The Booming Hispanic Market Opportunity
According to the Center for North American Studies (CNAS), the economic value of fresh produce imports into the U.S. – from Mexico alone – is set to exceed USD $53 billion by 2030. And, representing approximately 19% of the U.S. population today, the Hispanic community has experienced a fourfold increase over the last 40 years, with projections indicating an additional growth of 50 million people over the next four decades with associated buying power expected to increase to over 2.7 trillion U.S. dollars by 2026.
Needless to say, this market is booming, and, coupled with an increasing crossover of Hispanic cuisine into the mainstream market, more and more Latin American Food & Beverage brands are looking to export their produce to the US to meet this growing demand.
However, amid unprecedented and escalating geopolitical shifts, climate change, and rapid technological advancements, navigating the supply-chain and logistics challenges to achieve this goal, is more complicated than ever.
The solution? An experienced, culturally aware supply-chain and logistics partner that you can trust.
We’ve highlighted some of the key challenges a LATAM Food & Beverage producer might experience when looking to export to the US, and how we can help.
Health and Safety Regulatory Compliance
There are a range of USDA (U.S. Department of Agriculture) and FDA (Food and Drug Administration) regulations that impact those who manufacture, process, pack, or hold food items, ensuring produce meets their strict standards. The Food Safety Modernization Act (FSMA) is also coming into effect soon, which requires detailed documentation and traceability, which can add complexity. Meeting all regulatory, logistical, and quality requirements can add costs at multiple points in the supply chain, from additional inspections and testing to specialized packaging and cold chain equipment.
Source Logistics can support our customers with all of this, offering:
- SQF-Certified Warehousing, Distribution & Food Safety: Source Logistics maintains SQF-certified warehousing, rated “Excellent” for food safety management, and is fully prepared to meet FSMA standards for food safety in logistics.
- Quality Control and Inspection Services: Our value-added quality control services include both ad hoc and scheduled inspections, ensuring that every product is packaged and labeled according to exact specifications for full compliance
Transportation Logistics
Carrier availability, route planning, and timing are monumental factors in efficient supply chain management. Securing reliable transportation providers and cross-border transit into the USA can be challenging at the best of times – particularly if you work with multiple suppliers. Choosing the fastest and most reliable route is essential to minimize the time that product spends in transit. This includes careful coordination with shipping schedules and understanding U.S. port congestion risks if shipping by sea.
Source Logistics can support our customers with all of this, offering:
- Integrated Freight and Transportation Solutions: Source Logistics offers full-service transportation and freight services integrated with our Warehouse and Transportation Management Systems (WMS and TMS), providing real-time visibility and business intelligence to streamline operations and budgeting.
- Optimized Routing and Carrier Flexibility: We optimize loads and routes, offering competitive rates for drayage and LTL through our extensive Carrier Network. This ensures better levels of service, improved transit times, and on-time deliveries, all tailored to your needs.
- C-TPAT Compliant Transportation Management: Our transportation management solutions are fully C-TPAT compliant, covering drayage, trucking compliance, customs support, and comprehensive end-to-end administration, including quoting, routing, tracking, and proof of delivery.
Warehousing, Distribution & Inventory Management
Ensuring adequate warehousing space, especially with refrigerated or temperature-controlled facilities, can be a challenge. Additionally, synchronizing warehouse operations with distribution plans in the U.S. is key to minimizing delays and preserving product quality.
And, due to the perishable nature of food items, managing the right balance of supply and demand is critical to avoid food waste or stockouts. Accurate forecasting and inventory management tools are crucial for ensuring timely delivery and availability.
Source Logistics can support our customers with all of this, offering:
- Comprehensive Warehousing and Fulfillment: With over 3.4 million sq ft (316,000 sqm) of SQF-certified and C-TPAT-compliant warehousing and distribution services across key US entry points, we offer integrated transport, storage, and fulfillment services to streamline your supply chain.
- Advanced Inventory and Order Management: Our state-of-the-art Order Management Systems (OMS) provide enhanced inventory management, including system-guided receiving, lot/expiration tracking, kitting, labeling, and real-time order processing and reporting. We support multi-warehouse operations and inventory rotation to optimize efficiency.
- Specialized Value-Added Services: We offer a range of customizable, value-added services, including temperature-controlled storage, bulk and rack storage, zone control, cross-docking, and automated compliance for parcel and pallet shipments, ensuring flexibility and precision at every stage of your logistics process.
Packaging, Labeling, Fulfillment and Point of Sale
Food items need to be packaged in a way that ensures protection from damage during handling and transportation. Exporters must ensure that all packaging complies with U.S. labeling regulations, including country of origin, nutrition facts (if applicable), and any certifications such as organic or fair trade.
Source Logistics can support our customers with all of this, offering:
- Custom Packing and Assembly Solutions: We offer a range of e-commerce and fulfillment services, including retail display assembly, variety packing, repacking for damaged products, and converting pack sizes to meet market demands. Whether it’s building-to-inventory, mixing flavors, or creating custom retail displays for club stores, we ensure every product is perfectly prepared for retail.
- Labeling, Kitting, and Repacking: From adding or correcting labels to kitting and bundling for promotional programs, we provide tailored solutions that include relabeling and repacking services to maintain brand integrity and meet client specifications.
- Quality Control: We provide thorough quality control inspections to ensure your products are stored safely and meet all necessary standards.
Communication and Coordination
Cross-Border coordination with multiple stakeholders across the supply chain—including producers, freight forwarders, customs brokers, distributors, and U.S. retailers—can be complex, especially with language barriers, differences in business culture and implementing and maintaining modern supply chain technology (like tracking systems for real-time visibility). Overcoming these challenges may require investments that small or medium-sized producers or manufacturers are just not prepared for.
Source Logistics is your cultural companion to success in the US, and it’s our mission to be the best logistics partner for you.
- We are the logistics provider of choice for LATAM brands: we are the leading supply chain & logistics provider for LATAM consumer brands in the USA. with 25 years of experience and a range of specialized, integrated supply chain and logistics services. We enable some of the largest LATAM food, beverage and consumer brands to reach their customers in the U.S. with end-to-end transport, warehousing and fulfillment services – along with a broad range of value-added services – at key ports of entry to the US market.
- Cultural understanding is the core of our “Source DNA”: we are proudly minority owned, and our multi-cultural team – most of whom have been with us since day 1, are the driving force behind our ability to effectively service our customers across borders. We understand what it takes to do business in both Latin America and the U.S.
- Setting the bar for customer loyalty and retention: we are proud of the strong, long-term relationships we have with our customers, and can boast a retention rate of 96% with some of the biggest brands still with us since day one.
Partner with Source Logistics for success
Choose Source Logistics as your cultural companion, and reach any customer, in any location, with any configuration you need. Contact us for an obligation-free consultation to discuss your needs.