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More competition on the pomegranate market

For centuries the pomegranate has been surrounded by stories of health benefits. Fifteen years ago, Pom Wonderful introduced this exotic fruit to the American market and invested in scientific research into those characteristics. The market for pomegranates quickly grew, and now Gerhard Leodolter from Pom Wonderful looks back on recent years.

Fifteen years ago, Pom Wonderful started growing pomegranates. Up until then, their cultivation was mostly found in and around the Mediterranean and the Middle East, in countries such as Spain, Turkey, Egypt and Iran. “Quality was not good, and exports to Europe were minimal,” Gerhard Leodolter, Vice President International Sales of Pom Wonderful says. Most of the production was marketed within the borders of the country.



Folklore and science
“Pomegranates were still largely unfamiliar in the American market back then. When we started, no one was active in the commercial cultivation of pomegranates,” Gerhard remembers. The Iranian folklore about the health benefits of the pomegranate were taken over by Pom Wonderful. The company invested 30 to 35 million dollar in clinical research to gather proof for the claims made in Iranian folklore. The image of a superfood has surrounded pomegranates since the very first.

The American company was able to build a good position on the European market, but their market share has decreased in recent years. Countries in and surrounding Europe discovered the lucrative cultivation of pomegranates. Turkey, Israel and other Mediterranean countries invested in export. “There is much competition in Europe due to the nearby producers,” Gerhard explains the pressure on the market share. Transportation time also plays an important part in that. “From the West Coast, it takes four weeks by boat to reach Europe. Asia is only two weeks away by boat.”



Difficult season
It is not surprising that Asia and Latin America belong to the most important export markets. Russia was also an important market until the boycott of 2014. Russia held the second or third spot on the list of volumes. “We found alternative markets,” Gerhard says. “It is unclear whether we will get Russia back.” China has not yet given permission for the import of pomegranates. The United Arab Emirates turn out to be a growing market, however. “That market is showing much interest in American products.” The pomegranates are supplied to supermarkets, and find their way to Arabian consumers and expats in that way.

Last year was a difficult season for pomegranates. After several years of extreme drought in California, where Pom Wonderful cultivates its pomegranates, an unusually high amount of rain fell during harvest last year. “At the end of October we had two days of relatively high rainrall,” Gerhard says. As with all California pomegranate growers, a large part of the harvest was lost because of the rain. The pomegranates, however, could still be processed into the juices produced by the company, but were unsuitable for the fresh market.



Seasonal product
With the introduction of the pomegranate fifteen years ago, Pom Wonderful also decided to present pomegranate juice. Additionally, the company also introduced pomegranate arils. In that way, American consumers could become acquainted with the exotic fruit.

The harvest in the northern hemisphere is between October and December. In the southern hemisphere, pomegranates are harvested between March and June. “We can never have a year-long season, because the trees only bear fruit once a year,” Gerhard explains. India is the only exception to this. Due to the enormous surface of the country and the various cultivation areas in India, the country is capable of extending the season to nine months. “But that is the charm of the product as well,” Gerhard concludes. “Demand has its peak around Christmas, which is in partly due to the mystique surrounding the pomegranate.”

More information:
Pom Wonderful
Gerhard Leodolter
gerhard.leodolter@wonderful.com
www.wonderful.com