Melons have enjoyed steady growth over the last few years as suppliers have brought better-quality fruit to market, and consumers respond well to their value. This summer could well be a watershed moment for the category, as record-breaking hot weather drove shoppers to the category, putting unprecedented pressure on suppliers and producers.
Over the past three years total melon sales have risen in value by 11 per cent, chalking up £155 million in the past year (Kantar Worldpanel 52 w/e 17 June 18). Volumes are up five per cent, albeit last year they remained static. But Terry Watts, chief executive of supplier Vidafresh, says this year’s prolonged heatwave will have changed that. “We have had an amazing summer season for melons. Demand for all varieties was incredibly high due to the ongoing great weather that we have all enjoyed.”
The weather was so good in fact, that it caught European producers off guard. “The great weather was not only in the UK, it was right across Europe and that created enormous challenges because the growers obviously could not have foreseen such a summer and therefore of course did not plan their production to match the demand. Consequently UK importers were under constant pressure to fight their fellow melon importers on the continent for supply,” Watts added.
Alex Margerison-Smith, commercial manager of Keelings, says the devaluation of the pound in the face of Brexit added further pressure on prices. “The weakening pound exchange rate has put pressure on the cost of goods and maybe we are starting to see the effect of this in the retailers. Yellow Honeydew last year was generally retailing at £1.80; now we are seeing it at £2 for the start of the Brazil season.”
Prior to the heady demand of summer, Margerison-Smith notes that fewer retail promotions in the category had also contributed to higher than average prices, and lower volumes of melons sold. “There were fewer promotions over the year, which would explain the average price going up and fewer shoppers buying in.”
For Watts, however, melons, and in particular watermelons, are sitting pretty for the long term. Their sheer size and value means they are becoming increasingly popular with macro-health trends such as veganism and flexitarianism. Watermelons enjoyed the largest popularity spike of all its main variety counterparts, rocketing 32 per cent in spend since 2015, to £39m.
“Demand for watermelons just grows and grows,” Watts says. “Apart from offering great value for money on a kilo-for-kilo basis against other fruit varieties, it is also a key ingredient for any fresh-cut pack and we are a major supplier to that sector of the industry.”
One of the key hurdles for the melon category is the winter drop, as cold weather puts shoppers off refreshing foods in general. Watts says the winter drop-off may become less severe however as their popularity in summer increases.
“Our winter melon business has grown year on year since the company was established in 2010. This is partly due to us taking more and more market share but very much to do with varietal development leading to consumer satisfaction, coupled with the fact that melons are such great value for money.”
Margerison-Smith says new varieties could also spur future interest in the category. “The main four varieties obviously dominate the market and seed houses have been breeding better eating varieties over the last decade. But retailers have been pushing for new and exciting varieties that will provide a point of differentiation.
“These varieties include ‘Orange Delight’, ‘Matice’ and ‘Snowball’. These don’t particularly drive sales but it does liven up the category with a feeling of something new.”
