Arctic® Apples Why create a nonbrowning apple? OKANAGAN SPECIALTY FRUITS Who is Okanagan Specialty Fruits? Small, grower-led BC company Founded in 1996 by apple and cherry growers Neal and Louisa Carter Many shareholders are from the tree fruit industry Okanagan-based company with just seven employees What is an Arctic® apple? The first nonbrowning apple OSF’s flagship project Slices, bruises and juice will not turn brown What is an Arctic® apple? Just like any apple tree Arctic apple trees behave in the orchard just as conventional trees do – until the fruit is bruised, bitten or cut... Why develop nonbrowning apples? Increase apple consumption Why develop nonbrowning apples? To create a consumption trigger U.S. Per Capita Consumption (lbs) 16 Annual Consumption (lbs) 14 12 10 Fresh-cut Carrots 8 6 4 2 0 Source: USDA Economic Research Service How’d we do that? Relatively simple science In science terms, we have induced RNAi gene silencing targeting the inhibition of apple’s PPO genes In non-science terms: we’ve replaced one piece of railway track of a coast-tocoast railway with a slightly different piece of track Industry & consumer surveys Industry interest survey (2007) Survey of 40 industry leaders: Generally very positive response Freshcut potential strongly recognized Questions re: consumer perception of GE foods Q: Is OSF’s nonbrowning apple of interest to your company? Benefits of Arctic® apples Benefits all along the Value Chain IMPROVE QUALITY & REDUCE WASTE INCREASE GROWER RETURN 5 2 4 3 1 NEW PRODUCT EXCITEMENT DECREASE SHRINK & INCREASE EYE APPEAL ULTIMATE CONVENIENCE Benefits of Arctic® apples Contributing to sustainability Up to 50% of apples produced are wasted! 2nd most wasted produce item after bagged salad Arctic apples help show fruit’s true quality Future benefits planned include pest resistance, which can reduce pesticide usage! Benefits of Arctic® apples Boosting apple consumption Lower production costs of freshcut apples Higher quality with more flavour, less treatment Increase use of apples in foodservice More apples in more places Benefits of Arctic® apples Freshcut consumption trigger 40% 35% 30% 25% 20% 15% 10% 5% 0% Don't know Strongly disagree Somewhat disagree Somewhat agree Strongly agree …Over two-thirds agreed they’d be more likely to purchase untreated apple slices Benefits of Arctic® apples Consumer benefits 35% 30% Pre-info Post-info 25% 20% 15% 10% 5% 0% Don't know Not at all likely Not likely Neutral Somewhat likely Extremely likely Most consumers are interested in buying Arctic apples! Arctic apple brand Labeling Policy We will be labeling all Arctic apples because we know consumers will want to find them! Our path to market The regulatory process Okanagan Specialty Fruits Inc. is a dynamic company dedicated to developing new commercial tree fruit varieties that are attractive to consumers and more profitable to producers and retailers. The company is operated and largely owned by tree fruit growers throughout British Columbia’s Okanagan Valley. For more information, contact: info@okspecialtyfruits.com and visit: www.okspecialtyfruits.com www.arcticapples.com