“Instead of having really high prices like last year’s driving margins, we will have moderate pricing and more units to multiply the margins by,” Thomas said.
“At 99 cents, there is going to be a lot more avocados moved than at $1.49-1.69. I think that we will be able to walk the balance between good retail pricing and good f.o.b. pricing to trade,” he said.
Thomas said this year many retailers are doing the 10 pieces of fruit for $10.
“I think there will be a lot of opportunities like that this coming season,” he said.
For in-store promotions, consumers can expect dual displays of different sizes.
“Retailers most likely would run loose displays for size 50s at a certain price and other sizes such as 60s or 70s in a bag with another price point, and different price point for 32s and 36s,” Thomas said.
Grower-shippers plan various packaging styles.
“Bagging is a big trend,” said Thomas. “We are trying to do more bagging and we will be expanding our bagging capacity across the country.”
Dowhan said Giumarra will focus on promotion and continue to emphasize on value-added services.
“We will offer our customers multiple pack styles, bagged product, customized ripening, 15 f.o.b. locations, delivered product, category management, and all inclusive, volume building, programs,” he said.
Due to an increase in volume this season, some grower-shippers believe prices will drop throughout the season.
“We will ask retailers to promote more often,” said Ross Wileman, vice president of sales and marketing for Mission Produce Inc., Oxnard, Calif. “Lower prices can drive consumption."