Fresh-cut apples still a red-hot item - The Packer

Fresh-cut apples still a red-hot item

09/09/2013 10:12:00 AM
Tom Karst

WENATCHEE, Wash. — Thirteen years after breaking on the scene, fresh-cut apple sales are still fueling growth in apple sales.

Washington apples used for fresh slices may account for up to 6 million boxes the state’s output, said Todd Fryhover, president of the Washington Apple Commission.

Statistics from the U.S. Department of Agriculture estimated for the period from 2008 to 2012 fresh apple slices accounted for 1.4% of the total U.S. apple crop. In 2011, the USDA said about 238 million pounds of apples were used for fresh slices, up from 146 million pounds in 2010. No estimate from the USDA is available for 2012.

Sales gains

Sales for the fresh apple category are growing at retail, said Tony Freytag, marketing director with Cashmere-based Crunch Pak. Crunch Pak, founded in 2000, produces about 2 million apples slices a day, and each year the company produces enough apple slices that if laid end-to-end would reach around the world twice, according to the company.

Nielsen reports the total retail market for fresh apple slices grew about 12.3% over they year ending June 29 compared with the previous year, Freytag said in an Aug. 23 presentation to the U.S. Apple Association. Crunch Pak’s fresh apple slices sales grew 14.8% for the same period, Freytag said.

The overall value of fresh-cut apple slice sales at retail was $225 million for the year ending June 29, Freytag said, and Crunch Pak controlled 44% of the market. Nielsen numbers showed Dippin’ Stix with a 16% market share and Chiquita with 15%.

Freytag said the sliced apple category at retail has is growing at an average of 20% over the past three years, and Freytag expected overall 2013 sales will reach $230 million, about 30% up from 2012.

While there are no definitive numbers for foodservice, quick-service restaurants and school use of sliced apples, Freytag said industry estimates of total annual retail and foodservice sales project close to $475 million.

“There is about a half a billion in sliced apple sales that didn’t exist 10 years ago, so for me it is extremely satisfying to give that outlet to growers,” he said.

Consumer studies have shown that fruit sales increase more than 60% when fruit is sliced, he said. Crunch Pak recently took a survey of more than 400 women from 18 years to 60 years old, and Freytag said the survey found that 69% of the women between 18 and 60 don’t buy sliced apples.

“We’ve got a long ways to go,” Freytag said.

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