WENATCHEE, WA - With Washington's apple crop slated to peak at least one to two sizes smaller than normal, CMI is looking to help retailers tackle the unique challenges an abundance of small bagging apples can present.
“The opportunity for retailers is recognizing that this year selling bagged apples is key, since Washington State supplies over 60% of the U.S. apple crop,” Steve Castleman, Senior Vice President of Sales at CMI, stated in the release, explaining that bagged mainline varieties are going to be big this year due to the decrease in apple size. “Our retailers are already lining up really strong promotions on three and five pound apples, especially in key varieties like Gala, Fuji, Granny, and Red Delicious.”
According to the release, CMI expects to see retailers, now more than ever, using three and five pound poly bags to boost the apple category for consumers. Steve Lutz, Vice President of Marketing for CMI, stated that the bagged apple market is evolving, however, saying, “But the strong retailers will use premium bags to trade a portion of those consumers up.”
Nielsen data shows two pound bags were the fastest selling major segment for packaged apple business last year, a more than 350 percent increase in volume, with an average $2.10 per pound sales price.
“We know there is a value shopper out there and in a year like this, it’s important for retailers to promote three and five pound poly bags,” he said. “But missing the opportunity to trade shoppers up to these popular premium pouch bags just leaves dollars on the table. Every retailer needs to focus on ways to grab this business.”
CMI added that it is beginning to see retailers generate strong success when selling branded apple pouch bags, comparable to packaged salad sets. Lutz stated, “Some of the most successful retail chains are creating a complete 2 pound pouch lineup that includes branded products like Ambrosia™ and Kanzi®, Bartlett pears, Honeycrisp and even mainline apples like Gala and Fuji all lined up on a single table.”
Premium bags tend to feature organics or new branded apples, like Honeycrisp, Ambrosia™, or KIKU® brand apples, for example, with high colored graphics and product information for consumers. Typically two pounds in size, they are also composed of a stronger material.
“Three pound apples drove 22 percent of apple category dollars last year, so that’s obviously where retailers should start,” Lutz said. “But stopping with only value bags misses one of the biggest emerging opportunities in the category.”
Ambrosia™ pouch bags and the Daisy Girl Organics™ Gala both sold over a million units nationally last season, making the top sell list for two pound bagged apples nationally.
Lutz concluded that the upward growth in branded apple pouch bags is altering retail merchandising strategies, stating that the premium bags provide a great offset for retailers to trade some of packaged apple shoppers up to a more expensive product.
