Index Fresh launches split brand strategy
Index Fresh launches split brand strategy
Backed by trade advertising and specific packaging, Index Fresh Inc., based in Bloomington, CA, has launched a split brand marketing strategy this year. Moving forward, all of its California-grown avocados will be packed under the Index Fresh brand while imported avocados will be marketed under the Avoterra brand.
Company President Dana Thomas said this strategy will allow the company to differentiate the fruit to its customer base and capitalize on the premium positioning that California fruit can command during its spring and summer marketing season. As imports from Mexico and South America have increased over the years and total consumption of avocados has exploded in the United States, California market share has declined even when its volume is up. This year’s 400 million pound crop will represent less than 20 percent of total volume. Because of this, California’s fruit is increasingly only marketed in California and western states where its “locally-grown” designation garners special support.
Thomas said besides being packed in a newly-designed, Index Fresh labeled carton, each piece of California fruit will also be stickered with that point of origin designation. The split branding strategy will include trade advertising that emphasizes the specific attributes of each branding option.
All of Index Fresh’s California-grown avocados will now be packed under the Index Fresh brand while imported avocados will be marketed under the Avoterra brand.Index Fresh does bring in fruit from Chile, Mexico and Peru. Speaking during the first week of March, Thomas said the last shipment of the season from Chile would be arriving soon with California’s volume increasing in March, hitting its stride in April and remaining strong well into August before tapering off. During the past several months, close to 50 million pounds per week of avocados have been streaming into the country from foreign sources. Thomas said that fruit has created new distribution channels and increased demand, which should bode well for California growers even in this relatively heavy year when volume is expected to be about 40 percent greater than last year. Even the heaviest weeks will see California with, on average, only about 15 million pounds of fruit, or less than one-third of the typical weekly demand.
Thomas said the demand for California fruit on the West Coast will be very strong through the core part of the season. He expects Peru to actually send less fruit to the United States this summer as exporters from that country concentrate on European sales. However, Index will be marketing Peruvian fruit to its East Coast customers during that time frame.
As the company has expanded its volume over the years, it has also expanded its staff. New to the firm this year is industry veteran Mark Buhl, who is wearing the title of director of international operations. Buhl grew up in California’s San Joaquin Valley and Thomas said he has had extensive experience in exporting fruits and vegetables to Asia. In fact, he has lived in Asia and is fluent in Mandarin Chinese. Thomas said most of the firm’s export sales are in Asia but Buhl is also charged with helping to develop the European market. “We believe Europe will be a strong market in the future for avocados,” said Thomas.
Also hired recently is Evangelina Kaudze as manager of food safety and compliance. Thomas said this is a new position for the company as the food-safety department and requirements have grown over the years and the hire recognizes that fact. Under its food-safety umbrella, Thomas said social accountability and sustainability also reside.