The supply of Korean Shine Muscat grapes is up again this year. "We expect 30 to 50 percent more volume over last year," says Love April's Elena Kong, adding that this follows an increase already from 2023-2024 of 50 percent more volume of the grape shipping to North America.
The increase to the U.S. comes given the growth potential growers and shippers see in the U.S. market for the premium grapes, which are large, very sweet and have a crunch similar to the Autumncrisp table grape variety. "Korea has already shipped a lot of grapes to Taiwan and other Asian countries. However there is no room to grow there," says Kong.
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Shine Muscat grapes began shipping to the U.S. by air in early July–about a month earlier than normal which speaks to that interest in developing the U.S. market. This past weekend though, the first ocean container with the grapes arrived.
However, challenging demand for the grapes this season is the state of the California table grape season, one that is seeing strong supply this year. "Usually Korean Shine Muscat grapes will have more volume at the end of October or into November, right when the California green grape season is wrapping up. This year though we are competing more with them," she says, adding that last year, the grapes shipped until the end of March.
Tariffs and pricing
The premium grape also comes with premium pricing which brings another challenge–a 15 percent import tariff on Korea. "A lot of growers and exporters reduced their margins to go to the U.S. market. They gave us better pricing than last year but the tariffs still make pricing a bit higher this year," says Kong.
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That's why demand is expected to pick up in November and December when pricing shifts. "Promotions will help push the volume and then maybe we can create more demand for these grapes," says Kong, adding that right now, distribution is largely to Asian markets given their familiarity with the product and the pricing that comes with it–pricing for a 500 gram bag can cost approximately $19.99 at retail.
She also stresses the importance of working with a shipper that's trusted given the fact that quality on Shine Muscat can run premium quality or regular quality. That can make for a two-tiered pricing market. "Because we are developing this item, there isn't a U.S. standard for packing which is a problem," says Kong. She adds that part of the problem is knowing which packing houses pack fruit that's of premium quality, which is why it's important that retailers use shippers who know the market.
For more information:
Elena Kong
Love April
Tel: +1 (626) 344-7090
[email protected]
https://www.loveapril.net/