At Agriculture Capital (AC), our strategy and purpose is to make capital more resilient, produce better food, and create valuable climate solutions. A shining example of this philosophy in action is our investment in Sumo Citrus®, a uniquely appealing citrus fruit that has seen tremendous growth both in production and market demand, as a leading driver of citrus category growth overall.
The Rise of Sumo Citrus
Sumo Citrus, known for its distinctive bulbous shape, easy peel, and incredibly sweet flavor, was introduced to the North American market in 2011. Originating from decades of careful cultivation by Japanese families on half- acre plots, this unique citrus variety is a result of stringent selection of satsuma, orange and mandarin citrus varieties.
Working in partnership with a small number of talented growers, AC identified Sumo Citrus’ potential to transform the citrus category and invested in building a world class team at AC and AC Foods, state of the art technology, nursery and farmland operations to consistently deliver the quality, convenience and value that today support one of the fastest growing food brands in world.
It takes a lot to grow Sumo Citrus, and the AC Foods team has developed a methodical farming and handling system to translate the original Japanese artistry originally utilized on a few dozen trees at a time, to now thousands of acres. In addition to the farming, delicate handling and harvesting create this sunny, delightful fruit, and AC has invested millions of dollars into a best-in-class production system: highly trained farmers, meticulous harvesting, customized transportation, specialized conveyance systems and state-of-the-art scanning equipment that replicates the traditional Japanese farmers’ work at scale. Only with this depth of care and technology can we bring an amazing eating experience to millions of consumers.
Consumer Values & Loyalty Driving Growth
The Sumo Citrus brand builds a powerful reputation through consumer love and loyalty. In recent years, there has been a marked shift in consumer preferences towards products that are not only healthy and tasty, but also sustainably produced. Sumo Citrus hits all these marks effectively:
- Health and Quality: Sumo Citrus is non-GMO, packed with vitamin C, and free from any artificial additives, aligning with the growing consumer demand for natural and healthy food options.
- Sustainability: Our regenerative farming methods support biodiversity protection, improve soil health, and boost water use efficiency, appealing to environmentally conscious consumers.
- Convenience: The fruit’s easy-to-peel characteristic caters to the fast-paced lifestyle of modern consumers.
Agriculture Capital’s considerable investment in driving consumer trial and building our brand through marketing tactics has created an extraordinary value proposition to consumers, where 96% of consumers were not only satisfied with the product, but intend to repurchase.
Citrus Category Driver
Sumo Citrus is a key driver of total citrus category growth, and alone delivers 25% of total citrus growth and 33% of total mandarin growth while in season. Compared to general category declines, Sumo Citrus’ performance season after season provides a bright spot for citrus overall.
IRI In-season YTD + L3W ‘23, Nielsen In-season YTD + L3W ’23
Sumo Citrus customers are highly valuable as they have the highest grocery trip frequency and spend more across total Citrus and fruit, which generates 2x basket size across the store (Seurat Group Quantitative Study 2023; Sumo Citrus SVB Analysis 2024).
Financial and Market Success
The investment in Sumo Citrus has not only proved to be viable, but also highly profitable. The exponential growth in production capacity has been matched by robust sales growth, mirroring the increasing demand for sustainable and premium fruit varieties. Our strategic marketing initiatives have positioned Sumo Citrus strongly in the premium segment, helping achieve higher margins and price points starting at $3.99 per pound.
Sumo Citrus exemplifies how consumer-driven demand for sustainable and high-quality products can be successfully met through thoughtful and innovative agricultural practices. At Agriculture Capital, this case study reinforces our commitment to investments that not only yield financial returns but also contribute positively to the planet and its people. Sumo Citrus remains a cornerstone in demonstrating the scalability and resilience of regenerative agriculture investments.
For more information, please see our most recent Regenerative Impact Report, and feel free to contact us at acmindset@agriculturecapital.com.