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High avocado prices are biggest challenge for guacamole dip category

Even though the avocado has breached its traditional place in snacks and salads, crossing over into smoothies and baking, it’s still an expanding category in the dip category. Wholly Foods has released three dips, all featured with guacamole.




Avocado production is off this year

"Avocados for the dips are sourced from Mexico – and California when needed," says Jay Alley with MMX Foods. Wholly Foods operates three plants: one in Sabinas Coahuila, Mexico and two in South America (Peru and Chile). Although Mexico has avocados 52 weeks out of the year, on occasion Alley says they’ve brought in some from California in years past. Its plant in Peru sources directly from within the country as well. “This year has been a little bit of a challenge,” he said, since the country is off somewhere between 250 million – 300 million pounds. California is estimated to be off from its crop last year, about 150-200 million pounds short. “It might get a little better based on their recent rain where size is up and weight. It’s still a short year in California and Mexico.”


High pricing

Mexico’s avocado crop is winding down as of June with their season starting up again in July/August. California runs until September and Alley says Peru’s production starts in May, running until August. “We might experience a little gap in the season this year, but I think we’ll get through it. Pricing is obviously higher as the demand for fresh avocados and guacamole continues to grow. That’s our biggest challenge currently but the new season will start and by September things should be back to normal.” He says Mexico is supposed to be back on track next year and California too, “from what we understand (the country) will have a nice crop size next year as well.” The next big consumable holiday is Cinco de Mayo. “It can be quite honestly just as big as super bowl,” Alley said.


Three new dips

The three new dips are black bean, yellow roasted corn and spicy pico. “It’s part of our new innovation this year,” said Jay Alley with MMX Foods International. “It was a great way to bring a wow factor to the category for people that are wanting to eat more adventurously.”


Millennials are no strangers to good food; Alley says they’re big snackers, with about 64 percent of them snacking. “Dips are on the rise in popularity. From 2011 to 2015, a four year period saw black bean dips up 39 percent and in the last two years the category has grown almost 80 percent,” he said. Because they’re gluten free and kosher, the dips meet multiple market demands. Suggested retail price for the 10 oz. package is between $2.99 - $3.49. Distribution is well underway after their release over the last month with Canada to be brought on board soon. “We’re right in the process of getting approval for additional labeling requirements in Canada and regulatory aspects.”


For more information:

Jay Alley

MMX Foods

Ph: 817-509-0626

jalley@mmxfoods.com

www.eatwholly.com

www.megamexfoods.com