As last week’s FPJ landed on the desks of subscribers in a multitude of countries, it will have come as little surprise that the apple game has become even tougher with the juicing industry the latest to suffer.
The crop in Europe has plummeted in terms of volume on previous years and prices, at wholesale level in particular, have risen rapidly.
Braeburn output throughout the 27 member states is expected to fall by 14 per cent on last year, Royal Gala by seven per cent, Golden Delicious by eight per cent, Granny Smith by seven per cent, Cox by 10 per cent and Cripps Pink by three per cent.
But in the UK, the total English crop has defied pre-season forecasts and bucked the Europe-wide trend for lower volume. Cox supply is almost identical to last season at 29,000 tonnes and volume sales to UK supermarkets in early December were 2.5 per cent up on the same point last season.
Across the pond, the east coast US offer has had to tackle some difficult conditions this year. After an exceptional year in the UK in 2009-10, New York State’s apple export figures are down so far this season.
The morpholine issue, which kicked in right at the start of the Empire season, has slowed down traffic to the UK market and by the end of December, New York shippers had sent 48,120 boxes of apples to their UK customers and another 1,732 boxes to Ireland, which was just over 20 per cent lower than at the same point last season.
Well over 90 per cent of the apples that come to the UK from New York are the Empire variety, with the remainder McIntosh. Both varieties have been affected as the industry responded to the Food Standards Agency’s decision to effectively prohibit the use of waxes containing morpholine.
One source says: “The traditional peak of Empire sendings will be reached during the next quarter. It is unlikely that exports will recover to reach the same levels as last season, which put in context was the highest volume season for many years. However, New York’s growers and shippers are confident that the Empire that is sent will perform well on shelf, and in-store promotions are already in place to stimulate sales through February and March.”
Back in Europe, the first full month of sales of Pink Lady in December is said to have been strong, with fruit picked just in time before the snow hit. There are signs it could be a vintage year for the crop and a spokesperson said: “Pink Lady has ambitious marketing plans for 2011, with a mixture of above and below the line activity to drive trial and repeat purchase. Planned activity includes an innovative and creative experience marketing programme, regular in-store promotions, brand advertising in key women’s interest and food publications, and a PR campaign focusing on the versatility of Pink Lady as both an eating and culinary apple.”
French exporter Blue Whale reports it is having a strong season for apples. Commercial director Sylvain Brard says: “We are having a better year than last season and demand is particularly strong for Royal Gala, Granny Smith and Pink Lady.
“Returns to growers have been back at the level of two years ago - that means about 10 euro cents more per kilo against last year. But the market is getting stronger and stronger as the demand overseas is still very strong and availabilities from the UK seem to be less than planned.”
At retail level, Morrisons has taken the plaudits for increasing its sales of English top fruit, but Asda has been told it still has work to do in the last three months.
Figures released by English Apples & Pears (EAP) last month show that Morrisons has increased its share from 19.6 per cent of the market for UK top fruit to 21.2 per cent, representing a huge overtrade on Morrisons’ grocery market share of 11.3 per cent. Asda’s share, meanwhile, has fallen back from 13.5 per cent last year to 11 per cent this season, although the Leeds-based retailer has
re-affirmed its commitment to boosting its share and is targeting an increase in home-grown product.
Sainsbury’s, while still leading on UK top fruit, has struggled, with its 29.8 per cent share last year slipping to 25 per cent this year following supplier SGT switching allegiance to Tesco, which has 24.6 per cent share, up from 18 per cent last year.
BRAMLEY BUSINESS: FOURAYES UPBEAT FOR 2011 CAMPAIGN
English top-fruit specialist Fourayes is one of the largest players in the UK top-fruit trade, supplying processed fruit and fillings. The company processes more than 11,000 tonnes of Bramley every year, around 1,300t of which is grown in its orchards. Alex Lawson caught up with managing director Phil Acock for an insight into the business and the wider category.
Can you describe the main differences between supplying the fresh and the processed market?
Bramley apples sold fresh require different specifications to that of processed fruit. They need to be larger in size, with green, unblemished skin and sufficient firmnessto allow for some loss of firmness before the product is used by consumers. Bramley apples grown for processing can be smaller but good texture, while juiciness and taste is equally important.Light skin blemishes are acceptable for processing as we peel them off. This means we are able to process Class II fruit that supermarkets don’t want.
How have both sectors fared during the recession in terms of top fruit?
Fresh sales have continued to increase due to the effects of the Bramley Campaign and the bicentenary celebrations. Demand for processed product has been stable. Overall, prices for growershave been too low due to overproduction in Ireland and the reduction in demand from Magners.
How has the crop been this season?
Northern Ireland has a large crop this season. The crop tonnagein England is similar to last year with fruit size slightly smaller but the quality has been good with higher gradeouts than last year to date.Fruit shape has also been good, which is ideal for processing.
What are your opinions on the UK top-fruit industry as a whole and how it works together?
Marketing companies are in competition with each other and many have substantial businesses in imported fruit. Customers are also in competition with each other and competition law prohibits any collusion that would distort the market. However, the English industry voluntarily funds the Bramley Campaign, which has increased demand and usagein all trade sectors. This has helped to position Bramley as a premium quality product, unrivalled as the most superlative apple for cooking. English growers have also worked together to establish the best production protocols and to provide consistently high quality Bramley to customers year round.
Do suppliers do enough to support the supermarkets and vice versa?
English suppliers work very closely with supermarkets to maximise sales while achieving profitable returns for growers. The Bramley Campaign undertakes various activities throughout the year to increase demand and usage. Suppliers co-ordinate and help to fundactivity bytheir customers to maximise the benefit from the campaign in terms of publicity, new purchasers and increased usage due to new recipes and dishes.Typical activity in retailersincludes increased shelf space,in-store POS, recipe cards, new product packs and tastings.
Given the success of the campaign, how important is publicity and image for Bramley?
A strong marketing and PR campaign helps reinforce the reputation of Bramley and Fourayes. It emphasises that the Bramley industry is constantly innovating and comprises of modern, high quality businesses.It also increases awareness of the product range and the quality of Bramley applesand Bramley products, as well as helping to increase sales to customers and consumers.
What else are you working on?
Fourayes has recently started industrial jam manufacturing, of which one of the main ingredients is Bramley apple purée. Fourayes is always developing new and innovative products and are looking to take apple and fruit products into other sectors over the next year to 18 months.
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