Future Orchard Walks Jazz ®Winter 2017 Apple brands ...€¦ · „ So far I‘munaware of any supermarket putting pressure on growers to plant an entirely new variety. Planning

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© copyright 2017 Michael Weber webfruit®

Future Orchard Walks

Winter 2017

Apple brands – factors of success

Michael Weber

Horticultural Consultant

MBA ‚International Marketing‘

Germany

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Education

1990 Horticulture Engineering FH Weihenstephan

2002 MBA „ International Marketing“ ESB Reutlingen

Business Activities

2003 foundation of webfruit / GmbH www.web-fruit.de

2004 foundation of VariCom GmbH www.varicom.ch

2008 foundation of fruit.select GmbH www.opal-apple.com

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Bio

http://www.web-fruit.de/

http://www.varicom.ch/

http://www.opal-apple.com/

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production life cycleMichael S. Weber Vermarktung – Die Herausforderung der Zukunft Obstbau & Marketing

T = increase P = zero

T = increase P = increase

T = slow increase P = stable

T = stable P = backwards

T = backwards P = backwards

Introduction Growth Maturity Saturation Degeneration

?

Time

Profit

Turnover

T P

Fuji Pinova Cripp´s Pink

Elstar

Boskoop Gloster

Jonagold

Braeburn Royal Gala

Golden/Red Delicious

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Apple Variety Range EU

production share %

Golden Del. 2.530 21

Jonagold et al. 1.259 11

Gala 1.204 10

Idared 1.064 9

Red Delicious 633 5

Shampion 520 4

Elstar 394 3

Granny S. 390 3

Fuji 309 3

Braeburn 322 3

Cripps Pink 260 2

Variety Range EU-28 Countries

Representing 74 % = 8.885.000 t

out of total 12.005.000 tons

Source: WAPA 2016

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Lake Constance

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new plantings

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history

Orchard working expenses

€/ha € cent/kg €/ha € cent/kg

labour harvesting (292/333 Akh/ha) 2269 6,5 2587 5,2

var. harvesting cost (KOB) 400 1,1 450 0,9

total harvesting cost 7,6 6,1

Labour pruning/thinnning (70/100 Akh/ha) 544 1,6 777 1,6

Fertilizer 200 0,6 300 0,6

pest & weed control 1500 4,3 1700 3,4

Others 300 0,9 350 0,7

var. maschinery cost orchard maintenance (KOB) 400 1,1 500 1,0

total variable costs 8,5 7,3

depreciation building & repairs (180 T/30 years) 400 1,1 400 0,8

2. levelDpreciation maschinery (harvesting equipment) 665 1,9 665 1,3

depreciation maschinery cost (maint./spraying) 478 1,4 478 1,0

depreciation orchard investment over 15 years – 22 T 1467 4,2 1467 2,9

replatning (Nectria, wood diseases) 400 1,1 9,7 400 0,8 6,8

Overhead cost. (KOB) 1 200 3,4 3,4 1 200 2,4 2,4

total overhead costs

Land lease annual (ha) 1000 2,9 1000 2,0

1. levelCapital cost orchard investment (3%) 22 years 330 0,9 330 0,7

Capital cost maschinery (3%) AW 224 T € 224 0,6 224 0,4

Capital cost building (3%) AW T 180 € 180 0,5 180 0,4

total calculatory cost 4,9 3,5

Orchard Manager (30 €/hour) 67 % 2933 8,4 8,4 2933 5,9 5,9 3. level

EUR/Cent 42,5 32,0 Source: POB 2017

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good news

✓ about 80 apple breeding programs to choose from selection

✓ more disease tolerant varieties available improvement

✓ consumers are open to new varieties features

✓ retailers are open to new varieties profitability

✓ introduction in emerging markets opportunity

✓ alongside shipment of existing varieties attention

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reality

✓ differentiation of look less distinctive

✓ packout / requirements unknown

✓ consumer demand uncertain

✓ Investment into a brand high

✓ critical mass / collaboration necessary

Variety development: 07 up to 14 yearsBrand development 14 up to 21 years

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truth

„ So far I‘m unaware of any supermarket putting pressure on growers toplant an entirely new variety.

Planning is almost entirely a ‚producer push‘ strategy.

A commitment over lenghty periods of time is desirable.“

Source: Paul Paynter, 2009

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variety vs brand

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variety vs brand

Differentiation of "red" colour category mainly through managed varieties: are we at peak level ?

Jazz™ - taste you can hear.

Kanzi®: Seduce Life

Pink Lady®- the most seductive of all apples

Red Prince: a crisp type

SweetTango™: passion to the last bite

Joya™ - a taste experience

Boskop

Braeburn

Elstar

Gala

Golden Delicious

Granny Smith

The apple as a natural product:

perfect &beautiful

The appleas a natural

product

authentic & real

sensual & passionate

athletic and fit

Honey Crunch® -

my well-being apple with bite

Kiku® -

Fresh Apple Emotion

Junami® / Diwa®: refreshing thirst quencher crisp bite

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understanding the DNA

bruising sensitivity self-thinningchilling requirement size rangedisease tolerance skin finishfrost sensitivity storage potentialfruit set tree spacinggrowing habit tree healthharvest window tree qualityleaf quality tree spacingnumber of picks virusfree budwoodpackoutpest tolerancephysiological disordersProductivityrootstock selection

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variety identification

✓ create your own (inter-)national network

✓ attend conferences, fairs, exhibitions, seminars

✓ use your local/national R & D network

✓ talk to variety managers and challenge them

✓ untertake a SWOT Analysis

✓ have a strategy and follow the plan, regardless short-term drawbacks

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hand crafted

„savoir faire“… how are we doing it ?

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disease tolerant cv. non-disease tolerant cv.

Variety Name

Brand Name

BonitaCIV 323Fujion

?Isaaq®

?

InoredLadina

Lb 17906

Story®??

LumagaPremA34SQ 159

Galant®?

Natyra®

UEB 32642DalinetteXeleven

Opal®Choupette®

Swing®

Variety Name

Brand Name

PremA96MC 38

Fengapi

Rockit®Crimson Snow®

?

MinneiskaShinano Gold

Sweetango®Yello®

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Brand

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Brand : Identity

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variety vs brand

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Brand

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a strong brand

Identification of 3 factors…

1. The mainstream of consumer behaviour is slower thananticipated as often trend scouts believe in.

2. Most of the brand image (emotions) is related to yourchildhood. Positive Memories…

3. Clear Mission and Vision, along with a traceable / understand-able authorization of existense, „raison d‘etre“, does it makesense what we are doing?

Source: Peter Felser, Board President of Serviceplan Suisse, Zürich // Handelszeitung Nr. 44 /2015

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… the story

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Brand Management

✓ communication of product specification

✓ control of quality

✓ harvest prediction

✓ supply program

✓ control of plantings

✓ activities at POS

✓ Promotion thru packaging & logo

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the package

✓ Plant Variety Rights Intellectual Property✓ Trademark Rights✓ Brand Integrity✓ Traemark Defence

✓ Ownership of rights Organization✓ Complexity of legal structure✓ Quality of network✓ Passion of people

✓ Unique selling proposition Brand Management✓ Brand identity✓ Brand positioning✓ Brand enforcement

✓ Commuication

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location

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OPAL®

1. New Colour Category GOLD

2. Low Residue Program DISEASES

3. Flavour FIRST

4. Outstanding shelf-live PERFORMANCE

5. Transport & Manipulation SUPERIOR to ‚Golden Delicious‘

6. Marketing Organization OPAL® PARTNERSHIP PROGRAM

7. Branding OPAL® - UNIQUE SELLING PROP

8. Development GLOBAL

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location

Sales

“The color-break of Opal® is the #1 selling feature, and in-store demos are #2“

- Matt Miles – First Fruits Marketing 10 Oct. 2014

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choose

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Timing

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timeline

2013: start - PVR rights

2014: Propagation of

certified budwood

2016: Plattform – Groupe

Poire Suisse, GPS

2016: Growing of trees in

nursery

2017: kick-off concept

first trials at retail level

2018: 1st year of Swiss

Production

2020: Supply Program at

Swiss Retail Level

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timeline ‚CH 201‘

ACTION STEPS YEAR PLAYER

Crossing 2000 Agroscope

Selection 2010 Agroscope

Cultivar protection 2013 Agroscope / VariCom

Plant material 2016 Nurseries

Production start 2018 growers

Retail level - start 2020 packer / marketer

Internationalisation 2022 Network licensed partners

‚

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network

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nature of competition

whole chains can become competitive units

rather than individual firms within chains

Chains compete against chains

co-operating to compete

In this new way of thinking about the nature of competition,

the quality of relationships up and down

the chain become key drivers of success.

Boehlje, 1998

Gifford, 1998

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idea

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trend

✓ clean production environment

✓ face to face origin

✓ story identity

✓ revenues fair split

✓ sustainable finance

✓ be different exclusive

✓ communication consumer

✓ why? sense

out of the comfort zone

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in line with nature

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thank you !

Documents

Future Orchard Walks Jazz ®Winter 2017 Apple brands ...€¦ · „ So far I‘munaware of any supermarket putting pressure on growers to plant an entirely new variety. Planning