18 minute read
The future for Avocados From Mexico
THE RISE OF THE AVOCADO
Suzi Neel Moisés Cervantes A conversation with Alvaro Luque, President and CEO, Avocados From Mexico (AFM)
What have been the most relevant achievements for AFM in the last years?
AL: Avocados From Mexico was created with a dual responsibility: to promote a brand for Mexican avocados and grow the demand for the fruit in the U.S. Since our inception, we’ve been successful at both and in the process, we’ve become the most innovative produce brand – we have fundamentally changed the way produce marketing is done in our industry and for our category.
In only eight years, we have doubled the volume of Mexican avocado imports – from 1.2 billion pounds in 2014 to 2.4 billion pounds in 2021. Today more than 8 out of 10 avocados come from Mexico. We’ve also increased brand preference from 20% in 2013 to more than 55% in 2020, making AFM the number one brand of avocados in the U.S.
What do you think is driving the boom in Mexican avocado imports?
AL: According to a recent economic impact report conducted by Texas A&M University, Mexican avocado imports achieved record-breaking impact in 2021/22 and have driven significant growth. The factors behind this boom in Mexican avocado imports include a dramatic rise in U.S. demand for avocados and an equally dramatic increase in the avocado import economy and supply from Mexico.
The demand in the U.S. is driven largely by growing diverse populations, especially Hispanics for whom guacamole and avocados are a staple. Now, guacamole and avocados are becoming a staple in Non-Hispanic households as well. Also, an increase in awareness of the health benefits of avocados combined with consumer trends towards healthy and ethnic foods is driving consumers to purchase the fruit.
Hass avocados now comprise about 95% of all U.S. avocado consumption and are the most widely available. Because avocado trees bloom year-round in Michoacán, it is the only region sending Hass avocados to the U.S. 365 days a year. Now, with the recent addition of avocados from the Mexican state of Jalisco, the industry’s ability to meet year-round demand of avocados in the U.S. is further enhancing.
What impact does the avocado industry have on U.S. and Mexican economies?
AL: The story of Avocados From Mexico is one of collaboration, with a win-win outcome for the U.S. and Mexico. Avocado imports from Mexico to the U.S. have served as an economic engine for both sides of the border, generating economic output in the U.S. and jobs and trade benefits for both countries.
The economic analysis performed by Texas A&M identified numerous contributions to the U.S. economy as Mexican avocados move through the food supply chain and stimulate various market activities. The contributions include: $11.2 billion in economic output; $6.1 billion to the U.S. GDP (value-added); 58,299 U.S. jobs; $3.9 billion in labor income; and $1.3 billion in taxes.
In addition to fueling the U.S. economy, the industry opens opportunities in Mexico, where avocado farming continues to be a feasible and reliable business venture. The Mexican avocado industry creates approximately 78,000 direct and permanent jobs and more than 300,000 indirect and seasonal jobs, with more than 30,000 growers and 74 packers.
How does the consumer benefit from the successful trade relationship between U.S. and Mexico?
AL: The success of the Mexican avocado industry in the U.S. is a win for consumers. It not only shows that trade between the U.S. and Mexico can be successful, but it also delivers the best avocados to American shoppers. Through AFM, consumers receive healthful avocados that are the freshest, arriving from Mexico in three to five days, and are the highest quality product, with every avocado exported to the U.S. meeting strict dry matter testing requirements. The dry matter test ensures avocados in the U.S. have an adequate oil percentage, which provides the fruit with optimal consistency and delicious taste.
What is your vision for the organization within the next years?
AL: Our vision at AFM is to become the most innovative produce company in the world, and we’re doing just that. We’re bringing consumers a quality product that has three important things that they love: avocados taste good, they’re good for you, and they bring good times. The industry provides economic benefits to both the U.S. and Mexico – that’s a win-win-win.
Luisana Rodríguez Courtesy of Adsmovil Luis E. González
BUILDING CONNECTIONS THROUGH HERITAGE
ALBERTO "BANANO" PARDO
CEO AND FOUNDER OF ADSMOVIL AND NUESTRA.TV Alberto Pardo, often known as 'Banano', leads a minority-owned company with over 25 years of expertise in the Hispanic mobile advertising and digital industry. He is a Colombian-born and raised businessman, one of several Latinos working in AdTech in the United States.
Pardo has a bachelor's degree in industrial engineering from his home country, an MBA from the University of Saint Thomas, with a marketing specialization. Regarding his professional history, he has an exciting mix of senior tech expertise in startups, marketing agencies, and eCommerce. "After my MBA, I returned to Colombia and founded a company called deremate.com, which was pretty large in Latin America at the time, and sold it in 2007," he recalls. Following his passion for innovation, he launched another digital business focusing on search marketing: "I believe it was the first search marketing firm in Colombia at the time."
Understanding the cultural factor is critical for him in any sector. That's why he likes to recall the huge Blackberry moment in Latin America, which coincided with the iPhone explosion in the United States during the last decade: "Blackberry was the first pre-smartphone we had in Latin America before Android came in with Samsung, Motorola, or Nokia."
Pardo feels that when you are a minority, obstacles will always arise. As a Latino, one of these challenges is obtaining financial investment, if you are not a large corporation. "The second thing to understand is that the Hispanic market is distinct from the overall market. We all reside in the United States, speak English, pay in dollars, and visit the same sites as the general public. However, the way to engage with Latinos is different," Alberto says.
According to Pardo, the primary goal is to empower and serve the Hispanic market, the largest minority market in the U.S. The secret is to develop emotional connections based on the language, behaviors, and content people consume from Latin America's 30+ countries. "Market connection should happen despite cultural differences and different locations."
The entertainment component is vital for bilingual and bicultural Hispanics and their families. This is how Admovil's new project, Nuestra. TV, came to light. Alberto explains that as an advertising-based, free, video-on-demand service featuring productions from the United States, Latin America, and Spain and educational content, "We are pleased to serve the largest minority market in the United States and the globe, which is the Hispanic market." Even after its initial launch, the site includes over 40 FAST channels and 15,000 hours of premium on-demand content. “We will have lots of different types of content, from wellness and education to gaming and music,” he says.
After all, Pardo still wants to achieve new objectives for the company. Dreams are the fuel that drives every entrepreneur to reach their goals, from striving to establish a billion-dollar company to becoming one of the most relevant Latino TV platforms in the United States. Colombian Alberto Pardo gets to work every day in something he has studied for decades.
PEDRO LERMA
LERMA/ AGENCY: CHANNELING CREATIVITY FOR GOOD
Johanna Hoyos Stewart Cohen Pictures F. Izquierdo THE FOUNDER OF LERMA/ AGENCY, Pedro Lerma, was born in Dumas, Texas. He had hard working Mexican parents who both worked at a meatpacking plant. After graduating high school, Pedro attended Midwestern State University (MSU) in Wichita Falls, Texas. He explains that it was more a social experience for him than an educational experience. As a result, Lerma ended up not finishing. However, Pedro is proud to share that he is completing his bachelor's degree this December at 53. While at MSU, Lerma worked selling airtime for a radio station. Through that experience, he met Craig Draper, who owned an advertising agency. One day, Draper asked Pedro, “Why don’t you come to work for me?” Pedro thought that seemed like a pretty good idea. He had enjoyed visiting the agency and meeting the team, so he accepted the job and began his journey as an ad man.
In 1998, Lerma moved to Dallas and started working for The Richards Group, one of the most prominent advertising agencies in the country. He began as an account supervisor within their digital division, where he showed initiative in how to run the operation, make it competitive, and monetize the work. He was eventually made Principal of the group. Under the mentorship of Dick Mitchell – the division's Managing Principal- Lerma built the company to 120 people, the most prominent affiliate within The Richards Group's family of companies. Eventually, Lerma was asked to launch a Hispanic division there. Pedro thought to himself, “I can do this. I’ve been trained in one of the best agencies in the world to connect brands and people through creativity, and now I'll do that for the Hispanic market." As a result, Richards/Lerma launched in 2009. The agency was conceived as a full-service agency, but with his digital background, it had a clear advantage in what it could offer clients. Not only could the agency deliver television, radio, print and outdoor creativity, but Richards/Lerma could guide clients into digital and social media with more capability than any Hispanic agency in the country. “I am a big fan of innovation. I feel lucky that I grew up in a digital world where I had to adapt constantly or become irrelevant. It made me embrace change,” says Lerma. That makes him a visionary leader who is always at the forefront of market changes, whether digital or creative.
Although based in the United States, Richards/Lerma eventually expanded into Mexico. It allowed for international business experience and expansion. He admits there was a significant learning curve in doing business in another country. But his attitude to most challenges is to learn, adapt and improve. And it’s because of that attitude that he’s been able to reinvent himself and the agency, time and time again, to stay ahead of the pack. And speaking of reinvention, in April of 2021, the agency separated from The Richards Group and became an independent, minority-owned agency and changed its name from Richards/Lerma to simply, LERMA/.
The Hispanic market has changed dramatically due to demographic shifts in the United States. Today, Hispanics are the fastest-growing market segment, and most of that growth comes from U.S.-born Hispanics. And with marketers expecting more and more from smaller advertising budgets, they can easily reach for easy solutions in an increasingly complex market. The result, at times, has been to assume that they can get the Hispanic market with their general market (English language) efforts. The flaw in that thinking is that Hispanic influence in the U.S. is at an all-time high. That influence represents a significant opportunity for marketers and their brands. But they have to change the way they think.
“2020 was a year of multicultural awakening," says Lerma. The George Floyd murder caused a moment of reflection in society, corporate America, and advertising. Brands came out with public pledges to do better with how they engage with their multicultural customers, employees, and communities. It was, of course, focused on the Black community, but the multicultural society took notice of those promises. Promises to hire and promote more people of color, to contribute to causes that benefit underrepresented communities, to hire more diverse suppliers, and to spend more on minorityowned media. And to the extent that they live up to those promises, they will be doing the right thing, but they will also see a significant return on investment.
“Our time is now,” says Pedro. For years we saw Black Influence on American culture – in music, film, business, and government. “I applaud how that community has united to make those things happen. And I’m starting to see our Latino community do the same.” That influence is seen in music, where Bad Bunny is the biggest artist in the world – singing in Spanish. It is also seen in blockbusters like The Heights, Coco, and Encanto. And we’ve begun to see it in politics and business as well. That influence means brands can lead with insights and creativity rooted in Hispanic culture, even in their general market work. The result can connect with our community and appeal to the masses simultaneously.
“We are at a time when our ethnic and racial identities should not be hidden; rather, they should be embraced and celebrated by society as a whole,” emphasizes Lerma. “People have come to value more diversity of race, ethnicity, thought and life experiences, and so, the idea of being your whole self is a real possibility for everyone.”
LERMA/ Agency recently completed the construction of their new offices in downtown Dallas. As a part, the agency continues to focus on the future and innovation. Part of their new office includes an emerging technologies lab focusing on Web3.0 and e-Sports. Young people spend more time in gaming environments than watching television. This enormous shift will dominate the future of American culture and brand building, and LERMA/ will lead the way.
For additional information about the agency and its capabilities, visit:
https://lermaagency.com/
CONNECTING PEOPLE THROUGH FOOD Luana Ferreira Joel Allegretto Moisés Cervantes
SARAH ZUBIATE
FOUNDER AND CEO OF ZUBI’S
Founder and ceo of zubi's, Sarah Zubiate, has created a company that honors her heritage and transformed salsa and dips into healthier allergenfree alternatives.
Sarah Zubiate doesn't hide her passion for when it comes to food, health, and family. She brought it all together when she created zubi’s, a plant-based company that offers a healthier version of Latin salsa and dips. Sarah found the inspiration for the brand in her upbringing - perhaps that's the secret behind its success.
She was adopted at birth by Gloria and George Zubiate, a couple in their 40s. When Sarah realized her parents had many health problems and would not change their eating habits, she knew it was useless trying to change their minds. Instead, the entrepreneur created a healthy version of salsa and dips they used to have at home. When her parents finally approved them, she realized she could share them with more people.
zubi’s was founded in 2017, and the name is inspired by the family who raised Sarah. The brand brought products that are part of Sarah's affective memory; she knows that food has the power to bring people together. "My mission is connecting people through food. I've launched the company because I love food, and it's culturally relevant," Sarah says.
Sarah noticed that many plant-based products have nuts, so she developed salsas and dips that people with nut allergies could eat. zubi’s then launched delicious options that are 100% plant-based, gluten-free and Top-8-Allergen-Free.
The Dallas-based company started selling the products at farmers' markets in Dallas. They can now be found at prominent retailers such as Whole Foods, Central Market, Sprouts, Amazon and online. In the future, Sarah plans to expand and sell to hotels and restaurants and add new products to their portfolio, such as snack packs. zubi’s has grown without institutional investors, has only used her own funds and a handful of family and friend investors, as Sarah was concerned it could jeopardize her Minority and Latina-Owned business certifications. The entrepreneur spent the last years developing zubi’s base and understanding where she wanted to grow. "I now feel that that could be a potential shift in the next few years where I would accept external funds from someone in the consumer product goods industry."
Sarah is familiar with the feeling of being underestimated for being a Latin woman, but she turns it in her favor. "After getting to know me, the respect grows pretty quickly. And so that's probably one of the larger aspects of my corporate and entrepreneurial career," Sarah adds.
Before being an entrepreneur, Sarah worked in the finance. Motherhood shifted her perspective, feeling the need to change. During her corporate career, she became familiar with analysis, industry projections, and market research. Still, she wishes she had had the chance to have "hands-on exposure" before.
Sarah is also no stranger to wearing multiple hats. She is the co-founder and director of Dallas Express, a non-biased newspaper based in Dallas. She is also a board member of the Metropolitan Civic and Business Association, aiming to create systems of dfw employees who are engaged in their communities, help Dallas to grow responsibly, and to partner with charities who improve systemic problems like homelessness.
For the new generation of Hispanic and female entrepreneurs, Zubiate believes they need courage and hope. "We might all be from different backgrounds. But I hope that people can embrace their upbringing and background and use it as a form of inspiration, power, diversity, and courage."
RUDY D. GARZA EMPHASIZES COMPANIES SHOULD REFLECT THE COMMUNITIES THEY SERVE
The first Hispanic President & CEO at CPS Energy is leading the company at a crucial moment for the energy industry
Luana Ferreira Vincent McDonald F. Izquierdo
CPS Energy President & CEO photographed with leadership team members. From left to right: Rick Maldonado, Melissa C. Sorola, Jonathan R. Tijerina, Rick Medina, Rudy D. Garza, Maria Garcia, Richard Lujan, Julie Johnson, Rick Urrutia, LeeRoy Perez, and Loretta Kerner.
RUDY D. GARZA, President & CEO at CPS Energy, oversees the nation’s largest municipal electric and natural gas utility serving the city of San Antonio, and several surrounding counties, at a time when the industry is rapidly changing. Garza is optimistic about the future; tackling the issues of carbon emissions and staying on the cutting edge of the industry are some of the main challenges ahead. "We're in a different world related to the utility business and it's super exciting. We've laid out a five-year strategic plan to help us get through this kind of transition phase we're going through right now," says Garza.
The utility is focused on assessing how to replace its aging power plants and planning to meet the energy needs of a growing population. The changes also demand skilled professionals for the energy industry, which must compete with other business sectors to hire the best talent. According to Garza, CPS Energy is currently hiring "as many employees as possible," especially IT roles, engineers, and call center energy advisors. "Fifty percent of our employees can retire over the next five years. We have to plan for that," he explains.
Garza leads a team of approximately 3,000 employees. He strives to build a real connection with them, on a personal level and believes it’s the best way to engage team members. Garza knows that being the first Hispanic CEO in the company is a milestone for the community, and he is confident that other Hispanics will have the same opportunity when his tenure is complete.
Seeing minorities in leadership positions was a big factor in Garza’s decision to join CPS Energy ten years ago. Initially, he wasn't sure that it was possible when he observed the leaders at other companies. "If you look up an organization's leadership chart and you don't see people that look like you, you have to question whether or not you're going to get an opportunity to get there."
Nearly 65% of San Antonio's population is Hispanic and the city is the largest majority-Hispanic city in the U.S. Garza highlights the importance of people working for organizations that reflects the community. "There aren't a lot of Hispanic CEOs in the country, in any industry, much less the utility industry. I'm proud CPS Energy is one of those organizations that selected their CEO to reflect the diversity of our community," he expressed.
“If you're going to come up through a corporate environment, you have to be educated and work hard every day. And once you get there, you have to work hard every day to earn it. You've got to prove that you're worthy of these opportunities daily,” Garza shared.
Garza believes that Hispanics who are starting their career should not fear change when they don’t believe they fit in an organization, and they should also be vocal about their expectations. "I have never settled. You have to tell people what you want with your career goals and ask for that raise because you deserve it. You must be vocal about what it is that you want. I can guarantee you nothing will happen if you don't speak up."
Nearly 65%
of San Antonio's population is Hispanic, and Garza highlights the importance of people working for an organization that reflects the community.
