The past year has been exceptional for grape sales, with both value and volumes growing at around nine per cent.
And the good news is that sales are accelerating: for the 12-week period to 15 April this year, there has been a 16.5 per cent increase in spend and 25.7 per cent uplift in volume, year on year [Kantar].
Prices may have been down 7.3 per cent on average over the period, but the upshot is a return to health for a category that has had more than its fair share of ups and downs in recent seasons. South Africa’s campaign was curtailed last year, for example, in what was already an “off” year for both Chile and South Africa.
“This season there are definitely more grapes in the market,” one trader said. “On black seedless there has been an uplift in volume with Midnight Beauty and Autumn Royal.” In fact, volumes are estimated to have doubled year on year in the black seedless category as the Orange River area delivered the hoped-for yield.
This season there have been large volumes of Flame available from Chile. The country has enjoyed its hottest summer in a century, which has been great for production, sending yields spiralling, but this has also caused some problems. One source told FPJ: “The market for Flame Seedless in the US started to look a bit wobbly in early to mid-February, so senders looked to continental Europe and the UK to take up volume. The Continent is not a big market for Flame, though, so the UK took up more Flame than ever before.”
The hot weather in Chile gave Flame some condition issues and the product did not store so well, exhibiting signs of dehydration and shortened shelf-life. The result was supermarket promotions which saw Tesco, for example, selling Flame on a 2-for-£3 deal for six weeks at the aisle ends. This undoubtedly explains some of the volume growth.
Once the Chilean season moved into Crimson, supplies have tightened, one importer said: “The warm nights in Chile meant berries did not colour up enough for UK market requirements, so the product has been going to the US and Far East and led to a shortage for the UK market. Things are still going to be a bit tricky on red grapes until about the third week of June.”
Meanwhile, figures from Kantar Worldpanel show that more people have bought grapes in the 12-week period to 15 April, with a 12.4 per cent increase in penetration. Volume per shopping trip rose by six per cent for the same period year on year and volume per shopper has also rocketed, by 10 per cent.
One supermarket supplier said: “It is the big move towards punnets that has really driven the category. People find them easier to get home and are happier that they have been less handled than loose product. They also look better on shelf than zip-lock bags.”
But it is not simply the packaging and black and red seedless varieties that are helping boost the category - source countries themselves and the improved quality they are able to produce has proved a major fillip, especially with white seedless supplier, India.
“Every year, India delivers better,” a UK-based importer said. “Berry size is often under pressure and the fruit has not had the finest eating quality, but the Indians have really raised their game.” Another agrees: “If you’d told me three years ago we’d be in the middle of selling Indian grapes in week three of May, I’d have laughed, but the Indians are having their best season.”
Looking ahead, Egyptian fruit is starting slightly later than usual for some and imports of red are not due into the UK for two weeks.
White fruit is starting to arrive, however, as Egypt has been building up its reputation for Early Sweet, Thompson and Sugraone. Lower costs in the north African country have seen it over take Israel as a preferred supplier at this time of year, especially with the Israeli shekel strong against the major European currencies. -
CAPESPAN LOOKS AHEAD
South African grower and exporter Capespan recently recruited Steve McVickers as the new managing director of its UK Tradelane business. In his first interview in the role, he tells FPJ about how the grape season has shaped up so far
here’s been quite a bit of change taking place at Capespan in the UK, but with a new base and MD, the company is upbeat about its position in the market.
A significant increase in grape sales volume and the positioning of Capespan to develop flexible business solutions for the changing needs of UK retailers have been good news for McVickers in his first four months.
Speaking publicly for the first time since his appointment, he says: “The Capespan offer stood out in the market from the very first receipts of the year, with our exclusive alliance in Namibia being very well received by all customers across our non-retail and retail divisions. Our supply relationship gives us an important UK focus during one of the more difficult times for supply and this point of difference set the pace for subsequent sales increases during the main South African and Chilean seasons.
“Pricing levels were very encouraging during the early part of the season, with security of supply the priority. Later, as significant speculative volumes arrived throughout Europe from Chile, price came under significant pressure, the problem further compounded by variable quality across the market. The quality in our later-season arrivals has fortunately meant we have been able to once again differentiate our offer, with a corresponding improvement in value.”
Capespan also expects to reach record import volumes from India, part of a 200-plus European container programme. McVickers believes this is due to the work of Capespan’s roving procurement team that manages picking and packing during the season. “We must have had more resources on the ground in India than any other UK importer this year and the benefits of this have really shown in the quality and consistency we have received. Some customers have understandable concerns regarding the reputation of Indian product but I think we have demonstrated the advantages of this tactical source versus late stored southern hemisphere fruit.”
As sourcing moves on to Egypt, concerns turn this year to the travel restrictions for UK employees visiting the country to monitor packing operations. “With the formation of Capespan Egypt in 2011, we have built up a very effective on-the-ground local team who will again be invaluable in helping us manage the export programme.”
With a move for the business to Maidstone at the end of last year, McVickers believes he has joined the company at an exciting time in its evolution. Capespan has repositioned the old South African fruit giant into a global fruit procurement, marketing and distribution company. The company today owns and manages farms and is involved in global fruit procurement, fruit supply management, marketing and in adding value.
With a marketing and procurement footprint in not only historical and traditional markets and supply source countries, but also in the emerging markets with their sizeable opportunity, McVickers believes the Capespan offer, combined with its knowledge of UK customers, allows it to continue to play a leading role in this market, which it refers to as the UK Tradelane.
“With the development of the Tradelane concept, we are ideally placed to respond to every customer’s preferred supply chain route. Whether a direct container, pallet or case-specific requirement, Capespan has an outstanding Tradelane offer from around the world,” he says. -
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