The last quarter has seen an uplift in both prepared fruit and vegetables, but winter vegetables have seen a particular resurgence since the cold weather has set in. Prepared ‘casserole’ and ‘cottage pie’ vegetable mixes have found a place on retailers’ shelves, as well as prepared peas and runner peas.
Waitrose is currently running a promotional offer on prepared 80-100g packs of various winter vegetables, such as ready-trimmed Brussels sprouts, ready-sliced fine green beans and trimmed broccoli. Peeled and ready-to-use whole garlic cloves are also available.
The prepared fruit sector has seen a slight uplift as well, despite the ubiquitous January health-kick trend taking a back seat because of the cold weather. Pomegranate seeds are back on the shelves as single ingredients, rather than in a mixed portion, and dried fruits are trying to make it into fresh fruit mixes.
The volume of salad bags sold over the last quarter has increased by around 15 per cent, although tonnage levels have only increased by less than 10 per cent. The disparity is due to the introduction of smaller pack sizes in response to consumer lifestyle needs, as they focus on food waste.
According to Alan Richardson, sector marketing manager at Bakkavör, 2009 saw a recovery of the sweet lettuce segment for the first time in a number of years. The recovery has been driven by value for money, which iceberg mixes provide. The weather was also slightly better than in 2008, which helped fuel the growth.
The year ended with difficult growing conditions. Spinach specialist Emmett Nottinghamshire’s md John Allan, who at the end of last year took over the chair of the British Leafy Salads Association from David Piccaver, says: “Growing conditions in Spain have been challenging. The hot autumn brought the crop forward, but this was followed by a long period of rain that interrupted drilling and plantings, so there could potentially be a tightening of availability in a few weeks’ time. However, what impact that has on the UK consumer will be diluted, because ultimately we can switch to the US as well as using protected crop.”
Looking towards the next quarter, Richardson says the salad industry needs to make sure it is ready to react to the end of the recession, which may well see an increased focus on higher-priced products. “The industry needs to continue to innovate through new products, varieties and processes to ensure that we meet the needs of the consumer,” he says.
But despite the uplift in sales, new product development is still struggling to get through and has in some cases failed.
PDM Produce’s innovative bagged leaves that could be used as both a salad and as a stir fry, Wok or Not, did not make it through 2009. The product is not being continued in 2010 due to “retailer resistance to brands in the prepared salad sector at this time”. PDM Produce is now concentrating on its core business of wholehead lettuce and baby leaf production.
“Prepared does better in certain parts of the country than others,” points out one insider. “In more affluent areas, people tend to be healthier, but in general there has been little work done on new product development. There is no money, no time and no patience for it at the moment.”
Work is being done with Craisins, cranberries that have been dried using a fruit juice such as strawberry or raspberry, but insiders feel that both the industry and retailers are scared to get behind it. “Things like Craisins add to the fresh prepared sector and it could be on the cards at one point, but not at the moment,” says one trader. “It is not expensive to do, but do growers have enough money to do it? Supermarkets have the power, but they are going for core lines that guarantee less wastage and earn good money.”
Some insiders blame retailers for the lack of innovation in the prepared sector. “The prepared fruit and vegetable industry has been stunted,” says one source. “Pack sizes have been pushed down to get a £1 or 50p price point and it has devalued the sector. Premium or niche products just can’t complete when a small pack of prepared iceberg lettuce is 50p.”
But there are some success stories, such as WS Bentley’s And Sow On brand of alfalfa and leek sprouts and mixed sprouting beans, as well as its new launch of sprouting peas this year.
The And Sow On brand is now producing up to 1m packs a year for The Co-operative, Waitrose and Booths.
“It is as hard as it’s ever been to get stuff on the shelf - it is a sign of the times,” says a spokesperson for the brand. “It will change hopefully in the next year to 18 months. But even so, compared to last year in January, our sales of And Sow On are up by 35 per cent.
“Price range is very important. We have been retailing at the £1 mark and it has improved sales. It allows consumers to budget properly as they go around a supermarket - people can add it up easier.”
DEL MONTE GIVES ITS TAKE ON HEALTHY SNACKING MARKET
James Harvey, managing director at Del Monte UK, takes a look at how one of the UK’s leading fruit brands, Del Monte, has taken advantage of the increasing trend towards healthy snacking with the new Del Monte Naked Fruit range.
The prepared fruit category, currently worth £240 million, is one of the few snacking areas that remains in growth, despite difficult trading conditions in recent months.
However, consumer penetration in the prepared fruit category is still to reach the level of other prepared sectors, with only two in five consumers purchasing prepared fresh fruit even once a year. This results in a significant opportunity to capitalise on a market with clear potential for both Del Monte and the grocery and convenience trade.
We intend to lead from the front, to revitalise the prepared fresh fruit category with the launch of the innovative Del Monte Naked Fruit range, and drive penetration via a brand that consumers of all ages trust.
The range, which is the first prepared fresh fruit range in the UK to include whole fresh fruits, such as the Del Monte Gold Extra Sweet pineapple, also offers orange, kiwifruit and melon products. These are sourced in the main from our own farms, meaning we don’t have to contend with the same availability issues as other companies. We also import the fruit by seafreight in our own ships designated specifically for that purpose. It then goes to be prepared in our state-of-the-art facility in Wisbech. These measures ensure that at Del Monte, we can focus on what really counts - getting the best-quality prepared fresh fruit in front of consumers who are on the look-out for healthier snacking options.
As obesity and health continues to dominate the national news agenda and Britons increasingly look toward a healthier lifestyle, the prepared fresh fruit category looks set to continue its growth. But with recent figures showing that early growth levels have normalised, it’s important that the category does not rest on its laurels. The category is in need of innovation, making this the perfect time for a strong, relevant brand to enter the category and attract a new, younger audience. So not only is there room to drive further usage by existing consumers, there is also scope to attract new consumers to the category - namely by exploiting the healthy snacking opportunity. Innovative packaging and snacking formats, as well as finding creative flavour combinations, will all help to achieve this.
The Del Monte Naked Fruit range was launched to the trade this month and has already tasted success by securing major listings with Asda and Budgens nationwide.
We have also received a fantastic response during our discussions with other major retailers, as the brand further aims to attract consumers in the retail, convenience and foodservice sectors, with a particular focus on extending its appeal to the younger generation. We already have further exciting new product development planned later in the spring, to build on the success of the initial launch.
