A new analysis of the apple category reveals that the late winter and early spring months are peak seasons for distribution and sales of the top branded apples. The study indicates that expanded distribution of premium branded apples and aggressive retail promotions during this period drive consumers’ transaction size, increasing overall apple category performance for supermarkets.
CMI Orchards, exclusive marketers of U.S. grown KIKU® Kanzi® and Ambrosia™ as well as co-marketers of Jazz®, Envy® and Pacific Rose®, initiated the study to evaluate key category trends and opportunities. Their analysis shows that the period beginning in mid-January and extending to mid-April marks the peak months for maximizing most branded apples.
According to Steve Lutz, Vice President of Marketing for CMI Orchards, the national supermarket scan data results show that in particular, February and March are key months for capturing incremental sales with branded apples. “The data reveals that retailers with the strongest performance in the overall apple category focus on extracting incremental sales by highlighting branded apples for their customers,” he said.
“Mid-January to mid-April are the key months when leading retailers entice consumers to try these new apples,” said Lutz. “During this period, branded apples are perfectly positioned to replace category dollars that are lost as local and regional apples decline in availability.” Lutz says the strongest performing retailers develop distribution and promotion strategies to transition customers into branded apples, maintaining category momentum despite the fact that many regional apples disappear from supermarket shelves.
Lutz says the national scan data shows that distribution and sales of branded apples like Ambrosia™ KIKU®, Kanzi®, Jazz® and Envy® all jump in January with a momentum that carries into April. “The scan data shows that, in the fall, branded apples typically generate about 5% of total sales but this number doubles after the first of the year. Retailers that miss this window to fully promote branded apples sales leave dollars on the table.”
“It shouldn’t surprise anyone that the retailers with the strongest performance in branded apples are also the retailers with the strongest overall apple category,” said Lutz.
Lutz observes that many retailers build a following for branded apples during the winter months and carry that momentum into future seasons. He notes that most of the new branded apples like KIKU®, Kanzi® and others carry retail prices over $2.00 lb. “As supermarkets shift consumer purchases they simultaneously drive the average category transaction, because shoppers buy apples with a higher average price.”
Robb Myers, CMI's Vice President of Sales says the broader distribution of branded apples after the holidays historically reinvigorates the apple category. “With Ambrosia™, the three strongest weeks of the entire season occur in mid-January, mid-March and two weeks in April. With some of the local and regional competition wrapping up, we’re entering one of the best periods of the year to expose customers to branded apples.”
Myers says supplies of branded apples in larger sizes are in good shape to support late winter retail promotions. “We’re really excited about the quality and size of the Ambrosia™, KIKU® and Kanzi® we have coming out of storage. We also see strong opportunities with larger sizes in Envy® and Pacific Rose®,” he said.
Myers adds that retailers should also strongly consider two-pound pouch bags as an opportunity to introduce consumers to branded apples. He says the strength of the pouch bag is the colorful, high graphic package that reinforces the quality of the product in the bag. “Look at CMI's two-pound Ambrosia pouch bag. It’s the number one selling two-pound apple bag in the U.S. No other apple out-sells it, even Honeycrisp.”
Myers says supplies of branded apples for the balance of January through April are excellent. “We expect to see record sales of Ambrosia™ over the next 10 to 12 weeks. Supplies of KIKU®, Kanzi® and Jazz® are also strong so there is every reason retailers should expect to drive big sales with these apples.”
