So... wonder if CMG will pull back on this.
US suspends Mexican avocado imports after threat to inspector
Avocado exports are the latest victim of the drug cartel turf battles and extortion of avocado growers in the state of Michoacan.
Mexico has acknowledged on Feb. 13, 2022, that the U.S. government has suspended all imports of Mexican avocados after a U.S. plant safety inspector in Mexico received a threat.
Feb. 13, 2022, 5:49 PM UTC
By The Associated Press
MEXICO CITY — Mexico has acknowledged that the U.S. government has suspended all imports of Mexican avocados after a U.S. plant safety inspector in Mexico received a threat.
The surprise suspension was confirmed late Saturday on the eve of the Super Bowl, the biggest sales opportunity of the year for Mexican avocado growers.
Avocado exports are the latest victim of the drug cartel turf battles and extortion of avocado growers in the western state of Michoacan, the only state in Mexico fully authorized to export to the U.S. market.
The U.S. government suspended all imports of Mexican avocados “until further notice” after a U.S. plant safety inspector in Mexico received a threatening message, Mexico’s Agriculture Department said in a statement.
“U.S. health authorities ... made the decision after one of their officials, who was carrying out inspections in Uruapan, Michoacan, received a threatening message on his official cellphone,” the department wrote.
The import ban came on the day that the Mexican avocado growers and packers association unveiled its Super Bowl ad for this year. Mexican exporters have taken out the pricey ads for almost a decade in a bid to associate guacamole as a Super Bowl tradition.
++++++++++++++++++++++++++++++++++++
One might think "big deal" but:
++++++++++++++++++++++++++++++++++++
Pounds and pounds and pounds of avocados
Chipotle customers really love their guac — enough to pay extra for it when ordering a taco, burrito, or bowl — and all those orders of creamy, chunky avocados really add up. But the precise amount of avocados needed might actually blow your mind. According to Nasdaq, that figure is 35 million pounds of the creamy green fruit per year, or 97,000 pounds per day. Chipotle restaurants make their guac in batches, each of which uses 60 avocados, according to Nasdaq.
According to the Philadelphia Inquirer, Chipotle sources most of its avocados from Mexico, which is by far the world's largest supplier of the fruit. But in recent years, the prices of these coveted avocados has surged, leading the chain to expand its importation from areas including California, Chile, Peru, and Colombia. As for us, we don't really care where those avocados come from: All we know is that we want that guac, whether we eat it out or make it at home.
++++++++++++++++++++++++++++++++++++++
So 97,000 pounds/day.
Quick math using the serving size on their website:
$3.05/ 4oz serving ===> $1.2MM/day=====>$108MM/quarter
$1.6B revenue last quarter====> 6.75% hit to revenue.
Obviously they'll source elsewhere, but this will matter.
US suspends Mexican avocado imports after threat to inspector
Avocado exports are the latest victim of the drug cartel turf battles and extortion of avocado growers in the state of Michoacan.
Mexico has acknowledged on Feb. 13, 2022, that the U.S. government has suspended all imports of Mexican avocados after a U.S. plant safety inspector in Mexico received a threat.
Feb. 13, 2022, 5:49 PM UTC
By The Associated Press
MEXICO CITY — Mexico has acknowledged that the U.S. government has suspended all imports of Mexican avocados after a U.S. plant safety inspector in Mexico received a threat.
The surprise suspension was confirmed late Saturday on the eve of the Super Bowl, the biggest sales opportunity of the year for Mexican avocado growers.
Avocado exports are the latest victim of the drug cartel turf battles and extortion of avocado growers in the western state of Michoacan, the only state in Mexico fully authorized to export to the U.S. market.
The U.S. government suspended all imports of Mexican avocados “until further notice” after a U.S. plant safety inspector in Mexico received a threatening message, Mexico’s Agriculture Department said in a statement.
“U.S. health authorities ... made the decision after one of their officials, who was carrying out inspections in Uruapan, Michoacan, received a threatening message on his official cellphone,” the department wrote.
The import ban came on the day that the Mexican avocado growers and packers association unveiled its Super Bowl ad for this year. Mexican exporters have taken out the pricey ads for almost a decade in a bid to associate guacamole as a Super Bowl tradition.
++++++++++++++++++++++++++++++++++++
One might think "big deal" but:
++++++++++++++++++++++++++++++++++++
Pounds and pounds and pounds of avocados
Chipotle customers really love their guac — enough to pay extra for it when ordering a taco, burrito, or bowl — and all those orders of creamy, chunky avocados really add up. But the precise amount of avocados needed might actually blow your mind. According to Nasdaq, that figure is 35 million pounds of the creamy green fruit per year, or 97,000 pounds per day. Chipotle restaurants make their guac in batches, each of which uses 60 avocados, according to Nasdaq.
According to the Philadelphia Inquirer, Chipotle sources most of its avocados from Mexico, which is by far the world's largest supplier of the fruit. But in recent years, the prices of these coveted avocados has surged, leading the chain to expand its importation from areas including California, Chile, Peru, and Colombia. As for us, we don't really care where those avocados come from: All we know is that we want that guac, whether we eat it out or make it at home.
++++++++++++++++++++++++++++++++++++++
So 97,000 pounds/day.
Quick math using the serving size on their website:
$3.05/ 4oz serving ===> $1.2MM/day=====>$108MM/quarter
$1.6B revenue last quarter====> 6.75% hit to revenue.
Obviously they'll source elsewhere, but this will matter.