Applesauce

1. Applesauce Jennifer Yeon Hee Kim (2013840398) Dianna Lee (2013840145) Margarita Payton (2013840324) Kavin Ho (2013840098)

2. Background • Owned by Knouse Foods • Produces canned fruit and vegetables • One of the leading applesauce brands in America • Motto: "Quality You Can Taste" (2) • 7 operating plants • 5 in South Central Pennsylvania, Michigan, West Virginia

3. What is Applesauce? • Pureed Apples • Mixed with sugar & spices (cinnamon & allspice) • Used by many European countries. • Can be used to cook/bake • Can be eaten as a side • Can be eaten as a dessert • Known as comfort food (1) • Enjoyed by people of all ages (1) • Works as a healthy substitute for oil (1)

4. Process • Dumped into tank for mixing and goes across conveyer to remove as many leaves as possible before entering the process • Transferred from grater into washing area and inspection area

5. Process cont. • Apples after the inspection area • Blend • Brush washer • rotates the apples • chlorinated water

6. Process cont. • Apples are rotated • Cleans all surfaces of apple • Water is sprayed • Look for apples with... • decay • leaves • marks • Thrown out or juiced

7. Process cont. • Wheel • continuously turns the apples • gets rid of inner cavity • Peel apples (95% gone) • Remnants of peel

8. Process cont. • Transferred into chopper • Whole apple --> chopped • uniformity • get steam into apple

9. Process cont. • Go up conveyer • Live steam injection cooker • High pressure steam line that allows steam to go into center of cooker • stainless steel conveyer that agitates and mixes the apple • held for 2-3 min. max • makes it soft • prepares it for finishing

10. Process cont. • Finisher • Finishing process • rotating paddle inside • all stainless steel • applesauce is screened through separation device and waste is removed

11. Process cont. • Can filler • Blending kettle • maintains uniformity • #10 filler • government service and food service industry

12. Process cont. • Coded cans • to designate product to know what or when a particular can was produced • Cans go through a twist • Hot applesauce sterilizes the lid • 1-2 minutes

13. Process cont. • Conveyer provides sterilization time • Allows product to be elevated and cooled • Continuously stack four ounce cups for cinnamon sauce • full time job

14. Process cont. • Cup filler • Transferred to be closed with aluminum lid • Timed • Sequenced

15. Applesauce Industry • Applesauce is hypothesized by many to be: • mature stage of product lifecycle • low growth potential • boring commodity, used as side dish or accompaniment • Little to no marketing efforts by producers and retailers • Applesauce is a basic item, low product differentiation and low technology • Extremely high competition due to low barriers to entry • Applesauce is mainly sold on the basis of price

16. Challenges Outline • Marketing Challenge • Quality vs. Efficiency Challenge • Packaging Sustainability Challenge

17. Marketing challenge • Unable to compete on price • Easily substituted product, and have many substitutes (How to differentiate themselves?) • Producers and retailers have little incentive to invest in marketing • Need to increase sales, customer brand loyalty & perceived value of using the product

18. Possible Improvements • Bundling • entice customers to buy more --> increased sales • Educate customers on uses of Applesauce • increases perceived value of usage • increases product & brand loyalty • New product development • more variety = better customer service --> increased potential sales

19. What They Do • Improve sales via bundling • Educate customers on uses of Applesauce • Recipes provided on website • New product development • e.g. chunky, natural, cinnamon • packaging (i.e. single serve)

20. Quality vs. Efficiency Challenges • Maintaining product quality while increasing resource efficiency • Maintaining quality = increased costs • Reliant on Apples • 2012 : warm winter and cold spring caused a decrease in apple crops (5) • No resources can be wasted

21. Current Method • Quality check-points & other use of disposed parts of apple • Check-points : second round of de-leafing/finding damaged apples • Labor costs • Production time • Apple scraps used in other productions • Peel, core, leftovers sent to juice pressing • Pressing leftovers used as cattle feed • Waste reduced by 80-90% (6)

22. Commendable • Little room for improvement - already a mature system • Further improvements = new technology? • Invest in future technology to cut out check-points • Invest in technology for preserving apples

23. Packaging Sustainability Packaging factors - retortable, peelable packaging - convenience of use - prolonged shelf life of the product - container lightweight - heat resistance - biodegradable materials - sustainable package coating

24. Complying with Sustainability Practices - Shift from glass and rigid plastic containers towards more sustainable packaging. - Currently used packaging: • convenient single-serving plastic cups • family size plastic jars However, Musselman's have not yet adopted an innovative packaging: spouted pouches

25. Improvement Suggestion Adoption of the spouted pouches and innovative packaging materials - polyglycolic acid (PGA) Advantages of innovative packaging • oversized resealable cap provides convenience • all polypropylene pouch is 100% recyclable

26. References 1. "Applesauce." Applesauce. U.S. Applesauce Industry, n.d. Web. 31 May 2013. 2. "Through the Years." Musselman's. Knouse Foods, n.d. Web. 31 May 2013. 3."Sustainability Efforts." Musselman's. N.p., n.d. Web. 03 June 2013. 4.“Packaging Materials Innovation.” Food Engineering Magazine. N.p., n.d. Web. 03 June 2013. 5. "Central New York." The Post-Standard. N.p., n.d. Web. 01 June 2013. 6. "Knouse Foods Takes Steps Toward A Brighter Tomorrow." Press Release Distribution, EDGAR Filing, XBRL, Regulatory Filings. BusinessWire, 22 Feb. 2011. Web. 01 June 2013.

27. The End