Laurence Olins told Re:fresh 2006 that the future has never been more optimistic for suppliers as the fresh produce industry is much more dynamic and intellectually led than ever before. But he also had some harsh words and stark warnings.
“Our industry is growing by seven per cent annually - they would be over the moon to have figures like that in the manufacturing industries,” said the chairman of the Poupart Group.
“The consensus is that there will be more rationalisation, but where from? Suppliers have already seen a lot and we have been through and come out the other side. Most that are left have their own clear territory and I can’t see too many more potential casualties.”
Olins believes now that it is the very beginning of the supply chain that will be hit. “There are too many small producers and that is where the real rationalisation will be,” he said.
And adding value comes in many forms. “Cutting up produce and putting it in a bag is adding value, that’s obvious, but as a supplier you can also interpret sales data, promote, fix pricing, all these add value,” said Olins. “If you don’t add value then you don’t deserve to be in there, not in any link of the supply chain.”
Olins, chairman of the British Summer Fruits and the Winter Berry campaigns also laid responsibility for promotion firmly at the door of suppliers and growers. The berry campaign has “gained £5 million editorial coverage from a £250,000 spend”, he said.
And there is always room for greater efficiency within companies if they are to survive in the cost-cutting, price-slashing climate. “None of us would admit that we are running at our most efficient. All along the chain, every link blames the next…but if you are frank, you will see ways that you can improve.”
Olins was also very upbeat about non-retail opportunities for suppliers. “There is a re-awakening in the industry - 40 per cent of produce is sold outside the supermarkets, and yet we are all chasing the retailers,” he said. “Ten years ago the wholesale markets were a risky business. Now anyone who ignores the wholesale sector does so at their peril.”
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