Washington Apple Commission: New variety and new promotions present opportunities for export

Looking to the year ahead, the Washington apple industry knows challenges and opportunities are approaching. The current year delivered a smaller than expected crop and trade conflicts. But looking forward, promising prospects appear to be in the future.

The Washington Apple Commission conducts promotions in over 25 global markets to drive consumer demand for high-quality apples from Washington. Washington produces over 95 percent of U.S. apple exports, and the Washington Apple Commission provides promotional support to international retailers, wholesalers and importers with innovative marketing programs and activities to grow consumer awareness and brand loyalty. Activities include creating and implementing retail promotions, point-of-sale communications, consumer advertising, event sponsorship and social media outreach.

2019-20 will present the apple industry and the commission with major changes. First and foremost is the addition of a new variety to the lineup of commercially produced apples in Washington. The Cosmic Crisp is the WA-38 cultivar developed by Washington State University. The Cosmic Crisp was developed in test blocks across the state and now Washington growers have exclusive rights for the first 10 years of production. Cosmic Crisp will be available for purchase in the fall of 2019. The bright red apple is sweet and juicy with a zing of acidity. It has a crisp texture that packs a crunch with every bite.

In the first year, there will be approximately 200,000 boxes of Cosmic Crisp produced. By 2020, it is projected this figure will catapult to 2,000,000 and by 2025 it is estimated there will be 20,000,000 boxes of Cosmic Crisp. With 20,000,000 additional boxes of apples on the market, it is possible certain varieties that have decreased in demand and will be redirected to the export market to maintain a profitable supply and demand equilibrium in the domestic market, creating new variety opportunities for international markets. The varietal shift has the potential to change the export market dynamic.

In July, the Washington Apple Commission will be the recipient of $8.4 million from the USDA Agricultural Trade Promotion Program. The Agricultural Trade Promotion Program is a component of the Trump administration’s $12 billion trade aide program designed to alleviate adverse impact of retaliatory tariffs on agricultural producers.

The money was awarded to promotional organizations based on an application process that requires activity proposals and evidence of injury from retaliatory tariffs. Washington apples are an export-heavy industry, with one-third of the fresh apple crop directed to international markets. The Agricultural Trade Promotion program funds will have three main directives.

1. Mexico, China, India - Implement brand building activities to increase value of Washington apples. These three markets have increased retail costs due to tariffs and the perceived value of Washington apples needs to strengthen in order for consumers to choose Washington apples over competitors with low priced products.

2. Southeast Asia (Vietnam, Indonesia, Malaysia, Thailand) – These growth potential markets play an important role of absorbing deviated volumes from the markets affected by tariffs. The Washington Apple Commission will increase consumer messaging around health and trust which are valued strengths for U.S. food products in these markets. The marketing campaign will include partnering with brand ambassadors and sponsoring events related to health and fitness.

3. Canada – Execute a Cosmic Crisp sampling pilot program to introduce the new variety to the Canadian market. Sampling at point of sale increases impulse purchase and a good eating experience encourages return customers.

The allocated funds are aimed to maintain Washington’s position in export markets, preserve consumer engagement and overcome retaliatory tariffs in top export destinations.

A new variety and new activity programs produce an opportunity to rise above challenges and create excitement around Washington apples for both growers and consumers.