Big apple volumes and lower prices open the door for retail promotions

Apple volume is up, and prices are down.

That equation adds up to more apple promotion opportunities, says Brianna Shales, marketing director for Stemilt Growers.

Retailers can boost sales with multi-variety ad promotions that boost volumes across the category and start growing apple dollars over last year, Shales said in a news release.

The volume of Honeycrisp sold in October 2023 grew 4.7% nationally compared with October 2022, but dollars dropped a percentage point. The remaining core apples — gala, fuji and granny smith —decreased in volumes and dollars sold over last year, the release said.

“There’s so much opportunity for promotions on apples this year, especially compared to last year when we saw tight supplies on key items,” Shales said. “The October data shows retails starting to shift down, with a 14-cent reduction on the average price per pound of the top dollar-driver in the apple category, Honeycrisp. With all apples harvested, now is the time to focus on multi-variety promotions and growth in apple volumes over last year. Dollar growth will come as volumes in the category increase.”

All regions were down in apple volumes year over year, with some declines larger than the national average, the release said.

Regionally, apple volumes sold in the Midwest were down 8.5% year over year, while sales were down 7.3%. The Northeast and West regions were in line with the national averages, while the South region was down 9.1% on apple volumes this year and down 5.2% on dollars. The average price for apples dropped 2 cents year over year to $1.89 per pound, the release said.

“Honeycrisp volumes are up year over year in the Northeast and South regions but lagging behind last year in the West and Midwest,” Shales said. “Finding the sweet spot on retail price and promotion with Honeycrisp, and all core varieties, will be important in reversing the declines in the apple category over last year.”

For club apples, Cosmic Crisp ranked eighth in October and is poised for a big return when its new season begins in November, the release said.

October data reflects a 14% increase in SweeTango volumes sold, with growth over 35% compared with last year during a large promotion week. The increased volumes of SweeTango nationally this year bring new promotion opportunities to help retailers drive dollars to the category, according to the release.

“Cosmic Crisp is evolving from a seasonal club to an everyday apple and that is reflected in the data,” Shales said. “Club apples are poised for promotions, and capturing favorites in promotions from a seasonality aspect is a great way to bring velocity to the category.”

The bulk-to-bag ratios were consistent in October 2023 compared with 2022, with 42% of apples sold in bags and 57% sold as bulk. Bag retails have dropped significantly over the last year while bulk retails are still elevated 2 cents over last year, the release said.

“Traditionally bags have been a volume and value offering at retail,” Shales said. “They’ve migrated into an everyday offering, and that means they should be part of the regular promotion mix in a multi-variety strategy. Consider bolstering bag volumes with 3-pound pouch programs like Lil Snappers and 5-pound pouch bags to increase purchase size. These tactics fit well together with regular bulk promotions to grow volumes of apples.”

Looking at the organic data in October, volumes are up 7.2% while sales are up 3.7%, the release said.

Organic apples account for 15.8% of apple category sales. Regular promotions for organic apples, especially on the volume driver bags, will be needed for retailers to see success within the whole organic category this season.

“Organics are off to a positive start with volume and dollar growth over last year,” Shales said. “This is a strong year for organic apples and category growth because we have great qualities and promotion opportunities. Upsizing on pouch bag sizes with 3-pound and 5-pound will help drive organic volumes. It’s time to plan big things for the apple category to grow volumes and dollars simultaneously.”