Organic Citrus Offers Many Promotional Opportunities

With torrential California rains beginning in late December, the month of January did not offer the usual retail advertising opportunities for organic citrus, but the dawn of February shows many varieties are in peak volume with promotional pricing.

“It’s go time right now for at least the next 60 days on many of our citrus varieties,” said Craig Morris, citrus category manager for Homegrown Organic Farms in Porterville, CA. “We have a dozen varietals, and we are about 40-45 percent through our volume. Cara Cara, Minneola, grapefruit, mandarins, lemons, navels, and heirloom navels are all moving into the peak of the season.”

Craig Morris, Citrus Category Manager, Homegrown Organic Farms

Morris continued, “Coming into Christmas, we had a lot of momentum on our citrus program. We were getting a lot of traction, and customer pulls were fantastic. It was shaping up to be our best season ever. Then it started raining, and everything came to a standstill.”

January is usually a great month for citrus and considered the health and wellness month as many consumers turn the page on the calendar and commit to healthier eating. “Unfortunately for about a five week period that didn’t happen for us this year, but the crop has come through it amazingly well, and overall, it has been a plus,” Morris said. “The storms have improved our size structure, filled our aquifers, and there is a lot of white stuff up in the mountains.”

“Coming into Christmas, we had a lot of momentum on our citrus program. We were getting a lot of traction, and customer pulls were fantastic. It was shaping up to be our best season ever. Then it started raining, and everything came to a standstill.” - Craig Morris

Most citrus improved about one size because of the rain, Morris said, with grapefruit jumping up at least two sizes. “Before the rain, we were looking at fruit on the medium-to-small size, which pointed to some great promotional opportunities for bags,” he said. “Now we have promotional opportunities for both bulk and bags. The rain really was a growth accelerator.”

And the wet winter has continued with very manageable storms that continue to help the crop. “Rain about every five days is great; we can handle that,” Morris said.

In addition, the wet weather has helped the upcoming summer crops of organic lemons, grapefruit, and Valencias. “There should be no shortage of citrus this summer,” Morris quipped.

Spencer Bernardo, fruit buyer for Earl’s Organic Produce in San Francisco, agreed that February and March will offer excellent organic citrus promotional opportunities. Speaking specifically of navels, he said “the eating quality is excellent right now. We are at the peak of flavor with really robust sugars. And there is great sizing.”

Cara Cara and Minneola growers are currently offering aggressive pricing that is perfect for ad promotions, Bernardo said, especially for Minneolas in a 38-pound box. “The FOB price right now [Feb. 8] is about $30 for a 38-pound box. That’s a great deal and leaves plenty of room for promotion,” he said. “Minneolas are at the peak of their flavor right now and will be for at least the next couple of weeks.”

California’s organic lemon crop is also offering great promotional opportunities. “Lemons are often treated like the ugly, red-headed stepchild, but they are hitting it out of the park with solid pricing and great quality. Right now, the FOB price is $28-$30 per carton,” Bernardo said.

At the same time, Bernardo cautioned that there is one organic citrus variety not joining the promotion party: limes. “Limes are short, and it’s going to get worse before it gets better.”

“The FOB price right now [Feb. 8] is about $30 for a 38-pound box. That’s a great deal and leaves plenty of room for promotion.” - Spencer Bernardo

The FOB price of organic limes is already approaching $50, and it will be moving up to as high as $80 per box before too long. Bernardo said this is par for the course in late winter/early spring. “Last year in March and April, we saw organic limes climb to as high as $105 per box. I would not be surprised to see that again this year.”

Christina Ward, senior director of global marketing at Sunkist Growers, chimed in with a 40,000-foot view of the organic citrus category, and opined that it is doing very well. “There continues to be more interest and overall growth in the organic citrus category from retailers and consumers,” she said. “According to IRI, organic citrus volume in 2022 was up 20 percent compared to where we were in 2018, including growth across nearly all organic citrus varieties. While there was increased pressure on retail prices due to inflation and a lighter California crop last year, which impacted the category in 2022, we're optimistic that consumers will continue to seek organics into the 2023 season.”

Christina Ward, Senior Director of Global Marketing, Sunkist Growers

According to a recent Sunkist-commissioned study, one in four consumers surveyed said they always purchase organic citrus. The Sunkist executive said West and Southeast regions are leading the way in organic citrus growth, with increases of more than double digits compared to four years ago. “The Southeast has seen the largest growth when it comes to organic citrus sales, up more than 50 percent through December 2022 compared to four years ago,” Ward said. “We also learned that shoppers want to know more about where their fruit is grown and how it is picked, especially as they are shopping for these items in store.”