New Directions
in
Promoting the Promised
Fruit
Wayne Prowse
Horticulture Australia
4 June 2001
Professor David Colquhorn’s Avocado
study demonstrated cholesterol
lowering properties of avocados
Avocado diet
AHA low fat diet
% reduction
14.00%
12.00%
10.00%
13.90%
10.30%
8.70%
8.20%
8.00%
6.00%
4.90%
4.00%
2.00%
0%
0.00%
Cholesterol
LDL
HDL
Production Growth
AVOCADOS - 10 YEAR TREND and FORECAST
tonnes
Forecast
03
02
/
02
01
/
/0
1
00
/0
0
99
/9
9
98
/9
8
97
/9
7
96
/9
6
95
/9
5
94
/9
4
93
/9
3
92
/9
2
91
90
/9
1
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
-
source: AAGF, ABS, Flemington Market Reporting Service, Horticulture Australia Analysis,
AVOCADOS - AVOCADOS
Cumulative Penetration Comparison
AC Nielsen Penetration graph
Actual Trial - ADELAIDE BRISBANE MELBOURNE METRO-NATIONAL PERTH SYDNEY
60
50
40
30
20
10
0
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Weeks After Launch
ADELAIDE (37.3)
NATIONAL (44.2)
©HOMESCAN 2001 TEMP
QUEENSLAND(44.1)
PERTH (37.7)
VICTORIA (42.6)
NSW (51.3)
Research comments
•
•
•
•
•
•
Creamy
Smooth
Good for you
I love them
kids love them
Hubby spreads them on toast
‘AVE AN AVO TODAY
• Shift emphasis from an “occasional luxury”
to an “every day” use item
• Spread as a healthier alternative for butter
• A natural alternative to cholesterol
reducing margarines
• Versatile usage in meal solutions in winter
as well as summer
So where to now ??
The NEW Direction
Consumption & Price movements
AVOCADO - NATIONAL RELATIVE PRICE & VOLUME to LY
100.0
100
90.0
90
80.0
80
70.0
70
60.0
60
50.0
50
40.0
40
30.0
30
20.0
20
10.0
10
0.0
0
1/22/00
2/19/00
3/18/00
4/15/00
source : AC Nielsen, HAL Analysis Feb 2001
5/13/00
6/10/00
7/8/00
8/5/00
9/2/00
9/30/00 10/28/00 11/25/00 12/23/00
Ind Vol LY
Ind Vol
Price LY
Price
Market penetration by month
TOTAL AVOCADO - NATIONAL
15.6
19.4
19.5
14.9
15.4
19.7
20.0
16.4
18.5
13.0
16.3
13.9
15.6
14.4
16.2
15.5
16.4
14.2
16.2
17.0
17.0
16.0
13.1
12.7
15
13.0
20
18.0
25
10
5
0
4 W/E 22/01/2000 4 W/E 18/03/2000 4 W/E 13/05/2000 4 W/E 08/07/2000 4 W/E 02/09/2000 4 W/E 28/10/2000 4 W/E 23/12/2000
4 W/E 19/02/2000 4 W/E 15/04/2000 4 W/E 10/06/2000 4 W/E 05/08/2000 4 W/E 30/09/2000 4 W/E 25/11/2000
PENETRATION(%) YA
AWOP(UNITS) YA
AWOP(UNITS)
PENETRATION(%)
4 W/E
4 W/E
4 W/E
4 W/E
4 W/E
4 W/E
4 W/E
4 W/E
4 W/E
4 W/E
4 W/E
4 W/E
4 W/E
22/01/2000 19/02/2000 18/03/2000 15/04/2000 13/05/2000 10/06/2000 08/07/2000 05/08/2000 02/09/2000 30/09/2000 28/10/2000 25/11/2000 23/12/2000
2.3
2.4
2.6
2.6
2.6
2.8
2.5
2.6
2.7
2.6
2.4
2.4
2.5
2.3
2.3
2.5
2.6
2.4
Source: ACNielsen Homescan - Page 1 of 1 - 9/02/2001
2.6
2.6
2.5
2.6
2.7
2.7
2.6
2.7
TV Advertising works
TV in horticulture
•
•
•
•
•
Bananas
Stone Fruit
Mandarins
Mushrooms
Apples
Stone Fruit buyers
conversion to heavier
users after TV ads
35
30
25
20
15
10
5
0
Sydney
Melbourne
Brisbane
Adelaide
Perth
TV Commercial brief
•
•
•
•
Avocado to be the hero
A modern and catchy jingle
Shows versatility of avocados
Shows people / lifestyles enjoying
avocados
• Portrays a healthy product image
AVOCADO
Proposed Avocado Advertising Schedule
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
M ar
Apr
May
June
TV
Sydney
$225,000
M elbourne
$180,000
Brisbane
$100,000
Adelaide
$45,000
Perth
$50,000
Total TV
$600,000
M agazines
Good Taste
$15,000
Aust Table
$10,000
Baby Care
Pregnancy
$13,000
$9,000
Parenting
$5,000
Heartwise
Total M agazines
$8,000
$60,000
Public Relations
$20,000
Point of Sale
$60,000
In store promotion
$25,000
Total Domestic
Management Fee 7.5%
Domestic Budget
$765,000
$57,375
$822,375
Supporting
Supporting material
• In store promotion posters to extend the
TV image
• PR Program with health benefit focus
• Recipe Leaflets for usage ideas
• Recipes and Nutrition information on the
internet at www.avocados.org
Deliver the Promise
• New consumers are converting to
avocados
• They want clean fruit - no fuss
• We must work through the supply chain
to ensure that the fruit that we promise
is the fruit that they get
• A WIN WIN for consumers and industry
Vision 2020
• 20 Years from now
• If 50% of Australian households
consumed just 2 avocados per week
that would be 10 million avocados.
• 10 million avocados is 2,000 tonne p.w.
• That is 100,000 tonnes per year or 3 x
the current volume.
Vision 2020
120,000
100,000
tonnes p.a.
80,000
60,000
40,000
20,000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
AVOCADOS - QUEENSLAND RELATIVE PRICE & VOLUME to LY
100.0
1.20
90.0
1.00
80.0
70.0
0.80
60.0
0.60
50.0
40.0
0.40
30.0
20.0
0.20
10.0
0.0
0.00
1/22/00
2/19/00
3/18/00
source : AC Nielsen, HAL Analysis
4/15/00
5/13/00
6/10/00
7/8/00
8/5/00
9/2/00
9/30/00 10/28/00 11/25/00 12/23/00
Ind Vol LY
Ind Vol
Price LY
Price
AVOCADOS - VICTORIA - RELATIVE PRICE & VOLUME to LY
60.0
1.20
50.0
1.00
40.0
0.80
30.0
0.60
20.0
0.40
10.0
0.20
0.0
0.00
1/22/00
2/19/00
3/18/00
Source : AC Nielsen, HAL Analysis
4/15/00
5/13/00
6/10/00
7/8/00
8/5/00
9/2/00
9/30/00 10/28/00 11/25/00 12/23/00
Ind Vol LY
Ind Vol
Price LY
Price
AVOCADOS - ADELAIDE RELATIVE PRICE & VOLUME vs LY
100.0
1.20
90.0
1.00
80.0
70.0
0.80
60.0
50.0
0.60
40.0
0.40
30.0
20.0
0.20
10.0
0.0
0.00
1/22/00
2/19/00
3/18/00
4/15/00
5/13/00
6/10/00
7/8/00
8/5/00
9/2/00
9/30/00 10/28/00 11/25/00 12/23/00
Ind Vol LY
Ind Vol
Price LY
Price
AVOCADOS - PERTH - RELATIVE PRICE & VOLUME to LY
100.0
1.20
90.0
1.00
80.0
70.0
0.80
60.0
50.0
0.60
40.0
0.40
30.0
20.0
0.20
10.0
0.0
0.00
1/22/00
2/19/00
3/18/00
4/15/00
Source : AC Nielsen, HAL Analysis Feb 2001
5/13/00
6/10/00
7/8/00
8/5/00
9/2/00
9/30/00 10/28/00 11/25/00 12/23/00
Ind Vol LY
Ind Vol
Price LY
Price
Exports by Market
158 tonnes +82%
Australian Avocados - Exports by m arket destination
Jan - Dec 2000 vs 1999
60,000
82% Increase driven by N ew Zealand and H ong Kong and M alaysia
50,000
40,000
Kilograms
Yr 1999
Yr 2000
30,000
20,000
10,000
M
AU
R
IT
IU
S
BR
U
N
EI
AI
T
KU
W
IT
AL
Y
N
IA
D
O
C
AL
E
BA
H
R
AI
N
N
EW
AB
EM
IR
AT
ES
IA
AY
S
AR
KO
H
O
N
G
M
AL
U
N
IT
ED
source : ABS Feb 2001,
Horticulture Australia Analysis
N
G
R
E
AP
O
SI
N
G
N
EW
ZE
A
LA
N
D
-
Exports by Month
Australian Avocado Exports 2000 vs 1999
Total exports (kg) were 82% higher in 2000
50,000
45,000
Growth in July due to New Zealand demand
40,000
35,000
Yr 1999
Yr 2000
Kilograms
30,000
25,000
20,000
15,000
10,000
5,000
Jan-00
Feb-00
Mar-00
Apr-00
source : ABS Feb 2001, Horticulture Australia Analysis
May-00
Jun-00
Jul-00
Aug-00
Sep-00
Oct-00
Nov-00
Dec-00
Product Quality
• On farm production R&D is helping with disease
control, plant nutrition, canopy management and
optimum water management.
• Rootstock evaluations are leading to better
varieties that should improve quality.
• Post harvest research is tackling issues
associated with improving handling through the
supply chain.
• Merchandising program is tackling handling and
display issues inside retail stores to improve
quality of avocados as consumers buy.
2001/02 Budget Outline
Full Year
Budget 01/2002
$
Forecast
00 / 01
$
INCOME
Gross Levies
Less : Levy Collection Costs
Non Levy Income
Total Income
$ 1,000,000
$
24,000
$ 976,000
$
30,000
$ 1,006,000
$
$
$
$
$
850,000 Significant crop increase
24,000
826,000
26,000 Additional interest earnings
852,000
$ 1,044,375
$
683,152
EXPENDITURE
Total Marketing
G eneral :
PIB Funding
Statutory Services
Total G eneral
$
$
$
80,000
31,000
111,000
$
$
$
T otal Expenditure
$ 1,155,375
$
764,952
O perating Surplus (Deficit)
$
(149,375)
$
87,048
Industry Reserves
Estim ated Reserves 1/7
Transfer to / (from ) Reserves
Estim ated Reserves 30/6
$
$
$
542,388
(149,375)
393,013
$
$
$
59,000 Consultation project (AAG F)
22,800 subject to HA structure
81,800
455,340
87,048
542,388 $250,000 is m inim um required
EXPENDITURE
Marketing :
4
Domestic Promotion
Full Year
Budget 01/2002
$
Forecast
00 / 01
$
QFVG Fee
Instore Promotions (incl Co operative)
Public Relations
Advertising - Outdoor
Advertising - TV Media
Advertising - Magazines
Point of Sale
$
$
$
$
$
$
$
57,375
25,000
20,000
600,000
60,000
60,000
$
$
$
$
$
$
$
28,000
35,000
25,000
130,000
120,000
125,000
60,000
sub total: domestic promotion
$
822,375
$
523,000
sub total: export promotion
$
$
20,000
20,000
$
$
Market Research / Information
$
30,000
$
20,000 AC Nielsen and Focus groups
3
Programme Management
$
60,000
$
54,000 Subject to HA structures
6
Market Access & Development
$
-
9
Quality
Retail Education (Merchandising)
$
Retail / Wholesale relationship developmen $
Wholesale Quality Surveys
$
Poster development & printing
$
sub total:quality programs
$
74,000
74,000
$
$
$
$
$
47,000 allows three cycles, not two.
47,000
$
$
$
$
$
$
12,000
19,000
3,500
3,500
38,000
$
$
$
$
$
$
6,000
16,000
6,000
2,500
3,652
34,152
Strategic Planning
$
-
$
-
Total Marketing
$ 1,044,375
97010
98074
98075
98085
98181
97012
5
98185
7
Export Promotion
Market evaluation / export projects
QFVG fee is 7.5% of program
agreed Woolworths activity
Reduced activity
No further outdoor - all to TV
TV campaign, extra budget
Magazine activity - Mar - May
no reduction in POS
5,000 Export projects TBA
5,000
98192
98070
98076
98075
98184
2
98081
98084
98087
98088
Communication
Marketing Forum
Industry Publications
Strategic Alliance Committee
HAL Meeting with Industry
Industry Meeting with HAL
sub total:communication
$
683,152
2 meetings - change to IAC
Publications
no futher funding
consultation travel (HA)
consultation travel (Industry)