A LOOK AT WHO IS EATING AVOCADOS? INFORMATION ABOUT CONSUMERS, DRIVERS AND BARRIERS, AND DEMOGRAPHICS 2015 USER SEGMENTATION ANALYSIS

A LOOK AT WHO IS EATING AVOCADOS? INFORMATION ABOUT CONSUMERS, DRIVERS AND BARRIERS, AND DEMOGRAPHICS 2015 USER SEGMENTATION ANALYSIS

HASS AVOCADO BOARD TABLE OF CONTENTS Tracking Study Consumer Groups Consumption Organic Hass Avocados GMOs Food Safety Confidence Nutritional Attributes & Benefits Nutritional Attributes Important to Consumers Health and Wellness Benefits Consumer Demographics Food and Wellness Involvement High Love One Today Restaurant Consumption Consumer Demographics 1 2 5 9 11 13 15 16 17 21 22 23 25 27

CONSUMER GROUPS Purchase more than 120 avocados per year HASS AVOCADO BOARD TRACKING STUDY Each year the Hass Avocado Board conducts a consumer tracking study that measures important changes in avocado usage and attitudes. The Spring 2015 Tracking Study collected information from consumers about their demographics, avocado usage, advertising and PR awareness, usage drivers and barriers, food safety, as well as the importance of nutritional and wellness attributes and benefits. Purchase 37 to 120 avocados per year Purchase 12 to 36 avocados per year Targets for this web-based, self-administered survey were grocery shoppers older than 25 years that are identified as,,, and depending on their avocado usage and consumption. Purchase at least 1 but less than 12 avocados per year For the full report, visit hassavocadoboard.com/consumer Avocado consumption calculation based on frequency of buying multiplied by average number bought per occasion. 1 2

AVOCADO / CONTINUES AT RECORD LEVELS Consistent with recent tracking studies, two-thirds of consumers have purchased avocados for home use in the past year. The proportion of Enthusiasts/Lovers has gradually increased over time, and is currently 59 % of all avocado users one of the highest levels ever recorded. While Enthusiasts/Lovers represent 59 % of all avocado users, they account for 91% of the avocado volume consumed. 59% AND 91% AVOCADO VOLUME CONSUMED FACT 57% of lovers buy avocados every week - a level similar to last year. 3 4

TASTE IS A VERY STRONG PURCHASE DRIVER FOR ALL GROUPS. ALL USERS % % % % % CONSUMPTION DRIVERS OF AVOCADO PURCHASE The combination of being good for you, nutritional benefits, taste, quality, and variety of uses are key drivers of avocado consumption. While avocados are a household staple for many Enthusiasts and Lovers, they are much less so for everyone else. Good for you 73 88 88 87 86 Nutritional benefits 70 84 85 85 81 Taste 68 86 89 87 83 Quality 62 82 79 74 74 Variety of uses 61 83 79 76 66 Buying avocados for babies or young children still trends low, but is trending up driven by Lovers. BARRIERS TO AVOCADO PURCHASE Too perishable 25 18 26 34 38 Family doesn t like them 18 4 6 6 15 Fat content 17 15 19 17 25 Price 17 11 12 14 16 Availability 13 18 15 16 15 5 6

A large portion of consumers have not bought avocados because of the price, with $1.81 being the trigger point. However, price is generally not a barrier to purchase (only impacting 15% of consumers). Fat content and lack of availability are not strong barriers to purchase, except for among the Challenged users. BEING GOOD FOR YOU AND NUTRITIONAL BENEFITS ARE THE MAIN REASONS CONSUMERS PURCHASE AVOCADOS. 7 8

ORGANIC HASS AVOCADOS Organically grown is a reason for purchase for two-fifths of users. This does skew higher as avocado consumption increases. THE AVAILABILITY OF ORGANIC FRUIT FALLS INTO A LOWER TIER OF DRIVERS FOR ALL USER GROUPS, BUT HAS BEEN CLIMBING IN IMPORTANCE FOR AND. 9 10

GMOs 21% 26% 14% 17% 23% 13% 14% 22% 13% 10% 22% Similar to last year, one-fifth of users regularly check to see if a food is GMO-free. Lack of familiarity with GMO has decreased from 19% to 12%. There is some, but not overwhelming, concern about foods with GMO. 15% 10% 8% 23% 14% 9% 21% 10% 25% 10% FACT Avocados are not GMO. quirkbrain.com/hass-avocados-genetically-modified-organisms-gmo Extremely Concerned Very Concerned Somewhat Concerned Slightly Concerned Not At All Concerned I m Not Familiar w/gmo About one-quarter of consumers express strong concern about consuming GMO foods. As seen last year, the heavier an avocado consumer you are, the higher your concern about consuming GMO foods. 11 12

Confidence in food safety is similar for food in general, fresh fruits and vegetables and avocados. Scores remain similar to last year. FOOD SAFETY CONFIDENCE HIGH 19% FOOD IN GENERAL FRESH FRUITS & VEGETABLES 21% FRESH AVOCADOS Enthusiasts and Lovers are more confident in the food safety of avocados than they are for other fruits and vegetables or food in general. This was also true last year. 40% 37% 41% 40% 41% 40% Last year, Challenged users were more confident in the food safety of avocados than they were for other fruits and vegetables or food in general. This year, their safety confidence is similar across products. Ordinary users continue to have elevated confidence for avocados. 38% 3% 39% 4% 36% 3% 37% 4% 33% 5% 34% 5% 2014 2015 2014 2015 2014 2015 Very confident Confident Somewhat confident Not at all confident 13 14

AVOCADOS DELIVER ON NUTRITIONAL ATTRIBUTES & BENEFITS NUTRITIONAL ATTRIBUTES IMPORTANT TO CONSUMERS FACT As seen in the past, Enthusiasts and Lovers place more importance on all of the nutritional attributes than do the other groups. ALL USERS % % % % % FACT Avocados are believed to deliver on 6 of the 17 health & wellness benefits of high importance to users. HIGH IMPORTANCE Heart health Nutrient boosting/helps with nutrient and antioxidant absorption Healthy aging Lower cholesterol/healthy cholesterol levels Satiety, fullness, hunger control Healthy skin There was minimal movement across the quadrants since last fall, except contains potassium shifted from high to low importance. Natural plant sterols, folate and lutein are of low importance to users when deciding whether to buy avocados. This was also true for the previous wave. 15 AVOCADOS Contain good fats Have nearly 20 essential nutrients Contain antioxidants Nutrient-dense Contain fiber Cholesterol free Contain vitamins E and C Less than 1 gram of sugar Sodium free Diabetes management, pain relief and child growth/development are currently of low importance to users when deciding whether to buy avocados. Avocados are believed to deliver on 9 of the 12 nutritional attributes of high importance to users. Contain good fats 54 47 59 66 79 Have nearly 20 essential nutrients 53 46 55 64 75 Contain antioxidants 50 40 55 59 76 Nutrient-dense 48 46 51 59 71 Cholesterol free 47 43 46 56 68 Contain fiber 47 38 49 55 70 Less than 1 gram of sugar 46 37 42 54 72 Contain vitamins E and C 46 36 46 56 73 Sodium free 43 32 42 51 67 Contain potassium 43 31 44 51 67 Low in fat 42 36 37 47 63 Low in calories 41 31 38 46 61 Contain iron 40 29 39 48 66 Contain natural plant sterols 38 29 39 47 63 Contain lutein 34 24 33 38 60 Contain folate 34 26 30 43 59 In older waves, Ordinary and Challenged users were similar in the level of importance placed on many, but not all of the attributes. For the last four waves, Ordinary users place more importance than Challenged users on many measures. Over time, the general user has grown in their association of many nutritional attributes with avocados. A few of these fell in comparison to last year, especially among Challenged and Ordinary users, and Enthusiasts. For the most part, agreement with nutritional attributes associated with avocados remained strong among Lovers.

Challenged users, which last year experienced a relapse in their agreement with many of the health and wellness benefits associated with avocados, more than bounced back. Scores are now higher than ever seen in previous years. SPRING 2012 % FALL 2012 % SPRING % FALL % 2014 % 2015 % AGREEMENT WITH HEALTH & WELLNESS BENEFITS INCREASES Agreement with the various heath & wellness benefits associated with avocados has gradually increased over time. There were many strong increases this year. Nutrient boosting/helps with nutrient & antioxidant absorption Healthy skin Heart health Lower cholesterol/healthy cholesterol levels Healthy aging Satiety, fullness, hunger control Healthy blood vessels/vascular health Smooth skin/minimizes wrinkles Healthy blood pressure Healthy weight maintenance/weight management Healthy eyes and vision Cognitive skills, brain health and mental function Cancer prevention Diabetes management/blood sugar & blood glucose management Weight loss Child growth and development Digestive/gut health Immunity Healthy sleep patterns Pain relief 40 40 40 45 45 49 36 39 40 42 43 46 36 40 40 45 43 52 35 37 37 42 41 48 33 36 38 40 40 49 32 36 36 40 41 45 32 35 35 41 39 49 32 34 36 37 37 42 31 34 34 39 39 49 30 32 33 36 37 46 28 33 33 38 37 47 28 32 32 36 36 47 26 31 32 34 33 46 25 30 30 33 34 38 23 26 26 30 30 40 22 25 25 28 28 31 NA NA NA NA 38 45 NA NA NA NA 34 45 NA NA NA NA 29 40 NA NA NA NA 27 35 Ordinary users increased their level of agreement this year with all of the health and wellness benefits of avocados Enthusiasts increased their level of agreement this year with almost all health and wellness benefits of avocados. Lovers have also increased their level of agreement this year with the majority of avocado health and wellness benefits. 17 FACT The importance of health and wellness benefits skews higher as usage increases.

FRUITS VEGETABLES OTHER HEALTHY FAT SOURCES AVOCADOS CONTINUE TO BE CONSIDERED HEALTHIER THAN THE VARIOUS FRUITS, VEGETABLES AND HEALTHY FAT SOURCES MONITORED IN THIS STUDY. AVOCADOS ARE MORE HEALTHY THAN TOP 2-BOX* SCORES AVOCADOS ARE LESS HEALTHY THAN BOTTOM 2-BOX* SCORES APPLES ORANGES BANANAS STRAWBERRIES BLUEBERRIES APPLES ORANGES BANANAS STRAWBERRIES BLUEBERRIES 39% 37% 42% 35% CARROT 33% OLIVES 37% 39% 32% BROCCOLI 37% 26% 40% 37% TOMATO 35% 33% 39% 30% SPINACH 36% 25% 33% 41% GREEN BEANS 29% 38% OLIVE OIL NUTS PEANUT/ ALMOND BUTTER 10% 11% 9% CARROT OLIVES 11% 12% 7% 11% 16% BROCCOLI 11% 17% 10% 11% TOMATO 10% 10% 10% 18% SPINACH 9% 18% 14% 9% GREEN BEANS 15% 11% OLIVE OIL NUTS PEANUT/ ALMOND BUTTER 11% 7% 12% 9% 9% 8% 36% 32% 36% 31% 45% 41% *Top 2-box: 4 or 5 (More healthy) a 5-point scale *Bottom 2-box: 1 or 2 (Less healthy) on a 5-point scale 2015 19 20 2014

FOOD AND WELLNESS INVOLVEMENT HIGH CONSUMER DEMOGRAPHICS 174 ALL USERS Lovers are the most food and wellness involved. All other user groups are also pretty food and wellness involved. 82% of Lovers are food and wellness involved Driven by our definition, Enthusiasts and Lovers are buying many more avocados per year than the other groups. Lovers buy more than twice as many avocados per year as Enthusiasts. 69 77 22 6 100% 80% 60% 82% 74% 67% 66% 85% 75% 71% 62% ALL USERS 40% 0% 65% 65% 68% 68% 67% FALL 2012 SPRING FALL 2014 2015 21 22

AWARENESS OF LOVE ONE TODAY IS AT 12% OF ALL USERS AND CONTINUES TO BE UP COMPARED TO THE SPRING OF. 40% ALL USERS 33% 0% 18% 11% 5% 8% 11% SPRING FALL 16% 15% 12% 8% 2% 2014 2015 naturally good fats cholesterol free Lovers and Enthusiasts are more likely than the other groups to be FACT Awareness levels are up since. aware of advertising for avocados. The top sources of advertising awareness are the same for all groups, and include television, in-store, Internet/Web/Blogs and magazine/news/print. There has been a slight decline in seeing or hearing news articles about the health benefits of avocados since last year for all groups. 23

RESTAURANT CONSUMPTION About half of users have ever ordered something made with avocados when eating away from home. ABOUT TWO-THIRDS OF RESPONDENTS SAY THEY ARE MORE LIKELY TO ORDER MENU ITEMS MADE WITH AVOCADOS. AS HOME AVOCADO CONSUMPTION INCREASES, SO DOES THE LIKELIHOOD OF ORDERING DISHES MADE WITH AVOCADOS. Even a large majority of Challenged users order dishes with avocados while eating away from home. 80% 60% 80% 79% 70% 68% 72% 69% 66% 63% SPRING 2012 FALL 2012 SPRING FALL 2014 2015 % % % % More likely (net) 61 63 62 65 67 64 79 72 63 57 40% 57% 55% 52% 52% 54% 52% SPRING 2012 FALL 2012 SPRING FALL 2014 2015 Much more likely 22 27 22 26 28 28 48 29 20 19 Somewhat more likely 39 36 40 38 38 37 31 43 43 39 Neither more or less likely 33 32 33 31 28 32 14 24 34 40 Less likely (net) 6 5 5 5 5 4 7 4 3 2 Somewhat less likely 3 4 3 2 2 2 2 1 2 2 Much less likely 4 2 2 3 3 2 5 3 2-25 26

USERS ARE GENERALLY WILLING TO SPEND 85 EXTRA IN A RESTAURANT TO ADD AVOCADOS TO A SANDWICH OR HAMBURGER. ARE WILLING TO PAY THE MOST. WOMEN BUY THE MAJORITY OF AVOCADOS. 68% 70% 71% 66% 72% $1.20 $1.00 89 99 86 32% 30% 29% 34% 28% 80 60 77 71 63 71 70 MALE FEMALE 75 79 80 86 92 85 40 SPRING 2012 FALL 2012 SPRING FALL 2014 2015 FACT Avocado lovers are more likely than all other groups to have children in their household. 27 28

CONTINUE TO SKEW TOWARD HIGHER HOUSEHOLD INCOME. LOWER THAN $25,000 FACT Avocado users skew younger. 68% 70% MARITAL STATUS CONTINUES TO VARY SOMEWHAT ACROSS USER GROUPS. THIS WAVE, AND ARE MOST LIKELY TO BE MARRIED. 71% 66% 72% $25,000 $49,999 $50,000 $74.999 $75.000 OR MORE 32% 30% 29% 34% 28% 25% 22% 29% 34% 24% 27% 31% 25% 22% 26% 25% 25% 30% 21% 29% SINGLE SEPERATED DIVORCED WIDOWED MARRIED LIVING WITH DOMESTIC PARTNER Consistent with their representation in the population, the majority of avocado users are Caucasian. Enthusiasts/Lovers have a higher propensity than Challenged and Ordinary users to be of Hispanic origin Reminder: this study only included English speaking Hispanics. 12% 17% 21% 17% FACT While most avocado users were born in the, Enthusiasts and Lovers do have a skew toward being born outside the 29 30

SPRING 2015 QUOTAS 8 REGIONS ALL AGE 25+ 25-54 55+ CALIFORNIA CA 300 225 75 WEST WA, OR, MT, ID, WY, NV, UT, CO, AZ, NM 300 225 75 PLAINS ND, SD, MN, NE, IA, KS, MO 300 225 75 SOUTH CENTRAL OK, AR, LA, TX 300 225 75 GREAT LAKES WI, MI, IL, IN, OH 300 225 75 MID SOUTH KY, TN, VA, WV, NC, MD, DE, DC 300 225 75 SOUTHEAST MS, AL, GA, SC, FL 300 225 75 NORTHEAST PA, NY, VT, ME, NH, MA, RI, CT, NJ 300 225 75 * Balance gender by region 30%-35% male and 65-70% female TOTAL 2,400 1,800 600 HISPANIC QUOTAS 205 N/A N/A Track Hispanic vs Non-Hispanic per region No hard limits NOTE Hispanics have traditionally made up about 8% of the total sample 49 states total, excluding Alaska and Hawaii (but including DC) Regional quotas started in spring, 2014

HASS AVOCADO BOARD 25212 MARGUERITE PKWY. STE. 250 MISSION VIEJO, CA 92692 WWW.HASSAVOCADOBOARD.COM