January 07

January 2007, World Apple Report Highlights

Biggest Stories of 2006
The lead article in our January 2007 issue lists the major stories reported in the last year that are most likely to have long-term implications for the global apple industry. They are (1) Consumer Metamorphosis, (2) Retailer Shakeup Continues, (3) China's Lurking Presence, (4) Alternative Energy Initiatives, (5) Food Miles Battle Ahead, (6) Trade Initiatives Flounder, (7) Labor Stresses Increase, (8) New Excitement in Organics, (9) Salvation in New Varieties, (10) Food Safety Headache, (11) India Looms Larger, (12) Is Demand Revival Real? (13) Exchange Rate Distortions, (14) Promote or Die.

Consumers Strike Back
Futurists are noting major changes in how consumers choose their food and interact with food suppliers. An increasing number are concerned about the short and long-term effects of foods on personal and family allergies, health, fitness and longevity and about how the food system affects soil, air, water, wildlife, worker rights, social justice, etc. Consumers will want to know much more about the food system, warts and all. Numerous entrepreneurs are gearing up to make such information available to consumers in formats that can be downloaded instantaneously to their computer or cell phone. Your company, its products and its practices will be an open book. Some of the information provided to consumers may be slanted or negative. While it will not be possible to escape increased consumer scrutiny, apple firms will need to ensure that when their "story" pops up on a consumer's screen, it leads the consumer to make a favorable buying decision.

Wal-Mart Slips into India
India's laws have until now prevented major multinational retailers such as Wal-Mart, Tesco and Ahold from operating in the Indian retail market. Wal-Mart is now hoping to slip in through the back door, so to speak, through an alliance with Bharti Enterprises, one of India's largest telephone companies. Bharti plans to set up and operate a chain of stores as a Wal-Mart franchisee, while Wal-Mart will provide the operating expertise to support the chain. If the initiative receives the necessary approvals from the Indian authorities, it would give Wal-Mart an early advantage over its big international rivals in learning how to operate in the Indian market. However, if direct access remains blocked, approval of the Wal-Mart-Bharti alliance would lead to other similar alliances.

Special Statistics
Foreign Direct Investment in Developing Countries, 2004 (table).
Leading Producers of Fruit and Tree Nuts, 2001 and 2005 (chart).

The authoritative guide to the world apple business today.

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