Formulating for the Hispanic market
Hispanics are a diverse and evolving market segment with tremendous purchasing power.
Photo courtesy of Azteca Milling L.P.
A Congressional resolution declared the first “National Tortilla Month” last September, as annual tortilla sales topped $6 billion. And, for the first time in U.S. history, sales of tortillas are poised to outpace sales of sandwich bread. Bakers who understand Hispanic culture and preferences can capitalize on this growing market segment.
Recent census statistics show Hispanics are the largest and fastest-growing minority group in the United States. Currently, this segment includes about 45 million U.S. citizens, or roughly 15 percent of the population. The Selig Center for Economic Growth at The University of Georgia, Atlanta, predicts that by the year 2020, nearly one in four American children will be Hispanic.
Hispanics are a diverse group. The U.S. Hispanic population is shifting rapidly from a group consisting primarily of immigrants to a population of second and third generation families born and raised in the United States. Hispanics tend to have larger families, and shop 26 times per month for food on average, according to the Los-Angeles-based research company New American Dimensions (NAD). This desire for freshness has an impact on their bakery preferences.
But, while Hispanic purchasing power tops all other minority groups, the appeal of many Hispanic foods extends beyond the Hispanic population. Studies show 75 percent of those choosing ethnic foods are not of the same ethnicity as the food's origin, according to NAD.
Tortillas
In 2000, “Americans consumed a total of seven billion pounds of tortillas … the equivalent of 85 billion tortillas, or one tortilla per American each day,” according to the Tortilla Industry Association (TIA), McLean, Va.
In recent years, the industry has grown about 8 percent per year. Some of the growth can be credited to the popularity of wraps instead of sandwiches. The shift is part of an overall focus on more healthful eating habits by consumers.
One challenge for tortillas is freshness. “Traditionally, Hispanics would purchase fresh tortillas daily,” notes Jim Kabbani, executive director, TIA. However, an industry push to mass-market tortillas necessitated the move beyond traditional formulations toward those containing more preservatives and stabilizers. Typical preservatives used in tortillas include fumaric acid, calcium propionate, potassium sorbate, and methyl and propyl paraben. Preservatives can cause a chemical aroma when consumers open the tortilla package and should therefore be minimized, if possible.
Corn versus flour
Tortilla sales in the United States are split about equally between flour and corn tortillas. Flour tortillas are made from dough with a rising and proofing component. In contrast, corn tortillas are made from masa using a roller and sheeting process. “The most popular wholesale Hispanic bakery items using [our] masa flour have traditionally been tortillas, other related flatbreads, taquitos, tamales and, of course, tortilla chips and taco shells,” says Alan Davis, sales director, snack industry, Azteca Milling L.P., Irving, Texas.
“Nixtamalized corn is whole grain corn cooked in a lime or a calcium hydroxide solution. Nixtamalization is associated with the traditional lime corn cooking process, which originated in Mexico. Nixtamalized corn is low-in-fat, cholesterol-free, hypo-allergenic, and gluten-free. It is a good source for B vitamins, calcium because of the lime addition, and provides the opportunity to capture savory roasted corn flavors in the finished product,” Davis says.
Masa flour is a multi-functional ingredient that enhances texture, flavor and helps extend shelf life through moisture retention, Davis notes. “The highest growth potential for Hispanic bakery items will be Mexican flavored line extensions, such as breakfast related menu items, whole grain tortillas, breads, muffins, other flat breads, crackers and multigrain opportunities in all related categories,” Davis adds.
Mexican artisan breads
Consistency and authenticity are important to the Hispanic consumer, which is why one Mexican bakery has developed a successful business selling frozen dough and fully-baked, frozen, Hispanic bakery items. It is advantageous for restaurants and grocery chains to use frozen products because they never run short of product, they don't have to rely on skilled bakers and they save money, notes Roberto Keyvan, vice president, marketing and sales, Artimex El Gallo Giro Inc., Sante Fe Springs, Calif.
“It's difficult to find true artisan bakers, individuals who can produce breads that remind first generation Hispanics of product that they grew up with in Mexico City,” Keyban notes.
“The fundamentals of artisan bread-making have carried over from three generations of Hispanics to Artimex, where artisan breads are produced daily,” says Brent Galasso, director of bakery operations, Artimex. The company also produces authentic Hispanic bakery items for several private labels. Customers can take the product out of the freezer, thaw for 30 minutes and bake. “The two most popular items are bolillos and conchas (see sidebar). Hispanics purchase these items in high volume. Other popular items are bolillos integral made with whole wheat flour, telera and pan fino (see sidebar for product descriptions),” Galasso adds.
Cheese breads
Cheese breads are a staple throughout Latin America. “Cuban groceries in Miami produce a cheese bread stuffed with a thick layer of a fresh, Hispanic, non-melting cheese like Queso Fresco,” notes Dean Sommer, cheese application specialist, Wisconsin Center for Dairy Research, Madison.
Many regions have specific breads and cheeses. “A Colombian cheese bread called Pandebono includes farmer's cheese or Queso Fresco. A Paraguayan cheese bread called chipa is filled with a cheese from Queijo Minas Curado. A famous Brazilian cheese bread called pao de queijo uses farmer's cheese or Cheddar cheese or Parmesan,” Sommer notes.
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