Stemilt's Fruit Tracker Fast Facts Video Shows Apple Volume Up But Dollars Down In March 2017
May 8, 2017 | 3 min to read
WENATCHEE, Wash. – According to Stemilt’s latest Fruit Tracker™ Fast Facts video analysis of Nielsen retail scan data, apples had a lion’s share of the produce department in March 2017 by contributing 6.3 percent of total produce dollars on average across the U.S. The Central region was the only region to beat the average with 7.1 percent of produce volume coming from apples.
In looking at the category as a whole, apple volume was up in March 2017 over the same time period in 2016, but dollars were down. Stemilt’s analysis attributes this to a change in the bulk-to-bag ration from the year prior, with more bags being sold in March 2017 than in March 2016. Bulk commands higher retail prices, which is why increased bag sales can lead to a decline in total category dollars. Bulk apple volume fell 3.6 percent in March 2017 compared to March 2016, but still made up for 58.8 percent of the apple category sales. Bags made up the remaining 41.2 percent of apple sales.
“The March data provides good insight to retailers as we near the summer months and focus shifts to seasonal fruits. As a year-round produce item, there are still opportunities to promote apples. Apple ads in the summer should focus on bulk and use bags as a sub feature. Intent marketing programs like Stemilt’s 3lb. Lil Snappers® kid-sized fruits are great for driving sales, while larger 5lb. pouches like our Apple Lover bags can also lift retail dollars,” said Brianna Shales, Stemilt communications manager.
The top apple varieties in March 2017 remained unchanged from February 2017, however that will shift as varieties like Honeycrisp begin to wind down on supply. Shales expects Pink Lady®, currently in the sixth position with 5 percent of apple sales, to replace Honeycrisp in the top five. The leading apples in March 2017 were: Gala at 28.6 percent of sales, Fuji at 13.8 percent, Red Delicious at 12.6 percent, Granny Smith at 11.9 percent, and Honeycrisp at 10.4 percent of sales.
In looking at club apple varieties, Stemilt found that retailers sold more Envy apples in March 2017 than in 2016, but at a lower retail, which was likely due to ad activity. Lady Alice, Jazz, and Piñata® all saw retail price increases year-over-year of more than 3 percent. Stemilt’s signature variety, Piñata®, had an average retail price per pound of $1.63 in March 2017.
“The season continues to extend for many club apple varieties, including that of our signature apple, Piñata®, which is now available through June. It’s hard to compare one year from the next when looking at club apples, and that’s important for retailers to remember. When it comes to club apples, there are key times to promote the top varieties and offering shoppers with variety will ultimately keep the apple category refreshed, and hopefully keep them buying apples,” said Shales.
Another interesting finding in the March 2017 retail scan data was a slight uptick in the average retail price for all apples from the month prior, February 2017. The average retail price per pound on apples in March 2017 was $1.62 compared to $1.60 in February.
As summer nears and supplies wind down on certain apple varieties, Shales recommends that retailers freshen their apple section with promotions on Pink Lady® and Fuji apples. Pink Lady® is the last variety to harvest each year in Washington State, and as the industry’s leading supplier of Pink Lady® apples, Stemilt finds the quality in the spring and summer to be second to none.
“Pink Lady® is a high sugar, high acid apple that has the unique feature of developing more complex flavors in storage,” said Shales. “The best is yet to come with this apple and Stemilt has a variety of promotional opportunities to highlight it at retail.”
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About Stemilt
Stemilt Growers is a leading tree fruit growing, packing and shipping company based in Wenatchee, Washington. Owned and operated by the Mathison family, Stemilt is the leading shipper of sweet cherries and one of the nation’s largest suppliers of organic tree fruits. Stemilt has also demonstrated a commitment to sustainable agriculture and social responsibility since 1989, when founder Tom Mathison launched the company’s Responsible Choice program. For more information about Stemilt, visit www.stemilt.com and follow Stemilt on Facebook, Twitter, Instagram, Pinterest, and You Tube.
Source: Stemilt Growers