Posts Tagged “Columbia Marketing International”
by Columbia Marketing International (CMI)
Recently released crop estimates for the 2015 Washington state apple shipments predict a decline of 10.5% from the record harvest in 2014. According to some industry experts, the predicted decline in the overall crop is a reflection of significant changes occurring at the orchard level.
The report released last week estimates significant production increases in Honeycrisp and sharp declines in Red and Golden Delicious—two apples that have been icons of Northwest apple growers for more than 50 years.
The late summer crop estimate is issued each season by the Washington State Tree Fruit Association. This year’s report reveals a total apple shipments estimate of 125,210 million cartons compared to a 140 million box crop last year, a decline of over 10%. The report predicts in the coming year that production of Honeycrisp will leap by 33%, Red Delicious will drop by 26.2% with Goldens declining by 24.5%. Gala is predicted to decline by 3.5%, Fuji will drop 5.8% with Granny Smith production unchanged.
According to Steve Lutz, Vice President of Marketing at CMI, the industry report reflects significant changes growers have made over the last few years in response to market conditions and shifting consumer demand. “Market prices for apples send very clear signals to our growers on what varieties they should expand and which apple trees should be removed,” said Lutz. Lutz says that it is not uncommon to see a decline in total production in the year immediately following a bumper crop like the Washington industry experienced in 2014.
Lutz added that production trends at CMI are consistent with the statewide estimate. “Our growers are reporting they expect production declines in Reds and Goldens to be larger than the state average,” he said. “We will have significant increases in Honeycrisp, particularly from newly planted orchards with high-colored fruit, so we’re really excited to bring these apples to our customers.”
“The hidden news in the 2015 crop report is that newer variety apples continue to make up for the erosion in production of the legacy varieties,” said Lutz. “CMI growers have made huge investments so that we have plenty of high-colored Honeycrisp on the way. To maximize the success of this variety, we’re introducing our new Happy Bee™ Honeycrisp pouch bag program, which will drive retail excitement this Fall. We’ll also have significant increases in production of our popular branded apples like Ambrosia™, KIKU® and Kanzi®.”
Lutz says organic apple and pear production also appear to be a bright spot in the coming year. “CMI leads the organic apple and pear category with our #1 Daisy Girl brand. Our growers estimate that in the coming year our production of our Daisy Girl Organic apples and pears will jump by about 10%.” He added, “That’s great news because organics have been the hottest growth driver in the category.”
###
Columbia Marketing International (CMI) is one of Washington State’s largest growers, shippers and packers of premium quality cherries, apples, pears and organics. Based out of Wenatchee, WA, CMI delivers outstanding fruit across the U.S.A. and exports to over 60 countries worldwide.
by Columbia Marketing International
Demand is hot for Ambrosia™ apples this summer, as they continue to be one of the brightest items in supermarket produce departments. Recently released scan data from Nielsen Perishables Group revealed that for the most recent four week period through June 27, Ambrosia™ and Honeycrisp were the only two apples in the top 10 varieties that generated an increase in sales dollars. All other top 10 varieties declined.
According to Robb Myers, Vice President of Sales for CMI, the data shows that consumers continue to look for highly flavored apples like Ambrosia™. “It’s pretty impressive when you consider that in the top 10 selling apple varieties nationally, only Ambrosia™ and Honeycrisp generated dollar increases. Ambrosia™ and Honeycrisp–that’s pretty good company.”
Myers said a big part of the sales increase is a result of a longer Ambrosia™ domestic season for CMI as well as a strong import season for Chilean grown Ambrosia™ He added, “Our goal was to align sales of our stronger late-storage Ambrosia™ with imported products to ensure continuity of supply right through the new crop out of Washington in early September.”
There is still room for incremental Ambrosia™ growth according to Steve Lutz, Vice President of Marketing for CMI. “The Nielsen data shows that during the most recent four weeks, only about 50% of supermarkets carried Ambrosia™,” said Lutz.
“It’s quite remarkable that only half the retailers in the country are carrying one of the hottest selling apples in the category. In a year where cherry sales are down, generating incremental apple category dollars with Ambrosia is an easy win.”
Lutz says that supplies are excellent and CMI will be running Ambrosia™ promotions with retailers through the month of August rolling into new crop at the beginning of September.