Rising Prices, Weaker Sales for Orange Juice

With a significant decline in consumption of concentrated orange juice, overall U.S. sales in the category tumbled 5.4 percent in volume and 0.6 percent in revenue in a year-over-year comparison for the four weeks ending on July 7, 2012, according to the Dow Jones. The sales data, compiled by Nielsen and published by the Florida Department of Citrus (FDC), also shows that orange juice prices rose by 5 percent versus the same period in 2011.

Despite a 4.7 percent spike in prices of not-from-concentrate orange juice, volume sales of the drink remained flat as compared to the four-week period last year. However, concentrated orange juice sales plummeted 11 percent in volume and 8.5 percent in revenue. The decline may have been spurred by an 2.8 increase in prices of concentrated orange juice, whose consumers are much more price sensitive that those who purchase not-from-concentrate orange juice.

“When dealing with the [concentrated orange juice customer], you’re dealing with someone who’s much more price sensitive,” said Doug Ackerman, executive director of the Florida Department of Citrus. “When the price goes higher you’re going to see this customer opt out of orange juice altogether.”