The cherry challenge: Organic gaining traction, but many consumers still put off by price point

Wenatchee, Wash.-based CMI Orchards packages organic cherries in bags, clamshells and top-seal containers under its award-winning Daisy Girl Organics label, says Rochelle Bohm, brand manager.
Wenatchee, Wash.-based CMI Orchards packages organic cherries in bags, clamshells and top-seal containers under its award-winning Daisy Girl Organics label, says Rochelle Bohm, brand manager.
(Photo courtesy of CMI Orchards)

Organic cherries typically make up only about 3% of the Northwest crop, but that amounts to about half a million boxes, according to B.J. Thurlby, president of the Yakima-based Washington State Fruit Commission/Northwest Cherry Growers.

Grower-shippers who market organic cherries agree that the category plays an important role in their cherry programs.

“Organic cherries are a small part of Stemilt’s overall cherry volume, yet we are a leader in them,” said Brianna Shales, director of marketing for Stemilt Growers Inc., Wenatchee, Wash.

They are a challenge to grow, she concedes, but the company has certain sites where they do very well.
“We typically have organics beginning at the start of Washington cherries season in mid-June and running through the month of July,” she said.

“The first few weeks of July are typically the time for any promotions on organics, though it’s often an in-store promotion or liner to a larger cherry ad where organics fit in.”

Stemilt’s organic volume is relatively steady, she said, and while the company specializes in the organic Skeena variety during the July time frame, Stemilt also offers other organic dark sweet cherries and organic rainiers.

Related: 2022 Northwest cherry outlook down from 2021; cold to blame

Having an organic option when it comes to Northwest cherries is important to retail partners and their consumers, which means it’s important to Yakima-based Sage Fruit Co., said Chuck Sinks, president of sales and marketing.

This will be the third season that Sage Fruit will have organic cherries.

The company has seen a steady increase in requests for organic cherries, he said. However, Sinks expected the 2022 organic crop to account for less than 2% of the total Northwest cherry volume.

“This year, we look to have a small percentage of organic cherries,” he said. “Currently, the volume industrywide does not appear to be growing, but with organic trends, it stands to reason that it could grow in the future.”    

Wenatchee-based CMI Orchards “is very strong with organics,” said Rochelle Bohm, brand manager.

She estimated that 5% of the company’s cherry acreage is organic, and she expected that figure to continue to grow based on consumer demand.

CMI offers organic red and rainier cherries.

Organic cherries can be a profitable item, grower-shippers say.

“Any organic cherry is going to demand a premium, which can really boost dollar performance for a store, because cherries themselves are a premium-priced item,” Stemilt’s Shales said.

The most common pack styles for organic cherries from Sage Fruit are 1.25-pound pouch bags and 1-pound clamshells, Sinks said.

“Anything much bigger than that would likely result in the consumer experiencing sticker shock at the register.”

While the price gap between many organic and conventional commodities seems to be closing, that’s not the case for organic cherries, he said.

“Organic cherries are much more labor intensive to grow, which results in higher retail pricing,” Sinks said. “The higher pricing isn’t as attractive to the end consumer.”

But he said that, as consumers continue to become health conscious, they are more likely to consider purchasing organic cherries.

Cherries are also truly a seasonal item, so their limited availability can lend to their higher retail prices, he added.

Sinks does not expect organic cherry acreage to expand overnight.

“It has been and will continue to be a slow transition to increased organic cherry production,” he said.
CMI Orchards packages organic cherries in bags, clamshells and top-seal containers under its award-winning Daisy Girl Organics label, Bohm said.

“That brand was established more than a decade ago,” she said. “It’s very widely known to organic shoppers.”
 

 

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