uk berry market - thursday 11 januari 2018 · › full grower traceability › programmed volume...

UK Berry Market

Dr Drew Reynolds

Total Produce

Our Group In Numbers

Introduction To Total Produce

Growing andNew Product Development

Sourcing AgronomicSupport

Importationand Quality Assurance

Storage, Order Assemblyand QC

Distribution

1 2 3 4 5 6Our Supply Chain

People

5000+Operating Facilities

120+Countries

22Cartons of producedistributed annually

340m+

Sales

€3.45bn

Introduction to Total Produce

Global Position

Berries in Total Produce UK

UNITED KINGDOM

Food Service

Wholesale

2017 Turnover

Soft Fruit 75%

Berries in Total Produce UK

2%

20% 0%

0%

0%

10%

0%

3%

65%

Retail Split by Kilos

Blackberries

Blueberries

Raspberries

Redcurrants

Rhubarb

Strawberries

3%0%

11%

0%

0%

8%

6%

72%

0%

Wholesale Split by Kilos

Blackberries

Blueberries

Raspberries

Redcurrants

Strawberries

Strawberry: 65% of retail sales but 72% of wholesale

Significant increase in Blueberry at retail

UK Market Growth

Data Source: Kantar

By 2020, berry category in the UK could be worth almost £2bn!

The berry market has grown by almost 50%, over £400m in last 4 years

Sales driven by more households buying MORE OFTEN

Households Frequency Trip-volume

2013

2017

81% 15 times

422g

84% 21 times

431g

Market Size

£ 833m

£ 1,267m

HUGE further potential

Increase frequency of purchase to just 24 times pa. will add over £180m to the category

UK Market Growth

Data Source: Kantar

Easy to enjoy“convenient”

Graze ability = expandable consumption

Unique place in customers

hearts & minds

Ever-improving availability

No mess; No fussOccasion links e.g.

breakfast

Always room for another berry!

An emotional bondEveryday treat

‘Superfood’ status

Growth in winter sales

What is Driving the Sales Growth (Demand)

Data Source: Kantar

What is Driving the Sales Growth?

£1.124

£0

£200

£400

£600

£800

£1.000

£1.200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F

Berry Market Value £m

The Sales have doubled in 10 years!

TRUST&

CONSISTENCY

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

Blackberry; 3%

Blueberry; 27%

Raspberry; 21%

Strawberry; 49%

Soft Fruit Market• Worth £1.1bn• Growing, up 18% YOY• Driven by more customers

buying berries more frequently

› Integrated Supply Chain

› Full grower traceability

› Programmed Volume

› Forecasting

› Seasonal Pricing

› Market and Customer Data

Product share of soft fruit market (by value) shown on chart (right).

Soft Fruit Market• Worth £1.3bn• Growing, up 7% YOY• Driven by more

customers buying berries more frequently

£611m ↑6%131,000t ↑3%

£38m ↑ 16%3,300t ↑ 22%

£342m ↑ 8%34,700t ↑ 5%

£261m ↑ 8%22,800t ↑ 9%

Sales Strategy

Data Source: Kantar

Total Strawberry Sales versus British Strawberries

70,000t UK

Data Source: Kantar and BSF

Weekly Strawberry Sales - 2017

The English Season is getting longer!

Managing the Peaks of Production!

› The move to ever bearers has given a sales issue!

› The second flush of production comes when the UK sales are in decline.

British Summer Fruit SalesTWL Forecast

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!

Marketing Data! Inspires Confidence

Customer Quality PanelsLEAN – Cost Chain analysisSmart phone shopping

Threats

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

Available Labour Down

20%

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

THANK YOU