It is no secret that Hispanic America is exploding. As the fastest-growing sector of the U.S. population, the U.S. Hispanic population is projected to triple from its current 45.5 million, to over 150 million by 2050.
And this exploding demographic group spends money - over $1 trillion in 2008 alone.
Why Should You Care?
Well, if you are looking for a dynamic, long-term macro-growth sector and one filled with special situation opportunities - then you should care.
Of the $210 billion U.S. consumers spend on beverages each year, Hispanics spent $24.8 billion of that. And with rising affluence, the "ready-to-drink" Hispanic-focused category is one pulsating with deals.
Who Says So?
Well, only some of the biggest beverage and consumer products companies in the world - like Coca-Cola, Pepsi, Kerin (of Japan), Pernod Ricard, China Water, and Inbev - which shocked the world with its $52 billion acquisition of Budweiser last year.
Putting It all Together
The macro trends here areas simple as 1-2-3. 1) Exploding Hispanic Population. 2) Rising affluence - leading to exploding demand for consumer products and 3) Robust sector acquisition activity.
Now for the micro: Find a company that 1) Has the right product with the right distribution. 2) Is targeting a niche sector that is unoccupied by the big boys and 3) Isn't so big and well-known that the "business as opportunity" has passed.
Best regards, and look forward to connecting.