Avocado Shopper Insights: Regional Demographics and Purchase Trends

1. Avocado Shopper Insights: Regional Demographics and Purchase Trends 2018 Regional Demographics Regional profiles and national comparisons for household demographics and key household purchase metrics

2. Objective & Executive Summary OBJECTIVE The 2018 Regional Demographics study aims to give deeper insight into avocado shoppers across the U.S. by analyzing the regional differences in the demographics and purchase trends of avocado-purchasing households. The demographics tell us who is purchasing the category (for example, their age or income level). The purchase trends measure the percentage of households purchasing the category and how these households are purchasing the category (for example, how often they are purchasing avocados and how much they spend). Shoppers across the U.S. purchase fresh avocados, and the demographics make-up and avocado purchase habits of these avocado-purchasing households differ when viewed within each of the geographic regions. These differences shape a unique avocado shopper profile for each of the regions. HIGHLIGHTS: SECTION I: PURCHASE TRENDS On average, just over half (51%) of Total U.S. Households purchase avocados (page 9). But penetration varies by region. California (69.4%), West (65.9%), and South Central (61.2%) have the three top penetration rates, well in excess of the national average. The other five regions fall below the national average. Increasing the penetration rate can be an important category growth driver. California, West and South Central also have the three top avocado buying rates (page 10). California has the top rate, with an average annual avocado spend per household of $30.01. Plains Region sits at the other end of the spectrum with an average annual avocado spend per household of $16.47. Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded)

3. Executive Summary – Cont. Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) * Hispanic Avocado Shopper Insights (2018) **For index methodology, see Terms and Definitions These purchase trends (penetration, buying rate, number of trips and spend per trip) in the other five regions generally fall below the national rates and paint a picture of a still-emerging category with plenty of room for growth. HIGHLIGHTS: SECTION II: DEMOGRAPHICS – REGIONAL PROFILES Page 13 shows an at-a-glance demographic profile for Total U.S. avocado-purchasing households (all seven studied variables on one page.) For example, we see that over two-thirds (67.4%) of Total U.S. avocado-purchasing households are married. Or, for another example, that 17.5% of Total U.S. avocado-purchasing households are Hispanic. Pages 14 through 21 follow the same format, with each region’s page displaying all seven studied demographic variables at-a-glance (the regional profile). Additionally, the regional pages index** the regional shares to the national shares for an easy way to identify meaningful demographic differences between the regional and national profiles. HIGHLIGHTS: SECTION III: DEMOGRAPHICS – VARIABLES COMPARISONS Section III focuses the spotlight on each of the individual demographic variables, one variable at a time. For example, page 24 looks at household size (i.e. number of occupants). A previous study by the Hass Avocado Board* showed that size of household (i.e. number of occupants) is a likely avocado purchase driver. Continued next page…

4. Executive Summary – Cont. This study shows that at the national level, multi-occupant households comprise 77.9% of all avocado-purchasing households (page 24). Further, this study shows that the regions with the top purchase trends – California (78.9%), West (78.4%) and South Central (79.7%) – also have the country’s highest shares of multi-occupant avocado-purchasing households. This indicates that size of household influences avocado purchases. Another influence is presence of children in the household (page 26). Two of the regions with top purchase trends, West and South Central, also have the largest proportions of households with children (38.7% and 39.7%, respectively). In contrast, the Southeast has the lowest proportion of avocado-purchasing households with children (32.2%) and has an annual avocado buying rate below the national average. While not a direct correlation, in many instances, presence of children in the household aligns with higher avocado purchases. For each of the demographic variables detailed, Section III also looks at how avocado purchases are distributed across the demographic sub-groups. For example, at the national level, almost one-third (31.8%) of all avocado purchases are made by avocado-purchasing households at the $100k income level (page 37). This share is even greater in Northeast, where 41.1% of all avocado purchases in the region are made by the $100k+ sub-group. Beginning on page 38 is additional information about the terms used in this study, the source data and the demographic variables studied. Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded)

5. Avocado-purchasing households reflect a unique demographic profile in each region The demographics and purchase trends of avocado shoppers differ by region and shape a unique shopper profile in each region Great Lakes Northeast Plains West California Midsouth Southeast South Central

6. Section 1: Purchase trends – Regional comparisons

7. Avocado Purchase Trends This study looks at four avocado purchase trends for Total U.S. and for each region Penetration Percentage of households that purchase avocados Average Annual Spend per Household • Average annual spend on avocados per avocado buying household Annual Spend = Number of Trips X Spend per Trip # of Purchase Trips • Average annual avocado purchase trips per avocado buying household Spend per Trip • Average avocado dollar spend per trip

8. Regional Profiles – Avocado Purchase Trends Below Total U.S. Average Above Total U.S. Average • California and West rank above the Total U.S. average on all purchase trends • South Central ranks above the Total U.S. average on all purchase trends except spend per trip • Great Lakes, Midsouth and Plains rank below the Total U.S. average on all purchase trends • Increasing Penetration and Avocado Spend Per Household are key growth opportunities for regions that rank below the Total U.S. averages Data Source: IRI Consumer NetworkTM

9. Just over half of Total U.S. households purchase avocados. California, West and South Central have penetration rates above the Total U.S. average Category Household Penetration • Category penetration ranges from 41.8% in Midsouth to 69.4% in California. California, West (65.9%) and South Central (61.2%) penetration is above the Total U.S. average of 51% Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded)

10. Avocado-purchasing households in California, West and South Central spend more on avocados per household than households in other regions Average Annual Avocado Spend per Household by Region • Total U.S. average annual avocado spend per household is $24.50 • California, West and South Central have the highest average annual avocado spend per household at $30.01, $28.62 and $26.86, respectively Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded). Annual Spend per Household = # of Trips X Spend per Trip

11. The higher spend per avocado-purchasing household in California, West and South Central is chiefly driven by a higher trip frequency Number of Purchase Trips by Region Spend per Trip by Region Data Source: IRI Consumer NetworkTM 2016 (All figures are rounded). Annual Spend per Household = # of Trips X Spend per Trip

12. Section II:Demographics – Regional profiles

13. TOTAL U.S. DEMOGRAPHIC PROFILE for avocado-purchasing households This study looks at seven demographic variables for avocado-purchasing households at the national level (Total U.S.) and broken out for each of the eight regions. Shown here is the demographic profile for Total U.S. avocado-purchasing households. The regional slides that follow are indexed* to these national household shares for each of the seven demographic variables. This lets us see where each regional demographic profile closely matches the national profile, and where there is a meaningful difference Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

14. CALIFORNIA PROFILE for avocado-purchasing households Marks high index (120+) vs. Total U.S. (Slide 13)* Demographic Profile Marks low index (<80) vs. Total U.S. (Slide 13)* • California indexes high on avocado-purchasing households that are larger (5+ occupants), Hispanic, Asian and Other race, and have higher incomes ($100k+) • California indexes low on avocado-purchasing households that are African American and households that have heads of household ages 18 to 34 Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

15. WEST PROFILE for avocado-purchasing households Marks high index (120+) vs. Total U.S. (Slide 13)* Demographic Profile Marks low index (<80) vs. Total U.S. (Slide 13)* • West indexes high on avocado-purchasing households that are Larger (5+ occupants) • West indexes low on avocado-purchasing households that are African American and Asian, and households at the $100k+ income level Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

16. SOUTH CENTRAL PROFILE for avocado-purchasing households Marks high index (120+) vs. Total U.S. (Slide 13)* Demographic Profile Marks low index (<80) vs. Total U.S. (Slide 13)* • South Central indexes high on avocado-purchasing households that are Hispanic and households that are at the $45k-$49.9k income level • South Central indexes low on avocado-purchasing households that are Single and households that are Asian Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

17. NORTHEAST PROFILE for avocado-purchasing households Marks high index (120+) vs. Total U.S. (Slide 13)* Demographic Profile Marks low index (<80) vs. Total U.S. (Slide 13)* • Northeast indexes high on avocado-purchasing households with heads of household that are Single and households that are at the $100k+ income level • Northeast indexes low on avocado-purchasing households at the $45k - $49.9k and $20k - $24.9k income levels Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

18. SOUTHEAST PROFILE for avocado-purchasing households Marks high index (120+) vs. Total U.S. (Slide 13)* Demographic Profile Marks low index (<80) vs. Total U.S. (Slide 13)* • Southeast indexes high on avocado-purchasing households that are African American and households that are at the $20k-$24.9k and $25k-$34.9k income levels • Southeast indexes low on avocado-purchasing households that are Asian, larger (5+ occupants), and at the $100k+ income level Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

19. GREAT LAKES PROFILE for avocado-purchasing households Marks high index (120+) vs. Total U.S. (Slide 13)* Demographic Profile Marks low index (<80) vs. Total U.S. (Slide 13)* • Great Lakes did not index high on any of the studied demographic variables • Great Lakes indexes low on avocado-purchasing households that are Hispanic, Asian and Other Race Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

20. MIDSOUTH PROFILE for avocado-purchasing households Marks high index (120+) vs. Total U.S. (Slide 13)* Demographic Profile Marks low index (<80) vs. Total U.S. (Slide 13)* • Midsouth indexes high on avocado-purchasing households that are African American • Midsouth indexes low on avocado-purchasing households that are Hispanic, Asian and Other Race Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

21. PLAINS PROFILE for avocado-purchasing households Marks high index (120+) vs. Total U.S. (Slide 13)* Demographic Profile Marks low index (<80) vs. Total U.S. (Slide 13)* • Plains did not index high on any of the studied demographic variables • Plains indexes low on avocado-purchasing households that are Hispanic, African American, Asian and Other Race Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

22. Section III: Demographics – variables comparisons

23. Section III: How-to-Read the following slides WHO ARE THEY? Slides with green bars analyze the demographic makeup of households that purchase avocados in each region (Avocado-Purchasing Households) HOW MUCH ARE THEY BUYING? Slides with blue bars analyze the avocado purchases made by each demographic in each region

24. HH Size Household Size: Avocado-Purchasing Households Marks high index (120+) vs. Total U.S.* Share of Avocado-Purchasing Households Marks low index (<80) vs. Total U.S.* • California and West index high on share of avocado-purchasing households with 5+ occupants • Southeast indexes low on share of avocado-purchasing households with 5+ occupants Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

25. HH Size Household Size: Avocado Purchases Marks high index (120+) vs. Total U.S.* Share of Avocado Purchases Marks low index (<80) vs. Total U.S.* • California and South Central index high on the share of avocado purchases made by 5+ occupant households • Northeast, Southeast and Plains index low on the 5+ occupant household share of avocado purchases • South Central indexes low on the single occupant household share of avocado purchases • Total U.S. households with 5 or more occupants account for a greater share of avocado purchases (14.1%) than their share of households (12.3% - P.24). This trend is strongest in South Central Total U.S. Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

26. Children Presence of Children: Avocado-Purchasing Households Marks high index (120+) vs. Total U.S.* Share of Avocado-Purchasing Households Marks low index (<80) vs. Total U.S.* • No regions index high or low on share of avocado-purchasing households with or without children • Households with children account for the greatest share of avocado-purchasing households in South Central, and account for the smallest share in Southeast Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

27. Children Presence of Children: Avocado Purchases Marks high index (120+) vs. Total U.S.* Share of Avocado Purchases Marks low index (<80) vs. Total U.S.* • South Central indexes high on the share of avocado purchases made by households with children • All other regions match the national profile for share of avocado purchases made by avocado-purchasing households with or without children • Total U.S. Households with Children account for a greater share of avocado purchases (38.9%) than their share of households (36.0% - P.26). This trend is strongest in South Central Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

28. Married Marital Status: Avocado-Purchasing Households Marks high index (120+) vs. Total U.S.* Share of Avocado-Purchasing Households Marks low index (<80) vs. Total U.S.* • Northeast indexes high on share of avocado-purchasing households with a single (not married) head of household • South Central indexes low on share of avocado-purchasing households with a single (not married) head of household **Other = Divorced, Widowed or Separated Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

29. Married Marital Status: Avocado Purchases Marks high index (120+) vs. Total U.S.* Share of Avocado Purchases Marks low index (<80) vs. Total U.S.* • Northeast indexes high on share of avocado purchases made by households where the head of household is single • South Central and Plains index low on share of avocado purchases made by households where the head of household is single • Midsouth indexes low on share of avocado purchases made by households with marital status Other • Total U.S. households with Married heads of household account for a greater share of avocado purchases (70.9%) than their share of households (67.4% - P.28). This trend is strongest in South Central **Other = Divorced, Widowed or Separated Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

30. Hispanic Hispanic/non-Hispanic: Avocado-Purchasing Households Marks high index (120+) vs. Total U.S.* Share of Avocado-Purchasing Households Marks low index (<80) vs. Total U.S.* • California and South Central index high on share of avocado-purchasing households with Hispanic heads of household • Great Lakes, Midsouth and Plains index low on share of avocado-purchasing households with Hispanic heads of household Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

31. Hispanic Hispanic/non-Hispanic: Avocado Purchases Marks high index (120+) vs. Total U.S.* Share of Avocado Purchases Marks low index (<80) vs. Total U.S.* • California and South Central index high on share of avocado purchases made by Hispanic households • Great Lakes, Midsouth and Plains index low on share of avocado purchases made by Hispanic households • Plains indexes high on share of avocado purchases made by non-Hispanic households Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

32. Race Race: Avocado-Purchasing Households Marks high index (120+) vs. Total U.S.* Share of Avocado-Purchasing Households Marks low index (<80) vs. Total U.S.* • With respect to the demographic variable Race, the regions do vary notably from the national average, with many high and low skews as shown above • Northeast is the exception, with shares of all races indexing in line with the national averages Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

33. Race Race: Avocado Purchases Marks high index (120+) vs. Total U.S.* Share of Avocado Purchases Marks low index (<80) vs. Total U.S.* • The shares of avocado purchases made by each group also shows many regional skews • California, Northeast, Southeast, Midsouth and Plains show high indexes, while all regions except Northeast show low indexes Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

34. Age Age: Avocado-Purchasing Households Marks high index (120+) vs. Total U.S.* Share of Avocado-Purchasing Households Marks low index (<80) vs. Total U.S.* • With respect to head of household Age, the regional profiles generally match the national profile • California shows one exception, indexing low on the share of avocado-purchasing households for the 18-34 age group Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

35. Age Age: Avocado Purchases Marks high index (120+) vs. Total U.S.* Share of Avocado Purchases Marks low index (<80) vs. Total U.S.* • California indexes high on share of avocado purchases made by the 45-54 age group • South Central indexes high on the share of avocado purchases made by the 34-44 age group • Midsouth and Plains index high on the share of avocado purchases made by the18-34 age group • California indexes low on the share of avocado purchases made by the 18-34 age group • Great Lakes and Midsouth index low on the share of avocado purchases made by the 65+ age group Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

36. Income Income: Avocado-Purchasing Households Marks high index (120+) vs. Total U.S.* Share of Avocado-Purchasing Households Marks low index (<80) vs. Total U.S.* • Regionally, avocado-purchasing households show many skews with respect to household income level • California, West, South Central, Northeast and Southeast show high indexes, while Northeast shows low indexes Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

37. Income Income: Avocado Purchases Marks high index (120+) vs. Total U.S.* Share of Avocado Purchases Marks low index (<80) vs. Total U.S.* • Household avocado purchases show many regional skews with respect to household income • All regions except South Central and Great Lakes show high indexes, while all regions show low indexes Data Source: IRI Consumer NetworkTM 2017 (All figures are rounded) *For index methodology, see Terms and Definitions

38. Terms and Definitions • Regions: • Total U.S., California, Great Lakes, Midsouth, Northeast, Plains, South Central, Southeast and West • Metrics: All figures in this report are rounded • Annual Spend per Avocado Household – Average annual spend on avocados per avocado buying household. Annual Spend = Number of Trips X Spend per Trip • Number of Trips – Average annual avocado purchase occasions per avocado buying household • SpendperTrip – Average avocado dollar spend per purchase occasion • Purchases – Throughout this report, “purchases” refers to dollar purchases. Volume/units/eaches are not available • Shoppers – Throughout this report, “shoppers” refers to households that purchase avocados • Demographic Index – Measures a demographic’s share of households and purchases within a region relative to the share in Total U.S. • Indices that are 120 and above are considered high • Indices below 80 are considered low • Indices between 80 and 120 are considered to be on par with the Total U.S. • Example: 12.3% of Total U.S. avocado-purchasing households have five or more occupants. And 15.4% of California avocado-purchasing households have five or more occupants. The share of avocado-purchasing households in California is 25% greater than the share in Total U.S. This gives California an index of 125. (15.4% / 12.3%) * 100 = 125 • Time Period: • 2017 Calendar Year • Source Data: • IRI Consumer NetworkTM 2017 (Details on page 39)

39. Data Source: IRI Consumer NetworkTM This report is based on household purchasing data from the IRI Consumer NetworkTM. IRI receives its household purchasing data from the National Consumer Panel (NCP), an operational joint venture by IRI and Nielsen. The NCP is a continuous household purchasing consumer panel that consists of a representative sample of U.S. households who electronically record all purchases. Households are recruited to the NCP and are incented to record all of their purchases, regardless of where purchased, using a handheld in-home scanning device. Household purchasing data complements retail sales data and provides a deeper understanding of category dynamics by focusing on shoppers and their purchase behaviors. In turn, understanding shopper purchase behaviors helps uncover opportunities for growth and aids in effective sales and marketing decisions. In-store purchases Electronically recorded at home

40. Notes on Demographic Groups Each of the demographic categories presented in this report reflects standard sub-breaks available from the IRI National Consumer Panel (NCP) • Household Size • 1 • 2 • 3 • 4 • 5+ • Presence of Children in the Household • Households with children under 18 • Households with no children under 18 • Race • White • Asian • Black • Other • Hispanic/non-Hispanic • Hispanic (Acculturated + Unacculturated) • Non-Hispanic/Unknown • Age of Head of Household • 18-34 • 35-44 • 45-54 • 55-64 • 65+ • Household Income • Under $20,000 • $20,000 - $24,999 • $25,000 - $34,999 • $35,000 - $44,999 • $45,000 - $49,999 • $50,000 - $59,999 • $60,000 - $69,999 • $70,000 - $99,999 • $100,000+ • Marital Status • Married • Single • Other (Divorced, Separated, Widowed)

41. Thank you For additional retail data and insights please visit the Hass Avocado Board website at: hassavocadoboard.com