Premium positioning captures CAC’s focus
Premium positioning captures CAC’s focus
California avocado growers, aware of their geographic advantages and increasing pressure from imports, focused on premium positioning at a series of California Avocado Commission annual meetings held in three growing districts this week.
Facilitated by CAC President Tom Bellamore and including two well-known veterans on the buy side of the equation, the discussions featured a review of the supply-side situation as well as California’s inherent advantages as a producer. The facts, as laid out by Mr. Bellamore, include the overarching reality that U.S. consumption of avocados is increasing dramatically, but so is the supply from several sources, with Mexico looming as an avocado production giant. Supplies from Peru are also on the rise, while Chile remains a fall and winter source of product and several other countries are trying to gain access to the growing U.S. market. For much of the past 40 years, California’s production, which has typically been in the 300-500 million-pound range, defined the supply situation. But in the past 10 years, Mexico’s exports have increased mightily, with their projected U.S. volume in 2013 approaching 1 billion pounds.
The majority of California’s crop has always been sold in the western half of the United States, but the CAC president said there may be a time in the next decade or so when virtually all of the state’s supplies are sold within California. This speaks both of the growing popularity of the fruit as well as the increase in supplies from other sources.
That situation would give California growers some marketing opportunities, including highlighting the locally grown aspect of the product as well as the geographic advantage, which allows the fruit to be delivered to consumers closer to its harvest time.
Joining the discussion was longtime retailer Reggie Griffin, who last year retired from the Kroger Co. after 40 year of service, and Chef Ray Martin, who has spent more than three decades opening restaurants and expanding menus, most notably at the Cheesecake Factory and BJ’s Restaurant chains. Both men said creating a premium position is achievable and works well with the goal of both retailers and foodservice operators to attract and retain loyal customers. Mr. Griffin said it is all about getting customers to come to your store — and retailers will do anything they can to attract those customers, including featuring premium products that have an enhanced value or a perceived premium value. He said Washington state apples, for example, have a perception of superiority, even though in blind taste tests they don’t score higher than other apples.
California avocado producers, however, believe their product does taste better and would outscore other avocados from other regions in a blind taste test. In fact, at the grower meeting held in San Luis Obispo, CA, which is the most-northern growing region, producers from the nearby Morro Bay district, promised Mr. Griffin that their late-season avocados would win in a blind taste test nine out of 10 times.
That prompted the longtime retailer to say that if an advantage exists, California avocado producers could market their fruit for a premium throughout the United States as there are pockets of consumers, serviced by upscale retailers, who will purchase the best products in virtually every metropolitan area in the country.
Chef Martin revealed that when selling product to chefs the main focus needs to be on the advantages that product has and why it should make a difference. He indicated that a superior taste is a very important attribute. He also said growers should be able to find homes for their small egg-size avocados, as the smaller the fruit the greater the ratio of pulp to pit, an important measurement when using avocados to make guacamole or other sauces. He also said those small avocados could be used in innovative ways by a top chef such as a small slider-sized salad. He said one of the best ways to get chefs to try a new product is give them some free product to play around with.