What will be the impact of no Apple Commission ads?
text/photos by geraldine warner
LARRY STONEBARGER, CO
Sierra Hills Packing, Inc., Stockton, California
Not much
"I'm not sure it will have much of an impact at all on our region."
California's fresh apple crop of 5 million boxes is relatively insignificant in relation to Washington's 85 million boxes, Stonebarger pointed out. California producers fill a niche before the Washington crop is harvested in the fall and try to be out of the market before Washington begins shipping its new crop, so it does not compete head to head.
MIKE ROTHWELL, President
BelleHarvest Sales, Inc., Belding, Michigan
To be determined
"I think it's yet to be determined."
Rothwell expects that large apple shippers in Washington will pick up the functions formerly performed by the Washington Apple Commission.
"I think when it's in a number of different hands, everybody's going to approach it differently, so some things are going to work and some things aren't, and it's going to be fine-tuned over time," he said.
Instead of pushing the Washington brand, a number of companies are going to be promoting their individual shipper associations, he noted.
"I think some people are excited about the opportunity to push their brand. Some are going to be good at it, and some not as good at it. I'm sure they have lots of good ideas. As far as how that's going to affect our area, I just don't know."
KELLY ROBINSON, President
R & T Packing Corporation, Virginia
Need promotions
"We need promotions out there, but I don't know what the answer to it is."
Robinson believes the various promotions for apples around the United States have helped each other, but they're all feeling the same kind of influences. Earlier this year, Virginia apple producers voted against paying assessments to the Virginia State Apple Board. Some of the larger packers didn't feel that the money they were putting into the Virginia apple fund was doing them any good, Robinson said.
"They said they could do their own promotion and do it for a whole lot less money."
He is concerned that while the population of the United States has increased, apple consumption has remained flat. "We need to put apples in everybody's mouths," he said.
Robinson, who grows apples and peaches for processing, said it's not just a fresh-market issue. If a lack of promotions for fresh apples impacts sales, more of the crop could be diverted to processing.
BRIAN NICHOLSON, VP for Marketing & Sales
Red Jacket Orchards, Geneva, New York
It's a loss
"The biggest impact is the loss of some of the consumer-oriented work that the industry sorely needs."
Nicholson thinks the New York industry will feel the lack of Washington's consumer advertising programs. "They were the only ones that went to the consumer, and it's unfortunate that we lost that," he said. "Money is wasted when it's not used effectively, but getting right to the consumer is effective."
But Nicholson does not think the lack of retail promotions will lessen shelf space for apples because apples have been such a high-margin item for retailers.
His own company has found a niche supplying gourmet markets, and will probably not be affected by the lack of promotions, he noted. "We've found our place by differentiating ourselves and adding value to our product. We're not forcing stuff through the system, but we're trying to add value."
RAY PRASCO, President
Prasco International, Ltd., a Midwest sales agency
Unfair to some
"Definitely, it's going to affect the retailer, and it's going to be an unfair proposition for the smaller grower to get those ads that the Apple Commission generated."
The larger and more powerful producers in Washington State will spend money on marketing, but Prasco wonders if the small producer will be able to compete.
The Michigan Apple Committee is still in effect, but he thinks the entire U.S. apple industry is likely to feel the effect of a drop in apple advertising.
"There's great competition by category to get the attention of the consumer," he said. "I'm very disappointed that we've lost this marketing arm for apples in general. You have to advertise product to move these crops, to move tonnage."
MIKE NAUMES, President
Naumes, Inc., Medford, Oregon
Not huge
"Personally, I don't think it's going to have a huge impact."
Naumes, who has apple orchards in California and Washington, said some of the bigger grower-shipper organizations in Washington have hired former Apple Commission personnel and will have their own programs, so he thinks the lack of Apple Commission promotions will not have a huge effect.
Naumes has removed 400 acres of apples in Oregon and leased its Washington orchards to Manson Growers Cooperative at Lake Chelan. With its California Fuji apples, Naumes tries to work in the window between the time when Washington cleans up its Fuji crop and when it begins the next season.
ED WITTENBACH
Wittenbach Orchards, Belding, Michigan
Equal chance
"I think Michigan will have an equal chance to be in the market."
With individual shippers picking up Washington apple promotions, Washington apples are still going to be in Michigan markets, but Wittenbach thinks Michigan producers might have more of a chance to compete for a time.
"I think Washington will build up again," he said. "There are some strong shippers in Washington, but it's not going to be easy for them this year because of the change."
DENNIS COURTIER, President
Pepin Heights Orchard, Inc., Lake City, Minnesota
Huge
"It's going to have a huge impact."
Courtier said Washington apple promotions really worked to drive per-capita consumption.
"There's no question that for some Eastern shippers it will create some small opportunities, but to get those small opportunities, I think there's going to be a large cost to the industry."
