UK Berry Market. Dr Drew Reynolds Total Produce

Transcription

1 UK Berry Market Dr Drew Reynolds Total Produce

2 Introduction To Total Produce Our Group In Numbers People Cartons of produce distributed annually 340m+ Operating Facilities 120+ Sales 3.45bn Countries 22 Our Supply Chain Growing and New Product Development Sourcing Agronomic Support Importation and Quality Assurance Storage, Order Assembly and QC Distribution

3 Introduction to Total Produce Global Position

4 Berries in Total Produce UK UNITED KINGDOM Wholesale Food Service 2017 Turnover Soft Fruit 75%

5 Berries in Total Produce UK Blackberries Retail Split by Kilos 2% Wholesale Split by Kilos 3% 0% 0% 0% 0% 11% Blackberries Blueberries Raspberries Redcurrants Rhubarb 65% 20% 0% 10% 3% 0% 0% 0% 72% 8% 6% Blueberries Raspberries Redcurrants Strawberries Strawberries Strawberry: 65% of retail sales but 72% of wholesale Significant increase in Blueberry at retail

6 UK Market Growth By 2020, berry category in the UK could be worth almost 2bn! Data Source: Kantar

7 UK Market Growth The berry market has grown by almost 50%, over 400m in last 4 years Sales driven by more households buying MORE OFTEN Market Size Households Frequency Trip-volume m 81% 15 times 422g ,267m 84% 21 times 431g HUGE further potential Increase frequency of purchase to just 24 times pa. will add over 180m to the category Data Source: Kantar

8 What is Driving the Sales Growth (Demand) Easy to enjoy convenient Graze ability = expandable consumption Unique place in customers hearts & minds Ever-improving availability No mess; No fuss Occasion links e.g. breakfast Always room for another berry! An emotional bond Everyday treat Superfood status Growth in winter sales Data Source: Kantar

9 What is Driving the Sales Growth? The Sales have doubled in 10 years! Berry Market Value m TRUST & CONSISTENCY F Data Source: Kantar

10 Strawberry Procurement For the UK consumer 12 month supply is seamless! The variety, origin and pack size may change but to the consumer it is still a berry Basically the consumers see a perfect berry every time! Strawberries are fast approaching the realms of a commodity item. Procurement is managed by an experienced and knowledgeable category team

11 Sales Strategy Integrated Supply Chain Full grower traceability Programmed Volume Soft Fruit Market Soft Worth Fruit 1.3bn Market Growing, Worth 1.1bn up 7% YOY Driven Growing, by more up 18% YOY customers Driven by buying more customers berries more buying frequently berries more frequently 38m 16% 3,300t 22% Blackberry; 3% Blueberry; 27% 342m 8% 34,700t 5% Forecasting Seasonal Pricing Market and Customer Data 611m 6% 131,000t 3% Strawberry; 49% Raspberry; 21% Product share of soft fruit market (by value) shown on chart (right). 261m 8% 22,800t 9% Data Source: Kantar

12 Total Strawberry Sales versus British Strawberries Weekly Strawberry Sales The English Season is getting longer! 70,000t UK Data Source: Kantar and BSF

13 Managing the Peaks of Production! British Summer Fruit Sales TWL Forecast The move to ever bearers has given a sales issue! The second flush of production comes when the UK sales are in decline.

14 Varieties Eating Quality is highly important! Brix is a key measure Retailers have approved variety lists Consumers do not like dark berries Yield per plant is vital as price comes under pressure Strawberry - June Bearers Elsanta and Sonata being phased out Malling Centenary growing in volume Magnum Top tier Ever bearers and Day Neutrals Overcrowded sector Best tasting varieties do not always yield and are often soft! CIV / Driscoll / PSI / Vinson all have approved varieties

15 Cultivation Systems The Spanish Tunnel, Table Tops & Substrate Step change in quality and consistency. Improvement in Customer confidence. Additional benefits in picking management and disease and chemical control Glass Production Seasonal extension variety and origin Again the customer becomes more confident.

16 Cultivation Systems: The Future Table tops and substrates are here to stay. Increased densities. New Varieties Yield and eating Quality. Seasonal management and extension (managing the peaks!): LED Sustainable growing systems (Cost reduction) Retractable Rafter Houses & Robots to pick and pack?

17 Marketing Standard Packs and Consistency Dependant upon availability Winter / Summer Similar across retailers Grower Labelling Varietal labelling and quality tiering (wonky or basic to taste the difference).

18 Packing Heat Seal Tamper proof. Consumers confident that all the berries are 100% The packs are easy for the consumer to pick up Shelf Life Enhancement Cool chain and refrigerated display. Ethylene absorption. Perfotec Respiration measured MA packs.

19 Opportunities and Trends Celebrate Occasions with Strawberries! Customer Quality Panels LEAN Cost Chain analysis Smart phone shopping Marketing Data! Inspires Confidence

20 Threats Available Labour Down 20% Perhaps the Biggest Threat to Our Industry? The industry is dependant upon migrant labour The majority of the plant stock is from Europe 12 month availability is dependant upon European fruit principally from Spain and Holland Migrant salaries falling behind EU neighbours

21 Conclusion The UK market for berries has grown because: The consumer sees and buys consistently good quality week in week out The retailer has built Trust and Confidence into their supply chains

22 THANK YOU