Pink Lady Apple Brand Premium Exceeds 37% in Israel, Study Finds
Translated & summarized from Maariv by baba
A survey in Israel found that branded Pink Lady apples cost up to 37% more than the same Cripps Pink variety sold without the brand. The premium is attributed to branding, sorting, and a heart-shaped logo. Retailers also face significant losses due to checkout errors where expensive Pink Lady apples are mistakenly scanned as cheaper varieties. The price difference can be as high as 10 shekels per kilogram, depending on the supermarket chain.
The story in 5 lines · by baba
- Branded Pink Lady apples cost up to 37% more than unbranded Cripps Pink apples in Israel.
- The "Pink Lady" name is a trademark, not a botanical variety, involving branding and sorting.
- Price premiums for the branded apple can reach 10 shekels per kilogram.
- Retailers lose money due to checkout errors mistaking Pink Lady for cheaper apples.
- The Cripps Pink variety is grown in Israel's Galilee and Golan regions.
A survey of nine Israeli supermarket chains revealed a significant price difference, up to 10 shekels per kilogram, between the branded Pink Lady apple and the unbranded Cripps Pink variety, which is the same cultivar. Dr. Chazi Gur-Mizrachi, the author, explains that "Pink Lady" is not a botanical name but a registered trademark. Its owners developed an international brand around the apple, complete with a catchy name, a heart-shaped logo, and a licensing system. This transforms a basic agricultural product into something resembling a packaged consumer good.
The branding process involves rigorous sorting based on criteria like peel color, firmness, sugar content, and appearance. Only apples meeting these standards receive the pink heart sticker. While consumers pay a premium for this branding and sorting, an unbranded Cripps Pink apple is not necessarily inferior in taste, with differences often relating to hue or uniformity of appearance rather than eating experience.
The Cripps Pink variety is grown in Israel's Galilee and Golan regions. In 2007, it was reported that the Beresheet Fruit Corporation received exclusive rights to grow and market Pink Lady in Israel, though it is unclear if this arrangement remains. Israeli research has noted difficulties in achieving uniform color and issues with skin cracking, which can lead to fruit rejection.
The survey found that the average price for a kilogram of Pink Lady was approximately 21.70 shekels, about 37% more than the unbranded variety. The price premium varied significantly by chain; for instance, Machsanei Hashuk sold Pink Lady for 16.90 shekels, while Shufersal Deal charged 26.90 shekels. The branded apple cost only 1 shekel more than the unbranded version at Machsanei Hashuk, but 10 shekels more at Shufersal Deal.
Retail insiders revealed another significant issue: "shrinkage" at the checkout. Due to the visual similarity between red apples like Pink Lady and cheaper varieties such as the Hermon apple (a local name for Red Delicious), cashiers sometimes mistakenly ring up the expensive Pink Lady as a cheaper apple. This error, whether accidental or intentional, can lead to substantial losses for supermarkets when it occurs frequently across multiple branches, effectively halving the revenue for those specific apples sold incorrectly.