Research Reports

Technology might be making the world a smaller place, but it is expanding the citrus fruit market for U.S. consumers.

That is good news for retailers, which now can tap into shoppers’ increasing demand for fresh, healthy produce by merchandising high-quality grapefruit, clementines, lemons, limes and myriad varieties of oranges and tangerines all year long.

“The world seems to be a much smaller place than it used to be. Now, the summer imports include fruit from Australia, South Africa, Chile and Peru,” says Stu Monahan, national sales manager at DNE World Fruit Sales, Fort Pierce, Fla.. “Now that summer imported citrus has established itself, there are navels and clementines available year-round.”

That 12-month presence of products once available only seasonally has boosted produce department sales, industry experts say.

“Imported citrus contributes significantly to category sales. During the winter selling window of November through January, many East Coast retailers will generate as much as 50% of their citrus category sales from imported citrus driven by Spanish clementines,” says Anthony Barbieri, vice president of business development for the Produce Marketing Association and a former retail executive for ACME Markets in Malvern, Pa.

Although summer is the peak season for seedless navel oranges and clementines, domestic availability of seasonal fruit such as cherries, peaches, plums and nectarines causes a significant decline in citrus sales overall in the summer, Barbieri says. “With that said, imported citrus can still represent 30 to 40% of category sales during the summer months.”

Trends
Imported citrus generally follows the trend of citrus in general as far as the demand by variety is concerned, says David Mixon, chief marketing officer at Seald Sweet International, a leading importer and exporter of fresh fruits and vegetables based in Vero Beach, Fla.

Currently on the upswing: clementines and navel oranges, which account for a large portion of citrus produce profits.

“The consumer preference at this time is leaning towards the clementines, and this trend continues to expand and grow in all areas of the U.S., Mixon says. Navel oranges are a close second for Seald Sweet, followed by minneola tangelos, lemons and grapefruit.

Although the popularity of certain citrus products used to vary throughout the U.S. because of availability and the seasonal nature of each fruit, it is fairly consistent today thanks to a more educated consumer base and broader distribution of most products no matter the season.

“The continued education of consumers has been such that preference has grown equally across the U.S.,” Mixon says. Today’s consumers, for example, view summer citrus as a continued supply of consistent, high-quality fruit they can buy almost 12 months a year.”

Navel oranges and clementines prevail at DNE World Fruit Sales, as well. “The most popular imported citrus items DNE imports are navel oranges followed by clementines,” Monahan says. “The clementine market has a much faster rate of growth right now and could overtake navels in the future.”

Seedless varieties and taste are driving consumption, PMA’s Barbieri says. “The most popular imported citrus produce now is clementines, seedless oranges — navel and midnight varieties — and lemons.”

Availability
The United States imported $423 million worth of fresh citrus in 2009, according to the Agricultural Marketing Resource Center at Iowa State University in Ames, Iowa.

Those imports are key to citrus’s rise on produce popularity charts.

“The citrus category has become a staple to the produce department,” Seald Sweet’s Mixon says. “While certain varieties may only have eight to 10 months, many go as long as 11 to 12 months of availability.”

For example, customers can enjoy navel oranges all year thanks to a combination of imported and domestic product. California navels are available from January through July, then again in November and December. However, navels from South Africa are available from June through September, and from Australia from July through October, creating a yearlong supply of a customer favorite, according to Seald Sweet’s citrus availability chart.

Get the flash player here: http://www.adobe.com/flashplayer See the Produce Retailer Merchandising Gallery for more photos.

It is a similar case for clementines. California product is available from January through April and in November and December; Chilean fruit is from May through September; Peruvian product is in May and June; South African fruit from June through October; and Spanish clementines from October through January, according to Seald Sweet.


“The beauty of imported citrus is its high quality and reliability,” DNE’s Monahan says. “The same variety of navels ships out of Australia, Chile and South Africa as out of California, so to the consumer, the product is virtually identical.”

Merchandising
Knowing what imported citrus to offer and how to merchandise product is always a challenge — one produce managers can meet in several ways, industry experts say.

“Space is tight regarding fruit allocations during the summer months due to the tremendous overall variety available,” Barbieri says. “Challenge yourself to increase display size of imported seedless varieties of citrus during the summer months in conjunction with a value retail.”

Promoting citrus via advertising circulars and in-store features also can significantly increase sales, especially during the peak June through September time frame. Those promotions also might prompt customers to try products they never have bought before, which ultimately can result in repeat purchases, Barbieri says.

Tailoring promotions to your primary demographic is another must. “One size does not fit all based on consumer awareness and excitability. In general terms, what has been very successful is a specific promotional planner based around availability and eating quality,” Mixon says.

Running weekly ads for different varieties of citrus and offering in-store demonstrations when eating quality peaks are important components of any merchandising and marketing plan, Mixon says.

That approach attracts shoppers on a long-term, consistent basis because the availability and eating quality of each fruit differs during a four- to five-month period. “Each time is a new opportunity for both the retailer and the consumer,” Mixon says, stressing that Seald Sweet “does not and will not promote promotional efforts on lower eating quality times of the year.”

Much also depends on the strength of shipments, which can ebb and flow. “This season, clementines will be less abundant than last year since Chilean and South African producers can make a larger profit by going to other world markets,” Monahan says. “Still, no one is giving up on the U.S. market.

Other predictions: “Navels will peak on 72 size from every country this year, so expect the majority of ads to be on that size and on 3-pound bags,” Mixon says. “This season we’re offering navels, minneolas, Daisy mandarins and clementines from one location on either coast. Our West Coast operation will run from Del Norte in Oxnard, Calif., and our East Coast operation will run from Worldpack in Gloucester, N.J. We have full bagging capability at both locations and will be running specials on 3-pound bags starting in mid-July. Our Australian or South African high-graphic bin program will help display all the varieties together or provide a colorful base to waterfall displays.”