce once a week, he says, and when the load arrives,
many Asian shoppers are there waiting for it.
"Price doesn't seem to make as much of a difference as quality," he says.
The produce department has about 450 items, Davis says, with about 50 to 60 Asian items.
The store is one of 28-store Econofoods locations operated by Minneapolis-based Nash Finch Co.
You can showcase your Asian produce program in late January or early February during the Chinese New Year observance,
Schueller says.
Asians consume many of the same fruits and vegetables as non-Asians, but they also consume a large amount of tropical fruits like coconuts, mangoes, papayas, guavas, a wide range of citrus, star fruit, durians and other specialty fruits along with a variety of green leaf vegetables, melons, squash and root vegetables, according to the PMA survey.
Wider preferences
At one time, Asians and Hispanics were associated with specific, ethnic items.
"That's just not the way anymore," says Karen Caplan, president and chief executive officer at Frieda's Inc., Los Alamitos, Calif.
Today's Hispanic shoppers are just as likely to take home tomatoes, limes and cabbage as they are jalapeno peppers, she says.
And Asian consumers are as apt to buy cabbage, carrots and mushrooms as they are long beans or bok choy.
"They want good-tasting, fresh produce," Caplan says.
Where ethnic consumers shop is a function of acculturation, says David Morse, president and chief executive officer of New American Dimensions, Los Angeles.
Recent immigrants often are not proficient in English and tend to shop at ethnic chains or local ethnic markets. Those who have been in the United States for