Bagged clementines offer retailers better price points

07/21/2011 12:01:00 PM
Dan Gailbraith

Bags continue to gain dominance as the package of choice for South African clementines — and, in many cases, for oranges, too.

Tom Cowan, South African sales manager for Fort Pierce, Fla.-based DNE World Fruit Sales, has some packaging-related advice for U.S. grocers this summer.

“Retailers should make a big push on clementine bags through July,” Cowan said.

DNE has seen a big shift from 5-pound boxes to 2- and 3-pound bags for summer citrus from South Africa and other countries.

“Retailers can get to a more-attractive price point on the smaller bags,” Cowan said. “Last season we saw retailers promoting the 2-pound bags at $2.99 and $3.99 and the 3-pound bags at $4.99 and $5.99.”

David Mixon, senior vice president and chief marketing officer for Seald Sweet International, Vero Beach, Fla., agrees boxes will continue to decline as the South African clementine packaging option of choice.

“The bagging of clementines continues to be a market directive, and will continue to drive the category,” he said.

It’s not just midsummer clementines that fit well with smaller consumer bags, Cowan said.

“The navel 3-pound bags also provide a good item to promote during the July, August and early September period,” he said.

Marc Solomon, president and chief executive of Montreal-based Fisher Capespan, expects a similar mix of packaging for South African citrus as in 2010.

“Oranges are primarily bulk or in pound bags,” he said. “Clementines are sold mostly in 2- and 3-pound bags. Grapefruit are sold bulk.”



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