DNE touts strong clementine season, looks toward Chile
DNE touts strong clementine season, looks toward Chile
PHILADELPHIA " The venue for a lunch meeting with The Produce News on Feb. 15 was a fitting scene for Bill Weyland. Across the street from the restaurant was the historic U.S. Customs House, quite relevant to the general manager of imports for DNE World Fruit Sales Inc., based in Ft. Pierce, FL. Mr. Weyland works from an office in North Brunswick, NJ.
In mid-February, as Mr. Weyland prepared to travel to Chile to finalize DNE?s plans to begin importing Chilean clementines this summer and to travel to see his Spanish clementine suppliers, he reviewed the Spanish clementine season as it drew to a close and discussed the broader clementine marketing scene. He said that this season, DNE will market 15-18 percent of the Spanish clementines brought into the United States. This percentage "is up a little from last year."
He said that about 80 percent of DNE?s Spanish clementine import volume is marketed under the "Ocean Spray? label.
?The fall-winter deal is winding down a little bit," he said. "We?ve finished receiving bulk vessels. This week and next week we will receive a few containers from Spain. Our sales window will run into the first week of market, and we will finish at that point in time.
?We are ending on a very positive note," Mr. Weyland continued. "The market is active and prices are firm. The quality has been outstanding. This year has afforded us the opportunity to extend the season with good supplies and good-quality fruit through the entire month of February. We?ve not had this opportunity for an extended marketing window in many years. The lack of some Florida citrus, primarily grapefruit," has made an unusual market. Retailers countered the Florida citrus losses to 2004 hurricanes with citrus category profits from Spanish clementines. This gave Spanish clementine growers and marketers "a great opportunity."
Mr. Weyland said that the northeastern United States is a fairly mature market for clementines, but other parts of the country still offer "opportunities to increase consumption a lot. Many people don?t know what they are. In many developing markets, they are still perceived as an exotic, unknown piece of fruit. As marketers, we need to continue to make that connection to the trade and consumers on the benefits of eating clementines."
To do this, Mr. Weyland said that Spanish exporters contribute to a general marketing program that is coordinated through the Spanish commercial office in New York. U.S. importers make recommendations to the commercial office and exporters on what key markets need a special introductory focus. The promotion is a decade old.
The New York public relations agency Weber Shandwick promotes Spanish clementines in designated markets, which vary from year to year. The consumer media promotions this year focus on Atlanta, Houston, Charlotte, NC, St. Louis and Dallas-Fort Worth.
Given limited promotion funds, Mr. Weyland called this "the best situation for what we have to work with at this time."
He emphasized that DNE, "with our trade partners," promotes the "Ocean Spray? label through its independent promotions.
On the matter of Spanish clementine production, Mr. Weyland said that expansion of acreage is less than 1 percent per year. There is, however, a great deal of replanting, with the removal of "certain varieties that are not in demand and are not profitable to the growers. Newer trees are planted on the same property, so Spain is not seeing a huge increase in net producing acreage."
The new trees are varieties "that allow us to extend on the front and back ends? of the deal. Research and development is ongoing to expand Spain?s clementine-shipping season.
The marketing window is particularly available for earlier fruit.
Mr. Weyland said that this season, the first Spanish clementines arrived Nov. 1. Traditionally the season begins Oct. 25, and, except for this year, ends the first week of February.
He said that most of the Southern Hemisphere?s citrus shipments are completed by the first week of October, while Florida shippers don?t have major volume in October. More specifically, he said, "South African Midknights are winding down and Florida grapefruit is just starting. Thus, there are a lot of opportunities on the front end. There is a four- or five-week window. Spanish clementine varieties don?t exist now [to fill that window], but they?re working on it. It takes years to do this."
The replacement acreage being planted now is for mid-season varieties such as Nules, Oro-Grande, Arufatina and Oro-Nules. These varieties "are absolutely well received in the United States," Mr. Weyland said.
Moroccan clementines are "parallel with Spain," the DNE executive continued. "The quality from Morocco this year was also outstanding. All we received from Morocco this year was also "Ocean Spray? brand."
The Moroccan clementine deal also runs from November to February. The Nour is a late Moroccan clementine variety that starts in late December. "It is an excellent eating variety and the quality is fantastic. The overall characteristics of the fruit are very, very good."
He noted that the Moroccan program is slightly more complicated than Spain because all the fruit is shipped via container. Container ship connections must be made in Spain for the Moroccan fruit. So containers and ship space must be reserved in advance for container ships. Maersk is the primary clementine carrier from Spain to New York.
Mr. Weyland said that the California clementine season this year ran from late November into mid-February "with the later varieties. The quality has been very, very good from what I have observed and from what I've heard from customer feedback. With 280 million people in this country, there is plenty of room for both domestic and imported clementines. I'm not worried? about too much competition.
He added, "Any time your competition produces good fruit, it just raises the standards in the market and the consumers accept the fruit more, and their frequency of purchasing and prices rise."
Mr. Weyland credits North American retailers for being "committed to support clementine programs with promotions, advertising and in-store demonstrations. They see clementines as opportunities to put good gross profits into their citrus category. The clementines have the characteristics " easy peel, sweet flavor and being virtually seedless " that appeal to consumers in the marketplace." With such a product, retailers will have to have in-store merchandising and good advertising support levels.
Mr. Weyland plans to travel to Chile in early March to finalize DNE?s clementine import plans. This winter, the USDA finalized phytosanitary approval of this fruit for export to the United States. The first Chilean fruit arrivals to the United States are expected in the second half of May. The last of the season?s fruit will arrive in the first week of August.
Nules is the main variety shipped from Chile, which has successfully exported clementines to Canada, Europe and the Far East for many years.
In mid-February, as Mr. Weyland prepared to travel to Chile to finalize DNE?s plans to begin importing Chilean clementines this summer and to travel to see his Spanish clementine suppliers, he reviewed the Spanish clementine season as it drew to a close and discussed the broader clementine marketing scene. He said that this season, DNE will market 15-18 percent of the Spanish clementines brought into the United States. This percentage "is up a little from last year."
He said that about 80 percent of DNE?s Spanish clementine import volume is marketed under the "Ocean Spray? label.
?The fall-winter deal is winding down a little bit," he said. "We?ve finished receiving bulk vessels. This week and next week we will receive a few containers from Spain. Our sales window will run into the first week of market, and we will finish at that point in time.
?We are ending on a very positive note," Mr. Weyland continued. "The market is active and prices are firm. The quality has been outstanding. This year has afforded us the opportunity to extend the season with good supplies and good-quality fruit through the entire month of February. We?ve not had this opportunity for an extended marketing window in many years. The lack of some Florida citrus, primarily grapefruit," has made an unusual market. Retailers countered the Florida citrus losses to 2004 hurricanes with citrus category profits from Spanish clementines. This gave Spanish clementine growers and marketers "a great opportunity."
Mr. Weyland said that the northeastern United States is a fairly mature market for clementines, but other parts of the country still offer "opportunities to increase consumption a lot. Many people don?t know what they are. In many developing markets, they are still perceived as an exotic, unknown piece of fruit. As marketers, we need to continue to make that connection to the trade and consumers on the benefits of eating clementines."
To do this, Mr. Weyland said that Spanish exporters contribute to a general marketing program that is coordinated through the Spanish commercial office in New York. U.S. importers make recommendations to the commercial office and exporters on what key markets need a special introductory focus. The promotion is a decade old.
The New York public relations agency Weber Shandwick promotes Spanish clementines in designated markets, which vary from year to year. The consumer media promotions this year focus on Atlanta, Houston, Charlotte, NC, St. Louis and Dallas-Fort Worth.
Given limited promotion funds, Mr. Weyland called this "the best situation for what we have to work with at this time."
He emphasized that DNE, "with our trade partners," promotes the "Ocean Spray? label through its independent promotions.
On the matter of Spanish clementine production, Mr. Weyland said that expansion of acreage is less than 1 percent per year. There is, however, a great deal of replanting, with the removal of "certain varieties that are not in demand and are not profitable to the growers. Newer trees are planted on the same property, so Spain is not seeing a huge increase in net producing acreage."
The new trees are varieties "that allow us to extend on the front and back ends? of the deal. Research and development is ongoing to expand Spain?s clementine-shipping season.
The marketing window is particularly available for earlier fruit.
Mr. Weyland said that this season, the first Spanish clementines arrived Nov. 1. Traditionally the season begins Oct. 25, and, except for this year, ends the first week of February.
He said that most of the Southern Hemisphere?s citrus shipments are completed by the first week of October, while Florida shippers don?t have major volume in October. More specifically, he said, "South African Midknights are winding down and Florida grapefruit is just starting. Thus, there are a lot of opportunities on the front end. There is a four- or five-week window. Spanish clementine varieties don?t exist now [to fill that window], but they?re working on it. It takes years to do this."
The replacement acreage being planted now is for mid-season varieties such as Nules, Oro-Grande, Arufatina and Oro-Nules. These varieties "are absolutely well received in the United States," Mr. Weyland said.
Moroccan clementines are "parallel with Spain," the DNE executive continued. "The quality from Morocco this year was also outstanding. All we received from Morocco this year was also "Ocean Spray? brand."
The Moroccan clementine deal also runs from November to February. The Nour is a late Moroccan clementine variety that starts in late December. "It is an excellent eating variety and the quality is fantastic. The overall characteristics of the fruit are very, very good."
He noted that the Moroccan program is slightly more complicated than Spain because all the fruit is shipped via container. Container ship connections must be made in Spain for the Moroccan fruit. So containers and ship space must be reserved in advance for container ships. Maersk is the primary clementine carrier from Spain to New York.
Mr. Weyland said that the California clementine season this year ran from late November into mid-February "with the later varieties. The quality has been very, very good from what I have observed and from what I've heard from customer feedback. With 280 million people in this country, there is plenty of room for both domestic and imported clementines. I'm not worried? about too much competition.
He added, "Any time your competition produces good fruit, it just raises the standards in the market and the consumers accept the fruit more, and their frequency of purchasing and prices rise."
Mr. Weyland credits North American retailers for being "committed to support clementine programs with promotions, advertising and in-store demonstrations. They see clementines as opportunities to put good gross profits into their citrus category. The clementines have the characteristics " easy peel, sweet flavor and being virtually seedless " that appeal to consumers in the marketplace." With such a product, retailers will have to have in-store merchandising and good advertising support levels.
Mr. Weyland plans to travel to Chile in early March to finalize DNE?s clementine import plans. This winter, the USDA finalized phytosanitary approval of this fruit for export to the United States. The first Chilean fruit arrivals to the United States are expected in the second half of May. The last of the season?s fruit will arrive in the first week of August.
Nules is the main variety shipped from Chile, which has successfully exported clementines to Canada, Europe and the Far East for many years.
