CMI provides first quarter retail insights for apple category
CMI provides first quarter retail insights for apple category
The transitions from fall to winter mean retailers should rethink their category plans for marketing apples. Steve Lutz, vice president/marketing for Columbia Marketing International, provided The Produce News with his insights about the impact such repositioning can have as supply conditions change.
“Apple contribution to total produce sales peaks in the fourth quarter, at an average of 7.5 percent. This performance drops off in the first calendar quarter to about 6.6 percent,” he stated. “Overall, this means that supermarkets — if they aren’t proactive —lose considerable apple category dollars and volume after the first of the year. Overall, between the fall and the first quarter of the year, the average U.S. supermarket loses over 250 pounds of volume and over $350 per store per week in the apple category.”
Lutz said an additional challenge exists at this time as volume for Gala and Honeycrisp, the two top apple subcategories, both decline in performance as supplies diminish. “This effectively means savvy retailers absolutely must look beyond these two primary subcategories to find new products to lift the declining sales base,” he stated.
By repositioning and rethinking, he said apple sales are enhanced. “What we’re seeing in the performance metrics for the most successful retailers is that the winter months are becoming a key time to present new varieties and branded apples to consumers,” he stated.
“This timing is perfect because many of the low-priced ‘hot’ apple deals that occur at harvest are no longer available,” he continued. “Therefore, consumers aren’t being incentivized with low prices to shift purchases to the low cost apples. Instead, the top retailers are seizing these winter months to accelerate sales of key newer apples like Ambrosia, KIKU, Kanzi and others. While success starts with mainline apples like Gala, Fuji, Honeycrisp, Reds and Grannies, the incremental opportunities for retailers are to offset traditional seasonal sales declines by introducing consumers to new tastes and flavor profiles from branded apples.”
Creative campaigns, such as CMI’s “KIKU for Kicks” promotion, are callouts for these new apple varieties. CMI is partnering with retailers throughout the United States linking the KIKU brand apple with a fresh youth soccer promotion supporting healthy eating and an active lifestyle. The contest is tailored to meet individual retailer needs and will be based on volume sold or display contests.
