CMI launches 2016 Kanzi apple season
CMI launches 2016 Kanzi apple season
Kanzi apples sell at a 35 percent price premium above the category average, presenting a great opportunity for retailers to increase consumer transaction size, according to Columbia Marketing International, the Wenatchee, WA-based grower-marketer of the variety.
CMI announced the last week of January that the 2016 Kanzi brand apple season is officially under way. The company waits until late winter to introduce the popular Kanzi apples, after the flood of fall crop apples have been sold and retailers are in search of new replacement items.
According to Don Patella, regional marketing director for CMI, February through April is a key period for supermarkets to energize consumers with new products. “The late winter months have proven to be prime time for emerging varieties like Kanzi,” said Patella. “Most local apples are gone and apples like Kanzi are perfect for bringing fresh sales momentum to the apple category.”
To date, Kanzi distribution has been spotty due to extremely strong demand and limited supply, according to Patella. “Kanzi is such a unique apple, that it’s been a real hit with our retail customers,” he said. “Up until this season we haven’t had much available to sell outside our regular customer base.”
The challenge of limited supplies is gradually changing as Kanzi orchards mature and production increases. In addition, CMI imports Kanzi from New Zealand and Chile during the spring and summer months to build sales with key customers. CMI’s import program has been a large success for their customers–breathing life into the category when it is historically stagnant.
According to Patella, branded apples like Kanzi are driving incremental sales dollars for retailers. Since Kanzi carries a higher price point than commodity apples, Patella said every consumer that trades up to Kanzi drives incremental dollars for retail partners.
“Last year during February, the category average retail price was $1.58, [while] Kanzi apples had an average retail of $2.12,” he said. “It’s pretty easy to see how converting customers to premium apples can really boost category performance because Kanzi sells at a 35 percent price premium above the category average.”
With a larger supply of Kanzi this year CMI expects to see significant increases in retail distribution. “Last year Kanzi distribution jumped by over 30 percent, with over 2,500 stores selling Kanzi,” said Patella. “We expect to see an equally big jump in Kanzi sales and distribution in 2016.”