The 7 P’s of Guacamole Merchandising

Applying the 7 P’s of the marketing mix to prepared guacamole merchandising supports greater produce sales.

Soaring avocado consumption is driving demand for prepared guacamole, and the produce department is a perfect fit for merchandising this fresh item.

Jay Alley, co-owner/vice president of sales at Fresh Innovations/¡Yo Quiero! Brands in Rhome, TX, says the avocado boom has contributed to the creation and sales of the prepared guacamole category. “Consumers purchase prepared guacamole because they don’t have to wait for avocados to ripen or spend time in the kitchen cutting, mashing and mixing.”

The refrigerated guacamole category has experienced significant growth over the last several years, with a four-year compounded annual growth rate for sales growth of 5.7% and 4.2% for volume, according to Chris Monahan, senior brand manager of refrigerated dips for MegaMex Foods (WHOLLY brand) in Orange, CA. “Promoting the category will help acquire and retain consumers to ensure continued growth.”

While guacamole is sold in both deli and produce, sales have steadily shifted to produce over the past 20 years, and “it now outsells deli,” says Ardy Haerizadeh, senior vice president sales and operations at Calavo in Santa Paula, CA. “Placing ready-to-eat guacamole in produce aligns with shoppers’ fresh and healthy mindset, enhancing their experience and increasing basket size.”

Reyna Graves, director of merchandising vegetables and floral at Sprouts Farmers Market in Phoenix, AZ, with more than 440 stores, explains offering guacamole in the produce department makes it easy for shoppers to discover a ready-to-eat option. “By positioning guacamole alongside fresh avocados and complementary ingredients, we create a seamless shopping experience that highlights both convenience and inspiration.”

Focusing on seven key elements can boost the category.

PRODUCT

The prepared guacamole category offers a plethora of products. “Variety in both flavors and packaging sizes is essential to meeting the evolving needs of today’s shoppers,” says Graves. “Consumers seek options that fit their unique preferences — whether classic guacamole, a spicy kick, or a more adventurous flavor blend.”

Prepared guacamole has two types of packaged executions, explains Joshua Kusske, director of new product development, Fresh Del Monte in Coral Gables, FL. “These are HPP (high-pressure processed) versions and fresh-prepared versions. Fresh Del Monte provides fresh prepared guacamole, with or without pico de gallo, and no artificial ingredients, delivering homemade taste and creamy texture.”

GoVerden products, made in Plano, TX, are an example of the utilization of the HPP process, which allows an extended shelf life without the use of any chemicals or additives, explains Rick Joyal, vice president of sales. “GoVerden Guacamole and GoVerden Perfectly Ripe Avocado are also non-GMO Project certified.”

The Mango Habanero Guacamole of La Bonanza Avocados in Mission, TX, features a blend of two fresh fruits and a variety of spices. “This makes it an ideal fit for the produce category,” says Valeria Villaseñor, vice president of commercial.

Calavo’s flavors range from classic mild to chunky guacamole with fresh chopped veggies and an extra-spicy option for heat lovers, says Haerizadeh.

MegaMex’s WHOLLY brand launched several new products in the last year, starting with WHOLLY Guacamole Extra Chunky Restaurant Style.

¡Yo Quiero!’s guac flavors include Original, Chunky, Chunky Spicy Hatch Chile and Avocado Salsa Verde, according to Tara Murray, vice president of marketing at Fresh Innovations. “Our lightly branded products in fresh-cut containers match the products in the produce fresh-cut set,” she says.

Mix pouches can be merchandised next to fresh avocados for shoppers making their own guacamole. “Concord’s Fresh Success Guacamole Mix makes it easy to prepare perfectly seasoned guacamole,” says Samantha McCaul, senior marketing manager at Fresh Gourmet Company in Westlake Village, CA. “Our newest guacamole mix is organic.”

PACKAGING

Packaging supports different usage occasions, from single-serve portions for on-the-go snacking to larger sizes for gatherings and meal prep, states Graves. “By offering a range of choices, Sprouts is not only enhancing shopper convenience and discovery, but also ensuring guacamole remains an accessible and versatile staple for all kinds of consumers.”

Shoppers often evaluate the occasion when purchasing guacamole. “This determines the size of the product they want to purchase,” says Monahan. “From single-serve minis, perfect for snacking or on-the-go meal occasions, to 7-ounce cups for a family taco night, to a 15-ounce cup for entertaining, each of these sizes plays an important role in delivering incremental purchases to the category.”

Carrying more size offerings increases sales, agrees Jim Sullivan, produce merchandiser at Yoke’s Fresh Markets in Spokane, WA, with 19 stores.

“The party sizes work for gatherings and the individual sizes for people to snack or take in lunches,” he says. “The individual ones also work well for smaller household sizes that only need a single serving at a time. For New Year’s, Super Bowl, Cinco, we promote 15-ounce tubs, but we promote 8-ounce tubs for regular fall football weekends.”

Calavo has introduced a unique Guacamole Squeeze Pouch. “This newest product offers the convenience of a ketchup squeeze bottle, but in a clear pouch, allowing visibility and mess-free dispensing, and staying green for two weeks after opening,” says Haerizadeh.

PLACEMENT

Successful merchandising places product for visibility, but also considers refrigeration requirements. “Merchandising requires a combination of visual appeal, freshness and strategic placement to attract customers and boost sales,” says Nuno Baptista Miranda, Fresh Del Monte senior brand manager.

Since prepared guacamole requires refrigeration, Sprouts prioritizes refrigerated endcaps or coolers in the produce section to maintain peak freshness, according to Graves. “Guacamole kits, depending on their ingredients, may be displayed in ambient produce sections, but those with pre-cut ingredients require refrigeration.”

Cross-merchandising adds ring and offers convenience to customers. Mixes, such as Concord Foods products, can be placed in fresh avocado displays. “Build displays with the customer in mind. What other items are they buying?” says McCaul. “The best placement is on the shelf, adjacent to relevant fresh produce items.”

Secondary merchandising displays, especially during key promotional times, create visibility for consumers and draw attention to the category, suggests Monahan. “Increasing visibility of the category during key consumption periods benefits continued category growth.”

Since prepared guacamole must be refrigerated, ¡Yo Quiero!’s Alley recommends cross-merchandising by building around the product. “Create multi-product displays at the front of the store using refrigerated cases,” he suggests.

Sullivan at Yoke’s uses ice tables during big promotions, as well as refrigerated tables. “We capture extra sales by putting tables in a prominent position in the front of the store where there is heavier traffic,” he says. “You can tie in chips, salsas, and other sizes and flavors.”

PEOPLE

Merchandising to specific demographics also builds sales. “It’s important to understand the specific audience and tailor promotions accordingly,” says Fresh Del Monte’s Baptista. “For example, younger generations tend to respond to social media campaigns and interactive content, while older audiences tend to prefer traditional media. It’s also important to tailor the messaging and design according to the target.”

Develop displays that guarantee freshness first, visual appeal and with proper and optimal placement near high traffic areas.

— Nuno Baptista Miranda, Fresh Del Monte, Coral Gables, FL

Age-wise, Haerizadeh suggests focusing on fun, healthy snacking with convenient guacamole packs for families and children. “For Millennials and Gen Z, highlight trendy flavors, sustainability and convenience.”

For ethnic shoppers, focus on authenticity. “Hispanic consumers may respond well to authentic flavors and traditional pairings,” says La Bonanza’s Villaseñor. “But, targeted promotions highlighting freshness, quality and flavor can resonate across various demographics.”

For seniors and health-conscious consumers promote health, says Concord’s McCaul. “Emphasize benefits such as heart health and brain function.”

PRICING AND PROMOTION

A variety of price and promotion strategies support the category. “Price promotions tied to peak consumption events are most effective, including BOGOs, TPRs, social media and influencer campaigns, digital coupons, and Instacart promotions,” says Calavo’s Haerizadeh.

Use live demos and sampling to introduce shoppers to new flavors, recommends Villaseñor, and signage and messaging should emphasize freshness, quality and versatility. “In 2025, digital marketing will be a major focus for La Bonanza. Promotional strategies, such as targeted digital coupons, loyalty program discounts, and limited-time bundle deals can help drive trial and repeat purchases.”

The WHOLLY brand engages consumers from traditional media outreach to social media content to digital ads. “For in-store activations, we recommend working with a sales representative to find the optimal utilization of trade dollars for stores,” says Monahan.

¡Yo Quiero!’s push-pull strategy works well to increase trial and multiple purchases, explains Murray. “We provide trade deals allowing retailers to offer the product at a great price, then work with media networks to provide digital coupons to increase purchase incentives,” she says. “We do this at strategic times of year to drive sales and increase brand awareness.”

PROCESS

Though guacamole has peak holiday demand, stores should consider their process year-round. “Usually, we see peak promotional activities during key holidays and events that drive high demand,” says Fresh Del Monte’s Kusske. “Examples include football championship games, Cinco de Mayo, Easter, summer holidays, Mother’s Day and Memorial Day.”

¡Yo Quiero! focuses much of its promotion dollars on high avocado consumption holidays, says Murray. It provides retailers with “great deals to create excitement on the shelf,” she adds. “These holidays are very exciting at retail, and retailers do a great job highlighting just the right products.”

Though sales spike during these periods, avocados and guacamole are also key components of a healthy diet, Villaseñor notes. “This makes them a great option for year-round promotions alongside other better-for-you products, such as hummus and plant-based dips.”

Spring and summer are a constant growth period and hold for a longer time than major sporting events or holidays, asserts GoVerden’s Joyal. “Bathing suit season is ideal for creating long-term shopping habits for light, healthy and convenient food options.”