New M&M;’s Variety Aimed at Latino Buyers

Hoping to tap into the collective sweet tooth of the growing Latino market, candy maker Mars Inc. will launch a dulce de leche caramel variety of its popular M&M;’s candy in five markets, including Los Angeles, the company said Tuesday.

The Hackettstown, N.J.-based company, the nation’s third-largest confectioner, follows in the footsteps of such well-known food purveyors as McDonald’s in trying to convert the popular taste--similar to caramelized or sweetened milk--into a retail hit.

The candy will feature a swirl of dulce de leche caramel and chocolate inside the traditional candy shell.

Although closely held Mars hopes the new candy, due on store shelves early next month, will be a crossover hit, the initial aim is to tap into the estimated $560-billion purchasing power of the U.S. Latino market.

“Through this product, we want to strengthen the relationship the company has with this audience, which is becoming increasingly more influential in the U.S.,” said Scott Hudler, a spokesman for the company’s M&M;/Mars division.

Mars, which launched the M&M;’s line in 1941, plans to spend more than $5 million on a Spanish-language marketing campaign in the five markets, which also include San Diego and Miami. Combined, the markets include about 10 million Latino consumers.

The announcement comes almost a year after McDonald’s launched its Fiesta Menu, which features half a dozen Mexican-style items, including a dulce de leche dessert.

Also Tuesday, Mars, which makes Pedigree pet food, agreed to buy French rival Royal Canin from Paribas Affaires Industrielles for about $1.3 billion to gain prominence in the European market for dry dog and cat food.

Through its fully owned subsidiary, Masterfood Holding, Mars will buy 56.4% of Royal Canin, offering an 18% premium to Monday’s trading price.