MARKET BATTLE

There's a food fight going on in Las Vegas, and it's not in any junior high school cafeteria.

It's being fought in the heavily populated Hispanic neighborhoods where ethnic grocers are competing for a bigger slice of the consumer pie.

They specialize in meat and produce not found in traditional grocery stores, selling things such as pork head, beef oxtails, guajillo peppers and Goya brand cooking wine.

Cardenas Markets, a family-owned chain based in Ontario, Calif., is taking over the former Albertsons store that closed at Bonanza Road and Lamb Boulevard. It's the first of several Cardenas markets coming to Las Vegas, said Otto Merida, executive director of the Latin Chamber of Commerce.

The company, co-founded in 1981 by hog farmer Jesus Cardenas Sr., has 24 stores in Southern California and employs more than 2,000 people.

"They're a very powerful supermarket in California and I'm told their prices will be lower than most places, including some of the American stores," Merida said.

William Miguel, vice president of corporate operations for King Ranch markets, said he learned through industry sources that Cardenas is moving into Las Vegas. The chain could take over additional closed Albertsons stores.

King Ranch established its presence in Las Vegas 10 years ago and became one of the valley's Hispanic grocery leaders with five stores.

"In general, the Las Vegas market has been a great market for Hispanic consumers," Miguel said. "The pie is the pie. The more we grew and the more other independents grew -- La Bonita, Los Compadres -- everybody's share of the pie gets a little smaller, but in the end, it's better for the consumer and creates more competition."

Los Compadres opened its sixth store, at Rancho Drive and Bonanza Road, not far from Mercado del Pueblo and King Ranch. Another one is coming soon to Rancho and Cheyenne Avenue.

Mariana's Supermarkets opened its fourth store last year, the 30,000-square-foot anchor at Cheyenne Pointe shopping center in North Las Vegas.

"It's going nuts," said Jaime Martinez, owner of La Bonita, which built its fourth store last year, at 2672 Las Vegas Blvd. North in North Las Vegas. "I guess because of Albertsons closing and all of the new people arriving. It's about name recognition."

Profit margins run 23 percent to 27 percent for Hispanic grocers, compared with about 2 percent for the publicly owned giants, said Chris Roman, general manager for Spanish-language Entravision Communications. Exceptional stores push the margin to 30 percent to 35 percent, he said.

"These new stores they're opening are exquisite," Roman said.

White, black and Asian shoppers are finding their way into Hispanic grocery stores, drawn by fresh fruits and vegetables and cheaper meat prices, Merida said.

He said he was amazed that grocers such as Albertsons and Vons didn't latch onto the opportunity presented by the growing Hispanic market, which accounts for roughly 25 percent of Las Vegas' population.

"I always thought, 'Why don't these people branch off?' They should create another company or expand their marketing here to Hispanics," Merida said. "You buy $50 in groceries. We buy $150 because we like to eat at home. We invite friends and family every week. Maybe we don't have toys for the kids, but we give them all the food they can eat."

Phil Avila, general operations officer for Mercado del Pueblo, said Hispanic grocery stores were mostly mom and pop businesses when Mercado opened its first Las Vegas store about 15 years ago.

The larger chains came from California, where competition was fierce, he said.

"Los Angeles has always been big," said Avila, who's been in the Hispanic grocery business for 40 years, starting in California. "The chains had to pull out of California because they could not survive the competition. Spanish business is very special. They go more for good atmosphere and good service."

Cardenas Markets is financially strong and presents the right style for the Spanish-speaking community, Avila said.

"In this business, you've got to know what you're doing," he said. "It's a lot of psychology. We decorate our place with piñatas. It brings the place alive, the colors."

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.