The exotics category is showing some signs of recovery after what insiders have described as a “torrid” year and for many, the summer months - in which consumers traditionally favour the likes of British berries and European stonefruit - could be the last hump before trade picks up in the run-up to Christmas.
Across the board, the last 12 months have proven difficult, but more so on fruit than vegetables.
At this time of year, pomegranates are leading the way and will continue into the festive period, when the jewel of the category comes into its own. So far, insiders have been pleased to point out that the decline in sales that took hold at the same time as the recession is showing some signs of a turnaround.
“It is great to see something of a recovery taking place,” says one importer. “The key reasons for where we were last year were the exchange rate and public perception of the situation, with consumers looking at their spending and parking some of their spending decisions. It has been difficult, but we are seeing a fantastic recovery starting to come through, driven by red varieties such as Echo and Pom Wonderful.”
The Israeli season is very much underway and US supplies are set to arrive next month, while India provides a backbone in the form of 12-month supply. And again, prepared arils have shown signs of promising growth, even though wholehead fruit remains the mainstay from all sources.
“There have not been supply and demand issues this season,” says one supplier. “Israeli pomegranates were tighter than expected, but there have still been reasonably good volumes and India has been able to underscore the other sourcing options.
“I think we should soon see a return to a growing market for wholehead fruit, but there is no doubt that the market for prepared fruit will expand rapidly because even though, by weight, it might seem more expensive, there is nothing to throw away.”
However, TNS figures show that there is still a lot of potential for progress, with sales value for the last 12 weeks falling by 24 per cent and feedback from the last 52 weeks showing that sales value is down 38 per cent year on year.
But pomegranates are not unique in their position, with a number of mainstream exotic lines poised for what could be a reversal of fortunes.
Mangoes, in particular, have suffered at the hands of a difficult 12 months, in which promotional activities were lost and the fruit failed to shift. However, the market is, in fact, shaping up better than first feared last year, when the financial crisis took hold and caused UK consumers to collectively tighten their belts.
TNS figures show that sales value over the last 12 weeks has dropped by just two per cent. The trade has just enjoyed a good season of premium-quality fruit from Israel, but into next month, importers fear that supplies will tighten up and prices will be hard to negotiate, before other sources, including Brazil, will kick in before Christmas.
Across all the major sub-categories, the exotics market has been tough and it will take even longer for the minor sub-categories to recover.
The papaya market has not been easy, but increased use of airfreight has meant that the fruit coming into the UK has been fresher and better quality, even though higher prices have acted as a deterrent in store. This has led suppliers to complain that the shelf space given to the fruit has diminished.
Passionfruit supply, on the other hand, is set to remain steady over the next few months, unlike last year, when gaps opened up into the festive period.
Dragonfruit has seen good sales over the summer and should continue in this way towards December, with both bigger volumes and stronger sales of sweeter varieties Apollo and Venus. Insiders say sales have been surprisingly strong given the impact that the economic climate has had on less mainstream fruit.
The Kenyan offer is looks strong and exporters have continued to target the UK market with their wide range of exotics, which includes okra, karela, guwar, dudhi and coriander to name a few.
But one of the most interesting performances has been on exotic vegetables, including the likes of okra and sweet potatoes, which have been doing “extremely well” and are expected to keep growing, even in the face of the difficulties that have stifled other exotic sub-categories.
“The main thing is that you have to remain optimistic, even though we have been through some difficult times in the last year, given that our sector - often thought of as at a premium - has been hit worse than others,” says one supplier. “However, we are starting to see exchange rates improve and there is more stability from a consumer’s point of view, so we hope that they will be more confident about their circumstances and happier to spend.
“Where we have seen product in decline, I would expect to at least break even over the next few months.”
TURKEY STANDS PROUD OF ITS FIGS
Figs have long been considered one of the first fruits in human history and their leaves were said to have used as the first underwear of humankind, which is ironic because fig leafs cause dreadful itching. These days, figs are used in salads, as well as paired with cheese and wine, matched with cream or eaten as they are, as Turkish consumers do, says Kerim Taner, chief executive officer of Alara Agri Business.
Turkey is the largest fresh and dried fig producer in the world. Bursa Black is consumed fresh and is grown in Bursa, a city in the Marmara region, while Mudanya and Yalove are the main fig growing sub-regions of Bursa. The variety is considered to be the best-quality fresh fig in the world, with consistent quality as a result of the special growing conditions created by the Bursa climate. It is a large-sized fig with a full interior texture, sweet taste and long shelf life.
Dried fig varieties, on the other hand, are grown in Aydin, which is found in the Aegean region.
Exports started in the mid-1980s from Bursa, after Turkey opened its economy to trade. The first customers were from the German wholesale market, however, with increasing awareness of the quality and shelf life in the fresh retail sector, figs made their way onto supermarket shelves. The real boost in sales was achieved in the beginning of 2000s, when consumers started to buy more than one fig per purchase, which developed the market for punnets.
Turkey is the largest exporter of fresh figs worldwide and exports more than 10,000 tonnes every year, with the harvest season falling between August and November. The production and harvest business is run by grower families. It is a very labour-intensive process and every tree must be harvested at least every other day. There are many exporters, many new entries and exits every year, managing packing and exports.
The majority of Turkish fig exports are destined for the European market. The largest export markets are Germany, France, the UK, the Netherlands and Switzerland, but there are also new growing markets such as the Far East and Canada.
Alara is one of the first exporters who started the fig export business in 1986. We have invested in grower training programmes over these years and have one of the largest GlobalGAP-certified grower bases. Alara carries out pre-harvest residue analysis to fulfill our risk management procedure for food safety. And we are the one and only fig packer to use the first optical selection and automatic weighing and sizing fig line in the industry.
Alara guarantees consistent quality with the right maturity to its customers. During the season, we plan aggressive promotions to balance supply and demand, with in-store activities to drive consumer demand for figs, which are often considered an impulse purchase.
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