Honeycrisp has arrived

Honeycrisp apples have arrived in the mainstream. How so? Well, yesterday I picked up a 3-pound bag of honeycrisp apples at Aldi in Olathe for the smoking price of $3 something. VP candidate Sarah Palin recently visited a Pennsylvania apple orchard where she was given - you guessed it - a honeycrisp apple.

The honeycrisp is a wonderful eating apple, but its surging popularity among growers for its high f.o.b. prices the past few years has boosted acreage throughout the U.S. This recent article checks in the apple breeders at the University of Minnesota about the expiring patent for the honeycrisp in the U.S. and the status of the variety internationally.

As the article notes, "millions of trees" have been planted to honeycrisp as grower shippers are beginning to catch up with demand. From a practical perspective, that means rising supplies are beginning to force down f.o.b. prices that in the past have flirted with $50 per carton. While, honeycrisp prices at retail still bring a premium and are typically well above $2 per pound for bulk displays I have seen lately, they are getting more affordable. From the story in mndaily.com:

Although Nov. 7 marks the end of the University of Minnesota’s patent on the Honeycrisp apple, horticulture Professor Jim Luby said apple lovers should have no fear — the Honeycrisp will still be available for years to come, and possibly at a cheaper price.

The fruit has brought in millions of dollars for the University, and its expiration could make way for a string of imitators.

Dave Bedford, an apple breeder and research scientist at the University, said a patent extension isn’t an option for U.S. horticulture patents.

Overseas, however, the Honeycrisp patent will continue to bring in money for the University; Luby, who helped Bedford develop the apple, estimated the international patent would remain for the next 15 years.

Since the University has trees in other countries, like in a recent agreement with New Zealand, Luby said, Honeycrisp apples should be pouring into U.S. grocery stores well into the winter.

The purchase of a Honeycrisp tree, approximately $23.95 at many nurseries, puts $1.35 each back into the University system.

“In the horticulture department, it’s one of the most renowned varieties of plants that we’ve produced,” Luby said.

Based on production rates, Luby said, the cost of Honeycrisps could possibly go down within the next several years.

“Many millions of trees now have been planted over the last four or five years. As those trees get bigger, we’re going to start to see more and more fruit,” Luby said.

TK: The story also talks about other rising stars of the breeding program, including Zestar, Sweet Tango and Snow Sweet. Is it just me, or does it seem UM is kicking WSU's tail when it comes to developing new apple varieties? Correct me if I'm wrong...

The overwhelming supply response of growers to a profitable variety reminds of a conversation I had at the PMA where one apple marketer offered that the only way to maintain profitability of production to enter the realm of so-called "managed" varieties. For apples like the Pink Lady and the honeycrisp, the horse was out before the proverbial barn door was shut; there will be no "managing" of honeycrisp acreage in the U.S., though that may not be the case overseas.

Questions remain about managed varieties. Is the art of 'managing" production merely delaying the inevitable decline in f.o.b. prices? Does this management of acres get in the way of market signals to growers and prevent significant promotion opportunities? Will consumers build any loyalty to a high- priced, limited supply managed variety, or will it always operate on the fringe of the market, an enigma to retailers and a question mark for consumers?

Check out the youtube video below on the U of M breeding program;

Sweet tango and the Retail Report - Sept. 26

I had a pleasant surprise this morning when I found a small box of Sweet Tango apples on my chair. As recent coverage in The Packer indicates the variety - a progeny of the Honeycrisp - is being highly touted for its full flavor and attractive appearance. From David Mitchell's story:

SweeTango, a cross of Honeycrisp and Zestar, will be available in limited quantities starting in late August 2009, said Tim Byrne, vice president of sales and marketing for Lake City, Minn.-based Pepin Heights Orchards Inc. and president of Next Big Thing, a cooperative of 45 growers also based in Lake City.Byrne said the new variety has higher brix levels and more acidity than Honeycrisp, giving it a more complex flavor profile. He said the SweeTango is more of a deep, rich red color compared to the mottled Honeycrisp, which is red and yellow.

Meanwhile, here is the summary from the Sept. 26 National Retail Report from the USDA:

Fruit Ads Decline Significantly, Apples and Pears Featured Widely
Fall themed ads were seen throughout the country this week with an emphasis on items to celebrate Halloween. In addition to the typical candy promotions, most retailers heavily featured a variety of apples, carving pumpkins, other decorative pumpkins, a variety of squash, and potted mums. A few ads highlighting Rosh Hashanah and Hispanic Heritage Month were also noted. Many retailers also used “10 for $10” promotions quite often this week. Overall, fresh produce ads were down more than 8%. Fruit ad activity declined more than 21% this week and vegetable activity increased roughly 9%. Despite the decline in fruit ads, the top 5 featured items were predominantly fruits. The top 5 included: Pears, grapes, tomatoes on the vine, peaches, and strawberries. The majority of fruit ads continued to be concentrated on a few items and vegetable ads continued to be distributed widely across the reported items. Pears alone made up 19% of all fruit items. Pears, grapes, peaches and strawberries comprised about 55% of total fruit ads. Retailers featured an abundance of seasonally available produce in addition to the items in this report. A variety of apple features were noted with the most prevalent being Galas. Squash were also noted quite often and the most featured varieties were butternut, acorn, and spaghetti.