FrozenFoodAge.com |

Let's take a quick quiz. Mexican and Hispanic foods are impacting the grocery retail landscape in the United States as (pick one):
A. Mainstream food products
B. New grocery formats designed for Hispanic shoppers
C. Brands marketed to Mexican-Americans
D. All of the above.

If you picked "D," you are indeed correct. The Hispanic food market-especially Mexican foods-is one of the most robust segments in all food categories, and frozen foods are no exception.

Hispanic-oriented food companies are particularly solid right now, says David Houser, managing director, Lincoln International, Chicago. "Everyone recognizes these strong demographic trends," says Houser. "You can't ignore it."
"There are a lot of investors out there capitalizing on these Hispanic food manufacturers," says Houser, who focuses on the food and beverage industry for Lincoln, a mid-market investment bank.

At the top of the frozen food pyramid are the Jose Ole and El Monterey brands, which are Mexican style products targeted to mainstream shoppers. Goya, a major Hispanic food company with some frozen products, is also in the mix.

In the next tier of frozen foods are a number of Mexican products targeted to shoppers with roots in Mexico or made by Hispanic-oriented companies. Two of these brands had a good showing at the National Frozen and Refrigerated Foods Convention (NFRA) in October in San Antonio, an appropriate destination for foods with an authentic "near the border" emphasis.

Siempre Rico Tamalitos are a line of six authentic Mexican tamales made by Alos Cuisine, Norcross, Ga.: Tamalito de Elote (sweet corn), Poblano con Queso (polbano pepper and cheese), Pollo y Salsa Verde (chicken with green salsa), Canela y Pasas (cinnamon and raisins), Puerco y Salsa Verde (pork with green salsa) and Pollo y Salsa Roja (chicken with red salsa).

Tropicale Foods, Chino, Calif., rolled out Helados Mexico Packaged Ice Cream in the fall. "We've experienced interest from retailers and distributors for packaged ice cream made with the same authentic flavors that made our paletas (fruit bars) so popular," says Ruben Guiterrez, founder and CEO, Tropicale Foods.

Guiterrez notes that a test Tropicale conducted for the new Helados Mexico brand in the Food City chain in Arizona last summer fared very well.

Food City, owned by Chandler, Az.-based Bashas' Inc., is one of the many emerging Hispanic-focused retailers gaining traction around the country. Sixty-two of Bashas' 164 total supermarkets are Food City banners. Fiesta Stores in Texas, owned by Minyard, Coppell, Texas, is another established Hispanic-oriented chain.

The strength of the frozen Hispanic segment has opened the door for new players with a more mainstream focus. On The Border is a brand developed by Truco Enterprises LP, Dallas.

Last fall, Truco, which is licensed by the On The Border restaurant chain, expanded its line of On The Border shelf-stable products such as tortilla chips and salsa to a frozen fajita kit. The company is rolling out five more frozen Mexican products this spring-three appetizers and two entrees.

"Our brand is established in the South but now we are expanding into the Midwest," says Dawn Grosvenor, vice president, marketing and brand strategy, Truco. "We look at where Hispanics have migrated to in those states in determining which retailers-and in which retailers' stores-to roll out our shelf stable and frozen On The Border products."