The Empire strikes back! in the United Kingdom - apple

The Empire is striking back. No, it's not a science fiction movie, but rather a sweet and crunchy apple from Michigan and New York that has invaded the United Kingdom.

Sales of Empire apples to the U.K. market have been growing steadily over the past few years, reaching 6,900 metric tons, valued at $3.2 million in marketing year 1992/93.

Empires have continued to be successful as an upscale apple in the U.K. Consumers are attracted to its flavorful taste, crisp and crunchy texture, and its round, shiny, deep red appearance and thin skin.

Finding a Niche Market

Empire apples first landed on British soil about 10 years ago. Initially, they were featured in chain stores as a "new" bi-colored variety. At that time, new bi-colored varieties were only available during the summer months and supplied by Southern Hemisphere countries.

Currently, five large chain store groups account for just under 40 percent of the market share of the total U.K. retail food sector. In 1991, chain stores accounted for 50 percent of the fresh produce trade; that share is projected to grow to 80 percent by 1995.

Targeting chain stores was an excellent way for U.S. Empire apples to enter the competitive market. The chain stores exert their control in the marketplace to get the best quality product, increase their market share and make a profit. They also impose very stringent requirements on produce items.

In addition, they typically market apples and other produce under their own "in-house" labels. Shelf-space is then rationed according to the profitability of each item.

Most chain stores feature eight to 10 varieties of apples in their stores. As new varieties emerge, older more traditional varieties are forced out. While Empire was a unique, Northern Hemisphere bi-color apple eight years ago, it now faces competition from other bi-colored apples, such as Galas, Braeburns, Fujis and other new varieties that are now produced in the Northern Hemisphere.

The Next Step

U.S. Empire apples were sold in four major chain stores last season. This is up from three the previous year. Since its introduction, U.S. Empire apple exports to the United Kingdom have expanded every year until last year, when shipments dropped slightly. Last season was not considered a failure, but rather a success because it was an extremely difficult market. Europe's bumper crop flooded the market with apples, which depressed prices, and the exchange rate was unfavorable for U.S. exports.

While U.S. Empire apples have come a long way in the past few years in establishing a foothold in the U.K. market, there are still doors to open. New importers are eager to carry Empire apples as they vie to supply the chain stores. In addition, many consumers are still unaware of the Empire apple.

New York and Michigan growers, under the umbrella of the International Apple Institute's U.S. Apple Export Council, will use USDA's Market Promotion Program funds to promote Empire apples this season.

Retail consumer events will be coordinated with other trade activities to build consumer and trade awareness for U.S. Empire apples. Consumers will be exposed to the unique flavor of the Empire during in-store sampling. This activity, along with other promotional events, is expected to create impulse buying and boost the Empire apple's share of the market.

What is the Empire?

Close to 30 years ago, the Empire apple was developed at Cornell University in Ithica, New York. The Empire is a cross between the McIntosh and Red Delicious varieties. This combination produces a sweet and crunchy apple. It is mostly red but can be considered bi-colored. Empires are grown only in North America. Production is concentrated in New York, Michigan and Ontario, Canada. In 1992, U.S. production totaled 57,153 tons.

The author is a marketing specialist with the Horticultural and Tropical Products Division, FAS. Tel. (202) 720-2252.

COPYRIGHT 1993 U.S. Department of Agriculture
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