AFM foresees bright future for avocado industry
AFM foresees bright future for avocado industry
There is simply no denying that avocados have become one of the fastest growing produce items in terms of U.S. consumption. And despite the fact that volume has doubled in less than a decade, many believe the growth can continue at its current pace for quite some time.
“Avocados still have a huge growth opportunity,” said Alvaro Luque, president of Avocados from Mexico, in an email to The Produce News on Oct. 6. “If we talk about regularly consuming households, the real penetration is still approximately 45 percent and that gives us a lot of opportunity to develop this market in the U.S.”
Luque said that as the dominant supplier of avocados to the U.S. consumer, “and the only origin with year-round availability, we see this challenge” of increasing consumption “as our responsibility and we actually love it.”
Avocados from Mexico is running its Seasons Eating promotion in November and December to encourage holiday consumption of avocados.U.S. consumption of avocados first passed the 1 billion-pound mark in 2006, and eight years later that number doubled. It might only take three or four more years to add another billion pounds as consumption appears to be increasing by at least 15 percent every year.
To continue this fast rate of growth, Luque believes the focus needs to remain on current users, increasing their opportunities for avocado consumption. “The medium and heavy consumers will give you much more growth in the coming future than any other segment,” he said.
AFM recently completed “a proprietary segmentation study and source of growth analysis for consumers and foodservice that will help us intelligently develop this category the best way possible to keep it growing at that double-digit rate.”
Luque believes the best formula for continued success is to develop current avocado consumers at retail, while creating new devotees through the foodservice arena. “We think that foodservice is the best incubator for new and younger consumers that at the end will develop their households and will be strong avocado advocates by the time they are top retail customers with their families.”
What makes Luque, and the rest of the avocado producing industry, optimistic, is that they see opportunities at every turn. Luque said the “new” markets in the East and Midwest represent a great growth opportunity. And the study showed that even mature Hispanic markets in the West have potential for increased sales “if we touch the right buttons.”
He listed “clear consumer education, nutritional messaging and product versatility” as the most direct routes to increase consumption.
For 2016, AFM has estimated a conservative 10 percent growth of volume from Mexico as it has approved a volume estimate of 1.68 billion pounds for budgeting purposes. That conservative approach is consistent with its estimates of previous year that have typically been surpassed.
Maggie Bezart Hall, AFM vice president of trade and promotion, noted that the organization has an ambitious promotion campaign this year, including another Super Bowl ad, which has yet to be unveiled.
In the November to December time slot, Seasons Eatings is the name of its campaign. She said sharing avocados with friends and family during parties and activities is one of the larger usage opportunities for avocados.
“Our holiday promotion is a partnership with Tabasco and offers consumers fresh ideas on using avocados within their traditional meals, leftovers and holiday entertainment,” Hall said.
The collateral material for this promotions features recipes such as spicy avocado hummus, and adding fresh avocados to turkey sandwiches and fresh guacamole to vegetable trays. The Season Eatings promotion will give consumers the chance to win $500 grocery gift cards each week while it is being run. “Our retail customers have pre-booked over 8,000 holiday bins and point of sale material,” she said.
AFM also will be using television commercials on network and cable channels as well as a print campaign in consumer magazines to drive consumer awareness and consumption.
Hall was a bit secretive but she said, “Another first for fresh produce will be brought to network on Thanksgiving Day by Avocados from Mexico. Watch for more information.”
In January, as the nation gears up for the Super Bowl, AFM will launch its Guac Nation promotion. The promotion will peak with an advertisement in connection with the Super Bowl broadcast. AFM will partner, once again, with Old El Paso and its complete line of taco shells, and other similar consumer products. Produce retailers will be able to choose from three different secondary bin displays and point-of-sale material in an effort to tie in to the Super Bowl parties that are a fan favorite at the time of year.
As was the case last year, AFM will keep the conversation going with a robust presence on social media, which will run prior, during and after the game.