Wednesday, January 26

One of life's biggest mysteries

I love pineapple juice. It is full of deliciousness — and economic mysteries.



I noticed recently while consuming President's Choice 100% Pure Pressed Pineapple Juice that it claims to contain the juice of "three Costa Rican pineapples." When I thought about this, it boggled my mind. Three Costa Rican pineapples at my local supermarket cost $11.97 (that's $3.99 per pineapple). Yet the juice from three Costa Rican pineapples costs only $4.29.



What I can't figure out is why pineapple juice is almost three times cheaper than buying an equivalent quantity of pineapples. Sure, whole pineapples are heavier and take up more room than pineapple juice, which would add to shipping costs. But there is labour and packaging required to make pineapple juice. And unlike whole pineapples, the juice has to stay refrigerated, which would offset some or all of the difference in shipping costs.

So why is my juice so much cheaper than pineapples? Do shipping costs really comprise such a large component of a pineapple's total cost so as to create such a drastic price difference? Is spoilage on pineapples so high that by buying one pineapple, I'm really paying for the one pineapple I'm consuming plus a couple more that went rotten before they left the grocery store? Is the juice box lying about containing three pineapples or is the supermarket gouging on the price of individual pineapples?

It is times like these that I wish I had the knowledge of one of my namesakes: David Karp, fruit detective. I am very perplexed.

4 comments:

  1. Isn't it obvious? When you ship pineapple juice, you are just shipping the juice. When you are shipping pineapples, you are shipping the juice, the skin, the spiky top, etc. Compare the volume/weight of three pineapples to the container of pineapple juice. I bet the box of juice is about the same size and weight as only ONE pineapple. Plus, pineapples are an awkward shape and take up cargo room (packing problem), while juice containers are box-like and easy to transport (why did "containerization" change global trade?). Additionally, I doubt whether the juice needs to be in a completely refrigerated supply line (unlike, say flowers) because it will have been pasteurized and sealed in Costa Rica. Often stores put things in the fridge that don't actually *need* to be cold because it increases sales (eggs, soy milk).
    You are right on the spoilage count as well - a pineapple will only have a shelf life of (at most) 2 weeks. Juice, however, might be good for months.

    ReplyDelete
  2. Anonymous seems to cover it, but two more thoughts:

    1. Pineapples are more likely to be damaged during shipping than vats of juice, so that adds to the cost.

    2. People are willing to pay more for the whole pineapple.

    Nontheless, on the face of it, the discrepency seems odd.

    ReplyDelete
  3. Pineapples and pineapple juice are really not as close substitutes as one might think - *I* certainly would never buy a pineapple if I wanted the juice: too much work! Now, pineapple rings or segments, those are closer; how is the price comparison on that?

    ReplyDelete
  4. Considering the spoilage time as well as distance that fresh fruits have to travel, my guess is pineapples are flown into Canada instead of shipped.


    Also, given the strange pre-occupation border guards have with fresh fruit it would not surprise me if trade barriers accounted for part of the pricing difference.

    ReplyDelete