Page 94 - 0319

merchandising review avocados
2. STOCK ENOUGH SKUS
Large Hass avocados sold in bulk are the best-selling SKU at Keil’s Fresh Food Stores, a family-run chain based in San Diego. Avocados are the No. 2 item in produce sales, second only to bananas, at this two-store chain based in San Diego.
“We don’t carry bags because our customers prefer large — rather than small — fruit, but we will sometimes carry the green- skinned Fuertes,” says Brian Haire, Keil’s general manager.
On the East Coast, Tops Friendly Markets offer three SKUs: conventional bulk fruit, organic bulk and a 4- to 5-count bag.
“We’ve dabbled with two sizes of conven- tional fruit in the past but found that the cashiers would get confused on the correct ring. Currently, we’re implementing a GTIN (Global Trade Item Number) system. Once that’s in place, I plan to explore the opportu- nities for two sizes again,” says Cady.
Many heavy and medium users identify uses of avocados based on the fruit’s size,
according to Maggie Bezart-Hall, vice pres- ident for trade and promotion for Avocados from Mexico (AFM), in Irving, TX. “For example, large avocados are used for guaca- mole, medium avocados are used for sand- wiches and salads, and small avocados are a great option for a healthy snack. Also, differ- ently sized avocados will allow for various prices points, appealing to shoppers.”
Mission Produce has found particular success with its recent Minis, a 2-pound bag of 8 to 10 ‘single-serve’ or 3.5-ounce size avocados. “This is now one of our bigger programs,” says Denise Junqueiro, director of marketing for Mission Produce Inc., in Oxnard, CA, of the company’s Minis program.
An increase in the number of SKUs usually translates into greater sales. “Some retailers carry as many as six different offerings, including bulk large and small conventional, one to two organic offerings (both bulk and bag), as well as one to two conventional bag options,” says Dionysios Christou, vice pres- ident of marketing for Del Monte Fresh Produce NA, in Coral Gables, FL. “Identi- fying the consumers’ needs in each market is crucial in determining how many SKUs, and particularly which SKUs, to offer.”
3. OFFER RIPE FRUIT
Ripe avocados outsell green avocados by two-to-one or three-to-one, according to Peter Shore, director of business development and marketing for Calavo Growers, in Santa Paula, CA. “Sometimes, it’s as much as four to one, depending on price and holiday.”
Del Monte’s Christou agrees: “Our 23 distribution centers in North America allow us to provide pre-conditioned programs so that retailers can offer consumers ready-to-eat fruit on their displays. About 85 percent of our avocados shipped to retailers are precondi- tioned, and we estimate that at least 67 percent of retailers have a conditioned program.”
Maintaining various ripe stages in-store is key. “Around holidays, consumers may not plan far ahead, so we recommend retailers feature several avocados at the ripened stage to accommodate for shoppers’ same-day cele- brations,” explains AFM’s Bezart-Hall.
4. EDUCATE SHOPPERS
The top two reasons consumers purchase avocados is they are considered healthy and contain good fats, according to HAB’s Alejandro Gavito, category data and research manager. “Year over year, we track that the higher the conviction in these two beliefs, the higher the consumption. We know there
94 / MARCH 2019 / PRODUCE BUSINESS