While the last quarter saw spend rise slightly (up 0.3 per cent, 52 w/e 22 January 2012), this quarter the potato industry is down in value by 3.9 per cent, slicing £43 million off its piece of the grocery pie, year on year.
Volume sales are in decline by 1.7 per cent - slightly worse than the previous quarter - with 28,000 tonnes fewer going through the UK retailers.
But the situation changes when pre-pack potatoes are considered, according to the AHDB Market Intelligence Potato Retail Report for May 2012. It shows that the latest 12-week period has seen positive volume growth, by two per cent, which has been driven by pre-packs. Frozen potato sales have also experienced strong volume and value over the latest 12 weeks, although volume in the year is flat.
“The significant difference between volume change and value change in both periods would indicate some strong upward movements in retail price, although there may be a smaller effect caused by some trading up occurring as new lines are introduced,” explains a spokesperson for the Potato Council.
What’s more, the start to the new potato season has been bittersweet. New crop has been stunted by very wet and cold weather conditions throughout the country, and production has been described as “slow”. The weather has also brought demand for main crop that may not be in abundance on retailers’ shelves.
“Progress is always weather dependent and while warm conditions and high sunshine levels have really helped the 2012 early crop,” says the Potato Council spokesperson. “It does now depend on sunshine, temperature and rainfall, and if any late frosts occur.”
The new potato campaign has suffered as most vegetable crops have this spring due to a jolt of hot weather followed by low temperatures and even flood conditions in some areas. The first to market, Jersey Royal new potatoes, were late, with Cornish following a week later than they usually would.
Pricing is also an issue. The average price of potatoes is down by a penny per kilo. Could promotional activity around the new-season offer be the reason there’s been a reduction in price? Are retailers pushing a product without considering availability?
The offers are still present on the shelves. In Sainsbury’s Anya, Apache and baking potatoes (2.5kg) are on special offer at 50p off on the former and buy two for £3 on the latter two products, although Tesco only has one offer on potatoes with Jersey Royals (large bag) selling for £1.24 at half price.
But innovation is still bringing some diversity to the category, with new varieties like Athlete going into M&S this year after a successful trial run last season.
After another successful launch last year, Sainsbury’s exclusive Taste the Difference British Gems are back on the shelves.
After working with Sainsbury’s to develop the product, Greenvale conducted independent research trials, which showed that British Gems outperformed the best-selling new potatoes in the market.
“New potatoes should be as fresh as possible, but the variety is also hugely important as flavours, textures and appearance can vary widely,” says Andrew Clarkson, Greenvale’s business unit manager. “British Gems have a buttery flavour, firm texture and the classic loose skins associated with new potatoes.”
Greenvale AP is also investing heavily in its new branded GreenVale Farm Fresh potatoes, which are currently available exclusively in Tesco stores.
The launch of GreenVale Farm Fresh is the result of rigorous research and consumer testing, including a successful in-store trial with Tesco.
Elsewhere QV Foods had its Cornish Crystals into Asda stores in mid-April. It is the second season in a row that the company had the first outdoor Cornish potato crop onto retailers’ shelves. -
FOLLOWING PROVENANCE
It’s been touch and go for the English new potato season with the adverse weather creating difficulties, but it’s now full steam ahead. Elizabeth O’Keefe visits Cornwall as the main crop of new potatoes hits supermarket shelves
The epitome of a new-season product, new potatoes with their flakey, delicate skin and sweet, nutty taste mean the start of spring for many both in the trade and shopping in the supermarket aisles.
In reality British new potatoes are available from April to September, with breeders, growers and retailers all working towards an earlier start and finish to the season, the consistent quality associated with the product and the best taste, as well as the usual disease-resistance elements and high yields.
“Taste is now a given,” says Cornish grower Rowe Farming’s Mark Rowe, who has been working on providing full production of new potatoes as early as the start of April on his land in and around Helston. “Consumers expect great-tasting products and won’t buy them again if they don’t taste good. We are moving on again in breeding circles and now the main aim is reducing agronomic inputs. This helps us extend the seasons and maintain yields, as well as much-needed farming technology and techniques.”
Rowe sends his new potatoes into Marks & Spencer stores through supplier Manor Fresh, which sources new potatoes from all corners of the country to enable continuous supply throughout the UK season.
“We start out in Jersey and run Jersey Royals from early spring until July in real volume,” explains Manor Fresh’s managing director Mike Scott, who has been committed to the potato business pretty much since graduating from agricultural college 20 years ago. “Then we go to Mark [Rowe] for Maris Peers. It’s not a particularly early variety, but Mark’s expertise means it can be used as such. We got his first crop to M&S for the May Day bank holiday weekend and it will run until the end of May/early June.
“Then specialist Manor Fresh new potato growers in Suffolk and Norfolk take up the ‘freshest UK new potato challenge’ until around the end of the UK season in late November. M&S also takes the very best regional UK new potatoes which are grown, washed and packed at source in Scotland, Ireland and south Wales throughout the key summer season. It’s a regional and a seasonal approach.”
So what’s the Cornish grower’s secret? Rowe grows new potatoes on the Cornish coastline’s steep slopes where the product is protected from the frost and the sun hits first. Despite the cooler-than-usual temperatures this spring, Rowe still got an early crop to market.
“We were looking at harvesting even earlier before the weather changed everything,” he says. “But because of the wet and cold we are a week late in the end. This was done through planting more seed in Cornwall and shallow planting, so the temperature of the soil is higher. We also plant by hand in small sheltered meadows elsewhere in Cornwall.”
And what’s more, Rowe will be harvesting the first production of new variety Athlete in an exclusive arrangement for M&S - the first time the retailer has listed a new variety of new potato in around 15 years. “Athlete came out of an organic breeding programme, which means it doesn’t get blight and that we can reduce pesticides where possible, making the crop better for costs, labour and the environment.”
Looking out on St Michael’s Mount from the Cornish new potato field watching the new potatoes being harvested, it’s easy to see how the mix between years of growing knowledge, varietal expertise and provenance works - especially when you get to taste them as well. “It’s about both seasonality and provenance,” says Scott. “We abide by M&S’s Fresh Agenda throughout and that means cleaned, packed and on the consumers’ plates within 48 hours, with those all-important new potato characteristics.”
MARK OUGHTRED - AGRICO UK
“Athlete completely sold out on its soft launch into M&S last year and we’re very excited for its prospects for 2012. It’s gratifying to know - despite difficult growing conditions, it has arrived on time, and challenges the early imported market - that Athlete responds well to being grown for early and also a second early production. Having started out as an organic variety, it has dual blight resistance and low input, which means it meets the strict Plan A criteria.”
LOUISA READ - MARKS & SPENCER
M&S vegetable buyer Louisa Read came out to Rowe & Son’s farm to have a look at the new variety Athlete that’s about to grace M&S stores throughout the country.
What’s made M&S add a different variety to its new potato offer after 15 years?
We have predominantly stocked Maris Peer new potatoes until now, so listing the new variety Athlete is a big thing for us. We are constantly trialling new varieties and looking to improve the quality of our offer. It’s been a long time coming, but with Athlete we believe we’ve got it right. We are looking for the best quality in raw product, with a flakey finish and the highest-eating quality.
How often do you visit your growers?
It’s a really good practice to go out and meet the growers, and we try to visit them every year. We pride ourselves on a direct relationship with our suppliers and growers, and treat them with mutual commitment and trust.
What kind of feedback do you get from consumers for fresh produce?
Our customers are very quick to complain when something’s wrong as they are used to a very high and consistent quality standard. They appreciate quality and our consumer panels say our fresh produce is the best on the high street.
What’s been the highlight of your career so far?
I will have been with M&S for 20 years in July. I started out working in stores at 19 years old and then took the graduate programme to be a store manager. When I was 26 I took a trainee buyer’s role and since then I have worked in several food categories, namely prepared meals, juices and frozen food. One of the highlights last year was introducing a second season of UK asparagus, grown by John Chinn of Cobrey Farms, onto our shelves until October/November and then a new season from early March.
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