Asda has downgraded branded Pink Lady apples to a gap-filler, following its six-week trial of stocking the generic Cripps Pink variety in its place.
Fruit buyer Lee Harper said Asda will still work with the Pink Lady Association, but would only use branded fruit to cover gaps in availability. He said the trial on Cripps Pink saw sales increase by 17 per cent.
“We were making a 30p a case saving which is passed onto our customers. With Pink Lady we’re only paying for a name, and as an EDLP retailer I will not accept that.”
Peter Dall, chairman of the International Pink Lady Association, said he was disappointed with the decision, but insisted that any branded fruit sold to Asda will retain its premium price.
“We hoped they would come back fully, we thought the debate was over, but really it’s only just starting,” he said.
The challenge for Asda will be to source Cripps Pink in the volumes that it requires.
Dall said: “We know Asda will be able to source it somewhere, but don’t think they’ll be able to source it to Pink Lady standards in Europe. The pressure will come from the southern hemisphere.
“I can convince my South African colleagues to provide only Pink Lady, but probably not the South American producers.”
The biggest concern for them now, he said, was the problem of branded and generic fruit intermingling: “We won’t allow anything to dilute our brand in any way whatsoever. We’ve not been afraid to take other European retailers to task on the issue when we’ve had problems in the past.”
Dall said talks would continue with the retailer, with meetings scheduled for October.
Asda’s Harper added: “The door is always open, whether that means re-negotiating or not. But at the moment, our customers are happy with what we’re providing.”
A recent survey by TNS has shown Pink Lady’s brand awareness to be 58%, and Dall said over the last two weeks Tesco had doubled its sales. “We’ve got to convince Asda that Pink Lady is the way to go.”
While he said he welcomed the support other UK retailers had been showing towards the apple, things are never certain. “We’re happy with the loyalty we’ve received from the other supermarkets, but there’s always the worry they might follow Asda. However there’s no sign of that yet, and certainly don’t expect that to change within the next six months at least.”
