South Tyrol's apple growers are among the pioneers in the cultivation of organic apples. This includes the Association of South Tyrolean Fruit Cooperatives (VOG), which has been present in over 40 markets for several years. "We cooperate with many national as well as international partners and have now converted about ten percent of our total area to organic production. We look back on decades of experience in the organic sector," Marketing Manager Hannes Tauber informs us.
Werner Castiglioni, Carmen Sigmund and Hannes Tauber from the Association of South Tyrolean Fruit Cooperatives (VOG).
"With us, a continuous process takes place in order to be able to guarantee both the availability of goods and novelties. In doing so, we are guided by the needs of the market and, not least, of consumers. It usually takes between ten to 15 years for product innovations in the apple sector. This is the time it takes to find a new variety, test it and then launch it. So it's also important to look ahead and take care of the needs of the future," says Tauber.
Giga® , Red Pop® and Cosmic Crisp®
Currently, VOG is positioning the new Giga, Red Pop and Cosmic Crisp apples on the market. "With these, we are launching apples that should appeal to young, modern consumers. Thanks to their excellent shelf life, they are particularly suitable for the marketing period in spring and summer, when the product range is still quite thin. The new apples are characterized by a good taste and they also meet our requirement to ensure year-round availability for retailers and thus also for consumers."
Giga, Red Pop and Cosmic Crisp are red-colored apples that all have their own character, he said. "With Red Pop, we have an apple that turns out small to medium in size, carries a sweet flavor and has low acidity. Successful trials have already been conducted with Red Pop in some countries, such as England," says Tauber. "Furthermore, the apple has also been very well received in Southeast Asia, the Middle East, and Central and Central America. This small apple also impresses with its very good shelf life."
Advantages of branded apples
"Branded apples, on the one hand, allow producers to clearly understand what the market demands and what it means to place a brand accordingly. At the same time, a branded apple represents a coordinated approach to serving the market. Therefore, we work with market analysis and market research to pre-define the potential in the trade. But regardless of whether we are talking about apples produced according to the guidelines of integrated production or organic apples: In the end, the quality has to be right - this applies to both methods of cultivation. Branded apples give us the opportunity to use brand communication to establish a direct dialog with consumers and communicate a clear positioning," says Tauber.
Category management and guidance
In addition, according to Tauber, it is also important to improve the overall level of apple production, which can be better communicated through branded apples. "Consumers should be convinced to consume more. At the same time, we also want to give consumers some orientation. After all, if the range is so large but there is too little understanding of the product, then consumers are quite happy to reach for simpler solutions. That's why we're working hard on concepts such as category management and training for both retailers and consumers," Tauber explains.
The company is also trying to use campaigns to provide guidance. "We want to use different ways to show consumers how diverse the apple industry really is. There are several so-called category entry points where we can convince different target groups."
Communication space on packaging
At the point of sale, he said, the product is definitely still offered loose, but apples are still marketed in particular in trays of four as well. "The share of packaging has increased sharply again in recent years, especially since the pandemic. However, one challenge in the fruit and vegetable sector is that we have quite a small communication area on the packaging. Packaging communication in particular is very important for the purchase decision. We have a nice variety in fruits and vegetables, but at the same time we have fewer opportunities to communicate this," Tauber emphasizes.
Price sensitivity on the part of consumers has increased since the summer of 2022, he said. "We therefore also see an increase in promotional activities in the apple sector. After all, cost increases are occurring at all levels, whether related to energy or even inflation. If we focused exclusively on low-priced apples in the entry-level segment, for example, sooner or later we would no longer be able to cover our costs. That's why we also have to work on communicating values and maintaining our position in the market. In addition, we have to consider what the product range of the future will look like. To this end, we have offered tastings for our new Cosmic Crisp apple, among others, and surveyed consumers' opinions."
Expectations for 2023
For 2023, Tauber predicts several investments for innovations in the organic sector. "For such investments, one needs the financial framework. You have to put emphasis on reaching consumers at the point of sale in the organic sector and making the organic corner attractive. Through the Green Deal and the EU's Farm-to-Fork strategy, we see an additional push in the organic sector. There will certainly be financial resources available to support the organic sector. But you also have to follow this up with a specific strategy and a clear vision, and also invest sustainably."
For more information:
Verband der Südtiroler Obstgenossenschaften
Jakobistraße 1/a
39018 Terlan (Südtirol)
Tel. +39 0471 256 700
Fax +39 0471 256 699
[email protected]
https://www.vog.it/de