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March 1, 2005
Publix and the Hispanic Market
The Orlando Sentinel reports on the efforts of privately-held Publix Supermarkets to make inroads into the Hispanic market:
Publix shelves soon may crowd with more Hispanic comida, or food -- a lineup reminiscent of neighborhood bodegas.
The Lakeland-based grocer is expected to announce next month plans to convert at least one of its existing supermarkets to a Hispanic-inventory format as part of a new initiative aimed at drawing more Latino consumers.
That means Spanish-language labeling on some products, bilingual employees, Spanish music playing on the loudspeakers, more ethnic imports and hard-to-find Hispanic foods.
Privately held Publix Super Markets Inc. announced last month plans to debut a new line of store-brand Hispanic foods later this year, including black beans, frozen plantains and marinades. However, the company also is said to be quietly planning the launch of a new store concept.
In mid-January, the company registered two Spanish phrases as trademarks with the U.S. Patent and Trademark Office: Publix Acentos, or accents, and Publix Sabor, or flavor. Both were described in documents as "retail goods and services."
Company officials said they weren't ready to give details, including potential locations, about new projects and were reluctant to say how the names "Acentos" and "Sabor" would be used. However, the names likely refer to the Hispanic store concept and the new private-label product brand.
"I would say that is highly possible," said Dwaine Stevens, a company spokesman.
"Our strategy is to localize stores in heavily Hispanic or other ethnic areas," he continued. "Doing something like this would be consistent with our strategy." . . .
Hispanic households purchased 23 percent more food than non-Hispanic ones, according to a 2002 Food Marketing Institute report. Moreover, they spent 8 percent more, triggered largely by the fact that Latino households tend to be larger than non-Hispanic ones: an average of 3.5 people, compared with 2.4 for white, non-Hispanic households.
Weekly, Hispanic shoppers each spend an average of $117 on grceries, compared with an $87-a-week U.S. average.
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