Shorter U.S. Apple Crop Reveals Challenges and Organic Opportunities for Retailers

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Shorter U.S. apple crop reveals challenges and organic opportunities for retailers

November 24, 2015

During National Apple Month in October, apple sales typically peak nationally, generating the highest category contribution to total produce of any month during the year. The 2015 October apple

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category looks very different.

Retail scan data just released by Nielsen shows supermarkets are struggling to maintain year-over- year category performance in the face of a smaller U.S. apple crop. The October monthly report from Nielsen shows the apple category declined by 7 percent in volume and 4 percent in dollars. Apple category contribution declined to 7.5 percent from 8.2 percent in October 2014.

“With a shorter crop both nationally and out of Washington state, supermarkets are really forced to be creative to increase sales,” Don Patella, regional marketing director for Columbia Marketing International, based in Wenatchee, WA, said in a press release. “Nearly all category growth is being driven by branded apples. A lot of retailers are seizing the opportunity while many others have yet to react to the unique opportunities presented with this crop.”

The Nielsen data show that for the four-week period ending Oct. 24 only three apple varieties made the top 10 nationally — Sweetango, Ambrosia and Cripps Pink — and generated increases in both dollars and volume. The shorter crop even affected Honeycrisp, which declined by 5.5 percent in volume for the month.

“The challenges in the apple category this year will be very unique,” Patella added in the press release. “Retailers will face declining volume and inflated retails. But more importantly, shifting consumer tastes and rising quality expectations means retailers really need to think creatively about how to tap into branded apples to stop dollar erosion by driving transactions upward into premium apples.”

Patella added that growth in organics continues to be the top growth opportunity for retailers.

“Already this season organic apple sales have jumped nearly 6 percent while conventional apples sales continue to slide,” he said. “The most successful retailers are leveraging organics to build transaction size.

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“Nielsen data show that for the month of October, the number one selling branded organic apple in the entire category is CMI's Daisy Girl Organics two-pound pouch bag, up an incredible 81 percent over a year ago,” Patella continued. “Our Daisy Girl program is in its third year of topping the charts in two-pound organic pouch bag sales. Organics are hot, and Daisy Girl is even hotter.”