4. Avocado Imports More Than Triples
Volume in the U.S. Market
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
1999 2002 2006 2010 2013*
California Chile Mexico Dominican Republic New Zealand Peru Florida Others Total Aggregate Volume
*Estimated
5. Building Consumption Ahead of the
Projected Volume Was Imperative
321 MILLION LBS
Mexican Hass Avocado
Importers Association
$ 6.2 MM
$ 5.0 MM
360 MILLION LBS
$ 16.4 MM
$ 5.2 MM
318 MILLION LBS
$ 5.0 MM
6. Year
MM Lbs.
CALIFORNIA
Aggregate
Volume
Price Per
Lb.
TOTAL CROP
VALUE $MM
2010/11 302.5 1,227.4 152.14 460.2
2009/10 534.5 1,349.8 75.36 402.7
2005/06 600.9 1,040.5 56.78 341.2
1992/93 569.8 599.2 20.70 117.9
1986/87 555.6 555.6 16.90 93.9
1983/84 492.5 492.5 18.50 91.1
Maintaining Value on Increasing
Volume
7. Maintaining Value on Increasing
Volume
Avocado industry is very impressive! No other long
established fresh food product has more than
doubled consumption and transformed from a
domestic to import dominated supply in just a
decade while maintaining real prices. I attribute
much of the success to forward thinking
leadership, successful industry programs including
advertising/promotion, a powerful nutrition
message and exchange of information.”
Dr. Hoy Carman
Professor Emeritus of Agricultural Economics
UC Davis
8. By 2007, the marketplace had become
considerably more competitive
10. Nearly 30% of Consumers Did Not
Have a Preference for Avocado Origin
11. It Was Time to Insert CA Back
Into the avoCAdo
The Commission set out to:
• Provide an emotional point of difference for
California Avocados
• Establish California as the premium avocado
• Engage our target so they would have a
preference for California
• Activate consumers to not only check for
California Avocados at retail but to
• Insist on California Avocados
12. Build on our Foundation of Success
• Focused efforts on core markets in the West
14. We Identified the Premium Avocado
Consumer
(n=272)
(n=168)(n=209)
Sophisticated Naturalists
Heavily focused on natural,
organic and local. Actively
involved in sustainability
and community.
Optimistic Cooks
Very passionate about cooking.
They like to experiment and
express themselves
through cooking.
Traditionalist
Family-oriented. Traditional in their
attitudes and food. Least health
focused.
Live for Today
Professionals who are focused on their careers.
Extremely low concern for community and the
environment.
(n=342)
Convenience Chasers
The Premium Avocado Target
15. This Consumer Went Beyond the
Typical Female Head of Household
Self Improvement
Adults with
Female skew
75k+
College Graduate
Outer Directed
around family
Help environment
Art
and
Entertainment
Entertain Frequently
Outdoor and
Adventure
Specialty/Health
Food stores
Health and
Nutrition
16. They Have an Evolving Mindset About
Their Food
• Prefer food produced closer to home
• Heightened sense of food safety issues
• Want to know the story behind the foods they eat
− Not just the location but also the how and where their
food is from
− Search for brands that are authentic and real, that
have a story and a face
17. • California Avocados are hand-planted, hand-picked
and hand-sorted
• Grown by family farmers who live on their farms
• Multi-generational
• Respect for the land
• Passion to produce the best
We Researched the Rational
Attributes & Emotional Benefits
19. We Could Easily Have Promoted
This “California” as Our Brand
20. Today this is the “California” that
Resonates with Our Target
21.
22. We elevated the Competitive Point of
Difference for California-Grown Avocados
California Avocados are grown by a select group of family
farmers who still know the secret to growing and
harvesting the best quality produce
45. Attribute Ratings Have Spiked Since the
Launch of the Campaign in 2008
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
Freshness Quality Taste Food Safety
2008
2012
46. Preference for California Avocados is at
it’s Highest Level in the Past 10 Years
0%
10%
20%
30%
40%
50%
60%
70%
California Mexico Chile Doesn't Matter
Which avocados do you prefer
47. Sales Have Grown & Our Season Out-Paces
the Non-California Avocado Season
$400,000,000
$450,000,000
$500,000,000
$550,000,000
$600,000,000
$650,000,000
$700,000,000
$750,000,000
$800,000,000
$850,000,000
2009-10 2010-11 2011-12
Retail Dollars
Non-California
Season (Oct - Mar)
California Season
(Apr-Sep)
48. Significant consumption growth has
occurred across the U.S.
20
30
40
50
60
70
80
90
Average number of avocados eaten per household
2008
2012
49. Number of avocados eaten per year
9%
13%
48%
31%
2012
Light (1-11)
Medium (12-35)
Heavy (36-119)
Super User (120+)
15%
30%
32%
23%
2008
55% Heavy &
Super Users
79% Heavy &
Super Users
People Are Eating More Avocados and Today
There Are More Heavy and Super Users
50. 2008 – 2011 Seasonality: Volume (Units) & Dollars
Total U.S. ASP
2008
California season $1.16
versus Non-California season $1.09
2009
California season $1.13
versus Non-California season $1.05
2010
California season $0.96
versus Non-California season $0.90
2011
California season $1.31
versus Non-California season $1.01
2012
California season $0.95
versus Non-California season $0.92
California Avocados garner up to a 30%
price premium during our season
California Season = April – September
Non-California Season = prior 6 months (October – March)
ASP = Average Selling Price
52. The Future – Strategy 2025
We will continue to drive grower value by
positioning California Avocados as the
Premium Avocado through messaging
that communicates …
All Avocados Are Not Created Equal
53. Opportunities for California Grown
Flowers
1. Raise awareness of the growing region for flowers
• Consumers don’t know where their flowers come from
• Educating consumers about the distribution processes and
channels imported flowers travel through before entering the
market could strongly benefit California grown flowers
2. Labeling California flowers, while challenging, could
be a game changer for the industry
3. Establish California flowers as a premium brand
compared to imported brands
• Emphasize ‘local’
• Exclusive varieties only grown in California
• Buying California equates to a more thoughtful gift
55. PMA and the Floral Industry
PMA is the trade association for the mass-market side of
the global floral industry.
PMA brings together buyers and suppliers to solve issues
and foster business connections.
PMA provides value in the following areas:
• Networking
• Supply Chain Efficiencies
• Talent Development
• Advocacy
56. PMA and the Floral Industry
• Networking opportunities
− PMA Fresh Summit – New! 6,000 sq. ft. Floral Pavilion
− Fresh Connections – regional education & networking
• Supply Chain Efficiencies
− Generic Floral UPC’s
− Floral GTIN Implementation Guide
• Talent Development
− Including horticultural students through PMA’s
Foundation for Industry Talent programs
− Career-spanning professional development
57. Moving Forward
• PMA’s Floral Council – 28 floral industry leaders that
provide the input, guidance and service to assist PMA
staff in the development of new and validating existing
value.
• Working with the volunteers of the R&D sub-group to
expand value.
• Any questions or want to get involved, feel free to
contact:
Becky Roberts
broberts@pma.com
(302) 607-2148