Feb 5, 2016

Apple retails and category dollar volume trend up

Apples contributed more dollars on average to U.S. produce departments in December 2015 than in 2014, despite volume being down slightly year-over-year, according to Stemilt. The latest apple category insights from Stemilt are based off of four weeks of data from Nielsen FreshFacts which compare the timeframe of Nov. 29-Dec. 26, 2015 to the same period in 2014.

“The highlight of this recent data set from Nielsen is that bulk fruit averaged $1.80 per pound in December 2015, and was up $0.17 year-over-year. Bags were also up, selling for $0.07 more per pound,” said Stemilt Marketing Director Roger Pepperl. “It’s not surprising to see higher retail prices given the fact that the 2015 national apple crop is down considerably from record levels in 2014.”

Two of the category’s top apple varieties, Gala and Honeycrisp, made up a smaller percentage of the December mix in 2015 than in 2014. Honeycrisp dropped 2 percent to 10.3 percent of category sales, while Gala was down about a percent. This is due to smaller fruit size on Gala and certain regional growing areas finishing up on Honeycrisp earlier in 2015 than in 2014, Pepperl noted.

Among the many trademarked varieties available in December, Stemilt’s signature variety, Piñata, was a bright spot, Stemilt reported. Piñata was up 55.3 percent in volume year-over-year, which Pepperl attributes to high demand and an increase in promotional activity at retail.

The 2015-16 crop year saw smaller fruit size on average for apples, which has made Stemilt’s industry leading pouch bag brand of 3lb. apples, Lil Snappers, a great promotion vehicle for retailers, according to Stemilt. Pepperl recommends both Piñata and Pink Lady varieties for upcoming spring Lil Snappers promotions.