The Fruit Growers News - February 2001

Welcome Sauer, on the job as president of the Washington Apple Commission for more than a month, has been spending a lot of time listening to those involved in the apple industry.

Economic challenges are on the forefront of growers’ mind. Although Washington has enjoyed many good years, the last three to four years have been difficult, according to Sauer.

“We’re in a time of unprecedented economic difficulties in the apple industry. That’s what’s on the minds of our growers,” he said.

Sauer grew up in Eastern Washington on a small orchard and worked for 10 years for Dole Food Co. Sauer has worked for the Washington Apple Commission since the summer of 1999 in the business development division and in food service.

The commission is a marketing organization and historically has done really well with its marketing campaigns, according to Sauer. “This industry means a lot to me. I’ll do everything I can to help our growers market their apples,” said Sauer. He said he is encouraged by the recent nutrition research on apples with future public relations activities coming out of the research arena.

Sauer recently outlined four main objectives for the commission. They include:

1) Developing a first class marketing program that stimulate sales of Washington apples;

2) Maximizing the efficiency of the growers’ assessment;

3) Serving and connecting more closely with the needs of the industry; and

4) Playing a role with the rest of the industry in seeking solutions to apple industry’s economic challenges.

Washington is currently in its last year of a three-year special assessment of 15 cents per box for consumer advertising. The commission’s 13-member board of directors will have to make a decision on whether to ask growers if they want to continue the assessment that expires October 2001 that includes the “Apple Guy” consumer advertisements.

Sauer said growers are encouraged by the apple movement this year compared to 1999.

“We’ve had good velocity this year for sure,” he said. “Certainly crop size has a lot to do with it. Sauer said there’s been a big push since last summer to encourage retailers to feature apples.

“Apples are a very important category to retailers,” Sauer said. Overall apples are bigger than coffee, bigger than toilet paper and represent over 1% of grocery store sales.

This fall the Washington Apple Commission combined their retail strategy with their consumer strategy. “We attract retail cooperation using consumer pull,” he said.

In these hard economic times for apple growers, Sauer said he has seen a lot of consolidation in sales offices.

“One major grower finance company made the decision to close down that will impact a lot of growers. That sent a very chilling message throughout the industry,” Sauer said.

Most of the apples grown by Washington’s 3,400 growers are sold for fresh in domestic supermarkets, with one-third sold overseas. “Primarily our growers are selling outside the state of Washington,” said Sauer. Three-fourths of Washington’s apples are sold for the fresh market.

“It’s just the nature of our industry. We’re able to grow a good, fresh-pack apple,” said Sauer.

The industry has been encouraged by the diverse inventory of apple varieties this year with a strong mix to sell for the rest of the season, according to Greg Batch, communications manager for the Washington Apple Commission. The December storage report from the Yakima Valley Growers-Shippers Association and the Wenatchee Valley Traffic Association indicated a crop of about 97.7 million boxes, according to Batch. Of that number, 45 million are Red Delicious, 15 million Golden Delicious, 12 million Fuji, nine million Gala, 2.7 million Braeburn with Rome, Cameo and Pink Lady making up the balance.

“It’s the first time in decades that Red Delicious accounts for less than half of the crop,” said Batch.

The commission employs approximately 50 including the departments of export marketing, domestic marketing, advertising/public relations and administration. The staff includes field representatives throughout the United States and export representatives throughout the world.

Promotions, new staff

Two current employees of the Washington Apple Commission have been promoted and another staff member has been added.

Aubrey Horton, previously the food service regional manager for the Southeast, has been promoted to food service marketing manager. Norm Carpenter, who served as the commission’s retail marketing regional manager in the Northwest, is the new corporate retail accounts manager. Bill Earnest will fill Carpenter’s position in the Northwest.

Horton, who began his new job in late December, will retain his responsibilities for the Southeast region, and supervise activities of the food service managers in other regions. The commission’s vice president of domestic marketing, Jim Doherty, will work with Horton to develop and monitor marketing, promotional and advertising programs for the food service department.

Relocating from Spokane, Wash., to the commission’s headquarters in Wenatchee, Carpenter will work with retailers’ corporate offices on behalf of the state’s apple growers. He’ll also supervise and mentor the commission’s retail regional managers.

Earnest, of Olympia, Wash., will assume his new position on Feb. 1. He has 31 years experience in the produce industry, and most recently worked as the produce/floral merchandising manager for Thriftway stores, based in Olympia. He was responsible for 30 Thriftway stores and 45 Red Apple Markets in Washington and Oregon.