Jostling for position within a sector of hard-wearing, rugged vegetables, it will surprise many to learn that the fragile and unassuming mushroom is more than holding its own. Indeed, when it comes to dealing with unseasonable weather and

tough economic conditions, the crop is arguably proving more adept at survival than some of its supposedly tougher opponents.

Rivals may point out that the vegetable has an advantage in being grown in confines sheltered from the aforementioned erratic meteorological activity, yet with wheat straw a common main ingredient of mushroom compost, it is not immune to the crop difficulties elsewhere and rising costs as a result. The point is also a weak one: there is much more to this success story than a fortunate accident of growing environment.

That the mushroom is enjoying a renaissance is pretty unequivocal. In the 52 w/e 30 September 2012, 118.2 million kg of mushrooms were sold in the UK, marking the culmination of a continuous rise in sales from 111.9m kg in the 52 w/e 5 October 2008 [Kantar]. Promotional group The Mushroom Bureau adds that UK shoppers now spend £1m per day on fresh mushrooms, a rise in volume sales in the past 12 months of 4,000 tonnes.

The Mushroom Bureau itself can take some credit. Its More to Mushrooms promotional campaign, started in 2010, is aimed at raising awareness of mushrooms and giving practical ideas on how best to use them. Its arrival and the upturn in sales occurring is no coincidence.

“It has reminded consumers before they go shopping about the great benefits of mushrooms, making sure they are top of mind,” says Stephen Allen, group marketing manager at Monaghan Mushrooms Group and a Mushroom Bureau board member.

However, while Andrew Lazenby, head of commercial at Waitrose’s Leckford Farm, agrees that the campaign has been “crucial”, he says that quantifying how crucial is difficult. What he can show more accurately, he says, is the effect of in-store promotional activity on sales.

“We have just run a promotion in Waitrose where we saw around a 50 per cent uplift on a standard week,” he reveals. “The great news is, while we are no doubt buying people into the category, those consumers are staying after that promotion ends.”

The fact that consumers are tempted by a cheaper deal, at least initially, is no surprise to Lazenby and Allen. Both note that a key driver in the overall sector growth has been sales of cheaper ‘value’ mushrooms as much as it has PR campaigns.

“In tough economic times, value mushrooms obviously play a very important role for consumers,” says Allen. “We have had to be fast and nimble and quick to respond to this.”

One way of responding has been to successfully lobby supermarkets to offer mushrooms in bigger pack sizes for standard ranges, enabling a ready and larger supply of mushrooms for this value end of the market.

Yet to attribute the overall growth purely to ‘value’ product sales or a PR campaign about the benefits of mushrooms is inaccurate, because just as important has been the widening consumer taste in mushroom varieties. Sainsbury’s reports that the key driver for sector growth has been an increase in the purchase of brown, or chestnut, mushrooms in particular.

Lazenby agrees. Leckford switched to production of the chestnut variety a few years ago and has seen massive growth in the business as a result.

“People seem to be moving more towards chestnut mushrooms – driven by celebrity chefs – and we are certainly seeing growth in that area. In changing from white mushrooms to chestnut, our business has grown 15 per cent year on year,” he reveals.

Dewi Williams, owner of Marlborough Mushrooms, which grows and supplies exotic mushrooms to restaurants and hotels, says the adventurousness extends even further, with a marked increase in UK sales of Shiitake, Portobello and Oyster mushrooms.

Expanding the taste for these exotic varieties, while maintaining core sales of standard white mushrooms, is seen by the industry as key to ongoing growth of the sector, but that presents some problems. The first is price. “The more exotic varieties need more care in production and don’t always have the same yield as white mushrooms do, which makes them more expensive,” says Williams.

Also holding the more exotic varieties back is a lack of consumer knowledge, says Allen. He concedes that turning consumers onto varieties other than the standard white or chestnut is one of the toughest challenges the More to Mushrooms campaign faces.

There may be problems, too, on the value side of the market. Lazenby warns that growers and retailers cannot lose sight of the fact that value must mean more than just price. “Value is not just price, it is about the equation of price, quality and service and continuity of supply,” he says.

So while the mushroom sector has enjoyed enviable growth over the past five years, continuing the success has its challenges. Fortunately, the sector seems willing to work together through the Mushroom Bureau to overcome those hurdles and, as Allen says, if it keeps doing what it is doing well alongside that, there should be only more success on the horizon. —

MR MUSHROOM

Phil Dean, a stalwart of New Covent Garden Market and owner of market favourite Mushroom Man, believes wild varieties will be key in reviving the UK’s mushroom industry. His Mushroom Man business has been operating at the wholesale market since 2003 and currently imports a huge range of varieties from as far as South Korea and China on a weekly basis. “Girolle and Cep varieties are big sellers for us and I think the public are more aware of wild mushrooms now than ever before, so there is a greater demand for something different on dinner plates.”

Dean would like to see British supermarkets support woodland mushrooms in the same way French retailers do, and admits he has tried to supply UK supermarkets in the past. “It hasn’t worked as they’re scared wild mushrooms are poisonous and less visually appealing despite huge demand from consumers.”

And it seems like the mushroom business is very much a family affair with Tom Dean, Phil’s son, set to open a stall at London’s Portobello Market in late November, which will sell dozens of wild and British varieties.

INVESTING IN THE FUTURE

Northway Mushrooms is one of a number of producer organisations operating in the sector, and the company believes the model is an example of where collaboration can work.

“Our customers are supporting many local economies, buying from family farms producing top- quality mushrooms grown in an ethical and sustainable way,” explains Northway operations manager Elaine Shaw. “When they buy through Northway our customers benefit from the passion and commitment of growers but with all the support, infrastructure and assurances that a larger organisation can provide.”

And the company, which was only established in 2000, believes its approach has allowed for investment despite the tough economy. “Over the past 10 years we’ve supported investment of over £15 million on our member farms, which makes a huge difference to those businesses, from introducing biomass boilers to automating watering and improving on-farm refrigeration. We’ve also brought in several experts to advise on growing, picking, disease control, energy and yield optimisation.”