Advertising on bags increases avocado sales in supermarkets
Although most of the major supermarket chains sell avocado in bags, smaller and independent chains, as well as traditional retailers, may increase the category’s distribution by adding this type of packaging in their stores.
According to the study, avocados sold in bags are a complement to the category’s growth, in addition to the fruit’s bulk sales.
"People buy bagged avocados for different purposes than when they buy in bulk," said Emiliano Escobedo, executive director of the Hass Avocado Board, who explained that there is no competition between avocados in mesh and those in bulk.
The study - "Retail Sales Opportunity Analysis: Riderby Avocados" – details how the amount of dollars for bagged avocado retail increased 80% between 2010 and 2012. In the case of avocado in bulk, dollars at the retail level increased only 17% during the same period of analysis.
The fastest growth rate for the bagged avocado, "seems to be due in part to its promotional use and a faster rate of growth in distribution. However, bulk represents more than 94% of all the dollars in the category," informed the HAB.
During the three-year analysis period, the rate of bagged avocado sales was consistent quarter-over-quarter and they were a key in the two digit growth in volume of the category, with a 73% tendency, surpassing the bulk format.
"Analysts predict that if the distribution of bagged avocado continues to grow at its most recent rate of 15%, it could achieve a 100% distribution by 2020." Bagged avocado sales also increased their weekly rate in dollars. Between 2010 and 2012 retail sales in dollars grew 13%. According to what was reported by the HAB this increase suggests that more buyers are buying bagged avocados, especially the four charges pack, which increased by 98% during the analysis period.
"This study provides the industry with a useful view of the category," said Escobedo. "There is a lot of room for increasing retail sales because the bagged avocado only represented 35% of what was distributed in 2012", he said.
"Since the distribution of bagged avocados is becoming generalized, retailers must focus on selling avocados in bulk to help the category," he said.
Source: Portalfruticola.com
