Issue link: https://read.dmtmag.com/i/622402
www.goodfruit.com Good Fruit Grower JANUARY 15, 2016 15 TJ Mullinax/Good FruiT Grower Apples typically take up the largest display space in produce departments. However, the dollars per square foot for apples are among the lowest returns for all fruits, which is one reason retailers are reluctant to provide more space for new varieties. with no new space or new items and no premium selec- tions or upscale packages. Almost 80 percent of their sales and volume come from Red Delicious, Golden Delicious, Gala, Granny Smith and McIntosh, which means they're still "approaching the apple category like it's Budweiser," Lutz said. Conversely, top-performing retailers are generating only about 45 percent of their revenue from those five varieties, making greater gains with newer varieties like Honeycrisp, Jazz, Envy, Ambrosia, Cripps Pink and SweeTango. Strong retailers allocate space to large volumes, with solid premium selections and packaging options. They also leverage organics and organize flow in their departments to steer consumers to higher-value apples. Lower-performing stores will put a familiar variety of apple for 49 cents per pound next to Honeycrisp at $2.99 per pound. "What message is that sending to the consumer? Buy the cheap apples," he said. "It's a self-de- feating strategy that is an absolute waste of space." Marketers have opportunities in the retail market if they remember that packaging sells and displays matter, Lutz said. "There is a space race going on, but we have spectacular new products coming to market. You have to execute with marketing, and you have to execute with packaging." • "When we produce the next Cosmic Crisp, where are we going to put it?" —Steve Lutz Staying relevant in changing times… Farming in the early 1980s was hard. A few of us still remember interest rates in excess of 17%; farm families went out of business and many more spent years struggling to recover. Floods, drought, commodity prices, input costs, and availability of capital created challenges. We face many of those same threats today, yet so much has changed. More crops are produced with greater efficiency on less land because of technology. Much of this technology has come with a cost. Public scrutiny and misinformation create new challenges. As a farming community we need to redefine who we are and what we do. AgroLiquid is proud of our rich heritage. Like most farming operations, we are a family owned business. More than three decades ago, our founders committed themselves to producing crop nutrient solutions unlike anything else on the market. Driven by the desire to help the farmer prosper, Agro-Culture Liquid Fertilizers were developed upon principles of nutrient synergy, sustainability, and practical agronomy. Thirty years later, our mission is still to 'Prosper the Farmer' and our products are still developed upon the same three principles. AgroLiquid's third generation of ownership is just as committed to producing crop nutrient solutions unlike anything else on the market. We're researching, developing, and bringing exciting new technologies to the farm gate that meet the challenges farmers face today. Things change with time, they need to -- and it's good. Our logo is new and our name is a lot easier to say, but at our core we are still the same family business committed to bringing you the very best crop nutrients available today. Learn more at agroliquid.com.