2013 cac presentation   fun 'n sun (7-17-13)
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2013 cac presentation fun 'n sun (7-17-13) Presentation Transcript

  • 1. Jan DeLyser Vice President Marketing California Avocados Creating Demand &Value Fun ‘N Sun® July 17, 2013
  • 2. Produce Specialty Item to a Staple … A Very Long Journey
  • 3. Ripe Programs Revolutionize Impulse Purchases
  • 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
  • 9. Unaided Awareness of California Avocados Dropped 22% 31% 13% 0% 10% 20% 30% 40%
  • 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
  • 13. Messaging Targeted to our Season with California Avocado Availability Millions/Lbs.
  • 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
  • 18. Authenticity Quality Control Pride Responsibility Local-centric Purity Healthiness Indulgence Diversity Authenticity Sustainability Premium Wellness Community Integrity Authenticity Sustainability Premium Wellness Heritage Community Leadership Integrity Passion Premium Avocado Target Values California Avocado Values We Built a Relationship with Our Target Based on Shared Values
  • 19. We Could Easily Have Promoted This “California” as Our Brand
  • 20. Today this is the “California” that Resonates with Our Target
  • 21. 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
  • 22. Radio Spots Feature Our Growers Enhancing the Premium Position
  • 23. High-Profile “Local” Messaging Throughout the Season with Outdoor
  • 24. We Used Unique Approaches to Reach our Target Health Club Posters
  • 25. We Reached Consumers In-Store
  • 26. Clearly Identified California Avocados at Point-of-Purchase
  • 27. CaliforniaAvocado.com Grower Features for Deeper Connections
  • 28. Mobile Site for Consumers on the Go
  • 29. Integration of Web and Mobile
  • 30. Monthly E-Newsletter to Nearly 200,000 Recipients
  • 31. Social Media with Facebook, Twitter, Pinterest, Instagram and YouTube
  • 32. Editorial Coverage in Lifestyle and Epicurean Magazines
  • 33. Key Influencer Outreach to Bloggers, Artisan Chefs and Dietitians
  • 34. Registered Dietitian Ambassadors Liz Weiss, MS, RD, and Janice Newell Bissex, MS, RD, the Meal Makeover Moms Katie Ferraro, MPH, RD, CDE Bonnie Taub-Dix, MA, RD, CDN Michelle Dudash, RD
  • 35. Artisan Chefs Serve as Spokespersons Around the U.S. Atlanta Hugh Acheson
  • 36. Foodservice Operator Promotions
  • 37. Feature Ad Promotions by Retailers
  • 38. In-Store Display Contests and POS
  • 39. In-Store Radio Invites Shoppers to the Produce Department for California Avocados
  • 40. Information and Data Assets Provide the “What’s in it for Me” for Retailers
  • 41. Trade Communications
  • 42. Trade Advertising
  • 43. We Have Celebrated Some Successes
  • 44. 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
  • 45. 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
  • 46. 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)
  • 47. 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
  • 48. 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
  • 49. 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
  • 50. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2004 2005 2006 2007 2008 2009 2010 2011 2012 More consumers are checking the label for country of origin
  • 51. 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
  • 52. 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
  • 53. Floral Update July 17, 2013
  • 54. 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
  • 55. 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
  • 56. 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
  • 57. Jan DeLyser (949) 341-1955 jdelyser@avocado.org CaliforniaAvocado.com
  • 58. Thank You!