In the “Krone” interview, organic producer Höllinger is concerned about the poor harvest. He delivers his goods in Dubai or Mauritius and the export share is 60 percent. The trade in syrups and children’s drinks is doing very well, while sugary fruit juices often suffer from the health trend.
This year’s apple harvest left much to be desired worldwide. In Austria, volumes fell by 54 percent compared to the average of the past three years, more significantly than in any other EU country. The reason for this was, among other things, enormous frost damage. Earnings were already relatively weak last year, and things have gotten even worse in 2024.
The price of apples has risen sharply
Gerhard Höllinger, head of the organic juice manufacturer of the same name from Pressbaum, Lower Austria, also notes this development: “In the southern state of Styria we have only had a normal harvest twice in nine years.” of the apples he comes from, he works with a total of 1,000 apples. There are 3,500 farmers together who mainly provide him with orchards. The price of the fruit has clearly risen, from about 20 cents to 30 cents per kilo. Good demand, coupled with tight supply, drives up costs.
One liter of juice requires 1.3 kilograms of apples. If these become 50 percent more expensive, this will also affect the price on the shelf. However, consumers continue to like to buy fruit juices from Austria. The price increase for orange juice was even greater, leading many buyers to prefer apples, which were still cheaper in comparison.
Höllinger competes with local giants Spitz, Rauch and Pfanner and with the retailer’s own brands, although he himself specializes most in organic products. He has little understanding for the pricing policy of cheap brands: “Given the price charged for organic apple juice in discount supermarkets, I really wonder how this will turn out.”
Although the brand is best known for its juices, the company (1.8 million liters annually) only accounts for a quarter of the turnover. You can earn more with fruit syrups, school juices and other organic fruit juices or lemonades. He also continuously brings innovations to the market, such as an organic aperitif and mojito syrup.
Apples are delivered to the Seychelles
The export share is 60 percent. The largest foreign markets are surprising: Portugal and Spain are two countries generally rich in fruit. There are also the Arab Emirates, and a lot of juice from Austria comes to Qatar, Dubai and Mauritius.
“We also export to Africa, the Seychelles and Egypt,” says Höllinger. It is sold through wholesalers. Apples are scarce in many regions, but Austria has plenty of fruit. “We assume that we will continue to grow abroad,” says Höllinger.
A proposed ‘sugar tax’ would also have major consequences for the sector. Höllinger already knows this from Qatar, an export country for the entrepreneur. Taxes there are extremely high, there is a 50 percent sugar tax and another 50 percent tax on carbonated drinks. But the rich Arab crowd still demands the organic juices.
“Sugar tax” and health trend
Overall, Höllinger expects that demand for fruit juices will likely shrink in the long term due to the health trend. A sugar tax is also currently being discussed in Austria. In general, he expects that demand for his products, apart from classic apple juice, will grow the most in the future. He can also imagine that he will offer sugar-free lemonades for the first time in the future.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
