Prices spike. Prices crash. It’s an age-old roller coaster.
In a global food supply chain that increasingly faces climate impacts and globalization challenges, the ups and downs may be more pronounced, but so too are the solutions to smooth out the journey. Imagine having 2x more time for the trip through the supply chain. That’s the Apeel opportunity, with benefits that can be felt across the business 52 weeks a year, whether on blue sky days or days like today with growing price pressures.
Just look at the market for limes: year over year prices went up over 100%. What may have cost $22 a box last year, trended as high as $60 a box. And don’t forget the great lime shortage of 2014, when a supply shock sent prices soaring. Like the so-called “100 year storms” that now seem to come twice in a decade, we face a time of rapid change.
Whether it’s scarcity one year or a glut the next, the increasing variability comes with associated inventory management issues that threaten the ability to deliver a consistent supply of quality fresh produce. And now, as the global economy emerges from a pandemic, inflationary pressures are growing across sectors. Pallets, those ubiquitous tools of transport, went from costing less than $20 to costing more than $50. As a result, shipping costs are up. Storage costs are up. The pressure builds to cut costs, even as it gets harder to get product on shelves.
With the dependability of systems we once took for granted suddenly in question, we can choose to double down on the familiar way of doing things or seek new and innovative solutions to mitigate future crises. In times like these, you need friends you can count on and the best insurance you can find.
Here’s a friendly reminder for these exceptional times: Apeel is no fair-weather friend, and we could be just the insurance you didn’t know you could have. How?
Prices spike and suddenly every cost looks worth cutting. But is it? With a more precious commodity - the Ford just got Ferrari pricey - Apeel offers a kind of insurance that ensures your high-value, high-quality product retains its quality and salability 2x longer. To ensure a precious commodity through challenging times is just good business, especially when your commodity has a limited shelf life. For limes, that means better color retention, reduced desiccation, and the avoidance of rot, affording retailers the chance to sell limes that would have gone to waste.
What could Apeel mean for your bottom line, especially when prices are soaring? Let’s look at three scenarios for responding to inflated prices:
Scenario 1: High Cost, Big Loss
Imagine a retailer orders 10,000 limes at an inflated price of $50.00/case, with the plan to make $75.00/case. If their shrink rate is 6%, they will likely lose $32,000 to waste.
Scenario 2: Low Volume, Low Shrink
To manage costs and counteract waste, the retailer may want to order less. However, this will ultimately limit revenue and gross margin.
Scenario 3: More to Sell with Apeel
Alternatively, the retailer could order the same 10,000 cases of limes with the “insurance” of Apeel, which has been proven to reduce their shrink to 3%. Even after factoring in the cost of Apeel, they would actually increase both revenue and gross profit margin by selling the limes that would have been wasted without Apeel. And there is even further potential upside for sales growth because with the confidence Apeel allows, this retailer can decide to order even more to meet customer demand.
That’s the kind of insurance against market forces that builds loyalty and lasting benefits, as suppliers gain new flexibility and retailers can make good on produce purchases that offer longer-lasting quality and salability. And in addition to limes, Apeel brings the benefits of more time to apples, avocados, and, depending on where you are in the world, additional citrus varieties, pineapples, and mangoes.
Inventory Management Tools
The benefits of more time also mean Apeel affords new flexibility to manage inventory. Fuel costs up? Driver shortages? Extreme weather putting storage capacity at risk? Looking to cut transport costs? Apeel can help you better manage all these problems. After all, longer-lasting produce means you can reduce the number of deliveries, or even eliminate consolidation and re-packing. In a time of volatility, more time means the freedom to adapt, even thrive.
The Apeel Promise
In the end, no one benefits more from enduring quality more than the consumer. When you consider all the pressures of modern life, the dependability of good quality produce makes a huge difference in satisfaction and enjoyment.
That’s the Apeel promise -- longer-shelf life that means the precious produce Apeel protects makes it into a well-deserved margarita, creamy guacamole, or a delicious key lime pie.
So in a time of squeeze, let’s hold tight. That’s Food Gone Good.
Contact us by clicking the button below if you’re interested in learning more about how Apeel can protect your business.