These are USDA grades. We only separate our Honeycrisp apples by Extra Fancy and Fancy Grade.
Extra Fancy is perfect in color, shape and condition. These are the best for gifts and for those who enjoy a perfectly beautiful apple.
Fancy Grade could have a minor blemish (never broken skin), they may be lower in color or be slightly misshapen. These are great for eating at home. If you're sending apples as a gift, we recommend Extra Fancy.
Utility Grade is the grade below Fancy. Utility Grade apples could have the appearance of Fancy or Extra Fancy but with slight bruises, minor blemishes and/or dimples caused by hail. They are fine for eating if you don't mind blemishes, and are great for cooking.