One More Entry for the Growing Sliced Apple Market
Fresh Cut
December 2004
Yo Bites LLC
Another new player has joined the list of fruit companies
marketing pre-sliced apples.
Yo Bites, LLC, a cooperative effort between Mark and Lester Zirkle, Bob
Price and Steve Fox, is in its early stages of market exploration but
is seen as a serious entry in the growing sliced apple market. The Zirkle
brothers operate Zirkle Fruit Co., a major player in the Washington fruit
production and packing scene. Their huge multi-million-dollar packing
facility in Selah, Wash., is conveniently located just off of I-82 and
draws fruit supplies from approximately 15,000 acres. Eleven thousand
of those acres are family owned. Zirkle orchards are scattered from Oregon
on the south to the Canadian border on the north. Most of the acreage
is in Washington. Up to 80 trucks a day move in and out of the Selah storage
and packing facility.
Price owns and operates Price Cold Storage in nearby Gleed, Wash., while
Fox, a Wenatchee, Wash. native, is a marketing specialist and private
consultant servicing the Pacific Northwest fruit industry.
As the founding partners in Yo Bites, Price and Fox jumped into slicing
apples five or six years ago when that type of endeavor was little more
than a novelty. Due to financial constrains, they were mainly doing test
marketing. In late 2003, they teamed up with the Zirkle brothers, bringing
added financial stability and the guarantee of an abundant supply of high
quality apples. Under the new arrangement, Yo Bites began commercial production
on a limited basis last March.
Foodservice Market Dominates
"Most of our volume is sold to foodservice institutions, schools,
in particular," says Mark Zirkle, president of Rainier Fruit Company,
the marketing arm for Zirkle Fruit, and a member of the Yo Bite team.
"We have other institutions on our customer list as well but the
schools prefer fresh-cut apples over whole product because of reduced
waste. We expect to see our sales pick up as the new school year begins."
Paul Newman, Yo Bites sales manager and who supervises operations at the
fresh-cut plant, is working with Fox and Price on marketing.
"Because of Steve's background in the foodservice industry and our
relationship with Rainer, the foodservice direction is a natural fit,"
Zirkle points out. "We see positive growth ahead. The Zirkle tie-in
also gives us access to ample supplies of raw product. Our sliced apple
products are unsurpassed in the industry - fresh and of the highest quality."
Yo Bites' most popular foodservice packs are 2-ounce, 4-ounce and 3-pound
bags. The company also markets 1- and 2-pound bags as well as special
bulk orders, when requested.
On the retail side, Newman envisions enormous potential. "We're (Rainier
Fruit Co.) the top vendor for nine out of 10 retailers in our category,"
he smiles. "While we have waited longer to get into this market than
some, we're not worried about being successful. We're confident that we'll
be able to share in future retail growth, if and when it comes."
Yo Bites' most popular sliced apple retail product is sold in 1-pound,
re-sealable, rigid containers. The product makes the ride from the plant
to the consumer in better condition and is easily stored inside the refrigerator.
It can be opened and re-opened easily.
"While the foodservice market is more important to us at the moment,
we see retail coming on, although at a much slower pace," Zirkle
says. "As that happens, we are very well positioned. We have trucks
moving in and out of here daily headed for all parts of the country. It's
no big deal to add a pallet of slices."
Not Variety Specific
The Yo Bites plant is producing both sweet and tart tasting product, but
the emphasis is on the sweet side, according to Newman. That is where
there is most demand.
"We're emphasizing the "sweet" because we're talking about
fresh-cut, value added apples," he explains. "As a ready-to-eat
product, we want it to taste good. And since we are not variety specific,
we'll have flexibility, if need be, to select the highest quality product
available during any given time. We can move from area to area without
worrying whether we're using the exact same variety."
A converted warehouse, the processing plant is located in Gleed, Wash.,
a few miles west of Selah. The present facility is small, around 6,000
square feet but is sufficient for this stage of the business. HACCP, third-party
auditing and other safety programs are in place. Clark Loran heads is
in charge of the company's quality assurance program.
"Right now, we're running only small batches. That will change as
we move further into our marketing campaign," says Zirkle. "Eventually,
we hope to go to a full shift and then to a second and possibly a third.
This, we believe, is highly possible within a short period of time. Eventually,
we hope to relocate the plant at the Zirkle Fruit site in Selah."
If there are concerns about being able to compete, Zirkle and Newman show
none.
"This (pre-cut apples) is an enormous market," Newman smiles.
"As with anything new, more people are going to jump in this business
than will survive, but there is great potential out there to grow this
business. We're especially excited about this venture because we have
the finest product on the market."
Slicing apples is not rocket science, adds Zirkle. Anyone with enough
money can get the job done. The big advantage Yo Bites has is its year-round
availability of high quality product and its ability to market product
through a national distribution system already in place.
"Unlike many out there, we're not purchasing our raw product on the
open market," Zirkle points out. "That brings with it added
risk and worry whether you are going to be able to secure enough quality
product. Most processors out there doing sliced apples are using culls
or apples that fail to make grade. Our fruit is all high quality product,
washed and graded fresh. We don't use cull fruit. The skins are still
on, and there are no holes. We're dealing with a premium quality product."
Yo Bites uses a special sealant on its sliced apples. The recipe is a
proprietary secret, but the company believes it ensures a higher quality,
better tasting end product than other alternatives they've sampled in
the stores and foodservice institutions.
© 2004 Columbia Publishing
Columbia Publishing & Design
417 North 20th Ave. Yakima, WA 98902 •
1-800-900-2452
www.freshcut.com