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

Jan DeLyser Vice President Marketing

California Avocados Creating Demand &Value

Fun ‘N Sun®

July 17, 2013

Produce Specialty Item to a Staple … A Very Long Journey

Ripe Programs Revolutionize Impulse Purchases

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

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

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

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

By 2007, the marketplace had become considerably more competitive

Unaided Awareness of California Avocados Dropped

22%

31%

13%

0%

10%

20%

30%

40%

Nearly 30% of Consumers Did Not Have a Preference for Avocado Origin

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

Build on our Foundation of Success • Focused efforts on core markets in the West

Messaging Targeted to our Season with California Avocado Availability

Millions/Lbs.

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

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

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

• 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

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

We Could Easily Have Promoted This “California” as Our Brand

Today this is the “California” that Resonates with Our Target

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

Radio Spots Feature Our Growers Enhancing the Premium Position

High-Profile “Local” Messaging Throughout the Season with Outdoor

We Used Unique Approaches to Reach our Target

Health Club Posters

We Reached Consumers In-Store

Clearly Identified California Avocados at Point-of-Purchase

CaliforniaAvocado.com Grower Features for Deeper Connections

Mobile Site for Consumers on the Go

Integration of Web and Mobile

Monthly E-Newsletter to Nearly 200,000 Recipients

Social Media with Facebook, Twitter, Pinterest, Instagram and YouTube

Editorial Coverage in Lifestyle and Epicurean Magazines

Key Influencer Outreach to Bloggers, Artisan Chefs and Dietitians

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

Artisan Chefs Serve as Spokespersons Around the U.S.

Atlanta Hugh Acheson

Foodservice Operator Promotions

Feature Ad Promotions by Retailers

In-Store Display Contests and POS

In-Store Radio Invites Shoppers to the Produce Department for California Avocados

Information and Data Assets Provide the “What’s in it for Me” for Retailers

Trade Communications

Trade Advertising

We Have Celebrated Some Successes

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

20082012

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

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-CaliforniaSeason (Oct - Mar)California Season(Apr-Sep)

Significant consumption growth has occurred across the U.S.

20

30

40

50

60

70

80

90Average number of avocados eaten per household

20082012

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

2008 – 2011 Seasonality: Volume (Units) & Dollars

Total U.S. ASP

2008 California season $1.16

versus Non-California season $1.09









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

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

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

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

Floral Update July 17, 2013

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

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

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 [email protected] (302) 607-2148

mailto:[email protected]

Jan DeLyser (949) 341-1955

[email protected]

CaliforniaAvocado.com

Thank You!

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

Business