CONSUMER PULL

A New Commercialization Strategy Aims To Pull New Varieties Through The Value Chain, Not Push Them.

Proprietary Variety Management, a new company helping to commercialize two new red-fleshed apple varieties developed by Bill Howell of Prosser, Washington, is using a different strategy from how varieties have been introduced in the past.

The company’s general manager John Reeves said the value chain starts with the breeder, goes through the nursery, grower, packer, and marketer, and finally reaches the consumer. Everyone has an investment in a new variety, but the breeder and the grower are by far the most heavily invested.

In the past, if a breeder found an interesting variety, he or she would take it to a couple of nurseries for testing, and if they liked it, they would ask a grower/packer to take a look at it, and so on.

Pull

“It’s being pushed all the way up the ladder,” Reeves said. “What we want to do is help commercialize varieties by creating a pull through the system instead of pushing them through the system. We want to change the paradigm so we’re working in a manner where consumers have more say in what goes on.

“When you think about it,” he added, “the only real new money that comes into the system is from the consumer, and yet we spend the least amount of time working with the consumer on the development of new varieties.”

Reeves, who has worked for several major food companies in the past, said they involve consumers in the development of their products.

“They don’t just make one and throw it out there and see if it works. That’s too risky and expensive.”

Reeves said PVM will conduct consumer focus groups as it develops a brand name for the apples to ensure that consumers have an emotional attachment. When they are ­emotionally attached to a product, the marketing becomes less commodity-driven.

“What we want to find out is what might be the emotional button,” he said. “Then you can focus your marketing on that.”

Proprietary Variety Management will also do consumer research to identify target consumers.

Initially, just two growing and marketing companies, Chelan Fresh of Chelan, Washington, and Stemilt Growers, Inc., of Wenatchee, Washington, have been licensed to grow and sell the red-fleshed varieties, but it won’t be a club system with restricted production. If the varieties are successful, it will take more than the two companies to meet the demand, Reeves believes.

“We do not believe in club varieties,” he stressed. “Our mission is to make sure we take care of the breeder—we’re doing the commercialization for them. What we want to do then is get a very focused marketing campaign working with a few people, and then open it up.”

Value

The two initial partners will be given time to recoup their investment. Then the system will operate somewhat like Pink Lady, where anyone can grow the variety as long as they sign a contract and follow certain rules.

“Our whole goal is to develop the most value in that entire value chain,” Reeves said.

Stemilt Growers, on its part, is not limiting itself to Howell’s varieties. The company has been testing other red-fleshed varieties developed by Markus Kobelt of Lubera nursery in Switzerland.

Stemilt is also part of the Next Big Thing cooperative based in Minnesota, which has joined a European consortium IFORED.

The consortium was established in 2012 to test, select, and commercialize red-fleshed apples developed by International Fruit Obtention with the goal of bringing them to market within five years. Next Big Thing members planted the first of several red-fleshed apple selections this spring.

Roger Pepperl, Stemilt’s marketing director, said the company is still a long way from commercializing a red-fleshed variety. He thinks the concept shows promise but the novelty of the red flesh is not enough.

“If there’s one thing we’ve learned in the produce ­business, it’s that it’s got to be good to be sustainable.”

Pepperl said red-fleshed varieties have three potential differentiating qualities: red flesh, a unique flavor, and enhanced nutrient content resulting from the antioxidants (anthocyanins) in the red flesh, but they must also give consumers a good eating experience.

Because of their heritage, red-fleshed apples tend to have high acid levels, but high acids can be a positive attribute as long as they’re balanced with high sugars.

“I like that I get hit on both sides of my palate,” Pepperl said, referring to apples such as Piñata that have a sweet tangy flavor. In contrast, Fuji is a sweet apple that has low acids and lacks a lingering taste.

“I like Fuji,” he said, “but after I eat it, 15 minutes later I forget I ate it.”

Article by Geraldine Warner, Good Fruit Grower

STEMILT, CHELAN TO GROW RED-FLESHED APPLETwo Leading Washington Apple Grower-Shippers Have Been Licensed To Grow A Red-Fleshed Apple Wenatchee-based Stemilt Growers and Chelan-based Chelan Fresh Marketing will grow a red-fleshed variety under an agreement with Yakima, Wash.-based Proprietary Variety Management. Stemilt plans to plant a small number of trees on a test basis in 2014, said Roger Pepperl, the company’s marketing director. “It’s an apple we’re interested in, but we haven’t gotten very far,” Pepperl said. “It’s a long ways away from going to market. We’re very much at the experimentation stage.” Even if Stemilt is happy with trials of the new apple, it wouldn’t be on retail shelves for three or four years, Pepperl said. Tom Riggan, Chelan’s general sales manager, agreed that it’s too soon to tell whether the variety will succeed in different climates and when grown with different root stock. But Riggan has eaten the variety two years in a row, and he said it looks better and tastes better than other red-fleshed apples he’s tried. “We’re still in the test phase, but it shows some good promise.” The red-fleshed variety is one of about a dozen Stemilt is now considering for commercial production. This isn’t the first time the company has tried a red-fleshed variety. “We haven’t found the right thing yet,” Pepperl said. In addition to the novel color, a red-fleshed apple would likely have more antioxidants and could have what Pepperl called “dessert-quality flavors.” Officials from Proprietary Variety Management did not return requests for comment. The company was founded in 2012 to help fruit grower-shippers stay on the cutting edge of new varietal development. Its president and founder is Lynnell Brandt, president of Yakima, Wash.-based Pink Lady America LLC and Brandt’s Fruit Trees LLC. The company’s general manager is John Reeves, who also serves as Pink Lady America’s general manager. Other officers include vice president Kevin Brandt, operations manager Cristy Warnock, comptroller Cindy Tissell and marketing manager Alan Taylor. Article by Andy Nelson, The Packer READ ARTICLE

Two Leading Washington Apple Grower-Shippers Have Been Licensed To Grow A Red-Fleshed Apple

Wenatchee-based Stemilt Growers and Chelan-based Chelan Fresh Marketing will grow a red-fleshed variety under an agreement with Yakima, Wash.-based Proprietary Variety Management.

Stemilt plans to plant a small number of trees on a test basis in 2014, said Roger Pepperl, the company’s marketing director.

“It’s an apple we’re interested in, but we haven’t gotten very far,” Pepperl said. “It’s a long ways away from going to market. We’re very much at the experimentation stage.”

Article by Andy Nelson, The Packer

PVM AND MAJOR FRUIT SHIPPERS TO COLLABORATE ON RED FLESHED APPLE PROGRAM

Proprietary Variety Management (PVM) is announcing the licensing with Stemilt Growers LLC and Chelan Fresh Marketing to commercialize the variety development program for red fleshed apples to be grown in Washington State.

The recently signed agreement means PVM will license each sub-licensee directly and work with them singularly. It is historic, however, in that it brings together two companies with decades of successful fruit industry experience with a new variety management team in PVM which has ties to long recognized innovation in the commercialization process.

This program, known as ‘Hidden Surprise,’ revolves around a business plan which takes existing red fleshed apples of exceptional flavor to test blocks for both fruit companies with tree propagation being under the direction of PVM affiliate, Brandt’s Fruit Trees, Inc.

The program also covers naming and trademark development decisions along with future marketing and promotion activities.

Proprietary Variety Management, located in Yakima, Washington was created in 2012 and brings a new approach as it endeavors to work with breeders, nurseries, growers, and shipper/marketers to maximize the value to each. It is also linked to the Associated International Group of Nurseries (AIGN®).

For more information: 
Lynnell Brandt
Property Variety Management
Tel: +1 509-248-4352
Lynnell@provarmanagement.com
Article by FreshPlaza.com

RED-FLESHED APPLE COMMERCIALIZATION PROGRAM ANNOUNCED

Proprietary Variety Management (PVM) recently announced the licensing and commercialization of a variety development program for red-fleshed apples to be grown in Washington with Stemilt Growers LLC, and Chelan Fresh Marketing. PVM will license each sub-licensee directly and work with them singularly.

The red-fleshed apple selections were developed in the tree fruit breeding endeavor by Bill Howell of Howell Fruit Advantage, LLC, of Prosser, WA.

Article by Paul Rusnak, GrowingProduce.com

‘Why I Love My Pink Lady®’ Kids Video Contest!

It’s well known that children just love the sweet/tart taste of the Pink Lady® Brand Apple. It’s just as well known that moms and dads also love this apple making the Pink Lady® Brand Apple a complete ‘family experience!’

So, wanting more families to take part in that out-of-this-world eating event, Pink Lady America is offering a way to have it delivered right to their door!

It’s as simple as 1… 2… 3

  1. Buy Pink Lady® Brand Apples at your favorite supermarket.
  2. Video your youngster (6 and younger) enjoying a Pink Lady® and explaining why it’s his/her favorite. Video no longer than two minutes.
  3. Upload your video to YouTube and email Pink Lady America the link to view (pinkladyrep@embarqmail.com) Deadline of May 1st.

The kids with the most entertaining and effective way of describing why the Pink Lady® Brand Apple is their favorite, will win a gift box of those apples for him/her and the rest of the family.

Coming from the quality folks at Bountiful Fruit (Stemilt Growers), 40 boxes of Pink Lady® Brand Apples from the trees of Washington State will be available for enjoying during February and March of 2013.

HAVE FUN & WE LOOK FORWARD TO YOUR VIDEOS!!!

Pink Lady America LLC, Yakima, Washington