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Applesauce. Jennifer Yeon Hee Kim (2013840398) Dianna Lee (2013840145) Margarita Payton (2013840324) Kavin Ho (2013840098). Background. Owned by Knouse Foods Produces canned fruit and vegetables One of the leading applesauce brands in America Motto: "Quality You Can Taste" (2)

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Applesauce

Applesauce

Jennifer Yeon Hee Kim (2013840398)

Dianna Lee (2013840145)

Margarita Payton (2013840324)

Kavin Ho (2013840098)


Background
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


What is applesauce
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)


Process
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


Process cont
Process cont.

  • Apples after the inspection area

  • Blend

  • Brush washer

    • rotates the apples

    • chlorinated water


Process cont1
Process cont.

  • Apples are rotated

  • Cleans all surfaces of apple

  • Water is sprayed

  • Look for apples with...

    • decay

    • leaves

    • marks

  • Thrown out or juiced


Process cont2
Process cont.

  • Wheel

    • continuously turns the apples

    • gets rid of inner cavity

  • Peel apples (95% gone)

  • Remnants of peel


Process cont3
Process cont.

  • Transferred into chopper

  • Whole apple --> chopped

    • uniformity

    • get steam into apple


Process cont4
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


Process cont5
Process cont.

  • Finisher

    • Finishing process

    • rotating paddle inside

    • all stainless steel

    • applesauce is screened through separation device and waste is removed


Process cont6
Process cont.

  • Can filler

  • Blending kettle

    • maintains uniformity

    • #10 filler

    • government service and food service industry


Process cont7
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


Process cont8
Process cont.

  • Conveyer provides sterilization time

  • Allows product to be elevated and cooled

  • Continuously stack four ounce cups for cinnamon sauce

  • full time job


Process cont9
Process cont.

  • Cup filler

  • Transferred to be closed with aluminum lid

  • Timed

  • Sequenced


Applesauce industry
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


Challenges outline
Challenges Outline

  • Marketing Challenge

  • Quality vs. Efficiency Challenge

  • Packaging Sustainability Challenge


Marketing challenge
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


Possible improvements
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


What they do
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)


Quality vs efficiency challenges
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


Current method
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)


Commendable
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


Packaging sustainability
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


Complying with sustainability practices
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


Improvement suggestion
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


References
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.



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