Sainsbury’s began a drive to see how it could improve its position in the herb market in October 2003. Category buyer Tristan Kitchener says steady progress is being made but there is plenty more to be achieved.
Kitchener says: "We began with customer focus groups to address how we could improve our herb range. We have introduced multi-promotions such as two for £1.50 to increase weight of purchase and
20p-off offers to encourage new shoppers into the category and help drive penetration. Herbs are very much a destination category, with few impulse purchases and it's important to create inspiration for customers with recipe ideas and advice on using herbs. As a volume foodie retailer, Sainsbury's is ideally placed to capture a large part of the herb market."
The supermarket has launched a Herb of the Month campaign which focuses on a specific herb each month, with recipe ideas, barker cards and support from The Sainsbury's Magazine. Kitchener explains: "This month's herb is sage, which is one of the most heavily used herbs in Italian cooking, and to complement this, we have included recipe ideas in our magazine. We have a different herb lined up for the months to come: June will be a barbecue mix (rosemary, thyme and bay leaves); July will be apple mint, which we see as an ideal accompaniment to the summer drink Pimm's; August will be basil; September will be dill; October's herb will be lemon thyme; and in November we are bringing back savory - a great tasting herb, but one that needs recipe ideas in order to know how best to use it. The common theme with all the herbs we have selected is that they taste fantastic, and for the month they're due to focus they will be the best in season. We want to increase awareness across a range of our herbs and in turn increase consumption."
Basil is a major player in the herb offer. "We now source around 50 per cent of our basil from the UK during the summer months and about 80 per cent of our coriander, whereas before we were heavily reliant upon Israel and Spain as raw material sources, says Kitchener. “Due to the shorter lead times, UK-sourced produce gives us a distinct quality advantage and consumers respond well to home-sourced product. As a business we shift around 60,000 units of basil a week in both fresh-cut bunches and pots and 75,000 units of coriander. Other herbs that have a large market are thyme, rosemary and flat leaf parsley."
One of the problems the supermarket faces is that 60 per cent of herbs are purchased towards the end of the week on a Thursday, Friday and Saturday. Kitchener says: "Due to the uplift in sales towards the weekend, it is a constant challenge to maintain good on-shelf availability, particularly when we have such an extensive range, including both the fresh, bunched herbs and potted herbs."
Herbs often pose a headache in terms of merchandising the product. "We educate our store colleagues as this is important to maintain the quality of the herb once it is in store, says Kitchener. “Certain varieties such as basil and coriander are sensitive to chill damage and are best displayed in ambient conditions, while most other herbs keep better in a chilled environment.
"We also include hints and tips on how best to use herbs and store them at home on the back of packs.”
The effort that Sainsbury's is putting into the herb market is beginning to pay off. Kitchener says: "Last year we increased our market share to a peak of 31.3 per cent. We're looking to increase our market share further through innovation, better-flavoured varieties and bringing inspiration into the herb category. Focus groups next year will help determine how we can further improve our range, matched with a few ideas of our own."
ARAVA HERBS GO MAINSTREAM
Israeli grower Arava recognises that the herb industry has seen dramatic change in recent years. UK managing director David Crossland believes that large steps have been taken - all in the right direction.
"The herb sector has become more mature, the industry is seeing increased competition and retail pressures are growing," Crossland says. "The market has also become more sophisticated in terms of packaging, in how the crops are grown, and also in the emergence of on-line traceability systems which Arava will roll out this summer. Customers will be able to check information on individual growers and consignments."
At Arava, volumes are up on last season and Crossland is hoping to take advantage of potential growth areas. "Basil is still our number one herb, but we have seen rucola sales grow dramatically in the last 18 months," he says. "This could be in part due to the increase in demand in salads. It looks good in a mixed salad and goes well in sandwiches. It is an adaptable product."
With demand in herbs increasing, there has been an increase in the number of packhouses being enlarged. Crossland explains: "We have had three new packhouses in the last few months and more are planned. Ten out of the 12 growers we work with are increasing their cold-storage space to handle increased volumes. Arava has also increased cold storage capacity at its logistics centre in the Netherlands. In the herb industry this is where the bulk of development is taking place. Controlling the temperature of herbs is a major issue that affects shelf life. Improved cold- store facilities mean we can improve the quality of our herbs."
Arava has substantially developed its US business, and business is also continuing to grow in Germany, the Netherlands, Belgium and Scandinavia. Crossland says: "We are supplying herbs six days a week, the market is now very much a part of the mainstream. People are doing a lot more cooking and when they do, they want to do something different. People are looking for more interesting flavours to include in their food."
Crossland adds that there has been a significant reduction in pesticide usage. "We are continually refining down the list of chemicals that can be used on plants. Lots of work is being carried out on non-pesticide methods of control. We are even applying pesticides to the mesh that protects the crop and thereby eliminating pests without affecting the herbs."
AGREXCO ADOPTS HOLISTIC APPROACH
At Agrexco the herb market is buoyant, but direction is needed according to product manager for Agrexco UK Mike Caddy.
There are plenty of developments within the industry but concerns remain about where it is headed. Caddy says: “There is a move towards nominated grower groups by the multiples, brought about by their desire to have their own protocol such as Tesco’s Nature’s Choice, Marks & Spencer’s Field to Fork and Waitrose with Leaf. In addition to this a number of packers are introducing their own requirements, making the market even more complex. To add to this, there have been further complications as specifications include bunch size, length and packaging formats.”
Caddy points out that one of the key multiples has seen massive potential in herbs. “It has situated its herbs at the store’s point of entry in the fresh produce section, a section normally reserved for fresh flowers.”
One area where there is rapid expansion of the herb business is the food service sector, where herbs are very much a part of the set menu. “Chefs utilise a wide variety in all dishes, both savoury and sweet by using herbs to bring out the flavour of foods,” says Caddy.
One issue regularly discussed is increased shelf life of the product, which is an area Agrexco is addressing. “Multiples want a longer shelf life from products accompanied by zero tolerance in terms of defects. And whereas products used to get to the retailers quickly, the logistic chain has been extended,” says Caddy. “Products arrive in the UK, get packed, pass through quality control and then go to depots before finally being distributed. At Agrexco we are constantly investing in research looking into packaging, materials and temperature control so as to extend shelf life without losing taste and quality.”
The company has also attempted to spice things up by re-vamping its 50g and 100g bags, which have been trialed with a key customer in Gateshead. Caddy says: “The micro-perforated bag is designed with a zip-opener. We have also re-introduced rucola in the large bunch sector as an 85g bunch, which is proving a good decision as it is showing a significant growth over the regular 15-20g cut herbs. It can take the place of rocket in most dishes.”
Caddy says the company has also added more herbs to its range. “We are offering fenugreek as a herb. This is an important ingredient of Asian cooking and also a key component in many salad bags. Thai basil is another addition to our range, which we have added due to the rise in popularity of Thai cuisine.”
However, Caddy feels more needs to be done to improve consumer knowledge on herb products. “Despite the numerous cookery programmes and the endless choice of cookery books on the market, there is still a certain amount of consumer ignorance and lack of confidence as to how to use herbs,” he says.
The company is continually working towards developing new herbs. “We are focusing on how to breed basil varieties more resistant to temperature changes. This is a move that will help the herb survive the distribution chain. It will also help solve the problem of balancing optimum temperatures for different varieties,” says Caddy. “Basil is happy at 12°C, while coriander requires a temperature of 2°C. If we could balance this out, it would be of great benefit to all concerned.”
Caddy is confident for the future: “The market is much tougher, more competitive and with smaller margins and consumption has increased. But there is greater awareness of the health benefits offered by fresh herbs and the next major thrust to hit the market will be the use of herbs in a holistic approach to health. Although consumer knowledge needs to improve, the interest and use of herbs has vastly changed for the better in recent years.”
Caddy does feel that there are still ways in which the marketplace could be boosted. “We could improve the herb market by adopting a more pro-active approach between retailers and executive chefs. These in turn could filter through into menu planning and better implementation of category plans in-store,” he continues, “there is potential for diversification within the range of uses - as a vegetable, salad, health and flavouring ingredient.”
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