Grape supplies from Mexico have now increased substantially and are moving well, with Coachella also joining the fray. Reports are that overall quality and condition is very good, and with retailers now busy setting July 4 promotions, expectations are for strong consumer support and brisk movement.
"US retailers missed the opportunity to promote for Memorial Day, but the industry is hoping to make up for lost ground with very aggressive promotional activity in place for the 4th of July holiday on all table grape varieties," said Ira Greenstein of Direct Source Marketing. "Supplies from the Coachella Valley are also hitting stride right now with a crop of approximately 4 million boxes. Pricing is significantly higher for California fruit with some retailers opting to pay a premium for domestic supplies, but Mexico is primed for strong sales over the next two week as overall FOB’s are at the lowest levels of the season."
Red seedless volumes increase significantly
Red seedless grapes are now in excellent supply from the Mexican growing regions. Because of the huge volumes crossing into Nogales, prices have reduced as shippers look to keep volume moving at a swift pace. Proprietary varieties such as Jack Salute and Sweet Celebration are also arriving in greater numbers, with prices for these slightly higher. However, good deals are available, with only the Coachella fruit trading at notably higher prices.
"Excellent volumes of good quality Flames are crossing into Nogales from both Hermosillo and Caborca," Greenstein observed. "Overall FOB’s on Mexican red seedless are trading at very aggressive levels as the industry works through substantial volumes. Pricing currently ranges from $10.95-$11.95 on medium/large, $11.95-$13.95 on large and $14.95-$16.95 on x-large with the mostly market at $14.95. Proprietary varieties are trading slightly higher, but with a glut of red seedless available, marketers are concerned primarily with keeping fruit moving through the pipeline. Flames from Coachella are trading considerably higher with pricing ranging from $18.95-$20.95 for premium fruit. We should see early volumes of California Flames from Arvin by July 10th, leaving Mexican growers and shippers with a shorter window to move through remaining volumes."
Less movement on green seedless
Demand for green seedless appears to be subdued in comparison to red seedless. Steady volumes of Sugraone are entering the market as well as better volumes of proprietary green seedless like Sweet Globe and Timpson. To try and move fruit a bit quicker, marketers are pushing FOBs lower and retailers are subsequently also introducing more aggressive promotions in the lead up to July 4.
"Overall green seedless movement was sluggish last week, which concerned marketers and pushed FOB pricing lower," Greenstein said. Retailers are set with aggressive green seedless promotions heading into the 4th of July, and movement should pick up pace now through the end of the month. General pricing on Mexican Sugraone currently ranges from $12.95-$13.95 on medium/large, $13.95-$14.95 on large and $14.95-$16.95 on x-large with the mostly market at $16.95. Marketers are trying to fetch $1-$2 higher for proprietary varieties, but with significant pressure on the green seedless market, they aren’t having much success. We can expect to see these levels maintain well through the 4th of July pull, and marketers will have to keep their feet on the gas to move through the heavy crop currently hanging."
Black seedless and Red Globes
Better volumes are also being seen for black seedless grapes, along with a reduction in pricing. Greenstein noted that overall quality and condition are very good, and retailers are increasingly highlighting black seedless varieties in promotions. "Better volumes of Mexican Summer Royals are flowing into the US market and FOB pricing has adjusted down significantly. Pricing currently ranges from $14.95-$16.95 on large and $16.95-$18.95 on x-large with the mostly market at $16.95. Expectations are to see steady movement through the duration of the month and into the 4th of July holiday."
He added that supplies of Red Globes are available, but remain limited as demand is light. "Overall acreage of Mexican Red Globes is significantly lower in comparison to previous years. There are a few shippers with limited supplies available, although few retailers stock a seeded grape during this time of the year. Pricing currently ranges from $18.95-$22.95 with size and condition being the determining factors."
For more information:
Ira Greenstein
Direct Source Marketing
Ph: +1 (914) 241-4434
ira@directsourcemktg.com
www.directsourcemktg.com