The Hispanic market is a bright spot in the U.S. grocery shopping landscape. The fastest growing ethnic segment in the U.S. has massive buying power and broad influence that extends well beyond its own ethnic group.

1. On the Rise:
The Growing Influence
of the Hispanic Shopper

2. On the Rise: The Growing Influence of the Hispanic Shopper
Foreword from Univision
There are currently 52 million Hispanics in the United
“Univision is proud to share these
States representing nearly 17% of the total population
and growing fast. Hispanics will account for 60% of timely and actionable shopper
the country’s population growth over the next five
insights created in collaboration
years. This group is younger than the general U.S.
population, with over 60% of Hispanics under the with AMG Strategic Advisors. By
age of 35.*
coming together, we produced
Because of their younger demographic skew, many
Hispanic consumers are going through important life
something exponentially more
events. They are moving out of their parents’ homes valuable for our shared retail and
into their first apartments, they are getting married,
and they are becoming parents. They are in their peak
CPG clients.”
purchasing years. Roberto Ruiz,
The Hispanic population has reached a point where its Senior Vice President, Brand Solutions,
sheer size and shopping dollars can be a differentiating Univision Communications
growth engine for manufacturers and retailers that
successfully address the Hispanic consumer and these
shoppers’ unique needs and shopping preferences.
Going forward it is not a question as to whether or
not manufacturers and retailers will have a Hispanic
marketing strategy, it is a question of how much they will
be willing to spend and how they will best engage this
dynamic and powerful segment of the U.S. population.
Smart marketers are quickly learning Hispanics have
their own distinct product consumption patterns,
purchase decision influencers and technology usage
habits. Success will come for the CPG companies
and retailers that understand the similarities between
Hispanics and the general market and can authentically
celebrate the differences.
With the goal of driving this understanding,
AMG Strategic Advisors, a leading growth
strategy consultancy, partnered with Univision
Communications, the leading media company serving
Hispanic America, to create a special Hispanic-specific
edition of the bi-annual research report The Why?
Behind The Buy.
*Source: Nielsen State of the Hispanic Consumer: The Hispanic Market Imperative
Quarter 2, 2012.
2 The Why? Behind The Buy HISPANIC

3. On the Rise: The Growing Influence of the Hispanic Shopper
T he Hispanic market is a bright spot in the U.S.
grocery shopping landscape. The fastest growing
ethnic segment in the U.S. has massive buying power
Hispanics spend more on food
and broad influence that extends well beyond its own with a higher average monthly
ethnic group. This is a group on the rise in numbers, food budget and bigger spends
education, buying power, social media use, mobile
technology use, healthy eating, and cultural influence. on both routine and stock-up
Acosta Sales & Marketing’s AMG Strategic Advisors and
grocery trips.
Univision collaborated on this first-ever Hispanic version
of the influential The Why? Behind The Buy report to Hispanics’ buying power of
give consumer packaged goods (CPG) manufacturers $1 trillion in 2010 will grow
and retailers valuable, actionable insights into one of
the most important U.S. consumer segments. to $1.5 trillion by 2015.
The Why? Behind The Buy HISPANIC 3

4. On the Rise: The Growing Influence of the Hispanic Shopper
Key Findings
Hispanic family mealtime is a priority. Whether The Spanish language helps U.S. Hispanics stay
for cultural or economic reasons or a combination of connected to their cultural roots. U.S. Hispanics
both, U.S. Hispanic shoppers cook more frequently at relate to two identities — American culture and their
home than the general population. Many make an Hispanic roots. Language is a strong connector for
effort to eat healthy foods, including organic foods, preserving culture and generational traditions. Most
despite the extra expense. They plan meals at least of those we surveyed preferred to speak at least
two days in advance and are more likely to prepare some Spanish at home, and that preference was true
meals requested by family members. across generations. Young shoppers also indicated
a preference for Spanish language media, from
Hispanics lead the way in use of technology,
broadcast to print.
digital and social media. They are early
adopters of new technologies, and Hispanic shoppers show more
heavy users of digital and social Family loyalty for national brands.
larger average
media, including streaming family size National CPG brands are
video, music sitessocial l more likely to show up on
m
Media
networking and blogs.
Spanish language
Technology the shopping lists of U.S.
A main driver of their for social Hispanics by specific
is cultural
technology use is to connection brand name. Also,
connection
stay better connected
wi th f a m i l y an d
His
Hispanics are more U.S. Hispanics
say they are likely
friends. More than half Family & Food to switch back to
of the U.S. Hispanic
Meal Time
Centric national brands from
shoppers surveyed Shopping store brands when
use technology for more celebrations more trips & their financial situation
& family meals more spend
grocery shopping. They improves.
are also more likely thanan Cooking
from scratch U.S. Hispanics are
the general U.S. population
with healthy optimistic despite economic
to use digital channels for pre-
ingredients challenges. Compared to the
shop planning, such as shopping
general U.S. population, more Hispanic
lists and recipes.
shoppers we surveyed suffered job losses and
Shopping is a social experience for Hispanics. experienced difficulty finding employment over the
Across the board, Hispanics are more likely to go last year. Yet, they are decidedly optimistic about
grocery shopping with a companion, even “en masse” the future, with more expecting positive changes in
with several family members. They shop with spouses, household employment and income in the coming
young children, sometimes with adult children, and year versus the total U.S. population.
rarely shop alone. They are also more likely to shop for
fun or entertainment.
4 The Why? Behind The Buy HISPANIC

5. On the Rise: The Growing Influence of the Hispanic Shopper
Hispanics Optimistic About the Future
Despite job and income challenges, many Hispanics believe the coming year will be better. Overall there is a
positive and hopeful view among U.S. Hispanics as they focus on building better futures for their families.
Do you expect any change in employment Do you expect any change in total household
for your household’s main breadwinner in income in the coming year?
the coming year?
78%
64%
57%
50%
32%
25% 22%
19% 19%
14% 13%
8%
Positive Change No Change Negative Change Positive Change No Change Negative Change
Hispanics Total U.S.
There’s reason for CPG manufacturers to be optimistic Hispanics are more loyal to
too. About three out of four Hispanics create
shopping lists and these lists are twice as likely to national brands. They are more
include a brand name. What’s more, Hispanics appear than twice as likely as the general
to be significantly less committed to store brands with
39% indicating they would likely resume buying more population to switch back to
national brands than store brands when the economy national brands when their
or their financial situation improves.
financial situation improves.
When the shopping list is created in your household, how are items typically listed?
55%
44%
35%
29%
24%
19%
14% 13%
7%
3%
Don’t typically By type By brand name By brand name A combo of the
use a list of product of product and its specific above, depends
variety on product
Hispanics Total U.S.
The Why? Behind The Buy HISPANIC 5

6. On the Rise: The Growing Influence of the Hispanic Shopper
Shopping Together and More Often
When the U.S. Hispanic shopper goes grocery shopping, she usually has company. More U.S. Hispanic shoppers
do their grocery shopping with family. Hispanics also make more stock-up and routine shopping trips and spend
more on those trips on average than the general population.
You mentioned making routine, regular shopping trips.
Who typically goes with you on these trips?
Hispanics shop with
22%
No one else goes with me 46% company on nearly
40%
Spouse/partner
16%
32%
80% of their shopping
Kids 5 years of age and younger 10%
15%
trips. More than half
Kids 6-12 years of age 8%
Parent(s) 14% of Hispanics with
7%
Kids 13-17 years of age 10% children are taking them
6%
Adult children 5%
12% shopping.
Other relatives 6%
3%
Friend(s) 6%
2%
Roommate(s) 3%
1%
Someone else 1%
1%
Hispanics Total U.S.
During the last year, Hispanic shoppers frequented dollar stores, mass merchandisers and grocery stores more
than the general U.S. population. Meanwhile, both Hispanics and total U.S. shoppers reported a decline in trips
to drug, limited assortment, convenience, and natural/organic stores.
Compared to last year, how often do you shop at each
type of store for any reason?
19%
Dollar stores
5%
18%
Mass merchandisers
1%
14%
Supermarkets
3%
5%
Warehouse clubs
-2%
Hispanics Total U.S.
6 The Why? Behind The Buy HISPANIC

7. On the Rise: The Growing Influence of the Hispanic Shopper
Hispanics spend 14% more on routine shopping trips and
10% more on stock-up trips and shop more frequently.
About how much do you spend on each of the In a month, how often do you make
following types of shopping trips? these trips?
$128.60 4.0 3.8 4.0
Stock-up trip 3.5 3.5
$117.20 3.1
2.4 2.1 2.5
$111.50 2.2
Routine trip
$98.20
Occasion-based $79.20
trip $57.60
Stock-up Routine Occasion- Fill-in Specialty
Fill-in trip $78.70 trip trip based trip trip trip
$41.90
$69.90 Hispanics Total U.S.
Specialty trip
$51.30
Hispanics Total U.S.
Cooking at Home and Eating With Family
Mealtime is a priority in the Hispanic household. When it comes to meals, 60% of Hispanic shoppers are planning
meals at least two days in advance. Family requests and healthy choices are stronger influencers for Hispanic
households’ mealtime choices than amongst the general population.
U.S. General U.S.
Hispanics Population
Cooking more frequently at home 62% 52%
Prepare specific meals requested by family members 24% 14%
Agree with “we eat healthy foods even though they are more expensive” 47% 42%
Eat more natural foods 38% 27%
Eat more organic foods 31% 22%
Hispanics keep social ties strong
with celebratory meals.
For which of the following types of significant
dates or holidays do you typically prepare a
special meal for your family?
Special family days 55%
Religious holidays 54%
U.S. holidays 50%
Hispanic holidays 25%
Other 1%
None of the above 14%
The Why? Behind The Buy HISPANIC 7

8. On the Rise: The Growing Influence of the Hispanic Shopper
Driving Digital and Mobile Trends in Grocery
As a group, Hispanics are heavier users of text messaging, mobile websites, tablets, smartphones, and mobile
apps than the general population. Staying in touch with family, friends and extended family are key drivers of
technology use for Hispanics, as well as the desire to share product information and tips.
U.S. General U.S. Hispanic shoppers are more likely
Hispanics Population
Use a smartphone 51% 41% than the general population to
Regularly text message 47% 42% use new technologies such as
Stream music from
30% 24%
smartphones and tablets to
websites such as Pandora
access the Internet, 50% vs. 34%
Use video/TV streaming
websites such as 29% 24%
respectively. They also use more
Hulu/YouTube grocery shopping apps and list
Regularly use a mobile app 19% 14% functions on mobile devices.
8 The Why? Behind The Buy HISPANIC

9. On the Rise: The Growing Influence of the Hispanic Shopper
When it comes to grocery shopping planning, once again Hispanics’ use of technology tends to be more cutting-
edge and socially oriented. They are more likely to visit product review sites, local review sites and cooking or
recipe sharing sites. They are early adopters of new technologies, ahead of the general U.S. population, and
surpassing U.S. Millennial and U.S. Gen X shoppers in their use of sophisticated interactive tools and sites like
social networking, group buying, online community websites, and mobile technology.
What online or interactive tools do you use regularly?
47%
Websites 55%
53%
Social networking sites 46%
48%
like Facebook or Twitter 46%
47%
Text messaging 42%
36%
Smartphones like Blackberry, 35%
29%
iPhone & Android 19%
Videos/TV streaming websites 29%
24%
like Hulu, YouTube, etc. 22%
Music streaming websites like 30%
24%
Pandora, YouTube, etc. 18%
18%
Group buying sites like Groupon 18%
or Google offers 15%
Online community websites 15%
13%
for a specific interest 12%
15%
Mobile websites 12%
8% Hispanics August ‘12
12% Total U.S. August ‘12
Blogs 11% Total U.S. July ‘11
8%
Tablet computer like iPad, 14%
11%
Samsung Galaxy, etc. 4%
3%
None of these 5%
5%
The Why? Behind The Buy HISPANIC 9

10. On the Rise: The Growing Influence of the Hispanic Shopper
Spanish Language Keeps
Cultural Roots Strong
U.S. Hispanics relate to two identities — American culture and Hispanic culture. Language is a bridge used
by many Hispanics to stay connected to their roots. Most of those we surveyed preferred to speak at least
some Spanish at home, and that preference held strong across generations. Nonetheless, the majority of
U.S. Hispanics understand English, with a slight drop among the 65 and older crowd. Also notable is a strong
preference among the 18 to 34 year olds for Spanish language media.
What language do you speak at home?
69%
63%
57%
49% 46%
40% 38%
28%
21% 20%
11% 15% 12% 16% 15%
Spanish more than English Both Spanish and English English all the time
Total Gen Y 18-34 Gen X 35-44 Boomers 45-64 Silents 65+
U.S. Hispanics ages 18 to 34 report a strong preference
for Spanish language media.
What language do you prefer to watch TV, read magazines and newspapers, and listen to radio?
65%
59%
52%
48%
43%
39%
34%
28%
23%
21% 20% 18% 21% 19%
12%
Spanish more than English Both Spanish and English English all the time
Total Gen Y 18-34 Gen X 35-44 Boomers 45-64 Silents 65+
10 The Why? Behind The Buy HISPANIC

11. On the Rise: The Growing Influence of the Hispanic Shopper
Taking Insights Into Action
Leveraging the enormous opportunity and potential of the Hispanic market will be key to the success of CPG
manufacturers and retailers. AMG Strategic Advisors can help companies design an effective Hispanic market
strategy and answer key questions, such as:
• How do Hispanic Millennials differ versus the • How should we measure ROI on Hispanic
general population? marketing?
• How should we think about segmenting the • What types of shopper marketing are most
Hispanic shopper? effective?
• How should we position our brand to grow with • How should we address Hispanic specialty
Hispanic shoppers? retailers?
• How do Hispanics perceive and define value? • How should we structure our organization to
• What product or package innovation do we need maximize the opportunity with Hispanic
to reach Hispanic shoppers? shoppers?
• Which categories are Hispanic children • What are the differences in Hispanic male versus
influencing most? female shoppers?
For More Information
For more information on The Why? Behind The Buy HISPANIC, including customizing
the analysis, contact: Elena Etcharren Senior Vice President, AMG Strategic Advisors,
eetcharren@acosta.com, or visit www.acosta.com/hispanic-why.
The Why? Behind The Buy HISPANIC 11

12. On the Rise: The Growing Influence of the Hispanic Shopper
The Why? Behind The Buy HISPANIC is an exclusive survey produced
by AMG Strategic Advisors and Univision that provides valuable
insights into U.S. Hispanic shopper behavior. This research was
fielded in August 2012 with a random sample of 1,012 Hispanic
shoppers via Acosta’s proprietary ShopperF1st online and face-to-
face survey, which was available to respondents in both Spanish
and English translations. The Why? Behind The Buy survey and
report on the total U.S. population has been produced bi-annually
by Acosta Sales & Marketing since 2009.
About Univision AMG Strategic Advisors
Communications Inc. AMG Strategic Advisors is the growth strategy consulting
Univision Communications Inc. (UCI) is the leading media unit of Acosta Sales & Marketing, assisting clients in
company serving Hispanic America. Its assets include Univision accelerating profitable growth through insight-driven
Network, one of the top five networks in the U.S. regardless strategies and advanced analytics. Comprised of consultants
of language and the most-watched Spanish-language with in-depth experience in marketing strategy, including
broadcast television network in the country reaching 96% experience at leading CPG manufacturers, AMG Strategic
of U.S. Hispanic households; TeleFutura Network, a general- Advisors provides best-in-class strategy consulting, brand
interest Spanish-language broadcast television network positioning, shopper & marketing insights, and data analysis.
reaching 88% of U.S. Hispanic households; Univision Cable AMG Strategic Advisors collaborates with clients to drive
Networks, including Galavisión, the country’s leading Spanish- multicultural and multigenerational growth on an individual
language cable network, as well as Univision telenovelas, a project or on an outsourced services basis.
new 24-hour cable network dedicated to novelas, Univision
AMG Strategic Advisors offerings include:
Deportes Network, a new 24-hour cable network dedicated
to sports, ForoTV, a new 24-hour Spanish-language cable • Strategic Planning & Consulting
network dedicated to news, and an additional suite of six
• Growth Platform Identification
cable offerings - De Película, De Película Clásico, Bandamax,
Ritmoson, Telehit and Clásico TV; Univision Studios, which • Demand Driven Innovation Strategies
produces and co-produces reality shows, dramatic series and • Brand Positioning and Brand Strategies
other programming formats for the Company’s platforms;
• Consumer Insight and Segmentation
Univision Television Group, which owns and/or operates 62
television stations in major U.S. Hispanic markets and Puerto • Shopper Insights / Path-to-Purchase Insights
Rico; Univision Radio, the leading Hispanic radio group which • Channel / Go-to-Market Strategies
owns and/or operates 69 radio stations in 16 of the top 25
• Shopper Marketing Strategies
U.S. Hispanic markets and Puerto Rico; Univision Interactive
Media, a network of national and local online and mobile sites • ROI / Measurement Solutions
including Univision.com, which continues to be the #1 most- • Operational / Organizational and
visited Spanish-language website among U.S. online Hispanics, Supply Chain Effectiveness
Univision Móvil, a longstanding industry-leader with unique,
relevant mobile products and services, and Univision Partner
Group, a specialized advertising and publisher network.
Headquartered in New York City, UCI has television network
operations in Miami and television and radio stations and
sales offices in major cities throughout the United States. For
more information, please visit Univision.net.
12 The Why? Behind The Buy HISPANIC