The mild autumn has held back vegetables sales from last year but quality is good and the mood is optimistic in a sector which comes into its own at Christmas.
The most recent Kantar data reports a rise of 10.3 per cent in value year-on-year for the total category, while volumes have dropped 1.7 per cent. This value growth is driven by high price inflation, according to Kantar analysts, who attribute total category volume declines to the 7.8 per cent drop in potato volumes.
Produce World’s Andrew Ovens says that one of the season’s top performers so far has been Brussel Sprouts, with a value increase of 28.8 per cent year on year up to the week ending 13 October. Ovens adds this has been primarily driven by increased penetration, up 12.2 per cent, and more importantly, indicates a rise in consumers who don’t normally eat sprouts at this time.
Elsewhere, Ovens says other Christmas staples such as red cabbage, carrots and parsnips have seen good yields and high quality. “We have just completed our survey of our Christmas carrot crop in Suffolk and the general feeling is a warm one. Quality looks good and the crown size is spot on - some roots are a little longer than the average but still within size. The mild autumn has held back sales on last year but has given us lush crops, which look fantastic but have not really ‘hardened’ off - the first true frosts will be a good test of crop health and vigour.
“From a consumer viewpoint the mild weather impacts on the type of meals we eat. The relatively mild autumn has kept people in salads longer. However, the clocks going back and the darker nights this week are certain to have them choosing the more warming winter veg dishes.”
Freshgro chief executive Martin Evans says the good field quality is a direct reflection of the warm summer. “It’s been a year of two halves, it looks boringly average but actually there’s been two contrasting growing seasons. Volume wise, the first half of the year was very low, and then we were surprised by the appetite in August and September. I think it’s down to quality as it’s not been this good for a while,” says Evans.
“There is a bit of cavity spot around after the wet period in autumn which will wipe the smile off our faces soon,” he adds.
Evans thinks the category has the opportunity to be more aspirational and start engaging customers again. He notes the progress of Freshgro’s Baby Piccolo parsnip brand, which is on sale in Sainsbury’s and Waitrose and set to launch in Marks and Spencer after Christmas. “As long as you can back a brand up with recipes and quality vegetables then it is worth doing. And you have to make sure the genetics and production are consistent.”
Total market share for vegetables among retailers is spread relatively evenly, from Marks & Spencer under-trading with 2.3 per cent of the vegetable category against a three per cent total grocery share, up to Waitrose which is over-trading with a 5.6 per cent share of vegetables and 4.2 per cent of total grocery.
However, out and out winners are the hard discounters who are off the scale with a 173 per cent overtrade on vegetables. Their 8.3 per cent share of vegetables is against a total grocery share of 4.8 per cent, reflecting their ongoing improvements and growth in fresh produce.
A Lidl spokesperson says that fresh produce is “incredibly important” to the store’s overall growth. “Fresh produce is an ever-increasing area of strength for us. It's a category that we're extremely proud of and it will continue to be a key focus for us going forward.”
The spokesperson highlights an increased interest in exotics for the vegetable category, in particular purple sprouting broccoli, artichokes and single clove garlic. “We have just introduced a prepared vegetable range, including ready-to-roast Mediterranean vegetables and ready-to-roast Butternut Squash. We hope these will appeal to customers who want to eat healthily but don't have the time to prepare these items. We hope if these items prove successful we will be able to develop this range in 2014.
“Due to the popularity of our promotions, we are now in the process of extending the fruit and veg promotional section to make even more space for them and further highlight the fantastic deals we have on offer.”
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