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Jan-Feb 2008 > Case Study
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Case Study 003: Ethnic Flavor Trends

By Markus Eckert and Paul Riker


The days when an ice-cold cola was enough to quench America’s collective thirst are over. Functional beverages, energy drinks and specialty tea, coffee and alcoholic beverages have influenced the market in a major way, and many of them are now hanging their hats on ethnic flavors and ingredients. The tropical fruits in your smoothie, the guaraná in your energy drink and the dulce de leche iced coffee in your grocer’s cooler are all evidence that ethnic flavors are being integrated, quite seamlessly, into the U.S. beverage market.

According to the U.S. Census Bureau, the minority population in the country now tops 100 million, or roughly 30 percent of residents. Combine this with a steady increase in international travel and heavy exposure to other cultures and it’s no wonder that Americans are keener to ethnic flavors than ever before.

Beverage companies are intent on tapping into the wallets of these highly valuable ethnic populations; they also want to market these exotic new flavors to the average American consumer, who is more cultured and fickle than ever. What’s more, much of the current experimentation with ethnic beverages crosses into established market trends. This means that when beverage manufacturers discover ways to infuse ethnic tastes into domestic trends like health and wellness, they will meet a wider range of consumer demands. All of these elements are brewing to create the perfect storm for the ethnic beverage market in the United States.

Appealing to the Minority
(Soon to be the Majority?)

Some flavor trends establish themselves through mass marketing, which drives awareness and acceptance. With an ethnic beverage trend, adoption by mainstream America typically occurs after its popularity is established within its respective ethnic sub-culture. The Hispanic population—the largest minority population in the United States—has a clear influence on all facets of American culture, beverage consumption included. Traditional Hispanic flavors continue to intrigue beverage companies intent on catering to this exploding population and capturing sales from non-Hispanics who have become smitten with flavors like mango, guava, pineapple and coconut.

While tropical fruit flavors from Mexico and Latin America have long been popular in the United States, the Hispanic flavor trend is far from exhausted. Just one example of a Hispanic beverage that has yet to stake its claim in the United States is agua fresca, a drink popular in Mexico, Central America and parts of the Caribbean. Aguas frescas, usually combinations of fruits or seeds mixed with sugar and water, are becoming increasingly popular, especially in the form of Horchata (an agua fresca made with rice) and Tamarindo (made from the seeds of tamarind trees). As this beverage gains popularity in America, we will begin to see traditional agua fresca flavors appearing in energy drinks, bottled teas, and dairy- and soy-based beverages.

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