What: Private-equity firms KKR and Victory Park Capital will be investing in California-based Hispanic grocery chains Mi Pueblo Food Centers and Cardenas Markets, a KKR spokeswoman announced. According to a statement both companies will continue to work independently.
Why it matters: The Hispanic shopper is an important target for most retailers and CPG’s. Both Mi Pueblo and Cardenas exclusively target the Hispanic consumer in California and Nevada.
The KKR spokeswoman did not disclose the amount of the investment in Mi Pueblo and Cardenas, but said it was made in partnership with the owners of both the Mi Pueblo and Cardenas chains including the Cardenas family, which founded Cardenas Markets. The chains between them had sales of about $1.3 billion in 2015 at 48 stores (29 operated by Ontario-based Cardenas Markets in Southern California and Nevada generated $628 million) and $400 million at 19 stores operated by San Jose-based Mi Pueblo, according to Supermarket News.
Combined both chains had sales of about US$ 1.3 billion in 2015.
“We are not disclosing financial details, but expect that these new investments will create positive momentum and allow us to better service their communities and valued customers, while also growing Mi Pueblo and Cardenas Markets, creating new jobs, and offering long and rewarding career paths for executives and employees,” KKR said in a statement.
San Jose-based Mi Pueblo operates 19 stores in the San Francisco Bay Area, Central Valley, and the Monterey Bay Peninsula. The company was established in 1991 offering an authentic Latino shopping experience. Its main goal has always been to create an environment similar to the ones of the crowded fresh-food markets of Latin America while also carrying all of the items that can be found in all of the mainstream markets of the United States. (Another California-based supermarket chain that specifically targets Hispanic consumers is Northgate Gonzalez Market.)
For now, Two Separate Entities
In their statements, the two companies said that, for now, they will continue to work separately. “For the time being, Mi Pueblo and Cardenas Market will continue to operate as two separate entities and will conduct business as usual until further notice.”
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A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Hispanic market and/or targeting Hispanic consumers right now.
U.S. number-four operator T-Mobile USA launched the GoSmart prepaid mobile brand nationwide. The launch signals a new entrant into the nationwide prepaid space. The Hispanic population is an important customer in the prepaid space. The GoSmart offering is now available at more than 3,000 wireless reseller stores around the country. T-Mobile has been trialing the service since December and has signed up “tens of thousands” of customers. “It’s beat our projections pretty handily,” Doug Chartier, senior vice president of marketing for GoSmart, told Reuters.
Real estate franchisor Re/Max will continue its “For All the Things That Move You” national ad campaign in 2013 using an integrated strategy that includes network and cable television, radio, print, digital and social media. A TV ad campaign that debuts today features three 30-second ads, two 15-second spots and one Spanish language ad that will air throughout the U.S. Creative agency R&R Partners of Las Vegas and media buying agency Carat will help it “maintain a consistent presence throughout the year” with “year-round visibility.” The franchisor says it intends to maintain its leading national television “share of voice” among real estate companies, which the company claims to have held on to since 2002. “The TV spots capture the individual style of consumers from every walk of life, and convey the pride and honor felt by Re/Max agents who help consumers find a house they can call their home,” said Mike Ryan, Re/Max’s executive vice president of global communications and branding, in a statement.
- Boeringer Ingelheim
Republica, a cross-cultural advertising, digital and communications agency, announced that it has been selected by Boehringer Ingelheim Pharmaceutical Inc. (BIPI) to serve as the pharmaceutical company’s first cross-cultural advertising agency of record, executing marketing communications strategy for the company in the U.S. Republica will partner with BIPI, the nation’s fastest-growing pharmaceutical company, to develop and execute a total market strategy that will tap into multiple divisions of the agency including research, advertising, media, branding, public relations, social media, community relations and promotions.”We’re proud to partner with Republica, one of the fastest-growing agencies representing the fastest-growing consumer segment in America,” said Christopher Kaplan, Senior Vice President and Chief Marketing Officer, Boehringer Ingelheim Pharmaceutical Inc. The multi-phase campaign will focus on introducing and raising awareness for BI and several of its brand portfolios within America’s multicultural markets, with an initial effort focused on the U.S. Hispanic community. The first initiative led by the agency is expected to launch in mid 2013.
- Northgate Gonzalez
The Anaheim, Calif.-based Northgate Gonzalez Markets chain currently includes 37 stores in Orange, Los Angeles and San Diego counties, and the company plans to open three to five new stores a year, according to a report by KPBS.The newer Northgate Gonzalez locations have bulk food sections, and a wide selection of prepared foods like carnitas, ceviches, salsas and aguas frescas. TV screens in the meat department show soccer games and Mexican talk shows, KPBS reported.Many of the family-owned chain’s stores are in underserved neighborhoods. That strategy drew the attention of Michelle Obama last year. She spoke at a Northgate Gonzalez store in Los Angeles to promote a new California loan fund aimed at encouraging supermarkets to open in areas with little access to fresh food. Northgate Gonzalez was the first recipient of loans from the California FreshWorks Fund , receiving $20 million, the broadcast outlet said.
- Post Foods
Post Food’s Honey Bunches of Oats is, for the second straight year, partnering with Univision Communications Inc in a national music-driven multimedia campaign that will launch this February. The lynchpin of the culturally relevant 360-degree promotional campaign will be “El Tour Positivo” — a multi-city Honey Bunches of Oats branded concert series taking place in key markets throughout the U.S. that will be produced by Univision, along with branded original content that will air concurrently on Univision Network, UniMás and Galavisión and promoted on Univision Radio in each market. Each concert will be featuring some of the top Latin artists in the industry.
- Million Hearts
A new educational resource to help Hispanics take control of their heart health is available from Million Hearts, a national public-private partnership that works to prevent 1 million heart attacks and strokes by 2017.”Cardiovascular disease is the leading killer in every racial and ethnic group in America, and Million Hearts is committed to ensuring that everyone understands their risk,” said Janet Wright , M.D., executive director of Million Hearts. “These new resources will help Spanish-speaking Americans calculate their risk and, more importantly, take steps to reduce it. The new educational resources include the Four Steps for Heart Health fact sheet, an illustrated booklet that includes multi-generational advice and The Million Hearts website En Espanol ttp://espanol.millionhearts.hhs.gov.
- Got Milk-California Milk Processor Board
The California Milk Processor Board has launched an advertising campaign urging parents to make an evening ritual out of warm cupfuls of milk. The campaign started last week with Spanish-language spots on Univision and will spread in the spring to English speakers.The board, based in San Clemente, Orange County, promotes the top-grossing farm product from the Northern San Joaquin Valley and the state overall.The board has targeted Latinos in the past with ads describing how milk can enhance dental health and build strong muscles, among other things. The new campaign will have radio and online elements along with TV.
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