A man passes a Subway shop in New York City.

JEREMY HOBSON: Well here in the U.S. there is a new ingredient coming to sandwich-makers nationwide: Avocado. Subway will be offering avocado spread as a topping.

Marketplace's Stacey Vanek-Smith tells us why.


STACEY VANEK-SMITH: Not only do avocados go with Subway's fresh and nutritious marketing campaign, they also add a dash of gourmet to the sandwich chain says Darren Tristano with Technomic.

DARREN TRISTANO: I think it's likely a test to see whether a more gourmet ingredient can play with their price point.

Play it, up, that is. The avocado spread will be included on some pricier $8 subs or you can shell out a buck to add it to other sandwiches. Food industry consultant Gary Stibel says the $5 foot-long deal established Subway as a slightly pricier and healthier alternative to fast food. And the avocado option will keep pushing subway in the fancy fast food direction.

GARY STIBEL: We're coming out of a recession, so it's perfect timing for them to start laddering up from $5 to $6 to $7 and who knows.

Stibel says the new ingredient may attract Hispanics, a fast-growing market that consumes a lot of avocados.

In New York, I'm Stacey Vanek-Smith for Marketplace.

About the author

Stacey Vanek Smith is a senior reporter for Marketplace, where she covers banking, consumer finance, housing and advertising.

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