A LOOK AT FRESH AVOCADO CONSUMERS ATTITUDES, AWARENESS AND USAGE

A LOOK AT FRESH AVOCADO CONSUMERS ATTITUDES, AWARENESS AND USAGE

What drives consumers to purchase Hass avocados? What stops them from doing so? Are the answers to these two questions changing over time? The Hass Avocado Board (HAB) invites the industry to take a look at some interesting insights about consumers usage and attitudes toward fresh Hass avocados. HAB regularly tracks consumer interests in its product in order to provide stakeholders with viable data they can use to focus their marketing efforts and follow the evolution of consumer preferences over time. This report reflects findings of attitudes, awareness and usage from the survey done in the spring of 2013 and trend information from previous waves. Of particular interest in these tracking studies is information from consumers regarding usage barriers and drivers as well as the importance of nutritional and wellness attributes. The spring survey is conducted in all regions of the country in March. A second wave occurs in fall during the months of August or September. Targets for this web-based, self-administered survey are grocery shoppers age 25 to 54 that are identified as Challenged, Ordinary and Enthusiast Users, as well as Lovers depending on their avocado usage and consumption (see appendices for details).

40% U.S. North East 30% 20% 10% South East South West Central Pacific/ Mountain 0% 2007 Spring 2008 Fall 2008 Spring 2009 Fall 2009 Spring 2010 Fall 2010 Spring 2011 Fall 2011 Spring 2012 Fall 2012 Spring 2023 MORE PEOPLE KNOW HASS Unaided awareness of Hass avocados on a national basis is in line with spring and fall of 2012, maintaining the recovery from the drop seen in the fall 2011 wave.

USERS: TWO-THIRDS OF HOUSEHOLDS As seen in most of the recent waves, almost two-thirds of U.S. households have purchased avocados in the past year. The average U.S. household that buys avocados bought 66 of them last year. This is similar to the same number of avocados purchased most years, except 2009 where there was a dip in both the spring and fall. Facts 68 percent of all avocados users are female. The Southwest region has the largest proportion of avocado Lovers. While avocado Enthusiasts / Lovers represent over one-half of all avocado consumers, they account for 90 percent of the avocado volume. This usage number jumps to 80 percent household penetration in the Pacific/Mountain region, with an average of 69 avocados purchased per year; and 82 percent household penetration in the Southwest, with 89 avocados purchased per year. Most avocado users plan their purchases in advance but also may buy on impulse. Impulse buyers are driven by price, store specials, the product looking good in the store and being ripe and ready to use.

AVOFACT CONSUMERS IN THE SOUTHWEST AND THE PACIFIC/MOUNTAIN REGIONS CONTINUE TO BE THE MOST LIKELY TO HAVE PURCHASED AVOCADOS. 100% 80% 60% 40% 20% U.S. Northeast Southeast Southwest Central Pacific/ Mountain 0% 2007 Spring 2008 Fall 2008 Spring 2009 Fall 2009 Spring 2010 Fall 2010 Spring 2011 Fall 2011 Spring 2012 Fall 2012 Spring 2023 WITHIN THESE HOUSEHOLDS, MORE THAN HALF ARE CONSIDERED ENTHUSIAST AND LOVER USERS 54% Lovers Enthusiast 15% 30% 31% 24% Ordinary Challenged

WHAT MAKES PEOPLE BUY OR NOT DID YOU KNOW? Lovers often buy avocados, and this leads to them being the group most likely to plan to buy them before going to the store. Fifty five percent of Lovers buy avocados every week, 33 percent of Enthusiasts buy them every week. AVOFACT : IN THE U.S., THE TOTAL NUMBER OF AVOCADOS PURCHASED IN THE PAST YEAR BY AVOCADO- CONSUMING HOUSEHOLDS REACHED AN ALL-TIME HIGH FOR THE PAST TWO WAVES.

Taste, being good for you, and nutritional benefits continue to be the top reasons for buying avocados. Being organically grown is a driver for about one-third of consumers, and about one-quarter of them have actually bought organic avocados levels similar to last fall. This is all good news. Northeast Southeast Southwest Central Pacific/Mountain % % % % % Taste 22 20 28 25 25 Specific Recipe 7 8 5 10 5 Price 5 5 11 6 12 Nutritional Benefits 11 16 6 14 11 Good For You 15 11 11 14 11 Ripeness 6 4 4 2 4 Fact 89% { SPRING 2013 } Challenged and Ordinary users are more likely to consider fat content as a barrier to purchase than other groups.

GOOD NUTRITION: HOW DOES THAT MAKE YOU FEEL? TOP SEVEN ATTRIBUTES CONSUMERS ASSOCIATE WITH AVOCADOS ARE: CONTAINING GOOD FAT HAVING NEARLY 20 ESSENTIAL NUTRIENTS CONTAINING ANTIOXIDANTS CONTAINING FIBER CONTAINING VITAMINS E AND C NUTRIENT DENSE SODIUM FREE

Avocados fall short on perceptions of being cholesterol free, low in fat, having less than 1 gram of sugar, containing potassium, and low in calories. They are only believed to deliver on three of the 15 health and wellness benefits of high importance: heart health, nutrient boosting and healthy skin. Consumers that are avocado Enthusiasts and Lovers place more importance than their counterparts on all of the nutritional, health and wellness benefits. They are also more likely to agree that these benefits are associated with avocados. Fact Challenged avocado users are the least food and wellness involved consumers.

U.S Spring 2013 % Contain good fats 54 Have nearly 20 essential nutrients 52 WE PURCHASE THEM BECAUSE... WHEN ASKED, HOW IMPORTANT TO YOU ARE EACH OF THE FOLLOWING NUTRITIONAL BENEFITS WHEN DECIDING WHETHER OR NOT TO BUY AVOCADOS, ANSWERS VARY WIDELY. Contain antioxidants 50 Contain fiber 47 Contain vitamins E and C 47 Nutrient-dense 46 Cholesterol free 46 Sodium free 44 Less than 1 gram of sugar 43 Contain potassium 43 Low in fat 43 Low in calories 42 Contain iron 39 Contain natural plant sterols 35 Contain folate 34 Contain lutein 33

PREPARATION AND WAYS USED THE AVOCADO ENTHUSIAST USES THEM AN AVERAGE OF FIVE DIFFERENT WAYS. IN THE PAST SIX MONTHS, MOST CONSUMERS HAVE USED THEM IN GUACAMOLE, AND A MAJORITY OF LOVERS AND ENTHUSIASTS HAVE HAD THEM IN A GREEN SALAD AND EATEN PLAIN.

HOW ARE CONSUMERS USING AVOCADOS? U.S. U.S. U.S. U.S. Fall 2011 Spring 2012 Fall 2012 Spring 2013 % % % % As an ingredient in guacamole dip or topping 68 65 64 63 As an ingredient in green salads 69 62 54 60 Cut up and served on a sandwich 57 54 52 51 Eaten plain by itself 54 56 49 48 Cut up and served on a hamburger 38 33 32 34 Cut up and served as a topping on a main dish 37 33 35 32 As an appetizer other than guacamole dip 34 30 30 30 As a dip or sauce for entrée, other than guacamole dip 30 29 27 27 Cut up and eaten with other fruits and vegetables 35 35 31 33 Cut into halves and stuffed with other ingredients 23 20 17 20

Dinner is the most prevalent time for using avocados, with lunch in second place. About one-tenth of avocado users are using them at breakfast. Summer parties and barbecues or picnics are the most common special occasion usage for avocados. In third and fourth place are Cinco de Mayo and Independence Day, with about one-fifth of avocado consumers using them on these occasions. Avocados do not require a special occasion for many users: about 20 percent see them as a snack food. Fact Challenged avocado users purchase them for breakfast three percent of the time, avocado Lovers 21 percent of the time.

FOOD AND WELLNESS INVOLVED CONSUMERS PLACE A HIGHER LEVEL OF IMPORTANCE ON NUTRITIONAL BENEFITS 59%B 57%B 55%B 53%B 52%B 51%B 51%B 49%B 43% 43% 39% 36% 36% 36% 36% 34% 34% 37% 48%B 47%B 47%B 45%B 43%B 40%B 35% 36% 33% 38%B 36%B 26% 26% 25% Contains good fats Have nearly 20 essential nutrients Contain antioxidants Contain fiber Contain vitamins E and C Nutrient-dense Cholesterol free Sodium free Contains potassium Low in fat Less than 1 gram of sugar Low in calories Contain Iron Contain natural plant sterols Contain folate Contain lutien

Food and Wellness Involved Not Food and Wellness involved About two-thirds of all respondents are food and wellness involved. This jumps to 73 percent among past year avocado users and to 79 percent among avocado Enthusiasts / Lovers.

AVOCADOS ON THE MENU About two-thirds of respondents say they are more likely to order menu items made with avocados. Regionally, the Southwest and the Pacific/Mountain regions have a higher likelihood to order menu items with avocados.

LIKELIHOOD OF ORDERING RESTAURANT MENU ITEM BECAUSE IT FEATURES AVOCADOS U.S. U.S. U.S. U.S. Fall 2011 Spring 2012 Fall 2012 Spring 2013 North South South Pac/ % % % % East East West Central Mtn More likely (Net) 65 61 63 62 60 59 68 59 68 Much more likely 26 22 27 22 20 21 31 20 23 Somewhat more likely 38 39 36 40 40 39 37 39 45 Neither more or less likely 29 33 32 33 35 36 27 35 28 Less likely (Net) 6 6 5 5 5 5 5 6 2 Somewhat less likely 4 3 4 3 3 3 4 5 2 Much less likely 2 4 2 2 2 2 1 1 2

HISPANIC AVOCADO CONSUMERS: WHAT S THE DIFFERENCE?

VIRTUALLY ALL (97 PERCENT) HISPANICS BUY AVOCADOS With most of them (88 percent) buying them at least monthly a finding similar to those in earlier research waves. While this puts Hispanic shoppers 18 percentage points ahead of the penetration of total U.S. households, the two market segments share a preponderance of attitudes and usages captured in the tracking study. Following are some of the differences between 750 Hispanic respondents and the total U.S. market, which targeted more than 2,200 shoppers. Hispanic Study Total U.S. Bought avocados to eat or serve at home (monthly) 88% 70% Average number of avocados purchased annually 108 66 Average number of ways avocados prepared 8.5 4.9 Advertising Awareness 53% 31% COMPARED TO THE GENERAL POPULATION HISPANICS ARE MORE LIKELY TO: BUY AVOCADOS AT LEAST MONTHLY TO EAT AND SERVE AT HOME PURCHASE MORE AVOCADOS ANNUALLY AND PREPARE THEM IN MORE WAYS (8.5 VS. 4.9) BE AWARE OF ADVERTISING FOR AVOCADOS

HISPANIC AVOCADO PURCHASES REACH HIGHEST LEVEL EVER RECORDED Spring Fall Spring Spring Spring Spring Spring Spring 2007 2007 2008 2009 2010 2011 2012 2013 Average # of Avocados bought at one time 4.8 6.3 4.0 3.9 3.8 3.8 3.7 3.5 Average # of avocados purchased annually* NA NA 106 101 97 102 97 108

In line with previous tracking studies, the frequency of purchasing is higher among Hispanics who are foreign-born, Spanish-dominant or bilingual and of Mexican origin. Hispanics in the five markets surveyed purchase 108 avocados on average annually one of the highest levels ever recorded and far outranking the total U.S. market number of 66. Almost half of the Hispanic sample is of Mexican origin, a group significantly more likely to be frequent purchasers of avocados relative to other Latinos. In the total U.S. market, only 62 percent claim avocado purchases annually. Weekly Hispanic avocado purchasers top out at 61 percent, compared to the general market weekly buyer at 18 percent.

GOOD FOR YOU/ BUENO PARA LA SALUD!! Being good for you and perceived nutritional benefits are both named as top tier reasons why people buy avocados. They are only trumped by taste and quality. Similarly, promotes skin health and better nutrition are benefits rated both high in importance and as descriptors of avocados. The general market shares the same reasons for buying avocados. Hispanics place a higher level of importance on nutrition and health and wellness benefits than the general market. They also rate avocados higher than their counterparts on most of the nutrition and health and wellness benefits.

FOOD AND WELLNESS INVOLVEMENT RANKS HIGH Hispanic respondents were asked the questions shown below to help identify a food and wellness involved segment. About two-fifths of respondents classify as food and wellness involved based on saying they prepare home-cooked meals at least a few times a week, and that they both spend a lot of time and effort preparing healthy homemade meals and like to cook homemade meals because they control the ingredients. 34% 33% 79% 49% 55% 49% 65% 43% 43% 28% 12% 8% 47% 6% 12% 15% 7% 4% 3% 5% 12% 4% 3% Frequency of personally preparing home-cooked meal 32% I put a lot of time and effort preparing healthy homemade meals 40% 17% I like to cook homemade meals because I control the ingredients Food and wellness involved Never Less often than weekly Once or twice a week Three or more times per week Daily Strongly disagree Somewhat disagree Somewhat agree Strongly agree Strongly disagree Somewhat disagree Somewhat agree Strongly agree

WHAT DO HISPANICS DO WITH THEM? The long list of usage ideas is shared by both Hispanic and general market shoppers, with slight differences. For instance, the U.S. total market mentions hamburgers, but the Hispanic study does not. Hispanics like soup, but the general market is not as likely to use avocados in soup. Facts 39 percent of all avocado Lovers are Latino; half are white. Nearly one-fifth of all avocado Lovers moved to the U.S. from another country. AS FAR AS FOODSERVICE IS CONCERNED, ABOUT HALF OF THE GENERAL MARKET CONSUMERS HAVE ORDERED SOMETHING INCLUDING AVOCADOS, A NUMBER THAT SPIKES TO 61 PERCENT IN THE SOUTHWEST AND PACIFIC/ MOUNTAIN REGIONS. SOME 63 PERCENT OF HISPANICS ORDER AVOCADOS WHEN EATING AWAY FROM HOME.

IN CONCLUSION: FOR THE FUTURE Avocado consumption continues to see strong retail support based on awareness, attitudes about the fruit and actual consumption statistics for both the U.S. total and Hispanic markets. While there may be minor variations in results from one tracking study to the next, most of the changes over time in the past few years have been minimal. Variations between regions also remain relatively flat. Marketers can benefit from examining consumer preferences indicated in this study. In addition, nutritional benefits continue to be of critical importance, a fact recognized and supported by the Hass Avocado Board in its significant investment in nutrition research.

APPENDIX 1 SPRING 2013 AVOCADO QUOTAS LA 100 75 25 San Francisco 100 75 25 All other CA 100 75 25 [Q320=CA] Portland 50 38 12 Seattle 50 38 12 All other Northwest 50 38 12 [Q320=OR, WA] Dallas 75 56 19 Houston 75 56 19 San Antonio/Austin 50 38 12 Phoenix 50 38 12 All other Southwest: 100 75 25 [Q320=AZ, TX] Atlanta 0 Southern states: 400 300 100 [Q320 = GA, MS, AR, AL, KY, TN, WV, VA, NC, SC, FL, OK, LA] New York 0 Boston 0 Northeastern states: 400 300 100 [Q320 = NY, MA, DC, MD, PA, RI, VT, NH, ME, DE, NJ, CT] Chicago 0 Central states: 400 300 100 [Q320 = IL, IN, MI, OH, WI, IA, NE, KS, ND, MO, MN, SD] Denver 50 38 12 Salt Lake City 50 38 12 Mountain states: 100 75 25 [Q320 = CO, WY, MT, UT, NV, NM, ID] Total 2,200 1,653 547 Hispanic Quotas: 175 137 38 *Note: Hispanics have traditionally made up about 8 percent of the total sample (with 78 percent ranging from 25 to 54 years old, and 22percent being 55 or more years old) 49 states total, excluding Alaska and Hawaii (but including DC)

APPENDIX 2: AVOCADO USER DEFINITIONS User groups defined according to annual household volume consumption as follows:* Challenged : Purchase at least one, but less than 12 avocados per year Ordinary : Purchase 12 36 avocados per year Enthusiast : Purchase 37 120 avocados per year Lovers : Purchase more than 120 avocados per year The segmentation has been completed at the total U.S. level among avocado consumers ages 25 and older *Calculation based on frequency of buying multiplied by average number bought per occasion.

Hass Avocado Board 230 Commerce, Suite 190 Irvine, CA 92605 www.hassavocadoboard.com