The Washington apple crop is surprisingly short this year, but Chuck Sinks says retailers still have solid promotional opportunities.
Sinks is president of sales and marketing at Yakima, Wash.-based Sage Fruit Co., which is the sales and marketing firm for five grower-packer-shippers in the Pacific Northwest.
Sage Fruit warehouses include Legacy Fruit, Valicoff Fruit, Olympic Fruit, Congdon Orchards and, most recently, Chelan Fruit, Sinks said. Chelan Fruit joined the Sage Fruit family of grower-packer-shippers at the beginning of the 2022 cherry season.
Chelan Fruit will contribute considerable volume to Sage Fruit, Sinks said.
The company’s growers farm several thousand acres of conventional and organic orchards throughout various regions that include the Columbia Basin, go through the Yakima Valley and continue north through Wenatchee, Chelan and into Okanogan.
Changed expectations
With Washington’s apple volume down about 20% compared with a year ago, Sinks said the biggest change in the apple market compared to a year ago is the overall crop volume.
The loss of volume was magnified the deeper growers got into picking fruit.
“Harvest was about two weeks behind schedule this season, and it just kept getting shorter and shorter as we got into more and more orchards,” Sinks said.
At the start of 2023, Sinks said the market is adjusting to the reduced apple expectations.
“Things may feel a bit tight throughout the winter and spring, but our goal is to make sure we have high-quality, year-round availability for our retail partners,” Sinks said.
The 2022-23 season will lend well to promotional opportunities on club varieties including Cosmic Crisp and SugarBee, Sinks said.
Sage Fruit markets several unique varieties including Smitten, Sunrise Magic and now SugarBee, which was made possible through its newly formed partnership with Chelan Fruit, he said.
“The SugarBee is an outstanding apple that consumers have come to know and love,” Sinks said. “By having both conventional and organic SugarBee apples this crop season, we will be able to keep our retail customers and consumers happy with our ability to supply both product lines.”
The higher-trending Cosmic Crisp variety also is in prime position for promotion, he said.
Organic strong
Organic demand remains high and should continue to do so, Sinks said.
“Roughly 52% of organic consumers are millennials, and they account for 30% of the U.S. population,” he said. The majority of millennials who are purchasing organic items are also parents, he added.
“Our organic program will continue to grow over the next several years to meet demand,” Sinks said. “Not only are we planting new acreage of organic orchards, but we are actively transitioning many of our conventional orchards.”
Retail strategies
To maximize sales, retail displays must appeal to the consumer, Sinks said. Those display elements could include the color or size, or new varieties and flavor profiles being offered.
“High-graphic, clean packaging can help in catching the consumer’s attention as well,” he said. “Retailers need to tell the story.”
If the space permits, retailers should aim to keep apples refrigerated, he said. “By keeping apples refrigerated, they retain more moisture, hold their shape and maintain their crisp texture. This provides the consumer with the best eating experience possible and ensures repeat purchases.”
Sage also works with retail partners in various ways to move volume across all varieties, including POS bins, marketing materials and in-store or digital promotions and other tools.
Sinks believes the industry will continue to see the use of online grocery shopping.
“With more and more consumers ordering their groceries for pickup or delivery, retailers should consider digital promotions on new items, whether it be through social channels or digital ads,” he said.
Packaging push
There has been a significant increase in the use of private label packaging over the last couple of years, Sinks said.
Organic consumers also seem to be gravitating toward produce in bags, Sinks said.
“Bags tend to resonate more with millennials, who make up the bulk of organic shoppers,” he said.
Sage Fruit is looking to move towards more sustainable packaging options, Sinks said.
“Not only are consumers demanding it, but so are local governments,” he said. “Our primary focus with regards to companywide initiatives has been on sustainability, and we are currently seeking these more environmentally friendly options, as well as more efficient methods for packing our product. With increased concerns over single-use plastic, as well as a heightened awareness of the availability of more sustainable options, Sage Fruit has been actively seeking alternative solutions to traditional packaging.”
