Avocado model from Mexico continues to develop | situation
President and CEO Alvaro Luque takes a have a look at one other report efficiency and what’s in retailer for AFM’s 10y Anniversary yr
Alvaro, that was final yr Report yr for avocado gross sales for Avocados from Mexico (AFM). What’s your rationalization for this continued development?
Alvaro Luque: In FY23 (July 1, 2022 to June 30, 2023) we imported greater than 2.478 billion kilos of avocados, exceeding our earlier report yr in FY21 of two.426 billion kilos by 2.1 p.c.
There are some strategic campaigns that contributed to this report efficiency. First, we achieved a report variety of point-of-sale gives at retailers between October and December via our shopper advertising applications supporting the World Cup Shopper promotion.
We additionally noticed robust efforts within the 360 diploma marketing campaign for our greatest endorsement second of the yr – The Large Recreation. Greater than 250 million kilos of Mexican avocados had been imported into the USA within the weeks main as much as the Tremendous Bowl.
We proceed to spend money on well being and wellness as a precedence for our model by supporting the Susan G. Komen Breast Most cancers Basis with pink baggage at Kroger and Walmart.
We’re equally excited concerning the upcoming fiscal yr. In October, we celebrated an enormous milestone – our tenth birthdayy Anniversary – with a VIP occasion on the Worldwide Contemporary Produce Affiliation’s World Produce and Flower Present. The AFM model has had a big impact on the trade and we’ll proceed to be a frontrunner transferring ahead in manufacturing.
Have you ever additionally seen a big improve in gross sales throughout Cinco de Mayo? Is that this primarily attributable to improved availability in comparison with final yr?
the: Cinco de Mayo represents a key alternative for us to showcase our model’s roots – the spirit of Mexico. Typically celebrated with moveable Mexican meals together with tacos, burritos and quesadillas, Cinco de Mayo is the second largest consumption occasion in the USA for avocados and guacamole and represents a first-rate alternative for us to interact with customers.
Avocado consumption in the course of the 4 weeks main as much as Cinco de Mayo has grown by 9.4 p.c over the previous six years, and 2023 was a report Cinco when it comes to imports, which had been up 61 p.c from 2022. From an import standpoint, this was the biggest Cinco is completely for Mexico and the avocado class.
What elements have been game-changers when it comes to the best way avocado advertising in the USA has developed previously 10 years for the reason that inception of AFM?
the: Realizing that we’ve got an incredible product high quality and distribution program, in addition to the nice benefit of being the one exporter that may supply Haas avocados persistently all year long to match US client demand, we’ve got targeted our mission on delivering an revolutionary and strategic advertising and promotional program that builds and grows this model. Class.
In simply seven years, we had been capable of double our imports of Mexican avocados, which confirms that we’re transferring in the fitting route. Our model technique has lots to do with these outcomes.
From a advertising standpoint, we’ve got discovered it essential to market avocados in influential in-store areas to extend conversions. Merchandising with accompanying objects that customers use when buying avocados for meals, reminiscent of tomatoes, onions, lemons, limes, tortillas, and potato chips (also called “guacamole stations”), additionally supplies a handy answer for customers and encourages consumption.
For our in-store applications, we all the time use visually interesting merchandising to assist showcase avocados, in addition to displaying QR codes on shows that customers can shortly scan. All signage in our retailer is an try and remind customers why avocados from Mexico are all the time good.
In relation to boosting avocado consumption, is many of the development coming from new prospects and elevated family penetration, or are individuals who have all the time consumed avocados now consuming extra?
the: Consumption per pound has exploded in the USA, pushed by many elements together with the commercialization of AFM. Our family penetration charge in the USA is about 65 p.c, which suggests 35 p.c are usually not at the moment consuming avocados. Our development won’t be sustained by making an attempt to get to the 35 p.c, however by making those that eat eat extra. In relation to retail, AFM has virtually one hundred pc market penetration: It is laborious to discover a grocery retailer that does not promote avocados.
Moreover, as customers look to buy avocados year-round, there may be continued curiosity and demand for avocados in the USA. This is because of an more and more numerous inhabitants, elevated use of avocados in eating places, client tendencies towards ethnic and more healthy meals, and elevated consciousness of the well being advantages of avocados. This supplies us with ongoing alternatives to attach with customers via our thrilling promotions and attention-grabbing merchandising. We expect there may be loads of upside on this class. We all know that well being is the primary driver, however style is what maintains it.
Lastly, what’s the most quantity of avocado gross sales that may proceed to develop profitably in the USA? Are we near saturation but?
the: The sky is the restrict. Avocados develop year-round in Michoacan, so we’ve got a gradual provide of the scrumptious fruit to fulfill rising client demand. With the addition of Jalisco to the import program, we’ve got extra avocados accessible to U.S. customers with the identical dedication to high quality and traceability. Actually, this yr we’re anticipated to import a report quantity.