Not Your Grandparents’ Citrus Category

Citrus fruit is undergoing a healthy shift toward specialty varieties.

Citrus used to be straightforward: Juice oranges were from Florida; seedless navel eating oranges from California; grapefruit, lemons, and limes were constant, but minor varieties and tangerines belonged in the toes of Christmas stockings snuggled next to the walnuts.

As health-conscious consumers flock to the benefits of vitamin C, the $5 billion citrus category is growing in importance within produce.

“In 2023, overall citrus sales exceeded $5 billion, growing 3% in volume and 3% in sales increases over 2022,” says Karen Nardozza, president of Moxxy Marketing, which handles Perry, FL-based Sweet Valley Citrus. “These increases are attributed to factors such as heightened health interest, consumer interest in culinary exploration with unique flavors, and the options for convenient packaging and easy-to-peel fruits like mandarins.”

Sweet Valley Citrus produces fruit in northern Florida, southern Georgia and south Alabama.
Recent data indicates that the citrus category has experienced notable sales growth in the United States, according to Nardozza.

Mandarin sales reached $1.9 billion in 2023, up from $1.8 billion in 2022, while lemon sales increased to $875.2, compared to $871 million in 2022, and lime sales rose to $796.4, up from $785.3 million in 2022. And tangerines sales grew to $82.7 million, up from $75.7 million in 2022.

SHOPPERS EXPLORING NEW FLAVORS

Part of citrus growth is in previously unimportant specialty varieties.

“Overall demand for citrus continues to increase, with some specialty varieties growing faster than traditional navel oranges and lemons,” says Nardozza.

The category has become more complex and challenging, as more discriminating consumer palates and inventive plant breeders have made citrus, if not as varied as apples, at least as complex as grapes.

Alongside the oranges, mandarins, tangerines, grapefruit, lemons and limes, the modern produce manager must also have a handle on how to source and merchandise specialties like finger limes, Buddha’s hand, pomelos and yuzu. But, unlike oranges, mandarins and lemons, that’s a challenge.

These varieties also move best if there is an effort at the retail level to educate consumers on what they are and how to use them.

“While most shoppers are familiar with household staples such as mandarins, lemons and oranges, the winter months offer retailers the unique opportunity to educate shoppers about specialty citrus varieties by showcasing their distinctive flavor and characteristics,” says Monique Mueller, director of communications at Bee Sweet Citrus, Fowler, CA.

Bee Sweet began in 1987 as a grower-shipper of California oranges and has grown to ship many citrus varieties around the country year-round.

SHOW AND TELL

“Many specialty varieties, such as Bee Sweet’s Royal red oranges and Cara Caras, look very similar to regular navels, but once someone cuts into their interior, they’ll be surprised to find beautiful pink or magenta hues,” Mueller says. “While these varieties are in season, retailers can offer shoppers samples as an incentive to try new products, or they can capitalize on variety-specific point-of-sale material to draw in the attention of shoppers.”

Social media is another powerful tool to consider when educating shoppers about specialty citrus, Mueller adds. “High-quality videography showcasing recipes or fun facts can be a helpful resource when highlighting unique produce items.”

It can help to demonstrate how some of the specialty varieties are used.

“Show a lot of the types of foods, drinks or desserts that you can use limes,” advises Erick Carranza, sales manager at EV Produce International, McAllen, TX.

From its strategic location on the border, EV Produce International has become a leading producer, packer and distributor of limes and chayote from Mexico over the last 10 years.

The seedless limes are most popular. “After 2020, consumers became interested in them because a lot of drinks use them and some people use them in dishes,” Carranza says. “The seedless ones increased 13% after 2020.”

Even more educational effort is called for with finger limes, the “caviar of citrus,” which are used in a variety of gourmet cocktails, curries and salads.

PLAN AHEAD

While supply chains for the major citrus varieties are well established, produce managers must navigate sources of specialty varieties.

“From a grower and packer standpoint, it is most effective for retailers to engage with suppliers in advance to ensure supply is available,” says Zak Laffite, president, of Wonderful Citrus, Los Angeles, CA. “Additionally, planning out promotions and volume ahead of time can help with reliability ahead of the season.”

Wonderful is a major national player in grapefruit, its Halos battle it out with Cuties for supremacy among clementines, and the company has a proprietary seedless lemon variety.

“We’ve made it a priority to grow and develop the supply for our newest, game-changing variety, Wonderful seedless lemons,” says Laffite. “To provide a year-round program, we’ve invested meaningful time and effort to expanding new acreage of seedless lemons in various regions to complement existing production of our product.

“Wonderful seedless lemons have become a game-changer for the lemon category and for consumers around the country. We’ve seen consumption grow more than 40% this past year, only limited by supply constraints, and we’ve seen household penetration increase.”

Consumers are also increasingly drawn to unique citrus varieties.

“First, there’s specialty citrus, and then there’s specialty citrus,” says Moxxy Marketing’s Nardozza. “What I mean by that is there is no USDA (U.S. Department of Agriculture) or official definition of what specialty citrus is. Some varieties, such as Cara Cara oranges, Meyer lemons, mandarins, and tangerines are similar enough to traditional citrus they are an easy replacement or addition for consumers. But more unique varieties that are prized for their distinct flavors, appearances, or uses, such as finger limes, yuzu and Buddha’s Hand, are most appealing to more adventurous consumers.”

The supply chain for these special varieties is complex and challenging.

“Most citrus growers only grow a handful of varieties, and buying directly from many growers often entails logistical challenges,” she advises. “So, building relationships with a wholesaler or co-op that can supply multiple varieties, is often the easiest way to go. At the same time, for retailers looking to provide their consumers with unique varieties and flavor profiles, it is worth the additional logistic challenges to deal directly with the grower.”

One Los Angeles-based wholesaler has an abundant supply of specialty citrus varieties from throughout California and beyond. When Sharon and Joe Hernandez started their specialty produce business in 1984, they could only afford to rent a small warehouse lunchroom with four chairs and three telephones. They named their business selling to Southern California retailers and restaurants after their young daughter Melissa.

Today, Melissa’s/World Variety Produce Inc. has grown to occupy a 330,000 square foot facility and is the largest distributor of specialty produce in the country.

Currently, Melissa’s ships Cara Cara, blood, and Seville oranges, while their lime portfolio includes key, finger, and makrut limes, and they also carry oro blanco, pomelo, cocktail and melogold grapefruit.

California citrus grower-shipper Pearson Ranch of Porterville has made specialty varieties a centerpiece of its operation. “We try to emphasize specialty citrus,” says co-owner Tony Marquez. “We’re a small farm, and you have to diversify beyond just oranges and pomelos unless you’re large.”

The Pearson Ranch website includes descriptions and opportunities to order specialty varieties, including finger limes, makrut limes, Buddha’s hand, kumquats, limequats, citron and yuzu. It currently sells to all 50 states.

While California grows the most specialty citrus, these varieties can be seasonal. “The peak of the California citrus season is November to May; however, there are some varieties that are only available for a few months within that specialty time period,” says Robert Schueller, director of public relations at Melissa’s.

Some major shippers offer extensive point-of-sale help for their specialty citrus. “For Wonderful seedless lemons, we have a new lemonade stand POS (point-of-sale) display that will bring nostalgia to the grocery store aisles,” says Laffite. “Additionally, we are utilizing our versatile hexagon bins with culinary-themed header cards, which are a perfect option for merchandising in the produce department or secondary locations, such as the seafood and alcohol sections. These displays have a small footprint and drove 24% velocity lifts versus stores with no POS last season.”

BEYOND CALIFORNIA

Some major California-based shippers extend their seasons by developing relationships with growers in other regions.

The citrus greening disease that has devastated the Florida orange industry has also, ironically, led to the emergence of a thriving Southeastern specialty citrus sector.

“There is a burgeoning industry growing in Northern Florida, Southern Georgia, and Alabama in cold-tolerant varieties, such as Satsumas,” says Nardozza. “This is, in part, a response to pests and diseases such as citrus greening disease that have affected more Southern crops.”

PRICE POINTS

Economies that address consumer anxieties about high prices can help drive citrus sales. “One big way is cutting costs, whether it be by technology adoption, supply chain efficiencies, reduction in waste, reduction in labor, or tightening procurement process,” advises Nardozza.

These economies are easier to implement in areas close to the citrus groves.

“It’s no surprise that the Sunbelt leads the way in fresh citrus consumption as there is a correlation between local production and consumption, and Florida, California, Texas and Arizona produce the bulk of U.S. citrus,” says Nardozza. “Citrus is also a low value per ton, high cost to ship crop. Thus, while there is year-round availability, it is much more of a U.S. grown, winter crop.”

Strong in-store merchandising can help increase specialty citrus sales.

“While supply chain is the first area to focus on for reliability, sales and marketing execution is another way to make an impact,” says Laffite. “Merchandising products is crucial for retailers as it directly impacts sales, brand identity, and customer experience. When working with our retail partners, we utilize a series of POS tools, along with a full team of more than 200 merchandisers located across the country.”