NEW YORK— Licensing has long been an integral part of the housewares industry and has included a wide range of brands from numerous segments including entertainment, food and beverage.
The next big licensing opportunity could be the annual Cinco de Mayo celebration, according to global licensing agency Joester Loria Group. The continued growth in the nation’s Latin population coupled with how Millennials have embraced what is largely viewed as a celebration of Mexican culture continues to raise the profile of the early May holiday.
“Cinco de Mayo is the kick-off to summer,” said Debra Joester, president of Joester Loria Group. “With 57% of Americans celebrating Cinco, it is has become a national celebration that crosses Hispanic culture and the general population, and it is a particular favorite with Millennials who have grown up with Cinco de Mayo.”
While Cinco de Mayo is a one-day celebration, Joester— whose company serves as the licensing agent for Corona beer— said the holiday is one of America’s biggest party days with more beer sold on May 5th than during the Super Bowl or St. Patrick’s Day. In 2015, more than 50% of the U.S. population celebrated Cinco de Mayo with $500 million spent during the Cinco weekend.
“Cinco de Mayo provides a host of selling opportunities for a broad range of retailers including supermarkets and big-box stores,” she said. “Retailers have the opportunity to drive the consumers’ market basket beyond snacks and beverages and cross sell products such as glassware, serveware, outdoor accessories and the many other items consumers seek for their Cinco party.”
Joester feels that in order to boost Cinco de Mayo sales, retailers should take a merchandising approach similar to that of the Fourth of July where chains stock holiday-related products weeks prior to the annual celebration of American independence.
The growing Hispanic influence in America is also driving interest in Day of the Dead celebrations, she said. The Mexican holiday, which runs from October 31 through November 2, could also provide retailers options to carry a host of housewares related to the three day celebration. Products already on the market include items that showcase skulls and skeletons.
The continued growth in popularity of Cinco de Mayo over the years and more recently of Day of the Dead signals the opportunity for companies looking for licensed opportunities to tap into those areas that are not character driven, but into an experience for the end user, Joester said.
“Consumers today are spending more on experiences,” she said. “Cinco de Mayo has become an annual experience that can be shared with family and friends.”
