June 08

June 2008, World Apple Report Highlights

New Marketing Insights
This article reports on three recent academic studies that provide new insights into a number of key marketing topics. One study, by Jin, Zilberman and Heiman, shows why branding of produce items is generally less effective than of electronics, clothing or prepared food. They suggest that to be effective, produce brands must be targeted to the most receptive customers. A second article, by Messer, Kaiser and Schulze, reports on methods that have been tested in Cornell University's Laboratory for Experimental Economics and Decision Research to sustain commodity promotional programs on a voluntary basis. A third, by Darby, Batty, Ernst and Roe, shows that in the state of Ohio, the term "local" does have value to consumers separate from perceived freshness or distrust of big agribusiness.

Slow: Roadwork Ahead
The ominous heaves and dips that began to appear in the economic road in the last year have begun to turn into treacherous cracks and bumps. Few countries are being spared. A fall in housing prices and home equity, credit tightening, and rapid inflation in food, oil and other necessities have placed many businesses and consumers in an economic squeeze not experienced since the early 1980s. In that period, there was a flight to basic, no frills, discounted food products. There are signs that such a trend is already under way. What is not yet clear is how many consumers will be willing to forgo their "virtuous" buying habits (like organic, fair trade, dolphin-safe, etc.) for lower prices.

Tesco Introduces Carbon Footprint Labels
Tesco, the world's third largest food retailer, has just introduced "carbon footprint" labels on 20 products, including orange juice and fresh potatoes. They show, for example, that both organic and conventional potatoes generated 160 grams of CO2 per unit of product. The UK organic powerhouse, the Soil Association, argues that this is misleading because organic practices also restore carbon to the soil. A number of uncertainties surround the Tesco initiative. Will they gain more widespread acceptance? Will they help or further confuse consumers? Will their retail rivals be forced to adopt the same measures or seek a superior system? How will suppliers be affected?

Special Statistics

Number of Stores with Ads for Fresh Fruits and Fresh Vegetables, 2008 (table).
Number of Stores with Ads for Key Fruits and Vegetables, 2008 (table).
Weighted Average Advertised Prices for Key Fruits, 2008 (table).
European Union: Major External Suppliers of Fresh Apples, 2007 (table).
United States: Grower Prices of Fresh Oranges…. Woops! (chart).

The authoritative guide to the world apple business today.

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