The Slow Death of a Former Breakfast Table Star
Picture an American family at the breakfast table. Now remove the pitcher of orange juice.
Once a morning staple, orange juice is on the outs. Total U.S. retail sales of the juice fell to the lowest level in at least 15 years during the 2012-13 season, according to Nielsen data published by the Florida Department of Citrus on Monday.
Americans bought just 563.2 million gallons of the beverage during the season that ended on Sept. 28, the lowest since at least the 1998-99 season, the oldest data available from the FDOC.
Analysts have said that a greater variety of beverages, including more exotic fruits like acai, and energy drinks have taken market share away from orange juice. Prices have also soared.
The spread of citrus greening, a disease that chokes off nutrients to fruit and causes them to drop prematurely from the tree, has reduced U.S. orange supplies and helped drive up prices. Ten years ago, the average price for a gallon of orange juice was $4.40 a gallon. Today, it’s $6.20.
Investors are souring on the juice as well. Open interest, or the number of outstanding positions in the market, fell to a 20-year low of 14,892 Friday, data from the ICE Futures U.S. exchange showed Monday. That’s the smallest open interest in the market since Oct. 27, 1992....MORE
