Branded apples a bright spot for CMI

Emerging branded apple varieties should keep the excitement level high in retail produce departments despite lower overall volume from Washington state, say officials with CMI, Wenatchee, Wash.

Washington state’s volume this season is down roughly 22 million cases compared to last year, said Robb Myers, vice president of business development for CMI.

“However, with strategic new partnerships and additions like SugarBee and Sunrise Magic to CMI’s manifest, we feel this season is the perfect opportunity for retailers to introduce some of the newer and lesser-known varieties to consumers and drive trial and keep excitement within the apple category,” Myers said.

“We also have an increased volume of Cosmic Crisp and Envy this season — both of which are U.S. top 10 apples in sales dollars and volume according to Nielsen scan data over the latest 52-week period," he added.

Though the state’s crop is shorter compared to previous years, CMI’s branded variety volume is almost on par with last season due to production increases, plantings and overall availability, said Danelle Huber, senior marketing manager. That, she said, makes it the perfect year for retailers to display newer varieties and allow their shoppers the opportunity to trade up for some of the newer, readily available branded/high-flavor varieties.

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“We’re really thrilled about the added partnerships this season bolstering our volume and position in comparison to the market averages, especially with volume down significantly across the board,” said Rochelle Bohm, vice president of marketing. “Adding SugarBee to our manifest is an awesome highlight; this emerging best-selling apple is rapidly rising in popularity, evidenced by strong sales.”

CMI carries a large selection of specialty branded apples, pears and cherries, both in conventional and organic options, Bohm said. In fact, Bohm said CMI offers 10 of America’s top-selling and emerging branded apples, including Ambrosia Gold, Cosmic Crisp, Envy, Jazz, EverCrisp, Kiku, Kanzi, SugarBee, Smitten and Sunrise Magic.

Huber said organic high-flavor apples are showing significant increases in volume — as high as 204% — for specialty brands such as Envy, Cosmic Crisp, Ambrosia, SugarBee and Kanzi — even with rising average prices. 

“Core varieties and their organic siblings are all down in volume, whereas the high-flavor, branded apple organic category is up an impressive 12.5% comparatively,” Huber said.

CMI’s Flavogram POS program puts the power in both the hands of shoppers and retailers to gain more knowledge about apple flavors, Huber said.

“Equipping consumers with more knowledge about the fruit they’re buying entices them to branch out from the lower-priced core varieties with more confidence and increasing incremental sales for retailers across the board," she said.

Bohm said CMI has put a lot of focus on trading consumers up to high-flavor options.

“Now more than ever shoppers are willing to try new varieties, given they have the proper incentive — in most cases, arming them with more in-depth knowledge about flavor profiles so they can make informed decisions about what they’re spending their money on,” she said.

CMI can work with retailers to develop “like this, try that” campaigns that tie into CMI programs like Flavogram, Bohm said.

“If someone likes to use granny smith apples for baking, they can upgrade to the intensely tangy flavor profile of Kanzi apples to get an interesting, elevated experience,” she said.

CMI has the largest selection of specialty branded apples under one roof, and many of its managed varieties and brands available year-round in both conventional and organic options, she said.

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“CMI stands out to our customers as the 'easy button' and operates as a one-stop shop to streamline the process every step of the way,” Bohm said. “This includes exploring and developing some of the new omnichannel ways that consumers are buying and interacting with produce; from meal kit programs to providing digital assets and toolkits for retailers to supplement and enhance their own content, we’re well equipped to continue expanding into the omnichannel area.”

Packaging trends

On the packaging front, CMI’s ambition is to develop packaging solutions that are rooted in real environmental benefits, not smoke and mirrors or greenwashing, Bohm said.

“We go all-out to be a resource that retailers can rely on to investigate constructive packaging options with integrity,” she said, noting the company’s Relax program took home the top award for Best Business to Consumer Sustainability Messaging at The Packer’s Sustainable Produce Summit last June.

“This program delivers clear, concise and impactful communication that resonates with customers on a practical and emotional level, and is backed by concrete, authentic sustainability claims,” Bohm said. “Continuing our work on advancing sustainable packaging options, we also introduced our first plastic pouch bag with a bio additive into the market this year.”

Truck rates ease

George Harter, vice president of special projects, said CMI anticipates getting some relief from high transportation costs compared to last season. The company also has bolstered its transportation and logistics team to continue troubleshooting any transportation issues that might come up.

“Rates have been sitting right in the middle, which is perfect for truck availability; steady rates seem to keep drivers in the market and running the lanes that we need every day,” Harter said. “We believe that availability is only going to continue to grow going through this season, with costs down through the winter and summer rates remaining comparable to last year.