Xochitl, a premium producer of corn tortilla chips and salsas, has announced a significant manufacturing overhaul by transitioning its entire product portfolio to 100% avocado oil. According to the company’s announcement, this “Better-for-You” revamp replaces the previous oil blend across its full range of thin and crispy chips, aiming to meet growing consumer demand for heart-healthy fats and clean-label ingredients.
The brand stated that the new avocado oil-based chips are currently rolling out to major retailers including Whole Foods Market, Sprouts Farmers Market, and Kroger.
Technical shift in snack manufacturing
The transition to avocado oil represents a strategic move to differentiate Xochitl in a crowded salty snack category. Unlike traditional vegetable or seed oils, avocado oil is prized for its high smoke point and monounsaturated fat content. The company said the new formulation maintains the signature “paper-thin” texture that has defined the brand since its inception.
“Our mission has always been to provide the highest quality, most authentic experience for our customers,” stated Carlos Cosio, Founder of Xochitl, in the press release. “By moving to 100% avocado oil, we are not only enhancing the flavor and crunch of our chips but also providing a product that aligns with the health-conscious lifestyle of today’s snacker.”
The move also involves a packaging update to clearly highlight the avocado oil transition, ensuring the change is visible to shoppers looking for retail-ready, non-GMO, and gluten-free options.
Why it matters
For the broader CPG industry, Xochitl’s move underscores a significant shift in bulk ingredient procurement. As avocado oil becomes a more accessible commodity for high-volume manufacturing, brands are increasingly moving away from “blended” oils to single-source, premium fats. This transition is a key indicator for any supplier or importer specializing in healthy fats, as it signals a permanent move toward premiumization in the snack aisle.
From a co-manufacturing perspective, switching an entire line to a specific oil requires rigorous R&D to ensure shelf-life stability and flavor consistency. Xochitl’s successful scale-up serves as a blueprint for private label brands looking to upgrade their ingredient decks to meet “Better-for-You” retail standards.
FAQs
Which Xochitl products are now made with avocado oil?
The company has transitioned its entire line of tortilla chips to avocado oil, including their Salted, Unsalted, Blue Corn, and flavored varieties.
Is there a price increase associated with the new avocado oil chips?
While avocado oil is a premium ingredient, the company has not announced a specific price hike for the new line; however, retail prices may vary by location and store.
Are these chips still Non-GMO and Gluten-Free?
Yes, Xochitl confirmed that the transition to avocado oil does not change their commitment to Non-GMO Project Verification and Gluten-Free certification.
About Source86
The transition of a national brand like Xochitl to premium oils highlights the critical role of a robust supplier and manufacturer network. Whether you are an importer navigating the volatile avocado oil market or a manufacturer looking to pivot your co-packing operations toward healthier fats, Source86 provides the transparency needed to manage these complex transitions.
Source86 simplifies the path for CPG brands through expert R&D, private label strategy, and wholesale ingredient coordination. Contact us today to find the right coman or supplier to modernize your product line.
