It is no secret that avocado sales have skyrocketed in the past decade. In the 1990s, it was not unusual for total annual U.S. consumption to be around the 500 million-pound mark. In 2006, U.S. consumption topped the one billion-pound mark for the first time. In 2015, experts are saying that more than two billion pounds will be consumed by U.S. households when the final numbers are tallied.

One would be hard-pressed to find any fresh produce commodity that has exhibited similar gains in that or any time frame.CAC has found that retail sales will increase when multiple avocado varieties or sizes are displayed. Of course, increased promotions, increased availability and greater access has played a very important role in these sales increases. But as with most fresh produce items, impulse sales are a huge factor. Consumers shopping the department are often drawn to the avocado display and pick up that item that wasn’t on their list.

The California Avocado Commission, which has about a half-century of experience in promoting the fruit, has a list of tips, merchandising aids and point-of-sale material that retailers can employ to increase sales. CAC notes that avocados are a top 10 profit generators in the produce department. Their year-round availability, minimal labor requirements and a reduced shrink rate contribute to the category’s profitability. CAC contends that avocados are one of the top profit performers per square foot of display space.

All of this information is available on the commission’s website (www.californiaavocado.com), but the group’s merchandising tips are presented here in an abbreviated form.

• Merchandise ripe avocados. Research shows that most shoppers prefer ripe avocados and purchase them over firm fruit by a margin of as much as four to one. Displays featuring ripe fruit increase impulse purchases. Take advantage of this sales opportunity by displaying a variety of firm, breaking and ripe fruit. CAC believes ripe avocados should be identified with a sticker, because customers rely on the retailer to identify when an avocado is ripe. CAC offers a “Ripe when soft” stickers through its website. Virtually all handlers of avocados pre-condition the fruit so that they can ship it to retailers at the ripeness level desired by the retailer.
• Create year-round permanent displays. Avocados are available in volume year-round for promotions and CAC believes that “prominently displaying them in a permanent location creates the opportunity for shoppers to purchase avocados every day of the year.” The California Avocado Availability Chart is available online.
• Multiple displays increase sales. CAC has found that sales will increase when multiple avocado varieties or sizes are displayed. “Increase profits with secondary display locations,” touts the group’s website. It recommends secondary displays along with packaged salads or tomatoes. The commission also believes that offering smaller sized avocados in attractive multiple-unit pricing options appeals to budget-minded shoppers and can also increase sales.
• Cross-merchandising is an effective technique. Avocados and tomatoes are natural display and purchase partners as ingredients in salads and sandwiches. The two create a striking color combination, attracting shopper interest and generating sales. Include salsa and/or guacamole mixes or other complementary items in these displays to encourage impulse purchases. Drive incremental sales and enhance overall produce department profitability by including products such as garlic and artichoke hearts in the same area. CAC said avocados also offer cross-merchandising capabilities with non-produce items such as tortillas, tortilla chips, salad dressings and dips. “Year-round availability provides opportunities for exciting promotional programs including Cinco de Mayo, summer barbeques and picnics; salad promotions; special holiday or sports-themed parties,” says the CAC website.
• Avocado ads are a strong pull. Avocado ad features are a strong draw for shoppers, according to the commission. CAC merchandisers say that avocados can be featured at attractive prices that still yield good profit margins while increasing sales velocity of both avocados and complementary items in the produce department and throughout the store.