The apple sales business has changed dramatically in recent years, with a wider range of product types, a set of trademarked brands, and a set of targeted marketing programs.
Italy's two largest apple exporters, Vip and Vog, face a difficult challenge. But it's a challenge more or less entirely of their own making, and one they're willing to take on. For these South Tyrolean suppliers, the apple sales situation in 2024 will be markedly different compared to even a decade ago.
Over the past few years, both companies have invested heavily in licensed varieties. Each of these trademarked apples has its own brand that must be managed, commercialized, and sold. As a result, companies' product portfolios have become much more complex, and so have their marketing plans.
And for some of the so-called club lines, such as Cosmic Crisp, Envy, Kanzi, and Yello, the two companies are joint licensees with common business goals. In some cases, we may also collaborate on coordinated promotional plans.
Cosmic Crisp is a striking example of how quickly this trend is taking shape. The plant, which has been widely bred and planted in Washington state for the past decade, has only recently been brought to Europe for licensed production by companies.
Since then, production has tripled to 14,000 tonnes this season and is expected to rise to more than 40,000 tonnes in 2025. Eventually, Cosmic Crisp from Italy will be available in Europe for 12 months of the year.
Variety value
Why are there so many different brands? The aim is to present the international market with a wide range of potential food experiences and cater to as many different consumer tastes as possible. This is also a move aimed at extending the season further and for as long as possible.
In the past, open-source varieties such as Gala, Braeburn and Golden Delicious dominated the offer. And although club varieties still dominate in terms of volume, they now represent an increasingly large and commercially valuable proportion of the mix.
Meanwhile, advances in breeding and preservation techniques have meant that fruit has a longer shelf life than ever before, especially in the case of new proprietary varieties.
Many in Italy's apple trade are wary of the risk of oversupply, but a policy of investing in more varieties appears to be paying off.
Both Vip and Vogue are halfway through a noticeably longer Italian season, which had previously been supplemented by more imports from the southern hemisphere since February. For some exporters, such as New Zealand, new demand in Asia and the Middle East has made Europe a less important target destination. However, a European-wide trend toward producing higher-value, premium apples later in the season has also changed market conditions.
For Vip, Gala will be on the market until the end of March, but from early February it will be partially replaced by another unlicensed variety, Pinova. But it's crabapple varieties like SweeTango that are having a more pronounced impact on sales growth, explains Kurt Ratschiller, Vip's commercial director.
“Once again, we were able to get SweeTango summer apples in Italy very quickly and for the first time to our important customers in Spain and Denmark,” he says. “Additionally, some of our new partners have already confirmed the inclusion of this crabapple in their new season offers, confirming the positive response from end consumers.”
virtuoso performance
Different types of apples have different marketing methods. This season's Cosmic Crisp campaign invites people to experience a “heavenly” sunset roadshow in cities across Italy, Germany and Spain, including Madrid, Barcelona, Munich, Cologne, Berlin, Milan, Rome and Naples .
The Clubland initiative has certainly marked a dramatic shift in Vog and Vip's strategic approach when it comes to consumer marketing.
“In a multi-brand scenario, consumer communication has to work like an orchestra,” says Hannes Tauber, marketing manager at Vog. He said he believes his marketing campaign for the group's apples is a symphony in which each product gets a chance to play on its own. . “Individual brands associate each specific product with unique values, lifestyles and consumer promises,” he added.
Vogue recently featured Giga, a larger-than-average apple perfect for sharing in spring and summer. We also sell Red Pop, a small, very sweet apple that has started to become famous as a snack fruit in the UK and other markets.
“Every new apple we've brought to market in recent years has a precise identity and is aimed at a specific audience,” claims Tauber. “Our policy was not to increase production, but to focus on the value of the category, engage with apple consumers and attract more people to the numbers.”
Suppliers also recognize the need to help consumers better understand the differences. Part of Vog's approach was to show shoppers what it called an “aroma wheel” of tastes and flavors for each individual type. Meanwhile, Vip plans to publish an informational brochure called Applepairing, which will explain to consumers how best to pair his six of the company's varieties with other foods.
Golden age
However, this does not mean that the old varieties will survive intact. This year, Vip will focus part of its communications on Golden Delicious, the most widely grown apple in its home base of Val Venosta.
“In Italy and Spain, the main markets for our golden variety, some retail chains are celebrating Golden Week,” says marketing manager Benjamin Reimer. “In addition to receiving detailed information about the product, during this promotional week customers will have the opportunity to immerse themselves in the flavors of Golden and rediscover the traditional variety in a new way.”
In recent years, the product range has become more complex, which has improved commercial prospects for South Tyrol apple sellers. The company's sales team believes that what they call “stock clearing” – the sale of fruit that has been harvested and stored since late summer – is carefully planned and carried out weekly in season. I feel like I am having a positive impact on the process. progress. The scenario of an oversupply of older, more marketable varieties on the market seems less likely than it once did.
“Royal Gala was the dominant apple in the early stages of sales, but now we are seeing good demand for all varieties, as each variety has its own consumer and market.” Vogue Comments Klaus Herzl, Sales Manager at . “In Europe, the situation continues to be positive, with Italy and Spain responding well to new varieties and the German market also doing well.”
Emerging markets also started the season well, Herzl said. “The Middle East remains our key market.” [outside Europe]However, Latin America is growing despite the challenges posed by great distances. ”
We can also look forward to the future. “We expect the market to be strong in the coming months, and even as other fruit and vegetable products disappear, we will still have high-quality apples,” continues Herzl. “Then, from May onwards, it will depend on consumption trends and weather conditions, but we generally expect the situation to be under control.''
With so much diversity and so many new opportunities, it is no exaggeration to say that the South Tyrol apple business has entered a golden age.
