Favorita establishing its presence in North America
As a new entrant in the North American market, Favorita has been focused on reaching out to customers in the U.S. and Canada, said Dionysios (Dennis) Christou, director of the U.S. Division for Favorita USA Corp.
“Our emphasis has been to introduce Favorita and the many advantages of working with a medium-sized, family-owned, nimble banana grower-shipper with more than 40 years of experience in the industry,” he said. “We have been very pleased with the reception by major retailers and distributors, and we are confident that Favorita will soon become an excellent choice for them.”
With nearly 16,000 acres of owned production and 7,400 acres of contracted production, Favorita is Ecuador's largest grower and second-largest banana exporter, he said.
Favorita’s range of banana products includes fresh conventional, organic, certified fair trade (both conventional and organic), plantains and specialties.
“We have been selling our fruit to major global and local retailers in Europe, Asia and the Middle East, and now, with the establishment of Favorita USA, we are ready to expand with customers in North America,” Christou said.
The company’s supply is stable compared to previous years and demand is growing for its products across the globe, he said. Demand for organic bananas has been growing consistently over the past years, too.
Favorita has a significant organic program, and it has been one of the company’s most competitively priced products, Christou said.
The Packer's Q and A with Dionysios (Dennis) Christou, director of the U.S. Division for Favorita USA Corp.
The Packer: How has banana marketing changed in the past 20 years?
Christou: Over the years, we have seen a decline in consumer brand preference, especially for the legacy brands and a gradual shift to private label. Also, there has been a significant increase in demand for organic products and a slow but steady growth for fair trade products, especially in the West Coast and more affluent urban and suburban metropolitan areas throughout the U.S. and Canada.
The Packer: What is the biggest challenge in expanding the consumption of bananas in the next decade?
Christou: The already very high per-capita consumption makes significant consumption increases more challenging as other products continue their efforts to compete and try to capture a bigger share. At the same time, continuing increases in production costs are becoming increasingly difficult for producers to recoup in the markets, while bananas still remain one of the most affordable food and snacking options for North American consumers and around the world. At the same time, the improvements in the supply chain over the years have made bananas omnipresent and they are always within easy reach for consumers.
The Packer: Is it important for retailers to offer organic and 'fair trade' options to consumers?
Christou: Demand for organic bananas has been growing consistently over the past few years. Favorita has a significant organic program and we have seen a significant interest in this category, as well as a slowly but steadily growing demand for fair trade bananas. Organic and fair trade bananas offer a unique opportunity for retailers to capture higher margins and allow them to escape from the low-price quagmire of the conventional banana retail price wars.
The Packer: What changes, if any, do you see in how bananas are presented/packaged at retail?
Christou: There has been a strong and growing global movement against any type of plastic packaging. In addition to the shift away from plastic banana bags, vocal conscious consumers and retailers are driving a shift in the material used in banana labels, wraps, corner boards.
