U.S. Hispanics propel real growth in food, beverage and restaurant sectors

NEW YORK, NY — Hispanics have become the most important
U.S. demographic growth driver in the food, beverage and restaurant sectors,
according to data presented by Latinum Network during the Sanford C. Bernstein Investor conference call today.

The U.S. Hispanic segment made up more than 50% of real growth in the midst
of a stagnant U.S. consumer economy between 2005 and 2008, with $52 billion
of new inflation-adjusted Hispanic spending outpacing $40 billion of new
spending by non-Hispanics. This growth can be attributed primarily to an
increase in the number of U.S. Hispanic households, and secondly to an
increase in consumer spending among U.S. Hispanics. In the food, beverage
and restaurant business, this new spending offset most (84%) of the real
decline in demand across the entire $1 trillion sector. This divergence in
demand is driven mainly by differences in ethnic preferences, economic and
cultural integration, and demographics.

Among Latinum’s key findings:

— Over $9B of new value in Food and Beverage was created by Hispanics in
otherwise dormant or declining categories such as fish and seafood,
fresh fruit juice and dairy products between 2005 and 2008
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