AVOCADOS IN SINGAPORE: MARKET, CONSUMER, AND PROMOTIONAL INSIGHTS

A Custom Presentation Prepared by Euromonitor International For Avocado Industry Council, New Zealand November 2013

DISCLAIMER © Euromonitor International Ltd 2013. All rights reserved. The material contained in this document is the exclusive property of Euromonitor International Ltd and its licensors and is provided without any warranties or representations about accuracy or completeness. Any reliance on such material is made at users’ own risk. This document is confidential and for internal use by the Avocado Industry Council Ltd and its affiliates only. Publication or making available to any third party of all or part of the material contained in this document (or any data or other material derived from it) without Euromonitor’s express written consent is strictly prohibited. Please refer to the applicable terms and conditions with Euromonitor. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Table of Contents 2

Introduction 3

Executive Summary 8

Recommended Strategies 11

Market Insights 24

Consumer Insights 45

Appendix 71 Introduction AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX ABOUT EUROMONITOR 4

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São Paulo AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Custom solutions and capabilities 5

Category Evaluation Forecasting Sizes, Shares, Growth Launch, Sales, Demand, Lifecycle Segmentation Success / Failure Probabilities Market Entry Strategy Determine Risk Exposure

Competitive Intelligence Scenario Analysis Profiling Market Simulations Benchmarking Portfolio Analysis Partner Evaluation Test Business Cases

Innovation Consumer Analytics Customer Profiling NPD Business Case Income Distribution Models Consumer Insights Purchasing Behavior Product Claims

Route to Market Marketing Analytics Production, Imports, Exports Marketing Effectiveness Supply and Value Chain Substitutes and Complements B2B and B2C Channels Price and Channel Strategy

Macro Visualization Discovery, Sharing, Communication Opportunity Frameworks Market Attractiveness Planners PEST Performance Monitoring Quarterly Tracking AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Project Background and Research Objectives 6

Background The Avocado Industry Council Ltd (AIC) assists avocado growers in New Zealand in developing export markets in Asia. Singapore has been identified as a market with future potential due to its very high GDP per capita. However, exporters are uncertain about the potential for future growth as Singapore's population is smaller than other Asian Geography: Singapore markets.

New Zealand exporters have been exporting avocados to Singapore for more than five years. As such, there is already an understanding of the requirements for market participation in Singapore, including channels to market, market access, competitor exporters, market size and trends for avocados.

Research Objectives

NZ Avocado wants to undertake research to help it and exporters better understand retail trends and consumer behaviour in order to develop appropriate promotional programmes and sales support materials. Understanding the marketing and promotional aspects of Commodity: Avocados fruits and vegetables in Singapore is a key objective of the study.

To meet AIC’s objectives, Euromonitor International has proposed a multi-pronged research framework which collects information on the market, as well as promotions taking place therein and consumer behaviour with respect to the purchase and consumption of avocados in order to develop an effective strategy for market penetration. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Research Methodology 7

Local and international newspapers, Knowledge transfer from AIC Desk Research magazines, association reports and other websites

Marketing Strategy and Plan

301 online consumer 15 store audits in surveys to understand Consumer Store supermarkets and usage and habits with Surveys Audits independent small regard to avocados grocers

Trade Interviews

18 interviews conducted with exporter, importers and retailers Executive Summary AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Key Takeaways 9

THE THREE MOST IMPORTANT CONSUMER FINDINGS AVOCADO IMPORTS TO SINGAPORE

2010 2011 2012 1 Avocado consumption is increasing Value (NZ$ mn) 5.0 6.3 7.5 2 Awareness is high but misconceptions remain Volume (trays) 233,584 272,091 307,435

3 Health and nutrition are standout reasons for buying NZ$ per tray 21.3 23.1 24.5

THE THREE MOST IMPORTANT RETAILER FINDINGS AVOCADO IMPORTS FROM NEW ZEALAND

1 Supermarkets are the key channel for sales 2010 2011 2012 Value (NZ$ mn) 0.7 1.5 2.3 2 Fairprice is the biggest among them Volume (trays) 28,393 66,176 92,621 3 Retail marketing activities are uncommon NZ$ per tray 23.9 23.2 24.6

THE THREE MOST IMPORTANT IMPORTER FINDINGS TOP THREE SOURCE COUNTRIES ($ % share)

2010 2011 2012 1 There are two key importers of NZ avocados in Singapore 1. Australia Australia Australia 2 Importers source from multiple countries 2. NZ NZ NZ 3 Distributors have quality concerns about NZ avocados 3. Mexico Israel South Africa AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Understanding the Key Consumer Group 10

1 Demographic Profile 3 How Big? 4 Habits and Preferences

This segment accounted for 21% of all . Purchase three or more avocados once survey respondents who had . Singaporean every few weeks or more frequently consumed avocados during the . Female previous six months. . Purchase avocados primarily for their health benefits . 21-50 years old . Use avocados to prepare beverages/ . SG$3,000-SG$9,000 monthly household shakes income . Seek out information mainly from Internet blogs and other online sources

. Like the buttery taste of avocados 2 Within This Group…

. Consumers were mainly retail buyers 5 Summary (52%) or both retail and foodservice consumers (32%). The identified target is a key consumer . These consumers understand New group for avocados in Singapore. These Zealand is a supplier of avocados (69%). consumers have good knowledge of avocados and their benefits. . Consumers have a high awareness of the

distinction between green and purple It will be important to reach out to this avocados when it comes to freshness, target group to ensure success of any ripeness and a ready-to-consume state. marketing efforts undertaken.

AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategies for Growing Avocado Consumption 11

Strategy Marketing Plan

. Distribute health benefit leaflets in stores Increase awareness – ‘A’ for . Have standees and special displays 1 Avocados . Insert articles on avocado farming in magazines

. Local television channels to offer local recipes 2 Create local recipes . Work with local bloggers or recipe sites to whip up local recipes . New Zealand avocado ambassador to recommend avocados in local cuisine

. Online presence – having a dedicated page on Facebook Put the right promotional . Print advertising in Straits Times 3 strategy in place . In-store sales promotions with food tasting sessions, special standees

Promote ‘five-for’ as the new . Sell five avocados bundled, branded and packaged 4 ‘three-for’ . Sell five avocados unpackaged

. Promote avocados as a healthy snack to be consumed throughout the day 5 Drive impulse consumption . Promote impulse purchases with time-bound price promotions . Promote consumption of avocados as a quick snack after meals

. Create and suggest food and beverage concoctions for foodservice outlets 6 Grow foodservice consumption . Create posters, menu cards or in-store displays with the NZ avocado logo . Promote sales of pre-sliced avocados during lunch time AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #1: Grow Awareness – ‘A’ for Apples Avocados 12

Context Why?

While most Singaporean consumers are aware Of all respondents who had not bought avocados during the previous of avocados and their health benefits, not six months, 33% did not buy them due to ‘lack of knowledge’. everyone is aware. Even among consumers  Scope to spread awareness of avocados as a ‘healthy fruit’. who were aware that avocados offered health benefits, not all of them were necessarily 10%-21% of consumers were unsure whether green or black/ purple aware of all the health benefits. avocados corresponded to fresher, riper, tastier and ready-to- consume fruits.  Not all consumers know their avocados; more education is needed. Raising general awareness of the benefits of avocado will drive 75%-80% of consumers interviewed chose health benefits and overall consumption more nutritional content as the key reasons they purchase avocados. effectively.  Strong link exists between avocados and health benefits.

Importer of New Zealand avocados While there was good awareness of New Zealand avocados (among 69% of consumers interviewed), some were unsure (26%) and others believed New Zealand did not supply avocados (5%).  Not all consumers are aware of New Zealand avocados. Recommended Strategy

Begin an awareness drive to inform consumers about New Zealand avocados and the health benefits enjoyed by consuming them. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #1: Grow Awareness – ‘A’ for Apples Avocados 13

Begin an awareness drive to inform consumers about New Zealand avocados and the health benefits enjoyed by consuming them.

Marketing Plan

How? When? Target Consumer Segment

1

Distribute one-page, succinct health-benefit Between October and February when All consumers leaflets in all stores selling avocados. the fruits are in stores

2 Put standees and special displays in selected Between October and February when supermarkets and hypermarkets advocating Visitors at such stores the fruits are in stores avocado benefits.

3 Insert articles in “8 Days” and newspapers such as Straits Times and Today describing In October, just after the fruit appears Readers of “8 Days” and “NTUC avocado farming in New Zealand and in the market Lifestyle” emphasizing quality and safety. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #2: Create Local Recipes 14

Context Why?

Consumers in Singapore primarily consume avocados in international cuisine, and mostly 55% of all consumers who purchased avocados from retail outlets in beverages and salads. Avocados have yet to used them to prepare beverages or salads. find their way into the homes of mainstream  Usage limited to international cuisine; local adaptation missing. Singaporean, Chinese, Malay and Indian consumers, whose cuisine does not include Only 24% of consumers who bought avocados from retail outlets avocado. bought them for a recipe in home cooking.  Usage limited to international cuisine; local adaptation missing. The lack of knowledge of the 48% of all respondents who did not buy avocados during the previous preparation and usage and the six months did not buy them due to ‘taste’. unique taste of avocados makes them  Taste seems to be a deterrent; incorporating avocados into local difficult to accept. cuisine should change that mindset. Importer of New Zealand avocados on factors holding back avocado consumption Chinese (74%), Malays (13%) and Indians (9%) made up nearly all of Singapore’s resident population (71% of total population) in 2012.  The bulk of Singapore’s population is represented by the above Recommended Strategy three races.

Create recipes which use avocados in the context of Chinese, Malay and Indian cuisines. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #2: Create Local Recipes 15

Create recipes which use avocados in the context of Chinese, Malay and Indian cuisines.

Marketing Plan

How? When? Target Consumer Segment

1 Link up with local television channels such as Channel 5, Channel 8, and Suria and Vasantham At regular intervals – one recipe per to offer local recipes incorporating avocados. month/ fortnight considering that Popular local chefs appearing on TV include Chef Consumers who view such programmes promoting such recipes too often can Eric Teo and Yong Bing Ngen (Chinese), Chef Bob result in consumer fatigue Chef Amri Azim (Malay) and Chef Arfin Sultan (Indian).

2 Work with local bloggers such as Ms Alice At regular intervals – one recipe per (iloveicookibake.com) or local recipe sites such month/ fortnight considering that Consumers who visit such websites for as soshiok.com to whip up local recipes promoting such recipes too often can recipes incorporating avocados. result in consumer fatigue

3 Work with New Zealand avocado ambassador Once per season – probably midway Key consumer group: Singaporean Nadia Lim to innovate and recommend the use through the season – as this exercise females from 21-50 years old of avocados in local cuisine. could be expensive AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #3: Put the Right Promotional Strategy in Place 16

Context Why?

Of all respondents who did not buy avocados during the previous six To ensure consistent, high recall of months, 33% did not buy them due to ‘lack of knowledge’. avocados, a range of promotional and  Potential to educate consumers and get more of them to buy. advertising strategies are required. There are approximately 4 million Internet users in Singapore (2012), which constitutes 75% of the national population.  A highly wired population can be reached via online advertising. Observed the promotions done by kiwis and believe that it would be There are 312 supermarkets and hypermarkets in Singapore (2012) – relatively successful as consumers in six modern channels for every 100,000 consumers Singapore are attracted to free gifts.  High penetration of such outlets provides a very targeted resource for in-store advertising. Importer of avocados

Success of Zespri kiwifruits in Singapore  Makes for a compelling case to follow. Recommended Strategy

Put together a good mix of online, print and in-store marketing. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #3: Put the Right Promotional Strategy in Place 17

Put together a good mix of online, print and in-store marketing.

Marketing Plan

How? When? Target Consumer Segment

1 Online presence – having a dedicated , Year-round to engage the consumers regularly updated page on Facebook. Facebook and especially between October and was the #1 online media accessed by Online consumers February while fruits are in stores and consumers in Singapore and there were 2.9 before their supply ends million Facebook users in Singapore (2012).1

2 Use print advertising in Straits Times – the #1 Once every fortnight between October newspaper read by consumers in Singapore, and February when the fruits are in Readers of Straits Times with an average circulation of 332,300 hard stores, as costs can be prohibitive copies (August, 2013).2

3 Conduct in-store sales promotions with food At regular intervals between October tasting sessions, special standees in Fairprice/ and February while fruits are in stores All consumers at stores Fairprice Finest, Cold Storage and Giant outlets. and before their supply ends AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #4: Promote ‘Five-for’ As the New ‘Three-for’ 18

Context Why?

Buying three avocados is a common practice 41% of consumers who had purchased avocados during the past six of Singaporean consumers. The practice has months had purchased three avocados on each occasion. been fed by retailers who offer a lower price  A sizeable number of consumers buy three avocados; they can be per unit when buying three avocados persuaded to buy more. instead of one. Among consumers who buy three avocados, 75% purchased avocados more than once a month.  Buyers of three avocados are regular customers; it’s likely that Price promotions are considered they will buy more if provided with a better offer. most effective for Singaporeans. 18% of consumers who had purchased avocados during the previous Importer of New Zealand avocados for six months had purchased four avocados on each occasion. various countries  Likely that a ‘five-for’ would entice these consumers to buy more.

Seven out of seven store personnel interviewed indicated that price promotions work best for the promotion of in-store fruit and vegetable sales. Recommended Strategy A price promotion strategy is likely to find favour with retailers.

Coordinate with importers and leading supermarket chains to bundle avocados for sale in packages of five. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #4: Promote ‘Five-for’ As the New ‘Three-for’ 19

Coordinate with importers and leading supermarket chains to bundle avocados for sale in packages of five.

Marketing Plan

How? When? Target Consumer Segment

1 Sell five avocados bundled, branded and Beginning in November/ December Consumers who prefer to buy at least packaged; the price can be 10%-15% lower than after Strategies #1 , #2 and #3 have three avocados the price of three avocados. been executed

2 Consumers who prefer to buy more Sell five avocados unpackaged; the price can Beginning in November/ December than three avocados and small-sized be 10%-15% lower than the price of three after Strategies #1 , #2 and #3 have foodservice players who shop at avocados. been executed retailers AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #5: Drive Impulse Consumption 20

Context Why?

Health benefits (85% of responses) and nutritional content (73% of Avocados are recognised in Singapore as responses) were the key reasons given for purchasing and consuming super-fruits with their high nutritional avocados. benefits. Additionally, they are suitable for  Health and nutritional benefits of avocados needs to run hand-in consumption at different times of day as a hand with frequent consumption. snack or part of a healthy diet. 35% of consumers in the key consumer group purchase avocados once a week or more frequently from retail stores.  Opportunities exist to drive the frequency of avocado purchases More people are consuming even higher. avocados and appreciating them for their health benefits 15% of all consumers purchased two or fewer avocados once every few weeks or more often.

 A sizeable number of consumers purchase avocados in small Importer of avocados on the growing quantities; consumers may consume them within a day or two. consumption of avocados 51% of all consumers who purchase avocados consume them in plain or raw formats.  The concept of avocados as a quick snack would fit with current Recommended Strategy consumption habits.

Drive the impulse purchasing and consumption of avocados. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #5: Drive Impulse Consumption 21

Drive the impulse purchasing and consumption of avocados.

Marketing Plan

How? When? Target Consumer Segment

1 Promote avocados as healthy snacks that can be consumed on-the-go throughout the day Between October and February when All consumers through print, online media and in-store fruits are in stores displays to trigger impulse purchases.

2 Promote impulse purchases with time-bound price promotions, particularly during afternoons Between October and February when Key consumer group: Singaporean at retail outlets located within the central fruits are in stores females from 21-50 years old business districts.

3 Promote consumption of avocados as quick snacks after meals through meal tie-ups with Between October and February when Key consumer group: Singaporean local fruit/ beverage outlets to drive the fruits are in stores females from 21-50 years old consumption frequency of avocados. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #6: Grow Foodservice Consumption 22

Context Why?

44% of all consumers surveyed had consumed avocados in Foodservice outlets are key consumers of foodservice outlets exclusively or had purchased/ consumed them avocados. Many Singaporeans consume from retail and foodservice outlets. avocados through restaurants, salad bars  A significant number of Singaporeans consume avocados outside and juice shops. the home. Significant potential exists in this market.

66% of the consumers mentioned above consumed avocados once every few weeks or more frequently. The increased popularity of Japanese  Most of those who consume avocados outside the home are restaurants also increases regular avocado consumers. consumption of avocados as 70% of all avocado consumers had consumed avocados as a beverage avocados are heavily used in and 51% of them had eaten avocado in salads. Japanese cuisine.  Beverages and salads could be key to growing avocado sales in foodservice. Importer of New Zealand avocados The average temperature in Singapore varies from 23-330 Celsius.  The tropical climate of Singapore makes it an ideal location for Recommended Strategy the consumption of cold beverages.

Target beverage kiosks, salad bars and Japanese and Mexican restaurants to grow foodservice consumption. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Strategy #6: Grow Foodservice Consumption 23

Target beverage kiosks, salad bars and Japanese and Mexican restaurants to grow foodservice consumption.

Marketing Plan

How? When? Target Consumer Segment

1

Create and suggest food and beverage Between October and February when All consumers concoctions tailored for foodservice outlets. the fruits are in season

2 Display in foodservice outlets, promotional materials such as posters or menu cards Between October and February when All consumers featuring the logo, uses and benefits of New the fruits are in season Zealand avocados.

3 Promote sales of pre-sliced avocados during lunchtime. Purchasing prepared cut fruits after Between October and February when Key consumer group: Singaporean lunch is a common practice among the fruits are in season females from 21-50 years old Singaporeans. Market Insights AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Singapore at a Glance- Macro Indicators 25

Small Domestic Market Offset by Robust Economic System . Singapore, although only a tiny and highly urbanised city state on the south-eastern corner of Peninsular Malaysia, owes its extraordinary wealth entirely to its position. Its harbour  facilities, oil processing and – most recently – its highly developed telecommunications systems give it a central role in the development of the region. 5.3 million Population (2012) Ageing Population Balanced by Immigration . Singapore has one of the fastest ageing societies in Asia. Median age is presently 35.8 years. The numbers of those over 65 will almost double by 2020. . Singapore has already pulled in many immigrants. Currently, nearly a third of all those living in Singapore were born in other countries. To reduce social tensions, the government plans to cut back the inflow of immigrants, many of whom are unskilled migrants . 312

Supermarkets and Grocery Retailers Tops the Ladder Hypermarkets (2012) . Grocery retailers such as NTUC, Dairy Farm and Sheng Siong are still among the top three retailers in 2012. The major grocery retailers, such as NTUC Fair Price and Dairy Farm International Holdings, are expanding their outlets throughout island.

Retail Moves Into the Suburbs . Retailers move into the suburbs- ‘heartlands’‖ of the island, to capture more local 90% Share of top 3 consumers, as rentals in prime city areas inflate. In addition, with competition getting Supermarkets tougher, retailers wants to engage the customer closer to their homes. (2012,NZ$) AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Avocado Consumption Trends 26 Avocado Imports to Singapore from World . The consumption of avocados in Singapore more than

doubled from 2008 to 2012, growing with a 22.7% CAGR 12 307,435 - 22.7% volume from 135,840 trays to 307,435 trays. 272,091 25.4% value 233,584 7.5 . The value of imports grew at a faster pace of 25.4% during 177,801 6.3 the same period of 2008-2012 as import prices increased CAGR 2008 135,840 from NZ$22.4 per tray to NZ$24.6 per tray. 5.0

3.0 3.4 . Import values closed in on NZ$7.5 million in 2012, thanks to a steady, continuing influx of avocados from Australia, New Zealand and South Africa. 2008 2009 2010 2011 2012

World (Vol) World (Val) . 3.5% (volume and value) of avocados imported into Singapore 2012 was re-exported to other countries. Avocado Imports to Singapore from New Zealand

. Imports of avocados from New Zealand to Singapore have 12 - 60.8% volume increased at a faster pace than overall market growth, with volumes growing by 60.8% CAGR and value growing by 72.1% value 72.1% CAGR during 2008-2012.

CAGR 2008 . In 2012, 92,622 trays of avocados with a value of NZ$2.3 92,622 million were imported into Singapore from New Zealand. 66,176 39,425 28,393 13,863 2.3 . The excellent growth apparent in 2012 was a result of 1.5 0.3 0.7 exporters looking beyond their traditional home market of 0.8 2008 2009 2010 2011 2012 Australia with Singapore emerging as a key destination. World (Vol) NZ (Vol) NZ (Val) World (Val) Value in NZ$ mn; Volume in trays Source: United Nations Commodity Trade Statistics AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Australia Leads Albeit with a Declining Share 27

. Australia was the leading source market for avocado imports Top 5 (value) source countries to Singapore. Australia accounted for 60% of the value share 2009 2010 2011 2012 and 55% of the volume share of imports in 2012. 70% 64% 62% 60% Australia . Australia has benefited from a year-round and speedy supply 22% 14% 24% 30% of avocados, which are air-freighted to Singapore. New Zealand

South Africa 1% 7% 4% 5% . That said, Australia’s market dominance has been threatened by imports from other markets, especially New Zealand, from Israel 2% 4% 6% 2% which the share of avocados has increased during 20120-2012. USA 2% 2% 2% 2% . New Zealand avocados are mainly available in Singapore during the months of October through January when the fruit Others 4% 9% 1% 1% is in season in New Zealand. Top 5 (volume) source countries . South Africa, Israel and the United States were the other major 2009 2010 2011 2012 suppliers of avocados to Singapore, although avocados from 66% these countries were not as commonly available as those from Australia 56% 58% 55% Australia. New Zealand 22% 12% 24% 30%

. Mexico was another leading supplier of avocados in 2009 and South Africa 1% 10% 5% 8% 2010, but it did not provide imports in 2011 and 2012. Trade and promotional efforts on behalf of Mexican avocados have Israel 2% 5% 9% 4% been focused on the nearby US market rather than in Singapore. Sea-freight and the resulting higher costs and time Indonesia 3% 1% 1% 1% involved are considered key deterrents for supplying Mexican Others 7% 15% 2% 2% avocados to Singapore.

Source: United Nations Commodity Trade Statistics AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Avocado Supply Chain 28

For premium produce such as avocados, Retailers typically purchase from retailers in Singapore work with importers/ distributors especially importers rather than import avocados for exotic products or products directly from exporters. Importers Central from further destinations. Hypermarkets commented that the comparatively Warehouse An importer on the avocado supply lower volume of imports is the key chain in Singapore reason for doing so. The first point of sale is therefore between the exporter and the importer. Supermarkets

Independent food Exporter Importer Consumer stores

Other retail outlets Retailers are shipping directly from the growers; distributors used to supply 80% of the supermarkets' supplies but recently has fallen to 40% - 60%. Singapore's lack of import duties has meant that regional fruits often enter and exit Foodservice Singapore. Outlets

An importer on the fruit and vegetable supply chain in Singapore AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Avocado Supply Chain 29

Avocados are imported from various markets by either sea or air. Air freight is common for avocados from Australia, while sea freight is used Exporter Importer 1 for all other countries. Direct imports by retailers are uncommon for avocados

Central Players such as Fair Price and Dairy Farm (Cold Storage, Giant) have their own central warehouses to which importers supply avocados. The central Warehouse 2 warehouses further distribute avocados to individual outlets. Importers directly supply other supermarkets ,retail and foodservice outlets.

Hypermarkets and supermarkets are the two main retail channels for the Supermarkets Hypermarkets 3 sales of avocados. Independent food stores and other retail channels witness a comparatively smaller share of sales.

Independent foods stores Stocking practices vary. Leading retailers such as Fairprice and Cold 4 Storage tend to get supplies daily, while other smaller retailers stock once Other retail every few days depending on sales. outlets

Foodservice is another key channel for avocado sales. Salad bars, juice Foodservice 5 bars/ kiosks, restaurants serving sushi, Mexican and other international Outlets cuisine are the key foodservice outlets for avocados. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Voices of Importers – Selected Feedback from Interviews (1) 30

“Yes, aware and we do import. But once again seasonality is a Are you aware of avocados from New Zealand? When bigger factor and because we supply to supermarkets the whole compared to avocados from other countries, how do you year, we will just import whichever is in season. We import from think New Zealand avocados compare? Australia, New Zealand, the United States, Israel and South Africa. South Africa is one of our biggest sources of imports ” Marketing manager at an importer

“None so far as there is typically no budget for marketing or promotional activities. Any promotions will have to be initiated by the suppliers – a typical practice among importers and the fruit and vegetable market. Import margins are low as the typical mark-up is SG$S0.50 per carton; wholesalers will then mark up by SG$2-SG$3 to cover overheads and retailers will also mark up similarly (SG$2- SG$3) for avocados.” Has your company undertaken any marketing/ Sales and marketing manager at an importer promotional activities for the promotion of avocados? Could you elaborate on these? How successful have they “None recently. Previously when Australian avocados were been? penetrating the market, the Australian suppliers came to Singapore to conduct courses for retail staff at supermarkets on sales techniques for avocados, teaching them how to recommend different ripeness [levels] of avocados for different cooking styles and preparation techniques. This was successful in raising consumer awareness of avocados and their uses.” Business owner at an importer

“Teach sales staff in supermarkets how to sell. However, most marketing and promotional activities will be carried out by the exporters or suppliers.” Director at an importer AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Voices of Importers – Selected Feedback from Interviews (2) 31

“Typical top-of-the-line marketing activities will work. Price promotions will be most effective. Raising consumer awareness of the product would be still be most sustainable.” Director at an Are there any in-store marketing/ promotional activities importer that you would recommend for avocados? “Raising general awareness of the benefits of avocado will drive overall consumption more effectively.” Salesperson at an importer

“New Zealand avocados and avocados from other countries other than Australia have quality issues where they turn black very quickly and are less appealing to consumers. Importers and distributors have been known to dump entire pallets of avocados due to the emergence of black spots in the flesh of the avocados. The taste of New Zealand avocados has also been found to be lacking as compared to Australian ones – less tasty or no taste.” Have you imported avocados from New Zealand? Have Manager at an importer you faced any recent challenges in importing avocados from New Zealand? If yes, could you elaborate? “Quality issues in New Zealand avocados include that the flesh turns black very quickly when treated and thus they are less preferred by consumers. This could be due to the sea freight mode of transportation which reduces the shelf life of New Zealand avocados. In addition, a different root stock and growing conditions will also affect the quality. We have provided feedback to the New Zealand industry and growers but have received little action or assurances.” Business owner at an importer AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Store Visits and Observations 32

. Store visits were conducted to review the availability of avocados, with particular emphasis on gathering information about product presence and pricing as well as the presence of avocados from competing countries. . Store visits were only conducted on selected days in August and September 2013 and are, therefore, not intended to provide a year-round holistic listing of availability or prices. . Prices and marketing activities conducted on behalf of other premium produce such as strawberries, kiwis, blueberries and cranberries were observed to generate potential marketing strategies for avocados. . Fifteen stores were randomly chosen and visited in different parts of Singapore . Store visits were conducted in supermarkets – Cold Storage (four), Fairprice (two), Fairprice Finest (one), Giant (two) and Prime (one) – as well as five independent small grocers / food stores. . Stores were selected based on their availability of avocados and similar fruit produce.

15 stores visited

AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX In the Store… 33

Location Packaging Display

Avocados were laid out alongside The majority of avocados were sold There was no consistency with regard to the other fruits in the fruit aisle of individually, allowing consumers to type of fruits which were displayed next to the stores. No specific displays or pick and chose. avocados. In some stores, avocados were storage locations were observed. In rare instances avocados were displayed alongside premium produce such as packaged in punnets. kiwis and peaches, while in other stores, common fruits such as apples, oranges and lemons were their neighbours. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX In the Store… 34

Origin Ripening Promotions

Australia was observed to be the Green and purple avocados were sold No promotions, advertising or marketing dominant avocado supplier. While together. Most stores had avocados campaigns were observed for avocados during US and Philippine avocados were displayed in various stages of ripening. store visits. Price promotions are sometimes also seen in some stores, these common in order to encourage quick sales were found in much smaller when avocados become extremely ripe and are proportions. No avocados were at risk of spoiling. found from New Zealand or other countries in the stores visited. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Price of Avocados and Other Premium Produce 35

Price range for three avocados*

Most expensive price Cheapest price per per unit- organic unit avocado from Australia

$0 $1.0 $3.3 $3.5 $6.0 $7

Average Retail Prices** of Premium Fruits

$0 $9.5 $16.1 $17.3 $20.2 $22.9 $25

* Avocados are commonly sold bundled as three units **Based on an average price per kg in New Zealand dollars, calculated on the basis of an average weight of 200g per fruit for avocados and 70g for kiwis. Strawberries, Blueberries and Cranberries were sold by weight and not in units. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Brands in Stores 36

1 2 3 4

5 6 7

1 2 3 4 5 6 7

Brand Auspak Australian Dole Sunfresh Avanza* Zenxin Pasar Avocados (Organic) (Private Label) Origin Australia Australia Philippines Australia USA Australia/ USA Australia

Price (NZ$ $1.0-$2.4 $1.0 $1.0 $1.6 $1.7 $2.9-$3.4 $1.5 per unit) * Mission Produce (USA) is coordinating supply from various countries for Singapore outside of the New Zealand export season using the New Zealand Avanza brand AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Voice of Retailers – Selected Responses to In-store Discussions 37

“Price is the key consideration. Some consumers may want it to be slightly unripe to keep longer while others will choose What are some of the key issues that you consider when those that are ripe for immediate consumption.” purchasing / carrying avocados in your store (for Store personnel at NTUC Finest example: quality, competitive pricing, supply consistency, range of variety, etc.)? “If the supplier has stock, we take. Otherwise we won't specifically request. Not very popular” Store owner at an independent small grocer

How often do you receive avocados from your suppliers Daily to once a week or more (daily, once a week, once every few weeks)?

“Not really. HQ buys the fruits and vegetables, we stock up when it runs low. Products like avocados are not really fast moving here so we just stock when they finish” Is seasonality a key consideration when you plan to order Fresh Foods team member at Prime Supermarket avocados? “Avocados are not really a staple for my outlet. I'll order when the stock runs out” Store owner at an independent small grocer

Low to no awareness of New Zealand avocados was From which various countries do you import avocados? observed. Australia was the most commonly mentioned, whereas the United States and Philippines were mentioned rarely. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Retailer Profile – Fairprice/ Fairprice Finest Fairprice/ Fairprice Finest 38

Company Background: Retailer Type: Supermarket . NTUC FairPrice Co-operative was founded in 1973 and it is the leading grocery retailer in Singapore. It has a large network of supermarkets, hypermarkets and convenience Headquarters: stores, as well as forecourt outlets. NTUC Fairprice Co-operative Ltd 680 Upper Thomson Road Market Positioning: Singapore 787103 Tel: 65- 6456 0233 . NTUC FairPrice Co-operative was established with the aim of moderating the cost of Fax: 65- 6458 8975 living in Singapore and the brand continues to offer products at mass-market prices. www.fairprice.com.sg

Avocado Availability and Sales Outlet Distribution (Oct 2013): 109 stores . Avocados are available year-round in most outlets. Some of the smaller neighbourhood stores may not store them due to the lack of demand in these locations. 11 20 . Avocados are sold loose or more commonly in a pack of three with the price ranging 23 17 from NZ$3.10-NZ$4.40 (for three). 38 . At the time of audits conducted in September 2013, only Australian avocados were observed in the stores visited. This could’ve been due to seasonality. . No marketing or price promotions for avocados were seen in stores; personnel at one store commented that price promotions tend to work best for fruits. Avocado Price Range (for 3) Avocado Brands Price Comparison (NZ$ per kg) Marketing and Promotions

. Auspak Price promotions work best as consumers tend to be . Australian Avocados more concerned with the price of the 4product. In-store 2 NZ$0 $6.1 $12.33 $17.4 $19.5 NZ$25 NZ$0 $3.11 $4.4 NZ$10 . Pasar displays are also used to . Unbranded promote the sale of fruits.

Source: Store checks conducted in four Fairprice stores in September 2013 AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Retailer Profile – Cold Storage Cold Storage 39

Company Background: Retailer Type: Supermarket . Cold Storage is owned and operated in Singapore by Dairy Farm International Holdings Ltd. Dairy Farm International Holdings is a member of the Jardine Headquarters: Matheson Group and its business is managed from Hong Kong. Dairy Farm International Holdings Ltd 21 Tampines North Drive 2 Market Positioning: #03-01, Singapore 528765 . Cold Storage supermarkets offer a wide range of products and cater to mid- to Tel: 65- 6891 8000 upper-income consumers. www.coldstorage.com.sg

Avocado Availability and Sales Outlet Distribution (Oct 2013): 47 stores . As mid- to upper-income consumers are targeted, avocados are available year-round at Cold Storage outlets 2 . In Cold Storage outlets, avocados are mainly sold individually, which results in higher 4 prices; NZ$2.45 per per unit was the common price of a single avocado. 8 5 . As Cold Storage targets slightly more upmarket consumers by comparison to 28 Fairprice, fruit quality was a key consideration. . Only two brands of avocados were observed. While Auspak originates in Australia, Zenxin – the local organic brand – carried a mix of avocados from Australia and the United States. Avocado Price Range (for 3) Avocado Brands Price Comparison (NZ$ per kg) Marketing and Promotions

Price and quality are key . Auspak considerations when . Zenxin consumers4 buy fruits. Most 2 NZ$0 $13.1 $16.83 $23.2 $37.4 NZ$40 NZ$$0 $7.11 $10.1 NZ$15 people look for fruits with no bruises and bumps.

Source: Store checks conducted in four Cold Storage stores in September 2013 AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Retailer Profile – Giant Super Giant Super 40

Company Background: Retailer Type: Supermarket . Giant Super is owned and operated in Singapore by Dairy Farm International Holdings Ltd. Giant Super is the new name for the erstwhile Shop n Save Headquarters: supermarkets owned by Dairy Farm. Dairy Farm International Holdings is a member Dairy Farm International Holdings Ltd of the Jardine Matheson Group and its business is managed from Hong Kong. 21 Tampines North Drive 2 Market Positioning: #03-01, Singapore 528765 . Giant Super caters to budget-conscious consumers in Singapore and as such Tel: 65- 6891 8000 products sold in the store target mass-market consumers. www.coldstorage.com.sg

Avocado Availability and Sales Outlet Distribution (Oct 2013): 40 stores . Avocados are regularly available in Giant Super stores island-wide. As with most other supermarkets in Singapore, avocados are displayed and sold in only one section in an aisle. 7 7 . Avocados were sold both individually and in threes, with the latter being cheaper 9 8 per unit. 9 . A mix of ripe and unripe avocados were seen at the time of store checks. . Depending on the season, Giant stocks avocados from different countries. Australian (Auspak) and US (Avanza) avocados were observed at the time of store visits. Avocado Price Range (for 3) Avocado Brands Price Comparison (NZ$ per kg) Marketing and Promotions

Other than three-unit . Auspak packages, no other promotions were observed in . Avanza 4 2 NZ$0 $8.2 3$14.1 $15.5 NZ$20 Giant outlets. NZ$0 $4.41 $5.2 NZ$12

Source: Store checks conducted in two Giant stores in September 2013 AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Marketing Case Study: Zespri Kiwi in Singapore 41

Company Background

. Zespri International Limited was formed in 1997 to provide a single point of entry for the export of New Zealand-grown kiwifruit.

. The Zespri brand was launched globally in 1997. The fruit is sourced from the Americas, Europe, Asia and the Pacific to provide consistent year-round supply. As of 2012/13, New Zealand-grown fruit contributed 93% of global revenues for kiwifruit marketed by Zespri.

. Zespri kiwifruit has been available in Singapore for a number of years, with the exact date of launch of the brand in Singapore unknown. Zespri oragnises a wide range of marketing and promotional activities in Singapore.

Global NZ Kiwifruit Sales Marketed by Zespri (NZ$ mn) 1,522 1,505 1,456

1,359

CAGR: 2.3%

2009/10 2010/11 2011/12 2012/13

Source: Zespri Annual Review 2012/13 AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Marketing Case Study: Zespri Kiwi in Singapore 42

Marketing and Promotional Activities

. In-store Activities . In-store consumer activities conducted by Zespri include promotional materials extolling the health benefits of eating kiwis, special standee displays and price promotions.

. The special displays include posters which list the health benefits of consuming kiwifruits.

. Price promotions are also common for kiwifruit which is sold unpackaged, with prices per unit cheaper when kiwis are purchased in packages of eight instead of four. AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Marketing Case Study: Zespri Kiwi in Singapore 43

Marketing and Promotional Activities

. Free Gifts . Zespri gives away various free gifts together with the purchase of kiwifruits. These include lunchboxes, tote bags, key chains, soft toys, etc.

. Competitions . Zespri has conducted various competitions with prizes including return tickets for two adults to New Zealand. . The competitions, which have been tied to the purchase of specific types (premium varieties) or bigger packs of kiwifruits, encourage consumers to buy premium varieties or to buy more.

. Advertisements . Zespri advertises both in print and on taxis in Singapore to spread awareness of its brand.

AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Marketing Case Study: Zespri Kiwi in Singapore 44

Marketing and Promotional Activities

. Regional Websites . Development of a region-wide, multi-language website for Southeast Asia including for Singapore. . The website provides useful information on handling, choosing, storing and cooking recipes for kiwi fruits

. Blogging . Appointment of local bloggers as Zespri Ambassadors to elaborate on the nutritional benefits of kiwifruit (2009 and 2010) . “14-Day Daily Scoop of Amazing Challenge” (2013) in which local bloggers were asked to blog regularly about kiwifruits and recipes from them. The bloggers were also invited to participate in food tasting events. . The aim of the above event was to reach out to different strata of society through engagement with lifestyle bloggers with different target audiences.

. Social Media . Zespri Singapore has a dedicated Facebook website with regular updates and photos.

This section of the report consolidates the findings from consumer surveys.

A total of 544 online consumer surveys were conducted in September 2013. Respondents were selected at random from an online panel. All 301 qualified respondents had purchased or consumed avocados during the previous six months.

Consumer Insights AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Consumer Surveys – Fieldwork Summary 46

Total Respondents No of Surveys 301

Gender Female 169 56% Male 132 44%

Average Monthly Household Income 12% Less than SG$3,000 37 30% SG$3,000-$6,000 89 28% SG$6,001-$9,000 84 18% SG$9,001-$12,000 54 12% Greater than SG$12,000 37

Educational Attainment 0% Primary school 0 Secondary school 47 16% Tertiary school 141 47%

Post-graduate 113 38%

Target Surveys: 300 Total Respondents: 544 Qualified Surveys: 301 AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Consumer Surveys – Fieldwork Summary 47

No of Surveys TOTAL 301

Residential Status Singapore citizen 238 79% Singapore permanent resident 40 13% Foreigner 23 8%

Age Group Mean age: 38 Younger than 21 years old 18 6% 21–30 years old 76 25% 31–40 years old 90 30% 41–50 years old 67 22% 51 and older 50 17% Location of Residence West 71 24% Northeast 67 22%

Central 65 22% East 52 17% North 46 15%

Target Surveys: 300 Total Respondents: 544 Qualified Surveys: 301 AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Consumer Surveys – Fieldwork Summary 48

3-9 years (32%) Distribution by Age of Family Members 0-2 years (11%) Others (57%)

Member 1 (Myself) 5% 13% 23% 31% 25% 3%

Member 2 13% 17% 22% 26% 14% 6% 2% 1%

Member 3 18% 16% 6% 8% 16% 18% 13% 5% 47% of respondents had a Member 4 12% 14% 6% 6% 20% 22% 15% 6% child under age 9 at home

Member 5 14% 7% 5% 10% 14% 28% 19% 3%

Member 6 21% 3% 5% 26% 13% 13% 18% 3%

Member 7 7% 27% 7% 13% 27% 20%

Member 8 20% 40% 20% 20% 60 years and older 50-59 years Member 9 50% 50% 40-49 years Member 10 50% 50% 30-39 years

Member 11 50% 50% 20-29 years 10-19 years Member 12 50% 50% 3-9 years Member 13 100% 0-2 years

Base: All respondents (n=544) Q3. Could you provide us with some details on the age of the members (including yourself) in your household? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX A High Proportion of Avocados Are Consumed at Home 49

. Avocados were mainly purchased via retail 30% channels and consumed at home. A significant majority (86%) of all respondents had purchased avocados from stores during the past six months. 56% . There was a comparatively smaller proportion (44%) of consumers who had consumed 14% avocados in restaurants, cafés and other beverage outlets. The smaller share represented by foodservice consumption could be due to the lack of consumer awareness about the use of avocado especially as an ingredient in food preparation. Purchased in stores and consumed at home Consumed outside in restaurants, cafés, beverage outlets Both of the above

Base: Qualified respondents (n=301) Q5. During the past six months, where did you purchase/ consume avocados? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX While General Awareness is High… 50

Ready-to-consume 68

Tastier 67

Riper 47 Don’t remember Fresher 1% 201

Black/ purple Green 36% 63% Ready-to-consume 165

Tastier 138

Riper 173

Fresher 26

. There was a good understanding among consumers about green and black/ purple avocados. While a larger number of consumers believed that green avocados were fresher, black/ purple avocados were considered to be riper, tastier and ready-to-consume by a larger proportion.

Base: Consumers who purchased avocados in stores (n=259) Q6. When you purchased avocados from stores, what was the colour of the skin of the avocados? Q7. Which of the following words best describes green or black/ purple avocados? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX …Misconceptions Remain 51

Fresher 12% 10% 78%

Riper 15% 67% 18%

Tastier 21% 53% 26%

Ready-to-consume 10% 64% 26%

Unsure/ don’t know Black/ Purple Green

. While in general there was good knowledge among most consumers regarding whether green or black/ purple avocados were fresher, riper, tastier and ready-to-consume, some of them were uncertain. Of all respondents, 10%-21% chose unsure/ don’t know. . Interestingly, 10% of all respondents considered black/ purple avocados to be fresher, while green avocados were considered riper by 18% of respondents and ready to consume by 26%.

Base: Consumers who purchased avocados in stores (n=259) Q7. Which of the following words best describes green or black/ purple avocados? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Avocados Mainly Used for Preparing Beverages and in Salads 52

To prepare beverages/ shakes 146

In salads 143

Plain/ raw 133

In sandwiches/ wraps/ burgers 81

In other food preparations 50

For guacamole/ dips 48

For cosmetic purposes (face masks, hair fix etc) 32

For baking 18

Base: Consumers who purchased avocados in stores (n=259) Q8. How did you consume avocados at home? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Supermarkets are the Preferred Purchasing Channel 53

4% 12% . Supermarkets were the preferred channel for the purchase of 31% 23% 37% 14% avocados, with 72% of respondents 49% buying avocados ‘always’ or ‘often’.

25% 32% . Hypermarkets represented another 42% preferred channel, with 42% of 29% consumers buying avocados from 25% hypermarkets ‘always’ or ‘often’. 27% 30% 25% . Other retail channels such as 17% independent food stores, 30% 14% convenience stores and open/wet 7% 7% 12% markets are rarely visited for 3% 2% 2% purchasing avocados. Open/ wet markets Convenience stores Independent food Hypermarkets Supermarkets stores Always Often Sometimes Rarely Never

Base: Consumers who purchased avocados in stores (n=259) Q9. During the past six months, where have you purchased avocados? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Consumers Visit Fairprice Most Often 54

. With 95 stores dotting the 6% island, it came as no surprise that 7% 17% Fairprice was the supermarket/ 24% 22% 25% 29% hypermarket frequented most 38% often for buying avocados. 27% 24% 15% 62% 26% 20% . Fairprice Xtra, the hypermarket 20% brand of Fairprice, and Fairprice Finest, its premium brand, did 24% not see as many visits. Patterns 31% similar to those found at Fairprice 36% 44% 29% 34% Xtra and Fairprice Finest were 32% seen in avocado purchases made at Cold Storage and Giant. 24% 25%

23% 19% 20% . Jason’s Market Place and Sheng 17% 14% 16% 11% 10% Siong, which had fewer outlets, 7% were also less frequently visited 5% 4% 3% 4% 2% 2% 1% for the purchase of avocados. Fairprice (S) Fairprice Fairprice Cold Giant (S) Giant (H) Jason’s (S) Sheng Siong Xtra (H) Finest (S) Storage (S) (S) Always Often Sometimes Rarely Never

Base: Consumers who purchased avocados in stores (n=259) Q10. Among the following supermarkets and hypermarkets, where have you purchased avocados during the past six months?

AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Avocados Commonly Bought in Threes 55

More than 6 6 avocados 1 avocado avocados More than once 5% 3% Once every few a week 4% months 11% 15% 2 avocados 5 avocados 19% 10% Once a month 10%

Once a week 4 avocados 32% 18%

Once every few weeks 3 avocados 32% 41%

Buying behaviour of consumers who 15% 9% 32% 32% 11% bought three avocados

. Nearly one-third of all consumers purchased avocados once a week, with a similar number buying them once every few weeks. Though not a regular for most, consumers who had purchased avocados during the past six months bought them frequently.

. Of all consumers who had purchased avocados during the past six months, 63% had purchased three avocados or fewer. Buying three avocados coincided with a store-level practice of offering three avocados bundled at a cheaper price than the purchase of individual fruits.

. Among consumers who buy three avocados, 75% purchased avocados more than once a month, indicating a regular clientele among Singaporean consumers. Base: Consumers who purchased avocados in stores (n=259) Q11. Can you tell us how often you purchase avocados from stores? Q12. On average how many avocados do you buy on a single occasion? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Health and Nutrition are Standout Reasons for Buying Avocados 56

For the health benefits 207

Nutritional content 193

Taste 142

Weight loss/ beautification 63

Required for a recipe in home cooking 63

Special occasion to entertain family/ friends 28

Purchased for baby/ young child at home 23

Others 3 “For variance of fruits at home, For my partner who loves it, Purchased for parents”

Base: Consumers who purchased avocados in stores (n=259) Q13. When you have purchased/ consumed avocados, what were the key reason(s) for purchasing/ consuming them? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Electronic Media Preferred by Consumers 57

Internet blogs/ other online sources 172

TV news/ other cookery shows 134

Local English newspapers 134 . With ~4 million Internet users in 2012, it was no surprise that the Internet represents Singaporeans’ key source of Local English magazines 107 information when it comes to acquiring information related to health, nutrition, cooking and recipes. Local other language newspapers 42

Local other language magazines 36

None of the above 10

Base: Consumers who purchased avocados in stores (n=259) Q14. Which are the various media sources you use for getting information related to health, nutrition, cooking and recipes for fruits and vegetables? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Popular Online Media Sources 58

Internet blogs/ other online sources 172

TV news/ other cookery shows 134

Local* English newspapers * 134 #1 Facebook #2 Youtube Local English magazines 107

Local blogs/ other sources: Food websites: XinmsnLocal other, Lady language Iron Chef, newspapers Hungry 42 foodnetwork.com, Social media websites: Peepor, Makansutra, I Eat I allrecipes.com, Facebook, Youtube, Twitter Shoot I Post, Hungrygowhere, myfoodloversforum.com Local Openother Rice language magazines 36

None of the above 10 Health/ nutrition websites: Avocado websites: Search engines: Health Guru, Diet Doctor, Avocado Central, Australia Google, Yahoo, Wikipedia Calorie Count Avocados

Base: Consumers who use online media (n=172) Q15. Among the various media that you use, could you name the top three sources that you visit regularly? *excluding general search engines AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Popular TV News/ Other Cookery Shows 59

TV news/ other cookery shows 134

Internet blogs/ other online sources 172

#1Local English newspapersChannel 8 #2 134Channel 5

Local English magazines 107

Local other language newspapersLocal TV channels: 42 Cookery shows: Channel 5, Channel 8, Channel Masterchef, Gordon Ramsay, News Asia, Channel U, Jamie Oliver Local other language magazinesVasantham 36

None of theFood above channels: 10 Others: Asian Food Channel, CNN, Discovery, TLC, BBC Food Network

Base: Consumers who watch TV news/ other cookery shows (n=134) Q15. Among the various media that you use, could you name the top three sources that you visit regularly? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Popular Newspapers 60

Local English newspapers 134

Internet blogs/ other online sources 172

TV news/ other cookery shows 134 #1 Straits Times #2 Today Local English magazines 107

Local other language newspapers 42

Local otherNEWS languagePaid magazines newspapers: NEWS 36 Free newspapers: Straits Times, Sunday Times, My Paper, Today New Strait Times, New Paper None of the above 10

Base: Consumers who read English newspapers (n=134) Q15. Among the various media that you use, could you name the top three sources that you visit regularly? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Popular Magazines 61

Local English magazines 107

Local English newspapers 134

Internet#1 blogs/ other online sources8 Days #2 Men’s Health 172

TV news/ other cookery shows 134

Targeted at women: Local other language newspapers Cleo, Female, Her World, Simply 42 Targeted at men: Her, Shape, Women’s Weekly, Men’s Health Elle Local other language magazines 36

None of the aboveGeneral: 10 Others: 8 Days, Reader’s Digest, Times, Ezy Health & Beauty, NTUC Lifestyle Lifestyle

Base: Consumers who read English magazines (n=107) Q15. Among the various media that you use, could you name the top three sources that you visit regularly? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Price and Availability Have a Major Bearing on Fruit and Vegetable Purchases 62

Magazine/ newspaper articles on nutrition or cooking 5% 17% 34% 33% 11%

TV cooking shows 8% 21% 34% 31% 6%

Availability/ seasonality 5% 11% 32% 41% 11%

Advertisements (online, TV, radio etc) 17% 27% 37% 17% 2%

Endorsement by family and friends 8% 23% 28% 34% 7%

Endorsement by celebrities 43% 29% 21% 6%1%

Information read online 5% 16% 38% 34% 7%

In-store flyers, brochures, posters etc 17% 33% 37% 12% 1%

Advice from store personnel 22% 34% 31% 12% 1%

Price promotions 3% 11% 31% 41% 14%

Not at all influential Slightly influential Moderately influential Very influential Extremely influential

Base: Consumers who purchased avocados in stores (n=259) Q16. Among the following, what influences you when purchasing fruits and vegetables?

AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Consumption Outside the Home 63

Overall Consumption Frequency of Consumption Outside the Home

9%

18%

14%

26%

56% 16%

30%

31%

Purchased in stores and consumed at home More than once a week Once a week Consumed outside in restaurants, cafés, beverage outlets Once every few weeks Once a month Both of the above Once every few months

Base: Consumers who consumed avocados outside the home (n=132) Q5. During the past six months, where did you purchase/ consume avocados? Q17. Can you tell us how often you consume avocados outside the home? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Avocado Shakes and Juices Popular Outside the Home 64

In beverages/ shakes 93

In salads 67

In sandwiches/ wraps/ burgers 54

In sushi/ sashimi/ other Japanese dishes 53

In guacamole/ dips 26

In other food preparations 23

In muffins/pastries/ other baked dishes 10

Others 2 In cold ramen, on its own

Base: Consumers who consumed avocados outside the home (n=132) Q19. How did you consume avocados when dining out during the past six months? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Creamy and Buttery Taste of Avocados Well-liked by Consumers 65

Creamy 1% 7% 18% 44% 31%

Buttery 1% 6% 26% 44% 24%

Nutty 1%4% 32% 47% 16%

Sweet 3% 24% 46% 26%

Dislike extremely Dislike moderately Neither like nor dislike Like moderately Like extremely

. Other taste- and texture-related features which consumers liked extremely included freshness (two respondents) and the unique taste of avocados (three respondents).

Base: Qualified respondents (n=301) Q20. What do you like about the taste and texture of avocados?

AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Good Recognition of New Zealand as a Supplier of Avocados 66

Australia 17% 2% 80%

Indonesia 40% 29% 31%

Israel 58% 30% 12%

Mexico 55% 23% 22%

New Zealand 26% 5% 69%

Philippines 48% 31% 22%

South Africa 51% 25% 23%

USA 28% 11% 61%

Unsure/ don't know Does not supply Supplies

. After Australia, New Zealand had the highest recall as a supplier of avocados to Singapore among consumers interviewed. . Despite the seasonality of the produce, only 5% of the consumers who were interviewed thought that New Zealand did not supply avocados to Singapore.

Base: Qualified respondents (n=301) Q21. Among the following, which countries do you think supply avocados to Singapore?

AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Positive Perception of Avocados from New Zealand 67

Fresher 3% 32% 47% 18%

Tastier 2% 36% 43% 19%

More expensive 3% 34% 44% 18%

Clean/ chemical-free / safe 2% 39% 44% 15%

Healthier/ more nutritious 1% 3% 48% 33% 14%

Higher quality 1% 31% 48% 20%

Disagree Somewhat disagree Neither agree nor disagree Somewhat agree Agree

. ‘Higher quality’ was a key attribute which consumers agreed to, with 68% of respondents stating the same for New Zealand avocados.

Base: Consumers who identified New Zealand as a supplier of avocados (n= 209) Q22. What is your opinion of avocados from New Zealand in comparison to avocados from other countries?

AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Cholesterol-free and Nutrient-boosting Properties Most Important 68

Avocados are naturally cholesterol-free, making them a heart- 1% 5% 20% 43% 31% healthy addition to your diet 1%

Avocados provide essential vitamins and minerals for expecting 3% 11% 5% 19% 38% 25% others

Avocados acts as a nutrient booster, promoting the absorption of 2% 2% 6% 20% 43% 27% nutrients from other fruits as well

Avocados can aid in weight management 4% 7% 7% 27% 36% 19%

Avocados are a healthy substitute for butter, margarine and 2% 6% 9% 28% 34% 22% mayonnaise

Avocados are an ideal first food for babies 9% 15% 10% 26% 29% 11%

Avocados can help maintain healthy eyesight as you age 6% 2% 6% 21% 38% 28%

Unsure/ don't know Not at all important Slightly important Moderately important Very important Extremely important

Base: Qualified respondents (n=301) Q23. Among the following health benefits offered by avocados, which benefits are important to you? AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX New Zealand Perceived as a Supplier of Fresh Produce 69

Fresh produce 1% 2% 13% 47% 38%

Tasty produce 2% 21% 48% 30%

Expensive produce 3% 34% 42% 21%

Clean/ chemical-free produce/ safe 3% 30% 49% 19%

Healthier/ more nutritious produce 2% 30% 46% 22%

High-quality produce 2% 20% 51% 27%

Disagree Somewhat disagree Neither agree nor disagree Somewhat agree Agree

Base: Qualified respondents (n=301) Q24. What is your opinion of New Zealand as a supplier of fruits and vegetables? New Zealand is a supplier of ….

AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Taste – The Key Reason Holding Back Consumption 70

Do not like the taste of avocados 117

Lack of knowledge of avocados 82

Easy availability of other fruits compared to avocados 70

Higher price of avocados compared to other fruits 52

Perception that avocado contains high fat and 18 cholesterol

Base: Consumers who have not purchased or consumed avocados during the past six months (n=243) Q25. What are the reasons why you have not purchased or consumed avocados during the past six months?

Appendix AVOCADOS IN SINGAPORE I INTRODUCTION I EXECUTIVE SUMMARY I MARKET INSIGHTS I CONSUMER INSIGHTS I APPENDIX Appendix 72

Exchange Rates Weight Conversion

1 US$ = 1.236 NZ$ 1 tray avocados = 5.5 kg 1 SG$ = 0.967 NZ$

Key Sources # Source Name # Source Name 1 Ah Ho Fruit Trading Company 16 Prime Supermarket 2 Asiafruit Magazine, Other trade press, online blogs 17 Primor Produce 3 Avocados Australia 18 Seasonal Produce (S) Pte Ltd 4 Ban Choon Marketing Pte Ltd 19 Sheng Siong Singapore 5 Benelux Flowers & Food Pte Ltd 20 Team Avocado 6 BL Providers 21 Trade & Investment Queensland Australia 7 Dairy Farm International (Cold Storage, Giant) 22 Zespri (Websites, Annual Reports) 8 Eastern Green Marketing Pte Ltd 9 Euromonitor International Passport Database 10 Independent Food Stores (multiple, unnamed) 11 Kian Seng Yong Import & Export Pte Ltd 12 Kingdom Green Distributors Pte Ltd 13 Loh Ee Seng Trading Company 14 New Zealand Avocado Council 15 NTUC Fairprice, Fairprice Finest (multiple) CONTACT US

UMESH MADHAVAN GRAHAM GILBERT Manager – Consulting Business Development - Consulting Tel: +65 6429 0590 ext 6694 Tel: +61 2 9581 9228 [email protected] [email protected]

SEBASTIAN LIE BEN DUNSHEATH Consulting Analyst Account Manager - ANZ Tel: +65 6429 0590 ext 6705 Tel: +61 2 9581 9225 [email protected] [email protected]