From Our Print Edition

Tuesdays may mean tacos for many U.S. households, but there’s no doubt that a wide variety of other Hispanic foods and their Tex-Mex culinary cousins are a regular part of millions of Americans’ regular diets.

Today, Mexican restaurants can be found in counties where 99% of the nation’s population resides. The cuisine is particularly loved by younger consumers — millennials and Gen Z — who eagerly search for new palate-pleasing dishes that they can also enjoy in their homes.

In fact, research from Chicago-based market research firm SPINS shows sales of frozen Mexican and Hispanic foods topped $351 million during the 12 weeks ended Nov. 3. However, industry experts agree that there are multiple opportunities for grocers to boost category sales.

Manufacturers encourage retailers to look at the category through the eyes of consumers by identifying trending ingredients and creating recipes and events that use frozen components to build meals.

GROCERS SHOULD THINK BIG

The experts say it’s important for grocers not to limit themselves.

“Build out center-of-the-plate options for Mexican foods,” suggests one category player. “Right now, many Mexican sets are made up primarily of handhelds like burritos and taquitos. Finding ways to sell large dinner-focused items should drive volume. I look to frozen Asian and Italian sets. Noodle dishes, meat dishes, and sides (all with options/different varieties) help drive initial purchases and then return purchases. Many of these items are large rings at the register versus sub $1 burritos,” he adds.

Category participants agree that stores need to make it easier for consumers to find all their Hispanic foods in one place. Many stores currently merchandise Hispanic foods across multiple sets, including handhelds, single-serve meals, appetizers, international, etc. But many shoppers find it taxing to have to go up and down aisles to find what they need when it would be much less complicated to position all frozen Hispanic foods across two or three doors. This would increase the likelihood that shoppers would pick up other items within the set to build out their meal solutions.

‘Look to frozen Asian and Italian sets. Noodle dishes, meat dishes and sides help drive initial purchases and then return purchases.’

Merchandising all frozen Hispanic foods within a single set would also group premium and value options together, improving the shopping experience for consumers who may choose to trade up or down on some items, depending on their personal circumstances. Some consumers may choose to treat themselves and their family by purchasing a restaurant-quality item. Others might buy a multi-pack with a lower cost per serving as an after-school snack or to feed family or friends who come together for a holiday party or to watch the Super Bowl or other televised event.

Experts further suggest positioning Hispanic frozen foods in sets adjacent to other destination ethnic categories, including Asian and Italian.

CROSS-SELL FOR SUCCESS

Grocers that want to sell more frozen Hispanic foods are also encouraged to put ideas in the heads of their shoppers. It’s common to find displays featuring both tortilla chips and salsa. But cross-merchandising can work with frozen foods as well. Combining an entrée, a couple of sides, and a dessert in a display case allows consumers to enjoy an authentic Mexican or Tex-Mex meal without having to think about it or run all over the store for different components.

Informative signage, recipes and sampling go a long way in encouraging shoppers to try new foods. Offering conveniently prepared frozen Hispanic food options that are microwave, air fryer- or oven-ready makes this easier.

Many consumers (some might argue most consumers) have no idea in the afternoon what they will make for dinner that night. Grocers who provide those answers with convenient Hispanic frozen food options are well-positioned to grow the category.