An Avocado Leadership Story
8 in 10 avocados in the United States come from Mexico. Avocados From Mexico (AFM) has not only been successful at creating a brand for Mexican avocados in the U.S. and driving avocado consumption across the country, but it is also an economic engine with benefits to the U.S., Mexico, and the American consumer. We talked to Alvaro Luque, President and CEO of AFM to learn more about this success story.
ALVARO LUQUE
PRESIDENT & CHIEF EXECUTIVE OFFICER OF AVOCADOS FROM MEXICO
Latino Leaders: What do you think is driving the boom in avocado im- ports? Why are Mexican avocados so beloved?
Alvaro Luque: Globally, the United States is the third biggest country, the number two in consumption of avocados per capita, and 100 percent in love with the fruit. On the other hand, Mexico is the number one avocado pro- ducer and exporter in the world and the only country that can grow the fruit year-round and can meet the growing demand for avocados in the U.S. Today, eight out of 10 avocados consumed in the U.S. come from Mexico – a number that has continued to increase as Americans’ avocado appetite has blossomed. The numbers speak for themselves ... but what’s behind this boom?
With healthy eating top of mind for so many, I think many Americans are drawn to the health benefits that avocados can offer. They’re not only delicious, but they’re also a superfruit that contains good fats and nearly 20 vitamins and minerals. They can also be incorporated into so many meals. From guacamole to burgers, avocados have a creamy flavor, smooth texture, and vivid green hue that have helped the fruit solidify its place as a staple in Americans’ diets.
At Avocados From Mexico our strategy is not focused on market domination, but rather growing the market as a whole. Since the organization was established in 2013, we’ve leveraged a CPG mentality to launch innovative marketing campaigns that have gotten Americans thinking, talking about, and consuming avocados differently ... and more frequently. With this innovative approach to marketing, we have not only created a brand in a packageless category, but we have doubled the volume of Mexican avocado imports in the U.S. from 1.2 to 2.4 billion pounds in just seven years. This strategic frame- work has helped drive demand. It’s been a catalyst for the avocado category.
L.L: What should people expect to learn when they visit the Avocado Institute?
A.L: In short, I’d say everything someone might want to know about the behind-the-scenes workings of the Mexican avocado industry. The Avocado Institute was created by our parent organizations - Association of Avocado Exporting Producers and Packers of Mexico (APEAM) and Mexican Hass Avocado Importers Association (MHAIA) – and is an educational, one-stop digital resource that provides a deep dive into things like: how and where avocados are grown, what their journey looks like from Mexican farms to U.S. tables, food safety precautions and industry regulations, sustainability efforts, and the impressive economic benefits that the Mexican avocado industry has offered both sides of the border. From information on how avocados are tested for optimal flavor and consistency before being exported to reforestation efforts that the industry is undertaking, to helping save the Monarch Butterflies, the site really covers a lot of ground.
L.L: Why is the relationship between Mexico and the U.S. so important for the avocado industry?
A.L: The Mexican avocado industry is a great example of successful cross-border collaboration. Mexican avocados are a true win-win and have proven to be a significant economic engine for both the United States and Mexico.
Let’s talk numbers; an economic contribution analysis from Texas A&M University found that in the 2019-2020 season, $2.82 billion of U.S. imports of Mexican Hass avocados contributed $6.5 billion in U.S. economic output; $4 billion in value added U.S. GDP; $2.2 billion in U.S. labor income; and more than 33,000 U.S. jobs for American workers.
On the flip side, Mexico also continues to benefit from the thriving avocado industry and growing American consumption. In Michoacán, the boom in avocado exports has resulted in lower emigration, improved roads and infrastructure, a de- crease in poverty and marginalization, more than 78,000 permanent jobs, and better conditions for social development.
L.L: How is your team continuing to drive innovation for the industry?
A.L: My teams’ smart thinking and innovative work has proven to be a driving force behind Mexican avocado’s market penetration and impressive growth. We’ve fundamentally changed the way produce marketing is done across the industry by ideating, planning, and executing the most unexpected marketing activations.
To date, our campaigns have defied established paradigms and delivered impressive results. While delivering many industry firsts, like being the first fresh produce brand to ever advertise in the Big Game, we have been able to create a highly visible brand in a package-less category and have doubled the imports of Mexican avocados in the U.S. over the past seven years.
We are well on our way to becoming the most innovative pro- duce company in the world and we don’t have any plans to slow down. Looking ahead, we will continue to unveil first-of-its-kind work that will help to build our brand in the U.S and increase consumption of avocados through retail and foodservice.