WINNING IN A CROSS BPAA BOWLING SUMMIT 2018 CULTURAL WORLD Carlos Saavedra, Senior Director Culture Marketing, PepsiCo NAB 1 My goals for today’s session: 1. Provide Data-Driven Cultural Insights 2. Share Our Perspective on Reaching Hispanics 3. Spark New Ideas for Your Business The Hispanic population is the fastest-growing ethnicity in the United States U.S. Population by ethnicity, 2015 2000 2015 2000 2015 Hispanic 35,305,818 54,232,205 12.5% 17.1% Caucasian 194,527,123 197,258,278 69.1 62.3 Black/African-American 33,706,554 38,785,726 12.0 12.3 Asian 10,088,521 16,054,074 3.6 5.1 Other 7,895,228 3,216,573 2.8 1.0 Total U.S. Population 281,421,906 316,515,021 100.0% 100.0% Sources: Pew Hispanic Center tabulations of 2000 Census and U.S. Census Bureau’s Current Population Survey (CPS), Annual Social and Economic Supplement 2016 3 IF US HISPANICS WERE A COUNTRY, THEY’D BE THE 3 RD LARGEST IN LATIN AMERICA (AFTER BRAZIL & MEXICO) Source: Worldometer.info, 2017 While the U.S. Hispanic population is growing, the rate of growth has slowed down since the recession Forecast of Hispanic population, 2014 U.S. Hispanic population growth rate % of total U.S. Population Average annual growth rate 28% 29% 23% 24% 20% -1.6% 4.4% 2.8% 2025 2035 2045 2055 2060 2000-2007 2007-2014 Source: U.S. Census Bureau, Population Projections, 2014; Pew Research Center 5 The Hispanic population skews young, indicating opportunities to gain their loyalty at a young age Hispanic population by age and gender, 2016 % of total U.S. population in age range % OVERALL = 16% (MALE), 15% (FEMALE) Hispanics’ median age = 28 22% 22% 21% 20% 21% 20% 16% 15% 11% 11% 8% 8% 18-24 25-34 35-44 45-54 55-64 65+ Male Female Source: U.S. Census Bureau’s Current Population Survey (CPS), Annual Social and Economic Supplement 2016 Pew Research Center 6 California and Texas have the largest proportion States with the largest Hispanic of Hispanics population, 2016 In millions Total state population in millions California 14,747,000 39.1 9% Texas 10,176,000 27.4 14% Florida 5,248,000 20.1 40% Share of U.S. New York 3,522,000 19.7 Hispanic population Illinois 2,463,000 12.7 by region Arizona 2,030,000 6.7 New Jersey 1,626,000 8.9 37% Colorado 1,138,000 5.4 New Mexico 1,055,000 2.0 West South Northeast Midwest Georgia 1,030,000 10.1 Source: U.S. Census Bureau’s Current Population Survey (CPS), Annual Social and Economic Supplement 2016 7 With the fastest growth coming from states outside of the Southwest Source: Pew Research Center 8 While most Primary Hispanic/Latino heritage, 2015 Hispanics in Cuba 4% the U.S. are of Puerto Rico 10% Mexico Mexican 63% heritage, over Central America 9% a third come from other South America countries 6% Other 8% Source: U.S. Census Bureau’s 2015 American Community Survey © 2017 Technomic Inc., Hispanic Foodservice Consumer Trend Report 9 Hispanics have less education than the general population, but are becoming more educated Highest level of education for population ages 25 years and over, 2015 5% 12% 13% 10% Less than high school 34% High school graduate 19% Total U.S. U.S. Hispanic 28% Some college/associate 24% population degree population Bachelor's degree Graduate degree 29% 28% The percent of Hispanics aged 25 and over with more than a high school degree increased from 34% in 2011 to 38% Source: U.S. Census Bureau’s 2015 American Community Survey 10 U.S. Hispanics are slightly more likely than the general population to participate in the labor force Employment status, 2016 44% Total U.S. 47% U.S. Hispanic 50% population population 54% 3% 3% Employed Unemployed Not in labor force Source: U.S. Census Bureau’s Current Population Survey (CPS), Annual Social and Economic Supplement 2016 11 Hispanics will have a greater impact on foodservice as their spending power grows U.S. Hispanic spending power, 2015 In trillions % CHANGE FROM 2010 TO 2017 = +70% $1.70 $1.50 $1.00 2010 2015 2017 Source: Statista, 2015 12 Hispanics spend nearly the same amount of money as non-Hispanics on food Foodservice expenditures, 2015 All consumer units Hispanic/Latino Not Hispanic/Latino Average annual expenditures $55,978 $47,663 $57,223 Food expenditures 7,023 6,929 7,037 Food at home 4,015 4,182 3,990 Food away from home 3,008 2,747 3,047 Average number of persons 2.5 3.1 2.4 Average number of children 0.6 1.0 0.5 under 18 Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, 2015 13 HISPANICS ARE A VITAL PART OF THE US POPULATION AND ECONOMY LARGE GROWING YOUNG SPENDING $ A POPULATION 18% OF THE 25% OF ALL NORTH $1.8TN BIGGER THAN 90% POPULATION, AMERICAN BUYING POWER OF THE WORLD’S CONTRIBUTING MILLENNIALS, WITH BY 2020, BIGGER COUNTRIES 50% OF TOTAL A MEDIAN AGE OF THAN GDP OF BRAZIL, – 57.5M POPULATION 28 MEXICO, RUSSIA OR GROWTH BY 2020 CANADA Sources: 1Worldometers, Countries in the world by population 2017, 2US Census 2016, 3Forbes, ‘The Hispanic Market 'Long Tail': Five Hidden Growth Opportunities For U.S. CMOs To Win In 2017’ 01.18.17, 4BusinessWire, 07.26.16 THE HEART OF WHAT DISTINGUISHES HISPANICS IS A SENSE OF COLLECTIVE CONNECTION LATAM COUNTRIES VALUE CONNECTIONS AND COMMUNITY MUCH MORE HIGHLY THAN THE US INDIVIDUALISM: A higher score shows a culture that prioritizes 100 the individual over the community 90 Even within Latin America, 80 countries like Ecuador, 70 Panama and Guatemala are far less individualistic 60 than some of their neighbors 50 – so immigrants from those 40 countries will see community bonds as most critical. 30 20 10 0 Source: Hofstede’s Cultural Dimensions THIS DESIRE FOR CONNECTION SITS AT THE HEART OF HISPANIC COMMUNITIES STEMS FROM HISPANIC COUNTRIES OF ORIGIN COLLECTIVIST VERY DIFFERENT TO THE CLASSIC U.S. MINDSET DRIVE TO BE ONE OF A KIND! - More focused on community & society than on the individual A NEED OR DESIRE TO BE PART OF A COMMUNITY ALL ABOUT CREATING, MAINTAINING AND BUILDING CONNECTIONS …AND IS REINFORCED BY THE EXPERIENCE OF BEING HISPANIC IN THE US The experience of living in a specific state or city has brought us close and created new Latino communities, sharing the media that we consume; the politicians that we vote for; or the places where we go to buy our food - Juan Pablo Garham, Journalist SO WHAT? RECOGNIZE CONNECT FACILITATE IMPORTANCE WITH Show1 we understand Connect2 with Hispanics Help Hispanics3 connect with the importance of via dialogue rather than each other, connections talking ‘at’ non-Hispanics and their heritage CLAIMED IDENTITY IDENTITY IS A CRUCIAL PART OF THIS SENSE OF COLLECTIVE CONNECTION THE REALITY ISN’T A HISPANIC MELTING POT, BUT A ‘CHICKEN SOUP’ OF MULTIPLE IDENTITIES It’s definitely not a melting pot, where individual It’s not even a chicken salad : tomatoes It’s a chicken soup, where individual elements elements are combined so that they lose their don’t get more lettuce-y by being near a retain their integrity, to make a whole better individual essence, to make up the whole lettuce! than the sum of its parts FOR IMMIGRANTS, THE US IS USUALLY THE FIRST TIME THEY’VE BEEN CALLED HISPANIC In Mexico, there are no Hispanics. In the Dominican Republic, there are no Hispanics. In Chile, there are no Hispanics. In Mexico, there are Mexicans; in the Dominican Republic, Dominicans; and in Chile, Chileans. – Carmen George, immigrant from Mexico EVEN FOR THE US-BORN, IT’S NOT ALWAYS STRAIGHTFORWARD IDENTITY ISN’T FIXED BUT FLUID: IT’S STRONGLY INFLUENCED BY CONTEXT To those on the outside, I’m Hispanic With my family With my friends in I’m Colombian the US, I’m Latinx To my friends back home, I’m American SO WHAT? INCLUDE DIVERSIFY CONNECT & LOCALIZE Not one1 single Hispanic Mexican2 isn’t shorthand 3 Acknowledge & audience for Hispanics, and local reflect multiple, but many nuance is important fluid identities LANGUAGE LANGUAGE IS KEY TO CREATING & MAINTAINING CONNECTIONS ENGLISH IS THE LANGUAGE OF THE MAINSTREAM English is important […] because we want to be part of society; we want to belong. - Juan Pablo Garham, Journalist ‘Outward’ connections e.g. with wider cohort and US community / culture 87% of Hispanics say adult Hispanic immigrants need to learn English to succeed in the U.S.1 Source: 1Pew Hispanic Centre 04.04.12 SPANISH IS THE LANGUAGE OF THE HEART The official language of family meetings - Juan Pablo Garham, Journalist ‘Inward’ connection with family and native culture A source of pride 70% of Mamas y Papas say “it’s important for my children to speak my native language”1 Source: 1Univision Communications & Media Predict, ‘Mamas Y Papas’, 07.20.17 IT’S HELPFUL TO THINK ABOUT LANGUAGE AS A PREFERENCE, NOT NECESSARILY A CAPABILITY [People think] that there are lots of Hispanics in the US who speak Spanish, therefore you should be advertising in Spanish. But preference is missing from this logic. Hispanics can all speak Spanish, but it’s about the choice of language they want from you. - Charlie Echeverry, mítu digital network CRO CERTAIN COMMUNICATIONS WORK BETTER IN SPANISH – UNLESS YOU’RE TALKING TO MILLENNIALS Emotionally More expensive Complex products 92% of 18-34s said they evocative products & those that require are more likely to products – e.g.