Washington's apple crop rebounds, giving retailers promotion opportunities aplenty

The U.S. Apple Association said inventories as of December 2023 were up about 33% over this same time last year. Buoyed by a supersized crop this year, marketers say this season promises to offer retailers ample opportunities to put the spotlight on apples.

The Packer interviewed growers and packers in key apple-producing states — such as Washington — to learn about the opportunities available for retailers this season.

Washington

Brianna Shales, marketing director for Wenatchee, Wash.-based Stemilt, said 2022 was a year of extremes for growers in Washington state with snow and frost in late spring, poor pollination and hail and weather events. But the state rebounded in 2023, increasing production by about 38% year over year, according to figures from the U.S. Apple Association.

Rochelle Bohm, vice president of marketing with Wenatchee-based CMI Orchards, said temperature fluctuations between day and night produced the right conditions to create great fruit.

“Some of our legacy growers that have been in the business since they were little have said this is the best crop that they can ever remember,” she said. “The fruit is the best that anyone’s ever experienced here.”

Variety report

Marketers say popular varieties in the state include Honeycrisp, gala, fuji and Pink Lady. Cosmic Crisp is another apple that’s seen its sales volume increase in the last few years.

“It’s the apple that’s grown the fastest in distribution and volume in a long time,” Shales said.

Kaci Komstadius, vice president of marketing for Yakima, Wash.-based Sage Fruit, said there’s been an increased demand for organic varieties. She said many growers will transition conventional acres to organic production and plant new organic orchards to meet the demand.

“Our most sought-out organic item by retailers is organic Honeycrisp, but organic gala and fuji don’t fall too far behind,” she said. “Organic Honeycrisp is a high-end consumer favorite, which has an excellent ring at the register. Organic gala and fuji are an excellent option for the everyday, organic consumer because they are more price friendly.”

Komstadius said Sage Fruit has noticed an uptick in volume for its SugarBee apples, which will be available in both conventional and organic.

Shales said SweeTango is another club variety that’s also gaining traction. Bohm said Envy, positioned as a luxury-brand variety, also is making notable inroads in sales.

And while galas, Honeycrisps and fujis have year-round availability, these new club varieties can offer some of the exclusivity of a limited release.

“We’ve lost a tiny bit of that seasonality with apples, and using those varieties to help consumers remember that there is still seasonality within the crop is important,” Shales said. “A really cool storytelling opportunity at retail is bringing in a new variety, having it there for a flash moment and then letting it go to keep that apple category exciting.”

Marketing

Bohm said an important thing for retailers to remember with a large apple crop is that keeping the focus on apples will be a key to increasing sales.

“We’re working with retailers to do anything to really put the spotlight on apples in the store,” she said. “That could be full omnichannel approaches where we’re trying to tap into shoppers at every touchpoint that we can.”

And heading into 2024, CMI Orchards will focus marketing efforts on reaching health-conscious consumers.

“We do put a spin on organic in the new year because, typically, consumers are more focused on their health than at any other time of the year,” Bohm said. “Tapping into that organic market is prime real estate during the start of the new year when people are making their New Year resolutions.”

Shales said retailers can increase their space for organic apples by adding multiple varieties to a display to drive sales.

“One kind of proven vehicle is just to increase the display size for a period of time and put multiple varieties out at once,” she said. “You have organic apple fests, so people are really seeing them, and you have an attractive price that helps increase that impulse purchase on organic.”

Shales says notable marketing opportunities include Lil Snappers, a packaging program with smaller apples designed for children. 

Stemilt offers retailers a 5-pound pouch bag of organic apples and a four-pack of larger organic apples, which Shales says helps retailers ensure the apples ring up appropriately.

“It has a UPC that’s scannable and makes it really easy for the retailer to ensure that they’re getting the organic premium,” she said. “This year, with a large crop, it’s a great opportunity to utilize the volume available to merchandise organic apples.”

Shales says ensuring volume and dollars increase together is essential for the successful marketing of this year’s crop.

“One of the opportunities that we’re seeing within the category data is we haven’t quite responded in the category to making sure that volume and dollars are both growing in a positive direction over last year,” Shales said.