UK-based soft-fruit specialist BerryWorld has announced an agreement with Chilean partner VBM, to create Vitalberry BV, a 50:50 joint venture fresh fruit and marketing company for continental Europe.
VBM has supplied fruit into BerryWorld’s UK programmes since the Essex supplier’s formation and the move aims to take the successful development of the 12-month soft-fruit category in the UK to the rest of Europe. “There is a feeling within both companies that there is a big disparity between the volume of sales and how berries are being sold in the UK and on the continent,” said BerryWorld’s Adam Olins. “There is not the same desire to have berries on-shelf for 12 months of the year and therefore the category does not have the same presence.”
He added that initial discussions with European retailers have shown the interest to develop the profitable category exists. “We want to use the experience gained in supplying the UK supermarkets into a European environment. The UK is a role model [for the retail berry category] and we think the timing is right for this step in Europe.
Vitalberry BV will be located in Breda, the Dutch berry heartland, and trading will commence this summer. It will be headed up by Ben Vandermost, who is relishing the challenge: “Europe is ready for us,” he said. “It is time to bring the level of the consumer up to the next level.” Turnover is estimated to reach €20 million (£13.3m) within two trading years.
VBM’s Juan Ignacio Allende said: “Until now, in industry terms, we have been sending a relatively small volume to Europe, but we have invested heavily in new plantations. The shareholders in VBM are all growers, and we also have operations in Argentina, Uruguay, Mexico and the US.”
The new operation will aim to maximise the marketing expertise and exporting experience of both companies to develop world-wide sourcing and “bring the grower and customer together within a highly efficient supply chain”, he said. The company will also have exclusive access to breeding programmes from North Carolina and BerryWorld Plus.
Olins said: “We are two like-minded organisations with a shared vision of the future of the berry business in Europe. Our philosophies are very similar and we believe in the concept of year-round availability for European consumers.”
