In 2014, the U.S. nonalcoholic beverage industry, which includes carbonated soda, tea, coffee, and sports drinks, surpassed $50 billion in sales with an annual growth rate of 3%.5 Consumers are shying away from sugary products and are increasingly demanding more health-oriented alternatives, sparking growth in the functional beverage category.5,6 This category is comprised of tea, juice, sports drinks, and meal replacement drinks, all of which contain vitamins and minerals to provide consumers with multiple health benefits in a single beverage.7 The functional beverage category steadily grew 4% from 2013 to 2014, garnering sales of $23.7 billion in 2014.7 Tea boasted a 2.1% growth rate, reaching $4.1 billion in total sales in 2013.8 The tea market is forecasted to expand by 5% per year over the next few years as consumers continue turning to tea as a healthy alternative to sugary beverages.8 Refrigerated ready-to-drink (RTD) teas are among the main drivers of the overall tea market, increasing 7% in 2013 to reach $688 million in sales.8 Smaller market players are predicted to account for future growth as they begin to command shelf space by incorporating unique ingredients to rival current conventional options.8

Consumers have shown a willingness to invest in their wellness by purchasing healthy beverages at premium prices.9 Of leading nutrient claims sought by consumers, antioxidants rank highest, capturing 71% of consumer demand.10 To solidify purchasing decisions, health-conscious consumers seek out products with minimal processing and few ingredients.11 RTD functional beverages are purchased at Whole Foods, Sprouts Farmers Market, and independently owned natural grocery stores, where 40% of all natural and organic food and beverage sales occur.12

The avocado, featuring a distinct flavor and superfood qualities, has quickly become “America’s new favorite fruit.”1 However, consumers unknowingly throw away the most antioxidant rich part of the avocado — the seed.2,3 The avocado seed holds 70% of the fruit’s antioxidants, which can be extracted by boiling.2,3 For centuries, Central American cultures recognized the seed’s benefits by using it in a beverage to treat ailments.4 In today’s marketplace, no avocado seed beverage is commercially available.

CalPure, a grower-owned company based in Southern California, purchases culled avocados unfit for the fresh market to produce avocado oil. The flesh of the avocado is pressed into oil, resulting in an abundant supply of seeds. CalPure is looking to capitalize on the seed’s potential while providing additional revenue to California avocado growers. Contracted by CalPure, Pacific Marketers designed this marketing plan to introduce consumers to the seed’s untapped health benefits in a flavorful avocado seed infused beverage.

Avocado consumption has doubled since 2005 and is experiencing 10% annual growth.1 Meeting this rise in demand, U.S. production reached 270,000 tons in 2014.13 California is responsible for 90% of U.S. avocado production.14 Avocado culls, which include fruit with splits, gouges, or other skin blemishes that compromise the flesh, account for 2% of the total crop.15 Although culled fruit is not used in the fresh market, it is processed into value-added products such as guacamole and avocado oil.15 Avocado seeds are sold online as a powdered supplement; however, the current seed market is relatively small.15 So far, other profitable outlets for the avocado seed have been overlooked.

1Ferdman, R. (2015, January 22). “The Rise of the Avocado, America’s New Favorite Fruit.” The Washington Post. https://www.WashingtonPost.com/news/wonk/wp/2015/01/22/the-sudden-rise-of-the-avocado-americas-new-favorite-fruit/ 2Macropoulos, K. (2015, October 6). “What is the difference between brewing and steeping tea?” Livestrong. www.livestrong.com/article/480185-what-is-the-difference-between-brewing-tea-steeping-tea/ 3Surukite, O., et. al. (2013). “Qualitative Studies on Proximate Analysis and Characterization of Oil from Persea America-na (Avocado Pear).” Journal of Natural Sciences Research. www.iiste.org/Journals/index.php/JNSR/article/viewFile/4367/4430 4Dabas, D., et. al. (2013). “Avocado (Persea Americana) seed as a source of bioactive phytochemicals.” National Center for Biotechnology Information, U.S. National Library of Medicine. www.ncbi.nlm.nih.gov/pubmed/?term=Avocado+(Persea+americana)+seed+as+a+source+of+bioactive+phytochemicals. 5Hoover’s Inc. (2016, January 11). “Nonalcoholic Beverage Manufacturing.” In-depth Record. www.Hoovers.com 6Marigny Research Group, Inc. (2011, May 1). “Functional and Natural Ready-to-Drink Beverages in the U.S.: Energy Drinks, Sports Drinks, Functional Waters, RTD Tea and Coffee, Yogurt Drinks and Smoothies.” Packaged Facts. www.MarketResearch.com 7Euromonitor International. (2015, April 22). “Fortified/Functional Beverages in the US.” http://euromonitor.com 8Kaleidoscope Research Consulting. (2014, March). “Tea and Ready-to-Drink Tea in the U.S.: Retail and Foodservice, 5th Edition.” Packaged Facts. www.MarketResearch.com 9Nielsen. (2015, February 19). “Despite Growing Health Sales, Consumers are Caught with Their Hands in the Cookie Jar.” www.nielsen.com/us/en/insights/news/2015/despite-growing-health-sales-consumers-are-caught-with-their-hands-in-the-cookie-jar.html

10Tecklenburg, E. (2014, November 21). “Functional Foods: Key Trends & Developments in Ingredients.” Packaged Facts. www.MarketResearch.com

11Waxman, H. (2014, February). “Food Ingredient Trends: Ingredients Consumers Avoid.” Packaged Facts. www.MarketResearch.com 12Porjes, S. (2014, July). “Natural and Organic Foods and Beverages in the U.S., 4th Edition.” Packaged Facts. www.MarketResearch.com 13Hass Avocado Board. (2015). “Avocado Volume Data 2015.” www.hassavocadoboard.com/shipment-data/historical-shipment-volume/2015 14California Avocados. “The Journey from Tree to Plate.” www.californiaavocado.com/the-california-difference 15Barnard, B. (2016, January 8). “Personal Communication.” 16Gonzalez, R., et. al. (2011, April). “Effects of flavonoids and other polyphenols on inflammation.” National Center for Biotechnology Information, U.S. National Library of Medicine. www.ncbi.nlm.nih.gov/pubmed/21432698 17Webb, Dr. D. (2013, September). “Phytochemicals.’’ Role in Good Health. Today’s Dietitian. www.todaysdietitian.com/newarchives/090313p70.shtml 18National Institute of Diabetes and Digestive and Kidney Diseases. (2014, September). “Crohn’s Disease.” U.S. Department of Health and Human Services. www.niddk.nih.gov/health-information/health-topics/digestive-diseases/crohns-disease/Pages/facts.aspx#top 19Go Red for Women. (2016). “Donate to Go Red for Women.” American Heart Association. https://www.goredforwomen.org/home/get-involved/donate-to-go-red-for-women/

Chronic inflammation begins in the digestive system and can be caused by a combination of factors, including poor diet, stress, infections, and medications.18 Polyphenols support healthy intestinal flora that, in turn, reduce inflammation.17

Inflammation weakens the immune system, making the body susceptible to many diseases, especially heart disease, America’s leading cause of death.19 Polyphenols support heart health by keeping dangerous pathogens out of the bloodstream.17

The seed contains a high concentration of polyphenols, the powerful antioxidants found in chocolate, berries, and tea.4 These chemical compounds support overall well-being by combatting inflammation, a

chronic health condition among many Americans.16,17

As competition increases in the healthy RTD market, beverages differentiate themselves by incorporating unique ingredients offering added health benefits.20,21 In 2013, Synergy Kombucha gained a majority share of the $350 million kombucha market by highlighting its probiotics and organic ingredients.22 Mamma Chia, a “conscious and sustainable company,” is expected to reach sales of $23 million in 2016 with its organic chia seed infused drink line.23 In 2015, POM Wonderful’s pomegranate juice from concentrate reached $942 million in sales.24 The functional beverage market also includes RTD teas that offer antioxidants and flavorful varieties. By focusing on organic, fair trade beverages, Honest Tea had 30% unit sales growth in 2014.25 Two smaller market players, Tazo Tea and Yerba Mate by Guayaki, made significant gains in 2015. Tazo reached $35 million in sales by sourcing ingredients globally and promoting social responsibility.26 Yerba Mate totaled approximately $9 million in sales by marketing an environmentally sustainable product packed with antioxidants.27 While these companies have seen success, none have married the health benefits of a unique superfood beverage, like Mamma Chia, with the simplicity of a tea, like Tazo.

IRI identified two main consumer segments in the functional food and beverage category: Enlightened Environmentalists and True Believers.28 Each group represents 9% of the U.S. population, and together are responsible for 46% of natural and organic product sales.28 Enlightened Environmentalists prioritize sustainable packaging, organic ingredients, and social consciousness. This group questions product label claims and, therefore, only buys products they know and trust.28 True Believers seek new products based on their distinct nutrient claims, such as antioxidants, and prioritize natural health and wellness when making purchasing decisions.28,29 These individuals spend most of their food budget at natural chain food stores, like Whole Foods and Sprouts Farmers Market, as well as independently owned natural grocery stores.29 True Believers are 35-54 year old women with annual household incomes of $100,000+.28 They are busy working professionals who are connected and up-to-date on the latest trends.28 They are also influential role models to their families and communities.28 Most of all, True Believers are strong individuals who value a balanced life of health and wellness.28 There is a high density of True Believers in the Western U.S., with an estimated 6.6 million in California.28,30 Pacific Marketers identified True Believers as the ideal market segment for introducing a new healthy RTD beverage.

Women

Ages 35-54

HHI $100,000+

Balanced, connected, role models

6.6 million in CA

Pacific Marketers surveyed 573 individuals living on the West Coast regarding their beverage purchasing habits. Respondents over the age of 35 who recently purchased a healthy RTD beverage indicated:

Flavor and health benefits are their top priorities

Antioxidants, digestive health, and anti-inflammatory properties are important factors when purchasing healthy RTD beverages

Word-of-mouth, social media, and in-store samples are the most common ways to find out about new healthy RTD beverages

After respondents over the age of 35 were exposed to a product concept:

Two-thirds are 70-100% likely to purchase an avocado seed infused beverage

74% would purchase an avocado seed infused beverage priced $2.00 - $3.99

Ample, low cost supply of seeds

CalPure’s existing retail network

CalPure’s proximity to True Believers and avocado seeds

CalPure’s sourcing connection with avocado packers

CalPure lacks experience in the beverage market

No in-house means of manufacturing

CalPure has no source for added ingredients

Seasonal U.S. avocado harvest could fluctuate beverage production

Potential of new market entrants into avocado seed beverages

Dependence on co-packer’s input prices

Regulation of food safety and labeling

Avocado seed benefits are not well known

Consumer focus on antioxidants and few ingredients31,32

The avocado seed’s high antioxidant properties33

Functional beverage industry is on the rise34

Avocado’s established reputation as a superfood35

20Tecklenburg, E. (2014, November 21). “Functional Foods: Key Trends & Developments in Ingredients.” Packaged Facts. www.MarketResearch.com 21Berry, D. (2013, July 8). “On the cusp of a healthy beverage boom.” Food Business News. www.foodbusinessnews.net/articles/news_home/Consumer_Trends/2013/07/On_the_cusp_of_a_healthy_bever.aspx?ID=%7BDED3B302-3A58-4800-96B1-10EED116B8F4%7D&cck=1 22Theeboom, S. (2015, March 27). “One Company Owns the Multi-Million Dollar Kombucha Market.” First We Feast. www.firstwefeast.com/drink/one-company-owns-the-multi-million-dollar-kombucha-market/ 23Hoovers, Inc. (2016). “Mamma Chia, LLC.” In-depth Record. www.Hoovers.com 24Hoovers, Inc. (2016). “POM Wonderful Holdings, LCC.” In-depth Record. www.Hoovers.com 25Honest Tea. (2014). “Honest 2015 Mission Report.” https://www.honesttea.com/wp-content/themes/honesttea/assets/pdf/HT_MR_2015_web_FINAL.pdf 26LexisNexis. (2016, February 8). “Tazo Tea Company, Zoom Company Information.” LexisNexis In-depth Record. www.LexisNexis.com/ 27Hoovers, Inc. (2016). “Guayaki Sustainable Rainforst Products, Inc.” In-depth Record. www.Hoovers.com 28Beverage Industry. (2013, October 22). “Market research firms identify new segments of natural, organic shoppers.” www.bevindustry.com/articles/86872-market-research-firms-identify-new-segments-of-natural-organic-shoppers

29Garfield, D. (2013, July). “Eat Well Drink Well.” AlixPartners. www.alixpartners.com/en/Publications/AllArticles/tabid/635/articleType/ArticleView/articleId/862/Eat-Well-Drink-Well.aspx#sthash.fnSi71Jj.dpbs 30U.S. Census Bureau, American Community Survey. (2013). www.census.gov/acs/www/ 31Tecklenburg, E. (2014, November 21). “Functional Foods: Key Trends & Developments in Ingredients.” Packaged Facts. www.MarketResearch.com 32Waxman, H. (2014, February). “Food Ingredient Trends: Ingredients Consumers Avoid.” Packaged Facts. www.MarketResearch.com 33Surukite, O. et. al. (2013). “Qualitative Studies on Proximate Analysis and Characterization of Oil from Persea Americana (Avocado Pear).” Journal of Natural Sciences Research. www.iiste.org/Journals/index.php/JNSR/article/viewFile/4367/4430 34Marigny Research Group, Inc. (2011, May 1). “Functional and Natural Ready-to-Drink Beverages in the U.S.: Energy Drinks, Sports Drinks, Functional Waters, RTD Tea and Coffee, Yogurt Drinks and Smoothies.” Packaged Facts. www.MarketResearch.com 35Ferdman, R. (2015, January 2015). “The Rise of the Avocado, America’s New Favorite Fruit.” The Washington Post. https://www.washingtonpost.com/news/wonk/wp/2015/01/22/the-sudden-rise-of-the-avocado-americas-new-favorite-fruit/

Consumers will continue to prefer convenient health beverages over sugary beverages.

Consumers’ perception of the avocado as a superfood will spark their interest in an avocado seed beverage.

CalPure will be the first to introduce an avocado seed beverage to the market.

The FDA will approve the nutrient claim petition before product launch.

Sales will reach $750,000 by the end of year one.

Love, Avocado will have 4% market penetration among True Believers by the end of year two.

By the end of year three, Love, Avocado will experience a 10% profit margin.

Love, Avocado will boast over a 100% return on marketing investments by the end of year three.

Highlighting the distinctive benefits of the avocado seed, Love, Avocado will entice True Believers with a simple, yet enriching

beverage that revitalizes the body.

Grower-owned CalPure will profit from Love, Avocado, a functional beverage promoting wellness to consumers by

capitalizing on the health benefits of the avocado seed.

To capitalize on current avocado popularity, health trends, and consumer preference for simple ingredients, Love, Avocado will be positioned as an avocado seed infused beverage featuring a dense antioxidant concentration (23% higher than green tea).36 The antioxidants, which have anti-inflammatory properties that support digestive and heart health, are extracted from the seed in boiling water, creating a blush colored extract.37 Love, Avocado combines five or less ingredients with the avocado seed extract, making a drink with lower sugar content and calories than most competitors. Love, Avocado boasts three naturally sweet, flavorful varieties to maximize shelf space, increase brand awareness, and appeal to diverse palates. The pomegranate mint, lemon honey, and blackberry ginger flavors are infused with the earthy taste of the avocado seed and packaged in 14 fluid ounce, clear plastic bottles.

The marketing team will leverage CalPure’s existing retail network to gain entry into Whole Foods and Sprouts Farmers Market along the West Coast. Love, Avocado will contract with an independent trucking company to reach these stores. Love, Avocado will partner with a third-party distributor that wholesales to independently owned natural grocery stores, securing entry and placing product into these stores. In year one, Love, Avocado aims to be in 144 California locations, including 54 Whole Foods and 90 independently owned natural grocery stores, respectively accounting for 48% and 52% of sales. In year two, Love, Avocado will expand to Sprouts Farmers Market, contributing 21% of total sales. To further reach True Believers on the West Coast, distribution will extend to Whole Foods and independent stores in Oregon in year two and Washington in year three. Once a retail distribution network is established, Love, Avocado will enter California food service outlets in year three. A distributor will be used for shipments to food service outlets.

Love, Avocado will be in grab-and-go beverage aisles and refrigerated cold cases in the produce department. Located near the front of the store, the produce department is home to RTD beverages with high mark-ups, targeting health-minded consumers. Showcasing healthy, natural products, the produce department is frequented by True Believers and complements Love, Avocado’s focus on health.

Emerging as a new functional beverage in the competitive RTD market, Love, Avocado will differentiate itself by leveraging its simplistic, yet innovative identity. The Love, Avocado marketing team, composed of a brand manager, digital media manager, and brand ambassadors, will implement this action plan to reach True Believers while also laying the groundwork for future expansion.

A case of 24 beverages will wholesale to retailers for $52.99, with discounts offered by volume. Orders between 8-10 cases will receive a 7.5% discount, increasing by 2.5% for every 3 cases purchased thereafter. Orders of 20 or more cases will gain the maximum discount of 17.5%. The suggested retail price per beverage is $2.99, providing the retailer with a 36% markup.

Love, Avocado is cold shipped to retail & food service outlets for True

Believers to enjoy.

After the beverage is packaged in 14 fl. oz. bottles,

cases of 24 are placed on pallets. Each pallet contains 60 cases. Shelf life is 12 months.

Love, Avocado supplies seeds & beverage formulation. Co-packer sources other ingredients & provides manufacturing services.

Seeds are sourced from CalPure, other growers,

& avocado packing houses.

CalPure schedules production runs with a

Southern California co-packer. Quantity per run

will increase with sales.

37Gonzalez, R., et. al. (2011, April). “Effects of flavonoids and other polyphenols on inflammation.” National Center for Biotechnology Information, U.S. National Library of Medicine. www.ncbi.nlm.nih.gov/pubmed/21432698

36Van Tol, R. (2016, February 25). Biochemistry Department, California Polytechnic State University, San Luis Obispo.

Love, Avocado’s promotional strategy focuses on penetrating sales channels and generating consumer demand. To gain entry into sales channels, the marketing team will emphasize Love, Avocado’s innovative identity and premium retail markup. In conjunction with key partnerships and strategic events, content marketing will create engaging and educational material that will spark demand from True Believers. The combination of these activities will build strong rapport with retailers and consumers alike.

The marketing team will introduce the product and reinforce relationships with retailers at the Winter Fancy Food Show and Natural Foods Expo West trade shows. Involvement at these shows will include networking, providing samples, running advertisements, and engaging with industry experts. Love, Avocado will introduce an incentive program to retailers, featuring free case trials, bulk order discounts, and year-end product bonuses. The brand manager will follow up with contacts within two weeks to maintain rapport and secure sales.

Love, Avocado will run advertisements on all California Grocers Association’s media channels.38 In preparation to enter food service outlets in year three, Love, Avocado will place regional inserts in Quick-Service Restaurant, a leading food service magazine.39 Both advertisements will promote the incentive program to key decision makers within retail and food service.

True Believers find

creative ways to incorporate fitness into their busy lifestyles. One

way is through FitnessGlo and YogaGlo, websites offering online fitness classes targeted to women.40,41

Love, Avocado will partner with the Glo family of companies by sponsoring a class series and rewarding participants in select locations with a downloadable buy one, get one free coupon to encourage product trial.

Love, Avocado will actively reach True Believers on

Facebook by boosting posts and creating targeted advertisements. Facebook ads will be tailored specifically to True Believers based on their location, age, and interests.43

An SEO agency will increase Love,

Avocado’s website reach to secure high placement in search engine results.

Love, Avocado will utilize Google AdWords to

attract new website visitors by using keywords such as “antioxidant beverages” and “avocado seed health benefits.”

In-store product

sampling, facilitated by brand ambassadors, will create a personal experience for True Believers to taste and learn about the health benefits of Love, Avocado. True Believers can write their personal wellness mantra on a postcard for a chance to win a yearlong Glo company subscription and be featured on Love, Avocado’s social media channels.

Loveavocadodrink.com will be the primary source of brand

information, product benefits, and store locations. The Love, Avocado blog will connect True Believers to food trends, wellness tips, and insightful how-to articles. Love, Avocado’s partners, the Glo companies and the American Heart Association (AHA), will have featured blog posts to promote their organizations and educate True Believers about health and wellness. The blog and website will work together to digitally personalize the brand.

Love, Avocado’s

social media profiles, run by the digital media manager, will actively influence True Believers to visit the brand’s website. Love, Avocado will share entertaining photos and videos and launch regular photo sharing contests, encouraging two-way interaction with True Believers while building brand trust.

True Believers’ brand loyalty is rooted in education and engagement.42 Love, Avocado will facilitate conversations and build trust in the digital world by informing, entertaining, igniting discussion, and gaining feedback from True Believers. The digital media manager will create informative, reusable content to advertise brand-sponsored events and campaigns, creating an omni-channel presence.

38California Grocers Association (CGA). (2016). “Supplier Benefits.” www.cagrocers.com/members/supplier-benefits/ 39Quick-Service Restaurant (QSR). (2016). “Beverage.” https://www.qsrmagazine.com/beverage 40Fitnessglo. (2016). “About Us.” www.fitnessglo.com/aboutus.php 41Yogaglo. (2016). “About Us.” www.yogaglo.com/about

42Beverage Industry. (2013, October 22). “Market research firms identify new segments of natural, organic shoppers.” www.bevindustry.com/articles/86872-market-research-firms-identify-new-segments-of-natural-organic-shopper 43Facebook. (2016). “Facebook Business Advertising Information.” https://www.facebook.com/business/products/ads

Year One Year Two Year Three

Trade Promotions $58,022 $68,737 $88,306

Tradeshow Supplies $11,917 $13,942 $16,212

Initial Exposure $6,210 $7,655 $11,630

Digital Marketing

Website & Software $11,650 $10,395 $13,373

Facebook $4,177 $4,768 $7,133

SEO Agency $24,000 $37,200 $46,800

Google AdWords $4,200 $6,480 $9,024

Public Relations & Events

Communities of Love $654 $962 $1,256

From Our Heart to Yours $7,732 $16,924 $33,726

Inspiring Wellness Contest $1,821 $1,798 $1,764

Marketing Team $195,000 $279,488 $352,096

Monitoring & Measuring $4,524 $5,189 $6,237

Travel $39,030 $61,407 $79,874

Total $368,938 $514,945 $667,430

Sales Revenue

Use inventory management system and purchase orders to

review monthly sales

Profitability

Observe quarterly profit margin changes by reviewing

income statements

Return on Marketing Investment

Analyze consumer response to marketing strategies by using

Google and Facebook Analytics, AdWords, and financial statements

Avocado seeds will be purchased from CalPure for $0.10/lb. With a 2.5% market penetration in the first year, Love, Avocado will sell over 19,000 cases. Aggressive marketing investments will cause a loss in the first year but will grow market penetration to 4.5% in the second year, totaling over $2 million in sales. As increasing sales lead to a positive profit margin in year two, the growth of bulk orders will raise discounts by roughly $40,000. In year two, distribution costs will also climb as Love, Avocado expands to Oregon. A market penetration of 8% in year three, combined with more frequent consumer purchases, will cause sales to increase by an additional $2 million. By the end of year three, Love, Avocado’s sales will surpass 84,000 cases, garnering a 13% profit margin.

Pacific Marketers is excited to work with CalPure to transform the once neglected avocado seed. While providing California avocado growers with additional revenue, CalPure will introduce the innovative avocado seed infused beverage to the market. Through an aggressive marketing strategy, Love, Avocado will capture the attention of True Believers, gaining 8% market penetration and experiencing a 13% profit margin by the end of year three. At last, the avocado seed has found its rightful place — in the hands of True Believers.

Cases Sold

Year Two

41,454

Cases Sold

Year Three

84,791

Cases Sold

Year One

19,204

Increase production and expand distribution in targeted areas

Reevaluate sales techniques and adjust distribution according to demand

Market Penetration

Analyze media platform data through split (A/B) testing and

conduct annual consumer surveys using Qualtrics

Boost successful marketing strategies in areas based on reach

Increase or restructure promotional activities in poorly penetrated areas

Further invest profits into marketing strategies that are proven effective

Reallocate marketing funds towards impactful promotional strategies

Expand distribution to new areas where other True Believers reside

Revisit pricing strategy and expenses

True Believers are role models who lead the health and wellness movement in their families and communities. Love, Avocado will sponsor public relations events that reflect True Believers’ desire to share their passion for wellness with others. Events will be maximized by linking coverage directly to Love, Avocado’s media platforms.

Love, Avocado will

promote healthy lifestyles by giving community gardens compost made from leftover avocado seeds through AHA’s Healthy Way to Grow program. Each garden will be profiled on Love, Avocado’s media platforms, showing the brand’s commitment to building healthy communities.

Love, Avocado will

partner with AHA’s Go Red for Women Movement to further emphasize Love, Avocado’s heart healthy antioxidants and join the fight against heart disease, America’s leading cause of death among women.44 Love, Avocado will donate 10% of February’s revenue and consumers can track donations on loveavocadodrink.com.

Love, Avocado will sponsor an online video contest highlighting a female role model who embodies health and

wellness. The winning woman will receive a custom-made red dress from a designer featured in AHA’s Red Dress Collection and a donation will be made to AHA in her name. The winner and nominator will each receive a year’s supply of Love, Avocado and an opportunity to share health insights and stories through a Love, Avocado social media takeover.

44Go Red for Women. (2016). “Donate to Go Red for Women.” American Heart Association. https://www.goredforwomen.org/home/get-involved/donate-to-go-red-for-women/

Year One Year Two Year Three

Sales $927,844.09 $2,030,821.34 $4,047,127.51

Bulk Order Discounts $5,799.03 $46,708.89 $167,035.05

Spoilage $27,835.32 $60,924.64 $121,413.83

Net Sales $894,209.75 $1,923,187.81 $3,758,678.63

Cost of Goods Sold $466,887.14 $987,937.89 $1,959,680.39

Gross Margin $427,322.60 $935,249.91 $1,798,998.23

Distribution $28,520.10 $70,816.47 $263,542.98

Cold Storage $15,000.00 $33,750.00 $59,062.50

Other Operating Expenses $145,000.00 $256,540.00 $301,944.96

Total Operating Expenses $188,520.10 $361,106.47 $624,550.44

Marketing Expenses $368,938.12 $514,945.02 $667,429.98

Net Profit (Loss) $(130,135.62) $59,198.42 $507,017.81

Profit Margin -14% 3% 13%