UK Berry Market Dr Drew Reynolds Total Produce
Introduction To Total Produce Our Group In Numbers People 5000+ Cartons of produce distributed annually 340m+ Operating Facilities 120+ Sales 3.45bn Countries 22 Our Supply Chain 1 2 3 4 5 6 Growing and New Product Development Sourcing Agronomic Support Importation and Quality Assurance Storage, Order Assembly and QC Distribution
Introduction to Total Produce Global Position
Berries in Total Produce UK UNITED KINGDOM Wholesale Food Service 2017 Turnover Soft Fruit 75%
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
UK Market Growth By 2020, berry category in the UK could be worth almost 2bn! Data Source: Kantar
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 2013 833m 81% 15 times 422g 2017 1,267m 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
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
What is Driving the Sales Growth? The Sales have doubled in 10 years! Berry Market Value m 1.200 1.124 1.000 800 600 TRUST & CONSISTENCY 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F Data Source: Kantar
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
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
Total Strawberry Sales versus British Strawberries Weekly Strawberry Sales - 2017 The English Season is getting longer! 70,000t UK Data Source: Kantar and BSF
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.
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
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.
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?
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).
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.
Opportunities and Trends Celebrate Occasions with Strawberries! Customer Quality Panels LEAN Cost Chain analysis Smart phone shopping Marketing Data! Inspires Confidence
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
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
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