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Vintners Marketing to Hispanics
May 3, 2005

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Research Summary

Hispanics are being viewed by some winemakers as an emerging new market for their products, Hispanic Business reported April 27.

Vintners are using marketing tools like bilingual wine labels, Spanish-language tours, ads in Latino markets, and sponsorship of cultural events to attract new wine drinkers. "Wineries are very cognizant of changing demographics all over the United States, but especially with the Hispanic community," said Eileen Fredrikson of industry research firm Gomberg, Fredrikson & Associates. "Florida is one of the fastest growing markets for wine, and Hispanics are driving that market. This is a culture that's generally very family oriented and food-oriented. And wine fits because it has traditionally been a beverage of the table."

There are now 39 million Hispanics in the U.S., and they spend a total of $653 billion annually. In 1998, just 12 percent of Hispanics reported drinking wine, but by 2003, that figure had increased to 22 percent. Another report estimated that Hispanic wine consumption had increased 31 percent in just one year.

Mexican-Americans have not traditionally been big wine consumers, but wine is a big part of family culture in Spain and parts of South America. "The time has come," said Latino marketing expert Isabel Valdes. "People are making more money, they are getting more sophisticated, and they want to be more mainstream."

Round Hill Vineyards of Rutherford, Calif., is one of a handful of vintners aggressively pursuing the Latino market. "We have Latinos talk to Latina shoppers, who are the ones in the family in charge of the purse strings," said Round Hill's ethnic marketing manager, John Fontes. "We'll say, 'Señora, what are you making for dinner tonight? Carne asada? That's fabulous with our Round Hill cabernet. Cheese enchiladas? Try it with our chardonnay.'"

Some Latinos worry about the trend, however. "Alcohol can be a dual-edged sword," said Luis Arteaga, executive director of Latino Issues Forum in San Francisco. "On one hand, people talk about the health advantages of drinking wine in moderation. On the other hand, you have severe health problems with high rates of alcoholism in our community."

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