Produce Planning Guide For Cinco De Mayo

Retailers can garner a register-ringing olé.

Food is at the forefront of Cinco de Mayo festivities. Some 59% of Americans surveyed by National Today, a San Francisco, CA-headquartered advertising services company, say their favorite way to celebrate is by eating Mexican food. Moreover, nearly three-fourths of Americans (70%) say they observe this holiday.

It’s a commemoration recognizing when, in 1862, outnumbered Mexican soldiers defeated French forces in the Battle of Puebla. While not a major holiday in Mexico, Cinco de Mayo has become phenomenally popular for food, friends and fiestas in the U.S.

Today, Cinco de Mayo is an excellent opportunity for retailers to sell more fresh fruits and vegetables. Case in point, it’s second only to the Super Bowl as the most significant consumption occasion in the U.S. for avocados, with over 80 million pounds of fruit sold, according to Avocados from Mexico (AFM).

“Cinco de Mayo is a pretty big produce holiday, and a lot of retailers get behind it.”
— Jason Kazmirski, Charlie’s Produce, Seattle, WA

“Cinco de Mayo is a pretty big produce holiday, and a lot of retailers get behind it,” says Jason Kazmirski, retail specialist for Charlie’s Produce, in Seattle, WA, which supplies several independent retailers in the Pacific Northwest, such as Metropolitan Market, as well as larger chains, such as Fred Meyer and Sprouts. “This year, it falls on a Monday, which means pretty good sales on the weekend before and a nice bump the first of the month.”

MARKET TO EVERYONE

Cinco de Mayo is a holiday that, while rooted in Mexican heritage and therefore authentic to Hispanic shoppers, has become widely celebrated by non-Hispanic shoppers in the U.S. as well, according to Ramon Ojeda, executive director of the National Mango Board (NMB), based in Orlando, FL.

“It’s a great example of cultural exchange and a popular occasion for celebrations involving food, drinks and music. Therefore, a marketing strategy targeting both Hispanic and non-Hispanic shoppers is our most effective approach,” he says.

The board develops marketing materials in English and Spanish, Ojeda adds. “This dual-language approach allows us to acknowledge the holiday’s origins, while also welcoming everyone to the fiesta and the delicious flavor of fresh mango.”

THINK DEPARTMENT-WIDE

Avocados are called for in two of the top 10 rated recipes for Cinco de Mayo on the Food Network’s website. That’s not all. There are almost 20 fresh fruits and vegetables listed as ingredients in those recipes. These range from avocados and tomatoes for guacamole and pico de gallo, to plenty of white, red and yellow onions; limes; garlic; cilantro; and bell and hot peppers.

“We’ll have our in-house made guacamole, plus also sell avocados along with tomatoes, onions, cilantro and limes for customers who want to make their own,” says Vince Mastromauro, director of produce operations for Sunset Foods, a five-store chain based in Highland Park, IL.

According to proprietary research from AFM, the unit and pound volume of avocados and guacamole for Cinco de Mayo had a 10% compound annual growth rate since 2019.

“It’s an occasion that we see a lot of growth, one that we continue to focus on and one that we suggest retailers put on their annual promotion schedule,” says Stephanie Bazan, AFM’s senior vice president of commercial strategy and execution.

In 2024, avocado units reached 59.8 million, a +2% increase versus the prior year, while dollar sales soared +22% to $68.5 million, according to the Sept. 3, 2024-released report, Avocado Sales Back to Record-Breaking Highs During Q2 Holidays, from the Mission Viejo-based Hass Avocado Board.

Small avocados drove unit growth during the holiday, contributing an additional 3.1 million units to the category.

Smaller-sized avocados are increasingly popular, particularly in bagged formats, according to Terry Splane, vice president of marketing for the California Avocado Commission (CAC), in Irvine, CA.

He cites a 2024 avocado tracking study that revealed 44% of U.S. avocado shoppers prefer bulk purchases, 30% favor bagged options, and the remainder are flexible or have no specific preference. “Bagged avocados significantly enhance market basket value by an average of 107%,” Splane says.

He adds that Cinco de Mayo falls in the heart of the California avocado season.

Like the fruit, Cinco de Mayo is the second largest selling holiday for guacamole after the Super Bowl, says Tara Murray, vice president of marketing for Fresh Innovations LLC, in Rhome, TX, which markets the Yo Quiero Brand of dips. “Our top-selling items are always our guacs, followed by our queso dips and salsa. We also have bean dips, elote, and creamy jalapeño dips to create a one-stop dip destination.”

According to the National Today research, nearly one-third (32%) of Americans who observe Cinco de Mayo drink margaritas. Lime is a key ingredient in this cocktail and a topper in beer.

A good reflection of this is that lime sales rose 50% in 2023 during Cinco de Mayo at Kroger stores, based on data from 84.51°, a subsidiary of the Cincinnati, OH-headquartered chain with over 2,700 stores nationwide, as reported in a May 3, 2024, article in USA Today.

“Persian limes dominate the category, accounting for over 95% of total volume and remaining the most promotable option during the Cinco de Mayo selling period,” says Zak Laffite, president of Delano, CA-headquartered Wonderful Citrus. “Bulk limes lead in volume sales, while packaged limes command a 15% to 20% premium per pound. Similarly, conventional limes comprise more than 95% of total category volume, though organic limes are experiencing modest growth, earning a 50% to 60% premium per pound.”

Laffite cautions supply is relatively tight during the Cinco de Mayo period, as fruit costs remain on the higher side, “so there needs to be a balance between retailer pricing expectations and available promotional volume.”

Cinco de Mayo is one of the first major promotional opportunities for the Mexican mango season.

“Tommy Atkins and Ataulfo mangos tend to be the best-selling at this time,” says the NMB’s Ojeda. “There is a natural tie-in for mangos, particularly with avocados, whether it’s guacamole, salsa, tacos and beyond.”

Tomatoes, especially Romas, are big sellers for Cinco de Mayo at retailers Charlie’s Produce serves. “There’s pretty good pick up on peppers, both sweet and chile peppers, too,” says Kazmirski.

Roma and beefsteak tomatoes ship out of Mexico’s Sonora and southern Baja California regions in May.
“There are so many ways to promote tomatoes for Cinco de Mayo, from use in dips and salsas, to snacking, to garnish on traditional dishes like fajitas,” says Alán Aguirre Camou, chief marketing officer for Divine Flavor, in Nogales, AZ. “We also have a variety of other hothouse vegetables available in early May, like bell peppers, organic and conventional, in yellow, red and orange, and long English and a cocktail variety of cucumber.”

Florida’s Sunshine Sweet Corn is in season through May.

“Most naturally think of Memorial Day when it comes to promoting Florida sweet corn, but there are several spring holidays like Cinco de Mayo where sweet corn becomes a flavorful recipe addition and offers several opportunities for cross-promotion in-store with tomatoes, bell peppers, jalapeños and onions for dips and salsas,” says Christina Morton, spokesperson for the Sunshine Sweet Corn Farmers of Florida, and director of communications for the Florida Fruit & Vegetable Association, in Maitland, FL.

“Retailers who include recipe ideas, for example, a sweet corn, tomato, and avocado salsa or a sweet corn elote dip, along with eye-catching displays get customers excited about buying sweet corn.”

On the specialty side, include fresh peppers like habanero, serrano, and jalapeño in the mix; veggies like cilantro, jicama and tomatillos; fruit such as cactus pears and jackfruit; and value-added products like a tamale kit, recommends Robert Schueller, director of public relations for Melissa’s/World Variety Produce, in Vernon, CA. “We offer retailers point-of-sale promotional materials and signage to highlight Cinco de Mayo.”

START EARLY

With a retailer’s “why” and “what” now answered, it’s all about “when” to start Cinco de Mayo produce promotions.

“What we know is that Cinco de Mayo is very much a last-minute occasion,” says AFM’s Bazan. “It’s not one that shoppers are preparing for weeks in advance. We know through our proprietary research that about 48% of people decide to celebrate the day of the holiday, with over 50% of purchases made within three days of the event. That shows how spontaneous an occasion it is.”

This year, AFM will launch its Guac Makes the Fiesta theme promotion. It’s a message that puts guac at the center of this celebration as a food. Bazan says the idea is to create a longer runway leading up to the Cinco holiday and get shoppers thinking about buying fruit sooner rather than later, especially bagged avocados that may need a few days to ripen.

The AFM’s retail promotional tools include standard stand-alone themed bins, floor displays in the shape of a molcajete (the traditional Mexican version of a mortar and pestle), and fiesta-themed bagged avocados offering shoppers a $1.50 rebate at purchase. The organization also offers retailers a digital toolkit with Cinco de Mayo assets for circular ads, social media, and e-commerce platforms.

It pays to promote other produce items, like limes and mangos, two weeks or more in advance.

“This (time frame) allows for multiple promotional cycles, giving shoppers ample time to stock up as they plan their celebrations. Consumers typically prepare for the holiday by purchasing ingredients for festive meals and drinks, making it essential to position limes prominently in high-traffic areas,” says Wonderful Citrus’ Lafite.

The NMB’s Ojeda agrees. “It’s important to consider the broader retail landscape. This year, for example, with Easter falling late on April 20, a two-week promotional period post-Easter is particularly strategic.”

CREATE A SELLING FIESTA

Build one-stop-shop destination displays for Cinco de Mayo, suggests Peter Shore, vice president of product management at Calavo Growers Inc., in Santa Paula, CA. “Merchandise all ingredients together, including avocados, tomatoes, chiles, limes, lemon, garlic, and other festive guacamole and salsa items.”

Place secondary displays of avocados near store entrances or adjacent to the produce department, the CAC’s Splane adds.

Cross-merchandising for Cinco de Mayo can create the feeling of a fiesta store-wide, says Fresh Innovations’ Murray. “From big cold cases at the front of the store with a mix of Cinco de Mayo dips, spreads, meats and drinks to small coolers around the store to remind consumers to grab their guac and salsas for their Cinco parties, retailers can create exciting displays that consumer engagement and drive sales.”