USA and Houston’s Hispanic Market “An Invaluable Marketing Opportunity”

Hispanics account for over 14% of the U.S. Population - and Growing! Source: U.S. Census Bureau; Synovate; Synovate 2003 Latin American Planning Report Hispanics are growing over 4x faster than the Total Population! Growth Rates: Asian-Americans: 5.8% Hispanics: 5.4% African-Americans: 2.6% Total US Population: 1.3%

Two-thirds of Hispanics in the U.S. are from Mexico. Huge Market for Mexican specific products. Source: U.S. Census Bureau; Synovate; Synovate 2003 Latin American Planning Report US Hispanic trends and statistics reflect the majority Mexican population.

The United States has the Second- Largest Hispanic Population in the World 29MM Mexican American consumers to target!! Population 2004 (millions) 1. Mexico United States Colombia Spain Argentina Peru Venezuela Chile Guatemala Ecuador14.0 Source: U.S. Census Bureau; Synovate; Synovate 2003 Latin American Planning Report

Almost 2/3 of all Mexicans in the US live in Ten Markets. Source: U.S. Census Bureau; Synovate; Synovate 2003 Latin American Planning Report, Spectra Advantage While the population is currently concentrated in specific areas, more and more of the country is experiencing Hispanic population growth.

Source: U.S. Census Bureau; Spectra Advantage While the population is currently concentrated in specific areas, more and more of the country is experiencing Mexican population growth. The South is the Fastest Growing Area for the Mexican Population * % Change is from

Mexicans are Driving Growth in Many Markets Source: U.S. Census Bureau; Spectra Advantage

Hispanic Buying Power has increased dramatically to $580.5 Billion and will continue to grow. The clout of Hispanic buyers will increase to 9.35%, or $926.1 Billion in Source: 2003 Multiculitural Market Report, Market Segment Research

Hispanics Habits

Mexicans are Brand Loyal, Purchasing Mexican Brands Wherever Available Brand Names are extremely important to Hispanics. 55% of Hispanics believe that Brand Names are superior than store brands.² The Brand Set that most adults remember actually developed during childhood.³ Hispanic/Mexican Brands are growing significantly across all categories. Source: Hispanic Research Inc.; Hispanic Heritage Awards Foundation®; ³The Darkroom of the Mind - What Does NeuroPsychology Now Tell Us About Brands, Wendy Gordon; Tendencias: Latin American Market Report; Information Resources, Inc. FDM No Wal-Mart Dollar Sales, Compound Annual Growth Rates: note: CAGR for Mayonnaise was calculated based off 2 years. The Compound Annual Growth Rate of Mexican Brands exceed the category in every segment.

Mexican Foods are growing due to Hispanic population increase, but also due to their acceptance among the general market Source: IRI Cross-Category Database The Compound Annual Growth Rate of Mexican Foods was over 3 times the rate of all CPG products from

Hispanics make frequent visits to the store with the whole family…. increasing purchase opportunities of impulse items Hispanics view grocery shopping as a family activity. Source: 2003 Multiculitural Market Report, Market Segment Research

Hispanic Consumers Tend To Be Heavy Buyers At The Front-End Checkout and Immediate consumption Source: Front End Focus Study. DHC Analysis Multiculitural Market Report, Market Segment Research 23Light (Less Than Once A Month) 92Medium (1-3 Times Per Month) 150Heavy (Once a Week or More) FRONT-END PURCHASE FREQUENCY INDICES Index Of Hispanic Consumers To All Consumers Hispanic Consumers

Category Information

Hispanics are a Large and Important Market Source: U.S. Census Bureau; Synovate; Synovate 2003 Latin American Planning Report Today 14.7% % Hispanics are the second-fastest growing ethnic group in the United States. - Growing over 4x faster than the Total Population! - By 2020, 1 in 5 will be Hispanic. Hispanics: 5.4% Growth Rate Total US Population: 1.3% Growth Rate Hispanics currently represent over 7.65% of all goods purchased in the United States. This is expected to increase to 9.35% by 2007!

Other categories purchased at higher rates by Hispanics…. Source: FEF Study. DHC Analysis. FRONT-END PURCHASE INDICES % Purchased In Last Year All potential categories to cross promote

HOUSTON MARKET

TARGET MARKET Year 2010: 2,049,000 Hispanics in Houston 73.1% are mexicans, 40% have been less than 10 years in USA & 38% are kids Though 1 1/2 million mexicans!!!

Texas a ‘Minority-Majority’ State 49.8% Non-Minority 49.8% Non-Minority 34.6% Hispanic ( Minority ) 34.6% Hispanic ( Minority ) 15.6 ”Other” Minority 15.6 ”Other” Minority Texas Population Statistics 22.5 million total population Source: U.S. Census Bureau (Aug, 2005) Press Release

Houston is a Top 10 Hispanic TV Market Source: NHSI - DMAs Hispanic TV Universe Estimates Houston is the 4th largest Hispanic television market in the U.S. and the largest in the State of Texas. U.S. Hispanic Markets

Harris County Claritas: Harris County 2004 % Hispanic Density

Houston’s Ethnicity Houston’s Person 2+ Population Source: Nielsen TV HH Universe Estimates – Houston DMA Houston’s Hispanic population has accounted for almost all of the population growth over the past 10 years. 2,049,000

Country of Hispanic Origin Source: Scarborough Hispanic Custom Study (Rel ) (Sep04-Feb05) 2000 Census Bureau Factfinder; Hispanic by Type – Hou/Galv/Braz Houston’s Hispanic Adults 18+ Two-thirds of Houston’s Hispanic Adult population were NOT born in the U.S. 61% Born Out-side U.S. 61% Born Out-side U.S. 39% Born in U.S. 39% Born in U.S. 40% have been in the U.S. for less that 10 years. Houston’s Hispanic Heritage 73.1% Mexican 6.4% Central American 2.0% South American 1.2% Puerto Rican 0.8% Cuban 16.5% All Other 73.1% Mexican 6.4% Central American 2.0% South American 1.2% Puerto Rican 0.8% Cuban 16.5% All Other

Hispanic Houstonians are YOUNG and IMPRESSIONABLE Source: NSI and NHSI – P2+ UE’s – 2005/06 DMA / Houston Ethnic % of Age Cell Houston’s Hispanic population account for more than 876,000 Adults 18-49! Hispanic Age Composition 1,383,063 2,595,8671,349,370

$54,435 $58,131 Houston Mirrors the Top Five Hispanic Market’s Income Levels Sources: Hou (Sep04-Feb05 HCS); DFW. Chi, NY (Mar04-Feb05 HCS); LA (Feb04-Jan05) - Scarborough Hispanic Household Incomes Adult 18+ Average Hispanic Household Incomes

Houston’s Hispanic Households Prefer Spanish Source: NHSI Hispanic TV Language Strata Nearly half (49%) of Houston’s Hispanic TV households are Spanish Dominant speaking while less than 10% speak Only English. Language Preference