Publicly listed company Greenvale – which appears on the London Stock Exchange under the banner of parent company Produce Investments – is the highest-placed potato specialist in this year’s FPJ Big 50.
The business has had a busy time in 2014, tying up one of the most significant deals of the early part of the year with its purchase of The Jersey Royal Company. The move gave Greenvale a double boost by both affording it greater control and influence over the early-season market, as well as access to much-loved Jersey Royals. It also gives Greenvale an additional packing site in Kent from which to supply south-east retail and foodservice customers.
Branding is an increasingly important part of the potato giant’s offer, and the company reports solid sales growth for its GreenVale line, which has risen in the public’s consciousness following a national TV ad campaign in February and March. For Christmas, a special festive pack has been introduced to ensure sales remain on a positive curve.
Updating equipment has also been a key area of investment over the past 12 months, according to retail commercial director Andrew Clarkson, with a major spend at its Shropshire processing site, Swancote Foods. “Swancote is the final piece in the jigsaw for Greenvale, making us truly integrated,” he explains. “Potatoes that don’t meet the specifications for our retail and wholesale customers are sent to Swancote to be used in ready meals, soups or pies or are freshly prepared and peeled, sliced or diced for cateters.”
Greenvale says the investment at Swancote means it is able to provide greater efficiencies for the 30,000 tonnes of potatoes passing through the site, as well as offer customers a ‘one-company solution’ to their needs.
The environment has long been a key area of focus for Greenvale, and it has stepped up its commitment in that sphere by adding 2,100 solar panels across four sites, installing a 110m wind turbine at Floods Ferry and adding its Cascade washing system to the Duns packing site.
Greenvale’s turnover has risen by nearly £45 million in the latest accounting period, though that comes with the caveat that is the volatile effect of potato pricing on company reporting.
“From a market perspective 2014 has seen its ups and downs,” Clarkson says. “The most recent figures from Nielsen show the potato sales decline overall has slowed – the latest four-week share of the major multiples is down only 5.7 per cent versus the 52-week position of 7.7 per cent decline.However, this slowdown is coming at the cost of significant price deflation and investment in promotions which cannot be sustained long term.”
For 2015, Greenvale expects trade to remain a challenge in what is a deflationary, promotion-heavy market, and there are concerns over the crop quality in the medium to long term.
On a more upbeat note, the company predicts a bright future for its bolstered product portfolio, which includes a new ‘Jersey Jacket’ premium baking potato, as well as Jersey Royals and more promotion for the GreenVale brand.
