Avocado Retail Quality Surveys Joanna Embry Avocados Australia Presentation Overview • Why conduct quality surveys • What quality parameters to survey – Consumer sensory testing – Online survey • Results to date • Where to from here Consumer sensory panels and online surveys • Ripeness – level of ripeness (firmness) preferred by consumers • Internal flesh quality – maximum acceptable level of internal defects at different price points above which future consumer purchasing decisions are negatively influenced • Maturity – minimum maturity (measured by DM%) that produces Hass avocados of acceptable eating quality Ripeness C: Purchase intent for different ripeness levels • 85% of consumers have a preference to purchase avocados that are ready to eat/use immediately • Consumers prefer soft ripe and medium ripe avocados • Consumers select for ripeness on colour then squeezing Internal Quality • Severity of defect was of primary importance followed by price • At all prices an incidence of more than 10% internal damage significantly impacts on probability of repurchase X X X Maturity : DM v Likelihood of Purchase • 22% - 28% Competitive advantage What we know consumers want and will alter purchasing for • They want fruit they can eat tonight • They want unblemished fruit – no more than 10% damage • They want mature fruit – above 22% What do we give them? Retail Quality Surveys • Began in October 2007 – 16 stores in each Sydney, Brisbane, Melbourne & Perth – Monthly • Information collected – – – – – – Price Display details Size Weight Sticker Information Internal quality Key findings for 07/08 • More than half fruit colour level 3 or below – – – – NSW 51% of stores Qld 40% of stores WA 30% of stores Vic 5% of stores 1 2 3 4 5 6 Key findings for 07/08 Incidences of internal defects had a significant association with sampling month, state and store type of purchase Total Damage by month damage > 10% 80 some damage 70 60 50 40 30 20 10 0 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Total Damage by State Total Damage by state >10% 80 some damage 70 60 50 40 30 20 10 0 N Q Around 29% in all states V W Total damage by store of purchase Total Damage above 10% 45 Store type 1 Store type 2 Store type 3 Store type 4 40 35 25 20 15 10 5 0 Vic WA Damage above 10% by store (Sydney) 60 50 40 30 20 10 stores 16 ns 15 ns 14 ns 13 ns 12 ns 11 ns 10 ns 09 ns 08 ns 07 ns 06 ns 05 ns 04 ns 03 ns ns 02 0 01 Qld ns NSW Proportion above 10% damage % 30 Key findings for 07/08 Proportion of fruit with specific damage bove 10% damage 14 % above 10% damage 12 10 8 1 6 4 2 0 Body Rot Bruising Diffuse Flesh Other Stem end rot Vascular Bruising most common defect Proportion of damage above 10% - by State 25 Body Rot Bruising Diffuse Flesh Other Stem end rot Vascular 20 15 10 5 0 N Q V W Key findings for 07/08 NSW probability of repurchase Probability of Purchase (%) Prob for Perfect fruit (%) Average Price($) 3 80 2.5 12% 60 6% 1.5% 50 9% 2 1.5 40 30 1 20 Cheaper fruit have higher predicted probability of purchase 0.5 10 0 0 Independents Cheaper fruit also had larger estimated reduction in purchase prob due to defects Ind S'markets Woolworths Qld probability of repurchase Probability of Purchase (%) Prob for Perfect fruit (%) Average Price($) 90 probability of purchase (%) Coles 3 80 70 60 10% 6% 10% 2 7% 50 2.5 1.5 40 30 1 20 0.5 10 0 0 Coles Independents Ind S'markets Woolworths Price ($/pce fruit) 70 Price ($/pce fruit) probability of purchase (%) 90 Vic probability of repurchase Probability of Purchase (%) Prob for Perfect fruit (%) Average Price($) 3 80 2.5 8% 7% 60 7% 2 5% 50 1.5 40 30 1 20 Price ($/pce fruit) 0.5 10 0 0 Coles Independents Ind S'markets Woolworths WA probability of repurchase Probability of Purchase (%) Prob for Perfect fruit (%) Average Price($) 90 3 80 2.5 70 60 10% 9% 50 2 2.5% 5% 1.5 40 30 1 20 0.5 10 0 0 Coles Independents Ind S'markets Woolworths Price ($/pce fruit) 70 probability of purchase (%) probability of purchase (%) 90 Maturity Average DM content - North Queensland (Hass) 2009 DM Standard 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 1-Jan 1-Feb 3-Mar 3-Apr 4-May 4-Jun 5-Jul 5-Aug 5-Sep 6-Oct 6-Nov 7-Dec Average DM content - Central Queensland (Hass) 2008 Dry Matter Content (%) Dry Matter Content (%) 2008 2009 DM Standard 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 1-Jan 1-Feb 3-Mar 3-Apr 4-May 4-Jun 5-Jul 5-Aug 5-Sep 6-Oct 6-Nov 7-Dec Average DM content - Sunshine Coast (Hass) 2009 DM Standard 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 1-Jan 1-Feb 3-Mar 3-Apr 4-May 4-Jun 5-Jul 5-Aug 5-Sep 6-Oct 6-Nov 7-Dec Average DM content - South Qld (Hass) 2008 Dry Matter Content (%) Dry Matter Content (%) 2008 2009 DM Standard 46 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 1-Jan 1-Feb 3-Mar 3-Apr 4-May 4-Jun 5-Jul 5-Aug 5-Sep 6-Oct 6-Nov 7-Dec Average DM content - Northern NSW (Hass) 2009 DM Standard 48 46 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 1-Jan 1-Feb 3-Mar 3-Apr 4-May 4-Jun 5-Jul 5-Aug 5-Sep 6-Oct 6-Nov 7-Dec Average DM content - Central NSW (Hass) 2008 Dry Matter Content (%) Dry Matter Content (%) 2008 46 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 1-Jan 1-Feb 3-Mar 3-Apr 2009 4-May 4-Jun DM Standard 5-Jul 5-Aug 5-Sep 6-Oct 6-Nov 7-Dec Average DM content - Tristate (Hass) 2009 DM Standard 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 1-Jan 1-Feb 3-Mar 3-Apr 4-May 4-Jun 5-Jul 5-Aug 5-Sep 6-Oct 6-Nov 7-Dec Average DM content - WA (Hass) 2008 2009 DM Standard 38 36 34 32 Dry Matter Content (%) Dry Matter Content (%) 2008 30 28 26 24 22 20 18 16 14 12 10 1-Jan 1-Feb 3-Mar 3-Apr 4-May 4-Jun 5-Jul 5-Aug 5-Sep 6-Oct 6-Nov 7-Dec Where to from here? • Working with supply chain partners to make improvements • Working back from retailers who have consistently over time sold high quality fruit to assist in producing education materials • Producing a series of education materials • Continued quality surveys for monitoring and to measure improvements Proportion of Hass with internal damage above 10% Sydney Coles Independents Independent supermarkets Woolworths Se p09 Au g09 Ju l-0 9 Ju n09 09 M ay - 9 Proportion of Hass with internal damage above 10% Brisbane Coles Independents Independent supermarkets Woolworths 80% 70% 60% 50% 40% 30% 20% Se p09 Au g09 Ju l- 0 9 Ju n09 09 M ay - 09 Ap r- 09 ar M Fe b09 Ja n09 ec -0 8 D ov -0 8 N ct -0 8 10% 0% O Ap r -0 09 M ar - Fe b09 Ja n09 -0 8 D ec -0 8 N ov O ct08 80% 70% 60% 50% 40% 30% 20% 10% 0% Proportion of Hass with internal damage above 10% Melbourne Coles Independents Independent supermarkets Woolworths -0 9 Se p -0 9 Au g 9 l-0 Ju n09 Ju 09 M ay - 9 -0 Ap r 9 -0 M ar 9 b0 Fe n09 Ja De c08 ov -0 8 N O ct -0 8 80% 70% 60% 50% 40% 30% 20% 10% 0% Proportion of Hass with internal damage above 10% Perth Coles Indpendents Independent supermarkets Woolworths 80% 70% 60% 50% 40% 30% 20% 10% 0% Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun08 08 08 09 09 09 09 09 09 Jul09 Aug- Sep09 09 Thank you