New FMI research notes surge in private-brand purchases by Hispanics

ARLINGTON, Va. Many Hispanic shoppers are buying more private-brand products, a trend expected to continue in the future based on research by the Food Marketing Institute Private Brands Group released Friday called "Se Habla Isn’t Enough: Private Brands Among Hispanics 2009."

Presently, as many as 37% of Hispanic shoppers are purchasing more store-brand prodcts, and 25% plan to buy more in 2010.

“Hispanic people are discovering the value and quality of private brands,” stated Patrick Walsh, FMI VP of industry relations and collaboration.

More than 70% of Hispanics noted that “store brands are a great value for the money,” according to the report. Nearly as many, approximately 64%, agreed that “store brands are just as good as national or international brands.”

Household income does not affect the amount spent. In fact, Hispanics earning $50,000 or more per year spend the most at $92.67.

Other findings bode well for the future of private brands, notably that the youngest shoppers, between the ages of 18 and 24 years, spend more than any other age group at $99.41 every two weeks. In addition, 42% of Hispanics entering their prime earning years, between the ages of 25 and 39 years, have increased spending on these products this year.

The data are based on telephone surveys by New American Dimensions of shoppers in the top 10 Hispanic markets — Chicago, Dallas, Houston, Los Angeles, Miami, New York, Phoenix, San Antonio, San Diego and San Francisco — which all together account for about 60% of the Hispanic population.