Produce executives at supermarkets are responding to the rapid growth of branded apples by rethinking shelf and distribution strategies. Scan data reports for U.S. supermarkets indicate that while supermarkets are generally maintaining displays of mainline apple varieties, many of the legacy and niche varieties are losing space to the emerging apple brands.

According to Steve Lutz, vice president of marketing for Columbia Marketing International, based in Wenatchee, WA, a review of the U.S.Top mainline varieties, like Gala, Honeycrisp, Reds, Granny Smith and Fuji, continue to have solid retail support with over 96 percent national distribution. However, data indicate a shift in retail distribution away from certain niche apples and regional varieties toward the new emerging branded apples. supermarket distribution practices at over 18,000 grocery stores shows that a shift is under way.

“There was a very large national apple crop this year, including both traditional varieties and large increases in the new branded apples,” Lutz said in a press release. “With a full crop, we can clearly see trends of retailers shifting the criteria for determining which apples get on the shelf.

“Top mainline varieties, like Gala, Honeycrisp, Reds, Granny and Fuji, continue to have solid retail support with over 96 percent national distribution,” Lutz added in the press release. “However, we’re seeing a shift in retail distribution away from certain niche apples and regional varieties toward the new emerging branded apples.”

Based on Nielsen scan data over the last 13 weeks, the top five varieties (Gala, Honeycrisp, Reds, Fuji and Granny Smith) all maintained distribution in excess of 96 percent of retail stores. During the same period, several well-known apples like Braeburn, Empire, Pink Lady, Romes and Cameo all saw significant erosion in retail supermarket distribution.

“The shift for successful retailers seems to be in seizing the opportunity with the emerging branded apples while they’re hot,” Don Patella, regional marketing director for CMI, said in the press release. “For example, store expansion for Ambrosia and KIKU brand apples were among the largest in the apple category. Over the last 13 weeks compared to the previous year, Ambrosia distribution jumped to 77 percent from 61 percent of retail stores while KIKU increased to 42 percent from 35 percent.”

Patella added that because branded apples carry higher retail prices, many retailers are increasing their dollar performance simply by changing the apple mix offered to consumers.

“KIKU carries an average retail price of about $1.95 per pound,” Patella added. “In general, that is a retail price premium of at least 10-15 percent over most of the legacy varieties KIKU has replaced. That shift increases transaction size and overall category performance for retailers.”