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Tortilla Industry Shows Sizable Growth
November 15, 2005
By Nancy Ayala
Formerly known as a Hispanic bread, the tortilla today has escalated into a booming industry totaling an estimated $6.2 billion a year in sales. That's no surprise for the more than 1,000 companies nationwide that produce the flatbread, says Irwin Steinberg, executive director of the Tortilla Industry Association (TIA), as well as the 800 attendees at the TIA’s 16th annual convention near Dallas.
"The real growth is the tortilla as a substitution for bread," Steinberg says. He adds that over 12 billion packages of tortillas are sold annually. With 12 tortillas in an average package, that's 144 billion per year, give or take a package of tortillas or two.
The customization of tortillas started years ago with a rethinking of the bread as a "wrap." Not only have the foods that are "wrapped" in the tortilla changed (salads, omelettes, Chinese foods), but a variety of tortilla flavors have followed suit such as chipotle, sundried tomatoes, cheddar, sour cream and garlic to name a few.
"The flavored tortillas are enriched and will stay small," says Simon El Hage Lisha, director of strategic marketing services for López Negrete Communications in Houston, who was also a speaker during the TIA conference. López Negrete handles Azteca Milling, which produces Maseca corn flour. "The growth in the general market will be in the wrap. The large tortilla form is good for restaurants."
In fact, three out of five restaurant operators report growing popularity with wraps/pitas/tortillas at quick-service eateries and table-service restaurants, according to the National Restaurant Association. "The consumer is driving the product," says B. Hudson Riehle, senior vice president of research and information services for the restaurant association.
"It's very important not only establishing the brand but specific menu items," Riehle says. "In general, in terms of how consumers learn about the different types of tortillas, I don't think you can market enough."
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