Branding in fresh produce has been a mixed bag in recent years.

On the one hand, consumers are shying away from some brands because of fears over higher prices (or the perception of them).

Terry Splane, vice president of marketing for the California Avocado Commission, cited a recent Wall Street Journal report that the percentage of income people are spending on food is at its highest level in three decades.

The news, he said, is full of stories about how the gap between pre-pandemic prices and current prices has become untenable for some consumers. The recent example of McDonald’s offering a $5 meal, for instance, could be a sign that the upward trajectory of foodservice pricing may have hit a tipping point.

On the other hand, Splane said, many consumers are choosing to maintain or increase loyalty to their favorite brands, especially those that align with their concerns and values.

Take millennials and Gen Z. They are very loyal to brands that align with their values toward sustainability and ethical sourcing, Splane said.

“It seems that the younger the shopper is, the more concerned they are about sustainability.”

Fifty-seven percent of Gen Z shoppers considered sustainability alongside other factors when choosing brands, and another 22% say they only considered brands that matched their sustainability values, Splane said, citing Statista data.

That plays right to the California avocado industry’s strong suit. CAC’s marketing communications focus heavily on the fact that California avocados are locally grown, sustainably farmed and ethically sourced.

The result is that, despite often higher prices, demand remains strong demand for California avocados in season.

“Year after year, consumers in our tracking study, especially those in the West, have indicated that they’re willing to pay more for California avocados if they’re available,” Splane said. “Decades of branded marketing and favorable experience with the product have helped build that brand loyalty.”

The California avocado brand has very high brand awareness (80%) in the West, where the majority of California avocados are sold, and it is even higher within California (86%).

CAC continues to adjust its marketing efforts to make its brand even stronger.

Earlier this year, it overhauled its marketing programs and introduced a new advertising campaign, “What’s Inside a California Avocado.”

The campaign uses graphics featuring real California avocado groves and growers as well as a visual tie-in State of California shape.

“Branding is very strong, and consumers and the trade are reacting enthusiastically,” Splane said.

An example of the campaign’s success: people are watching California Avocado pre-roll video ads at three times the rate of channel benchmarks. 

This article is an excerpt from the July 2024 issue of Supermarket Perimeter. You can read the entire Branded Produce feature and more in the digital edition here.