Canadian apple a hit at U.S. schools
WINNIPEG — A non-browning apple, developed in Canada by Canadian innovators, still has its head office in Summerland, B.C., and its innovation centre in Saskatoon.
But its unique apples aren’t yet available to Canadian consumers.
Okanagan Speciality Fruits (OSF), the company behind the Arctic Apple, has been selling its non-browning apple slices in the United States for several years.
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Sales and revenue growth have been strong as the sliced apples become popular with school lunch programs, restaurants and at convenience stores across the U.S.
“We can now say (we’ve hit) over 100 million servings of Arctic Apples,” said Sarah Evanega, vice-president of business development for OSF.
“Every month we’re basically breaking our sales records from the previous month, the previous year.”
Neal Carter and his wife, Louisa, founded OSF in 1996 with the goal of reversing a decline in apple consumption. He helped develop the Arctic Apple, using gene silencing to shut down the enzyme that causes apples to turn brown.
Arctic Apples can stay fresh for 28 days, which means less food waste and a potential increase in apple sales. Research shows that people are more likely to eat sliced apples than the whole fruit.
In 2015, the U.S. Department of Agriculture and Health Canada approved the Arctic Apple, declaring it safe to eat.
“It is the biggest milestone yet for us and we can’t wait until they’re available for consumers,” Neal told the Guardian newspaper in February 2015.
Ten years later, OSF has five orchards in Washington state and more than two million apple trees.
The orchards are close to Moses Lake, Wash., which is about 160 kilometres southwest of Spokane. The apples from those orchards are trucked to the OSF processing plant in Moses Lake, where the apples are “sliced and diced,” Evanega said.
Three types of Arctic Apples are processed at the plant — Arctic Fuji, Arctic Golden and Arctic Granny. The company is scaling up production of Arctic Gala, which should be available this fall.
Honeycrisp and Pink varieties are in development .
The company bags the apples in snack size to family size portions, with the Arctic brand on the package.
In an interview from her home office in Ithaca, New York, Evanega said OSF started selling its apples before the pandemic, but in the last few years, sales have taken off.
“We had a soft launch before COVID,” she said.
“Since COVID, we have really hit the gas pedal with full force.”
OSF has directed its marketing at U.S. schools. Unlike Canada, thousands of school districts in the U.S. provide lunches to their students.
The OSF sliced apples are now consumed at schools in states such as California, Texas and Nevada.
“We’re able to offer that healthy option that’s convenient for kids,” Evanega said.
The company is also selling Arctic Apples to restaurants, where they’re used as an ingredient in salads and other items.
As well, they’re available at American convenience stores for consumers seeking a snack that’s healthier than chips.
However, the apples aren’t sold in the produce section of grocery stores. OSF believes its market advantage lies elsewhere.
“We haven’t felt a need to go into the traditional produce aisle,” Evanega said.
“There is so much opportunity for us in food service (including school lunch programs).”
Third Security LLC, a U.S. firm that operates biotech companies, acquired Okanagan Specialty Fruits and the Arctic Apple technology in 2020.
However, OSF maintains its headquarters and about 20 employees in Summerland. The company also operates an innovation centre in Saskatoon near the University of Saskatchewan.
“We have a small but mighty lab (in Saskatoon) that is using all the state of the art technologies to improve apples,” Evanega said.
The lab’s main focus is obviously apples, but OSF is also working on other crops.
Last year, it announced a research and development partnership with a New Zealand company, Prevar, hoping to bring new traits to market for apples, pears and other fruit.
OSF scientists are also using gene editing technology to increase the shelf life of cherries.
“We’re bringing that non-browning trait into cherries,” Evanega said.
As for Canada, Arctic Apples are approved in this country and could be sold here, but OSF is still seeking a good fit in the marketplace, she said.
“We have been in some recent conversations with some (potential) Canadian customers…. We just need to find the right customer.”
Contact robert.arnason@producer.com
Source: producer.com