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2017-18 California Grape Exports to Mexico Boosted by MAP-Funded Promotions



Attachment California Table Grape Commission Mexico Success Story 06 01 18 USAEDC



In 2017-18, retail promotional activities, funded by MAP, assisted in increased promotional volume and overall chain-wide volume of California grapes in Mexico. Retail promotional activities were designed to influence chains to carry, promote, and allocate larger display space to prompt consumer purchase. The commission targeted eight major retail chains within Mexico and conducted in-store promotions in 297 stores. MAP-funded in-store incentive programs included California grape sampling demonstrations, costume characters, and point-of-purchase (POP) materials, to encourage consumer education and purchase. California grape sales increased 25 percent in these retail chains over 2016-17 volume, from 796,954 19-pound boxes to 998,194 19-pound boxes. The return on investment for the entire season’s targeted retail volume was $49 for every USDA-MAP dollar spent. According to USDA data May 2017 through January 2018, total California grape exports to Mexico increased 12.8 percent over 2016 volume, and increased 18.9 percent in value; 57,248 MT (6,642,587 19-pound boxes) and $95 million, respectively. USDA – Economic Research Service (USDA-ERS) in 2015 showed that each dollar of agricultural exports stimulated another $1.27 in business activity. Using that multiplier, total California grape exports to Mexico May through January generated an additional $120.7 million in U.S. business activity. The California fresh grape industry exported 35.8 percent of the total volume produced in 2017-18, and USDA-MAP funding is critically important to the continued success of the California table grape export program.