The U.S. Highbush Blueberry Council's (USHBC) podcast show, The Business of Blueberries, invites members of the industry to discuss some of the most relevant global topics at hand. 

In episode 184, during his third appearance on the podcast, Steve Magami, the co-founder and executive chair of Agrovision, explored his work in the company, their effort to achieve a year-round supply of blueberries, and the potential for growth in the snack segment. 

Agrovision is a leading-vertically integrated global healthy snacking superfruit platform with operations in Perú, Mexico, Morocco, Chile, Romania, China, Thailand, Indonesia, India, Egypt, and the United Kingdom. They export to established and emerging markets all around the globe. 

Magami said that what differentiates Agrovision is "a mission to transform lives in the communities we operate by inspiring healthy snacking."

To date, the company has invested over $500 million in its integrated operation.

Magami said that about 20% of blueberries are driving the majority of consumption in the U.S.,  and only half of the country's population is actually consuming the fruit. 

"Around 10% of the population in the U.S. is driving the vast majority of consumption, so the view has always been that if we can deliver a better berry, the potential for penetration is enormous," he said. 

Genetics and Consistency of the Fruit

Agrovision made its bet on Sekoya genetics for their U.S. market, believing they were the ones who knew what the consumer was looking for. 

However, Magami thinks that "genetics aren't enough, there is so much in the chain of what needs to be done right, from selecting the right locations to produce from, timing, quality-related investments because as we look out decades in this business, it's about guaranteeing the supply with a better berry experience for the consumer."

Magami was very emphatic in saying the industry can not continue with a "berry roulette" where the consumer can not trust what they are buying. 

"I still often hear consumers say, 'the consistency is not there,' and I think that right there is the single greatest opportunity that we have," he said. 

The Value of Blueberries

The podcast host, Kasey Cronquist, president of the U.S. Highbush Blueberry Council (USHBC) and the North American Blueberry Council (NABC) said that at a recent conference in Denver, Shawn Peery, national vice president produce at the Albertsons Companies pointed out the importance of guaranteeing a consistent supply. 

"He also said you have the expectation of maintaining the quality of the product. Also, they are aware of how important blueberries are for the berry patch," Cronquist said. 

Magami responded by saying that they must continue developing cutting-edge software and technology to deliver a consistent high-quality experience year-round. 

"We're working hard on the times of the year when volumes of the better berry are not as strong, to get into a consistent level of volume," Magami said.

Learned Lessons

Magami said the past 11 years have been a learning experience, and that essentially, the industry is a puzzle that has to be put together well in order to achieve its goals. 

"This is a business that requires a very diverse geographic footprint. We started in one location and today we have operations and partners all around the world trying to achieve a year-round supply," Magami said. 

Overall, what is most clear to Magami is that there is a very small percentage of the population driving consumption, so the ultimate goal is to increase supply and demand. 

Putting the Puzzle Together

Regarding what it will take to achieve a year-round supply of Agrovision's blueberries, Magami said they have to think about investments and have a long-term view of the business. 

"In Chile, for example, we are producing incredible organic fruit which will be great for one window. But that's just one window, so it's tough work," Magami said. "We are also going into California, evaluating alternatives, all in the mission of fulfilling our year-round mission."

The other important aspect is looking at how the industry is innovating in quality, freshness, and shelf life. 

"I hope every grower and producer is thinking about that, and ultimately we want to help the retail industry plan with greater precision regarding the impact of weather on harvest curves around the Americas," he said. "Greater planning will lead to greater consumption and greater penetration."

Regarding opportunities still unexplored in the category, Magami said there is a big opportunity in partnerships, which he said is work that can be done by groups like the USHBC.

"If we can come together with other industry players in other places, we align with the demand potential and what exactly is driving it, that is where we found the answer," Magami said. 

Magami highlighted the potential they see in partnerships with industry players in Florida, New Jersey and Georgia in order to complement the work they are doing. 

"Also, having the retailer involved in the operation, who are part of the conversation and lean into berries is also very important," he added. 

Growing blueberries within the snacking category is one of the priorities of Agrovision's work. In this regard, the approach is to highlight the health benefits of blueberries as a "super fruit."

"We have many case studies that we can look at to inspire and position blueberries better," Magami said. "We have the opportunity for the youth to be excited to snack on blueberries."