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avocados merchandising review Avocados Mean More Green
As U.S. consumption rises, here are eight ways to profit from the fruit’s popularity.
BAY CAROL BAREUTHER
vocados definitely add green to the produce department. Not only does this fruit’s hue brighten up in-store displays, but its tint is syn-
onymous with extra dollars in the till. That’s because avocados, far from their start as an ethnic-niched market item, have soared into mainstream acceptance. Witness the fruit’s starring role in a Super Bowl ad, a game that most recently captured the at- tention of nearly one-third of American viewers nationwide. More specifically, per capita consumption of fresh avocados in the United States has soared from 2.21 pounds in 2000/2001 to 7.47 pounds in 2017/2018, according to USDA Economic Research Service data released in October 2018.
“We’ve seen double-digit growth in avocado sales for eight years in a row now, and as a result, avocados are a larger percent of our total produce sales and growing,” says Jeff Cady, director of produce and floral at Tops Friendly Markets, a 159-store chain headquartered in Williamsville, NY.
Here are eight ways to green up the produce department even more:
1. CAPITALIZE ON PLENTIFUL SUPPLY
Demand for avocados in the United States has outpaced supply for the past couple of years. For demand to continue to grow, there needs to be a steady supply of good quality avocados in the market, with no supply disrup- tions. This is indeed the scenario shaping up.
“The year 2019 should be a record volume for avocados sold in the United States,” according to Giovanni Cavaletto, vice pres- ident of sourcing for Index Fresh, in River- side, CA. “Mexico is having an ‘on’ year and is adding significant numbers of acres. In addi- tion, Mexico is expected to add more states that can ship to the United States; exports are currently limited to the state of Michoacán. Peru is on track to reach one billion pounds of Hass production within the next five years. That means we should see steady increases in avocado supply to continue for the future.”
Mexico’s primary avocado season is October to May.
“The annual growth rate out of Mexico continues to run 5 to 7 percent,” says Keith Slattery, president of Stonehill Produce, an importer of Hass avocados from Mexico, based in Dana Point, CA. “This is expected to continue for the next five-plus years, or in other words, 2.1 billion pounds plus a 6.5 percent growth factor. Peru and Colombia are growing at 10 to 15 percent, with most of this volume to be used to cover the European market as it continues to increase in demand. With Peru and Colombia supplying Europe, there is less pressure on Mexico to export, and this could lead to increased supply to the United States.”
California will have a smaller crop this year.
“The full 2018/2019 season forecast for California avocados is 175 million pounds, or a reduction from the 2017/2018 season due to weather issues,” says Jan DeLyser, vice presi- dent of marketing for the California Avocado Commission (CAC), in Irvine, CA. “Distri- bution this year will be targeted to the West, although we anticipate there will be plenty of supply for these retailers for their spring and summer programs.”
Chile is a smaller supplier of avocados to the United States during its September to March season. However, the United States is the second largest export market for this South American country’s fruit at 66 million
pounds shipped in 2017/18. Estimates are for a similar volume in 2018/19.
“In the past few years, the North Amer- ican market has seen some major supply ‘hiccups’ from other key origins, so more retailers (both national and regional) are looking to Chile as another supply option for avocados,” says Karen Brux, the San Carlos, CA-based North American managing director of the Chilean Fresh Fruit Associ- ation (CFFA). “Chile fills a very interesting niche, and we definitely see opportunities to further expand our retail partnerships in the coming season and beyond.”
Approximately 95 percent of avocados sold in the United States are the Hass variety, according to the Hass Avocado Board (HAB), in Mission Viejo, CA. Among the rest are up to 60 smooth, kelly-green skinned varieties grown in Florida and the Caribbean.
“Looking ahead, after Hurricane Irma impacted last year’s Florida crop, we see the pairing of harvests in Florida and the Domin- ican Republic as a great combination to meet demand,” says Mary Ostlund, marketing director for Brooks Tropicals, in Homestead, FL, which markets these varieties under the single brand name of SlimCado. “The combi- nation of two distinct geographical growing areas has also helped to extend the overall season for this fruit. We’re projecting Slim- Cado season, which starts in June, to now go through April.”
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