Avocado Express Volume 2 #3

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En Español VOL. 2 #3
HAB Marketing and Promotion Yield Increased Demand, Favorable Returns
by Emiliano Escobedo, HAB Executive Director
"Strong Statistical Evidence"
Says HAB Promotions Contribute to Success

As the Hass Avocado Board completes its 10th year, the second of its required five-year evaluations of HAB and the affiliated member organizations has produced strong evidence that the combination of substantial growth in demand and impactful marketing programs have created a successful avocado marketplace. In simple terms: promotional impact has affected per capita fresh avocado consumption.

While the report focuses on industry impacts, the results provide confirmation of two very positive consumer trends:

  • Fresh avocados have gone from being a somewhat exotic, niche product in the U.S., perhaps served on the occasional holiday, to a mainstream, fresh produce category consumed nowadays by many as a staple part of their diets. Many factors are involved in the remarkable growth of this industry in the U.S., but highly successful marketing programs have played a prominent role.
  • Benefits from avocado industry growth and industry sponsored marketing programs extend to U.S. avocado consumers, who have enjoyed access to increased regional and seasonal availability of high quality fruit. Consumers now typically find year-round, permanent fresh avocado displays in the retailers' produce sections containing fruit of varying levels of ripeness and/or instructions for determining if an avocado is ready to eat and how to care for it.

The full study can be found at http://www.hassavocadoboard.com/consumer/research#fiveyear.

Through a variety of statistical modeling efforts, the study "concluded with a high degree of confidence that the promotional programs supported by HAB... have yielded net benefits to producers and... could have been profitably expanded."

Conclusion #1: A rapid increase in avocado sales has been achieved in the U.S. while keeping real grower prices relatively stable, an outcome only possible with substantial demand growth.

Conclusion #2: Estimated benefit-cost ratios range from 2.1 to 9.3, a very favorable return on promotional assessments paid by avocado producers and importers. For example, a 2.12 BC ratio implies that the program returns $2.24 in incremental profit to producers for each $1 expended, for a net gain of $1.24.

Conclusion #3: Analysis of retail-level demand indicates that promotions had a positive and statistically significant impact on per capita sales in the targeted areas. Weekly per capita consumption rose very consistently throughout the five-year period.

Conclusion #4: Programs conducted under HAB's auspices have been highly successful in expanding demand for fresh avocados and yielding a favorable rate of return to the industry.

The Californian, Chilean and Mexican programs have remained consistent during the evaluation period increasing demand and developing a premier image for avocados. Producer-funded advertising and promotion programs for fresh avocados in the U.S. market are notable for their long history and relative amount of funding.

Conclusion #5: Study results also indicate that high rates of demand growth and favorable returns on promotion could be maintained with higher program assessments and expenditures, indicating the ability to successfully expand the program should HAB and its affiliated organizations wish to do so.

llu study Profile NEW EVIDENCE
The research at Loma Linda University is one of several studies supported by HAB as part of a research program established in 2010


Loma Linda University Study on Satiety is the second in a series of Hass Avocado Board-funded nutrition studies expected to be released over the coming years.

The Hass Avocado Board recently announced publication of a study that suggests adding one-half of a fresh avocado to a lunch may have helped 26 healthy, overweight people feel more satisfied and reduced their desire to eat following a meal.

The avocado study, which was conducted by researchers at the Loma Linda University and funded by HAB, was published in Nutrition Journal, a monthly peer-reviewed journal that publishes work in the area of human nutrition. The human clinical study is the second in a series of HAB-funded nutrition studies expected to be released over the coming years as a part of HAB's single-minded nutrition marketing and research strategy.

Researchers found that study participants who added half of a fresh Hass avocado to their lunch reported a significantly decreased desire to eat by 40 percent over a three-hour period, and by 28 percent over a five-hour period after the meal, compared to their desire to eat after a standard lunch without avocado. In addition, they reported increased feelings of hunger satisfaction by 26 percent over the three hours following the meal.

"HAB has found that more and more retailers are communicating health information to customers to help them make smart eating choices," said Emiliano Escobedo, executive director, Hass Avocado Board. "The nutrition research conducted by HAB is an important program that will help retailers accomplish that goal."

While the findings were generally positive, more research is needed to determine whether the conclusions drawn from this study can be applied to the general public.

The research at Loma Linda University is one of several studies supported by HAB as part of a research program established in 2010.

To view the abstract or the full study, "A Randomized 3x3 Crossover Study to Evaluate the Effect of Hass Avocado Intake on Post Ingestive Satiety, Glucose and Insulin Levels, and Subsequent Energy Intake in Overweight Adults," visit http://www.nutritionj.com/content/pdf/1475-2891-12-155.pdf.
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