Produce Retailer

When Miami-based Burger King and Subway started slathering on the mashed avocado last summer, guacamole manufacturers cheered.

“People used to think avocados were bad for you, when in fact it’s just the opposite,” said Tracey Altman, vice president of brand marketing for Saginaw, Texas-based Fresherized Foods, makers of Wholly Guacamole. “Now that quick-service and fast-casual restaurants are showcasing avocado in their products, consumers want to do it at home.”

Since rebranding its refrigerated guacamole four years ago, Fresherized changed its packaging frequently, run an array of promotions, such as a $5 rebate on Lion King videos, and built loyalty through a strong social media presence, Altman said.

Guacamole is seeing double digit growth at retail, said Jay Alley, Fresherized vice president of sales. The company’s high pressure processing method, which goes by several different names within the industry, preserves food under high pressure using cold water rather than heat or chemicals. As well as preserving taste, the process kills naturally-occurring pathogens, such as salmonella. It also enhances shelf life for weeks.

“Retailers are starting to understand and embrace the high pressure process,” said Alley. “HEB stores have a whole case dedicated to HPP products, and most retailers know they get a safe, consistent product day in and day out. As produce managers deal with recalls, it’s nice to know they have an item that should never cause them any loss of sleep.”

Consumers, meanwhile, love the fact that high-pressure guac doesn’t contain any additives or preservatives, said Altman.

“When avocado prices are high, it gives them another option,” she said. “And they can have ripe avocado whenever they want it, not just when the avocado is ready.”

But the best part about high-pressure guacamole is its taste, said David Austin, director of marketing for Oxnard, Calif.-based Mission Produce Inc. Mission’s classic or spicy Mr. Avocado guacamole comes in a 7- or 14-ounce box.
“Whether you choose Mr. Avocado, Wholly Guacamole or Calavo, consumers are going to find a fresh, high quality guacamole that’s as close to homemade as you can possibly get out of a package,” said Austin, who still considers UHP guacamole a new product with growth potential.

Al Ahmer, vice president sales and production for the Calavo Foods Division, Santa Paula, Calif., said sales of Calavo’s authentic (mild), pico di gallo (medium) and caliente (spicy) guacamole accelerate as Super Bowl and Cinco de Mayo approach. Pre-Christmas holiday parties are also prime time for sales.

Of Calavo’s three flavors, authentic outsells the others two to one, Ahmer said. The product has evolved from a pouch in a box, which some customers still prefer, to a more convenient clear rigid plastic tray with overwrap that doubles as a serving tray, he said.

Though consumers often look for prepared guacamole in the deli or dairy section, Ahmer said Calavo believes it belongs in produce.
 
To expand its refrigerated presence, the company has introduced fresh, all-natural salsa in clear plastic containers under the Calavo Salsa Lisa brand. “We didn’t use the high-pressure process because an enzymatic reaction occurs with tomatoes, and in our view the flavor isn’t close to where it should be,” he said.

Altman said Wholly Guacamole’s target consumer is a mom 35 to 45 with two children, but the company has seen “sweeping” growth among 25 to 35-year-olds and those 45 to 55.

“We’ve got educated people who know the difference between good and bad fats and see guacamole as a healthy choice,” she said. “Other consumers just know it’s healthy. Then we’ve got people who buy it because they love the flavor.”

The key to continued category growth, everyone agrees, is to introduce the product to more shoppers and give them an incentive to try it.

“Retailers need to run promotions frequently, whether it’s temporary price reductions, running it in flyers or IRCs (instant redeemable coupons),” said Steve Martin, Mission’s director of business development. “People who try it will try it again.”

Ahmer agrees, saying manufacturers need to work with retailers to make promotions effective. “With our guacamole and salsa, you want to get that trial,” he said. “Once somebody tastes it, it’s fantastic.”

Most retailers merchandise high-pressure guacamole with refrigerated dips and dressings, Alley said, but he’s seen it sold with baby carrots, fresh-cut fruit and bagged salads.

“It makes sense when you think of all the traffic bagged salads gets,” he said. “That retailer sells a tremendous amount.”

Austin said Mission has found it easier to market its Frontera guacamole mix, developed by celebrity chef Rick Bayless in regular and new spicy flavors. The blend of fresh tomatillos, green chiles and roasted garlic is packed using the aseptic rather than the high-pressure method. As a result, it doesn’t require refrigeration, it lasts a year and it can be shipped and merchandised with Mission’s fresh avocados.

While the 14-ounce package remains Wholly Guacamole’s most popular, Alley said the company is introducing an 8-ounce tub of “Fresherized” avocado pulp under the Wholly Chunky label just in time for Super Bowl season. It retails for $2.99 to $3.99.

 As part of the company’s strategy to build a bigger presence with multiple stock-keeping units and flavors, Wholly Guacamole’s 2-ounce, 100-calorie snack packs continue to grow in popularity, Alley said. They’re also available in a new spicy flavor.

Ahmer said Calavo plans to introduce more “portion-controlled and retail-friendly” UHP guacamole packaging for lunch and snacks in 2012.

 Altman, meanwhile, is teaching consumers through social media to snack on guacamole any time, not just at parties and not just with chips.

“It’s about having it with a turkey burger, a hot dog, a BLT or a pita sandwich,” she said. “Use it as a condiment instead of ranch or mayo, or freeze it and pack it in a lunchbox in the morning. And if you love guacamole and your husband hates it, you can open a snack pack just for you.”