With recent retail scan data showing volume and dollar sales for apples down compared with a year ago, adjusting promotion and pricing strategies may be in order.
That was one observation from Wenatchee, Wash.-based Stemilt Growers’ Fruit Tracker’s Fast Facts: The Cast video analysis.
Stemilt’s marketing director Roger Pepperl and senior marketing manager Brianna Shales looked at Nielsen retail scan data in November. For the 12-week period ending Nov. 21, volume was off 1.7% compared with year-ago levels, according to a news release.
“Now that all the apples have been harvested, we know that this is a shorter national crop compared to last year’s record,” Shales said in the release. “If your volumes are reflective of the crop, you will want adjust retails and promote frequently to keep dollars high.”
She said retailers will want to build the category by focusing on multi-variety promotions using core, top selling varieties.
“It is crucial that retailers stay strategic with their promotions in the coming weeks and months to continue trending in the right direction,” Shales said in the release. “The good news is that the top 5 selling apples did see some positive movement, including granny smith, Honeycrisp, and fuji all showing positive dollars and volume over last year.”
Bag programs are great vehicles for core varieties for shoppers who want to get in and out of a store quickly, according to the release.
“Stemilt offers a variety of bag options including the Farm + Famous paper tote bag program and the Apple Lover 5lb. pouch bag,” Shales said in the release. “Using these bags as a way to offer bulk sizes will meet the consumer’s pandemic shopping habits.”
While bags can often be viewed as a value item, Shales said it is important that retailers match it with higher retails or bigger pack sizes. In addition, packing organics in either of these brand bags will also work well.
“Packing our Artisan Organics apples in these two packs is another great way to utilize bags in your store,” Shales said in the release. “Both will move volume and increase basket size as organic shoppers enjoy the no-touch approach to bagged apples.”
SweeTango sales during the 12-week period ending Nov. 21 were up 28% in dollars and 51% in volume, according to the release.
“SweeTango performed well with a $2.16 average non-promotion price, well above the $1.70 apple average,” Shales said in the release. “It’s encouraging to see such a great tasting apple rise in the data during its peak season. It shows it performs at retail during this early fall period when shoppers seek apples out.”
Shales said in the release that the most recent scan data doesn’t include the up-and-coming variety Cosmic Crisp.
“While this data doesn’t reflect their first week on the market, the apple is off to a big start and you should base featuring this apple along with other core varieties in a multi-variety ad,” she said in the release. “This is the best route for overall category health.”
