What impact did the recent Polar Vortex have on the US fresh produce industry?
Roger Pepperl: Domestically, the cold kept shoppers in their homes and off the roads which led to inconsistent patterns of purchasing, but overall it wasn't a big issue. Week-to-week it made consistency of ordering from customers fall off a little. There are empty shelves and then a back up of too much product weeks later. It causes a roller-coaster effect.
Have there been any lasting impacts for Stemilt or the industry as a whole? Are there any lessons that can be learned?
RP: There have been no real lasting impacts, it's just another weather-related short-term issue. Storms, cold, tornados etc all have impacts on product flow that are disruptive, but we adjust in short time frames. No lessons can really be learned other than that you must be nimble in business.
Away from the bad weather, how is 2014 shaping up for Stemilt? What opportunities do you see in the coming months?
RP: Apple demand is extremely good this season in North America. The demand for premium sizes is incredible and good pricing and volume is a result. We are seeing good demand for trademarked items like our Piñata apple which is selling at a rapid pace with retailers looking for ways to offer new items, and differentiate from their competitors. We see a future for trademarked items as long as it is done well and the investment in marketing supports the new products. Stemilt is certainly seeing a return on its investment in marketing, horticulture and post-harvest research on Piñata.
Are there any other promising avenues for Stemilt to explore this year?
RP: Other key activities are that some value items like Granny Smith and Anjou pears are great ways to offer the consumer a bigger ring with a good price point at retail. We are seeing activity on these two items which also tie in well with the coming St Patrick's Day theme ads in March that are being planned.
What is the mood among consumers in the US currently? How does this bode for Stemilt and the industry as a whole?
RP: We are seeing high demand for conventional and organic apples and pears from the consumer. We are seeing a strong tie-in with nutritional based diets that are usually front and centre' after the New Year.
The attractive variety mix that apples offer the consumer has been the vehicle to allow apple consumption to continue to build in North America. We see a bright future for the new varieties such as Honeycrisp, which will delight consumers with flavour but also with textures and crunch that separates their eating experience.
There will be many new varieties that will carry forward what Honeycrisp has started. SweeTango which was sold in the Fall by Stemilt and its partners in the NBT Group is an example of how consumers will adapt quickly to a new variety with Honeycrisp type qualities – they just need to be different and offer a differentiation point for consumers to try them.
Look out for lots of change and growth from our industry in the coming decade. It will truly be incredible.
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