There should be further cross-promotion in the fresh produce aisle, according to Bray Leino’s Dom Lane, who urged fresh produce companies to not just promote their product in the obvious places, but “be where your audience is”.
The PR guru entertained the audience with “10 ideas in 10 minutes” on how businesses can raise their brand profile. Suggestions included making a movie and sharing it online, making smart use of smartphones in stores, creating an app, and joining forces with non-produce partners to promote the benefits of a particular nutrient or vitamin.
THREE STRANDS TO SUCCESS
There are three common denominators for businesses that stand out from the crowd, according to Colin Smith, international director of Albert Bartlett - outstanding facilities, loyal and committed staff and “having the balls to take the business places other people thought it couldn’t go.”
In Tesco’s case it was going into telecommunications and, in Sainsbury’s, introducing brands of continental cheeses people hadn’t even heard of. “Real innovation comes out of businesses in that golden era when they take the company places no one thought it could go.”
BUILDING SHOPPER LOYALTY WITHOUT A BRAND
All the major retailers have worked out their customers want to buy British, but the biggest challenge for UK growers is having enough product and keeping it going beyond 2012 and “Jubilee madness,” Judy Whittaker, Fresca communications manager, told the conference.
Whittaker said there was effectively a “no-entry sign” to brands at the end of the fresh produce aisle. “Fresh produce is own-label territory… it is the retailer’s shop window: it’s how they differentiate themselves from the competition. However, consumers are used to brands. We like to be loyal to them, but they have to stand for something.”
Fresca’s Thanet Earth has generated a huge amount of media interest already and the glasshouse salad production facility is not yet finished. Whittaker said: “People are now looking for Thanet Earth as the grower on the own-brand label - they want to buy our crops. There is a very high awareness level without having a brand. Salads is a crowded area… we invest in new product development, but to support the retailer in its premium own label, not to develop a brand of our own.”
BRINGING THEATRE TO THE FRESH PRODUCE AISLE
Morrisons’ head of produce Andy Garton told delegates that innovation creates opportunities for the whole supply chain, but that “value is forever”.
Garton said: “The customer has evolved since the 1980s and ‘90s when shopping was functional and about value. Customers now want a functional store, but one that is also truly experiential. Our customers have evolved into savvy shoppers who expect the store to be easy to navigate… they want to buy British in season but they also want the exotic…and they have an eye on value.”
Garton added that the retailer’s customers are interested in wellbeing and a balanced diet for themselves and their families, and they want knowledgeable store staff to consult. “But all this must be delivered at great value,” he said. “The gastronomic experiences at Michelin-starred restaurants should be available to everyone and we should raise the shopping experience… we must change the way we retail… our stores must offer theatre and a fabulous shopping experience.”
adding value to produce
A brand adds value through its assurance to consumers, but there is a need to commit and invest, claimed Florette MD Neil Sanderson.
“Don’t just throw innovation into the market and hope someone picks it up,” he said. “Do stuff that incorporates your brand: in store, on trucks, online and in the press. You have to support innovation. If it goes into the market without support, it is no good. Think about unmet consumer need and don’t just churn product into the market.”
He told suppliers they should ask where the source of incremental value lies and if they believe in their innovation enough to invest. “You have to ask: What is my brand going to add?”
ANSWERING THE FIVE QUESTIONS
Innovating and driving consumption are huge tasks facing the fresh produce industry in a time of recession, Caroline Keeling, group MD at Keelings, said last week.
“When we developed our global vision we asked ourselves five questions,” she said. “First we asked how can we grow our profits in the future?” She added there has been very little growth in the UK and Ireland over the last three years, while the BRIC countries have been growing at an impressive 10 per cent. “When it comes to innovation and driving consumption, it is difficult to see any opportunities to drive major change without being able to brand products,” warned Keeling.
The other questions that Keelings has asked of its business are: what is our market risk? How can you add value in other markets? Can we scale up our management resources? Can you see your vision?
a new way of doing business
“Everyone speaks about their customers, but are you really looking after them?” asked Nigel Harris CEO of Fresh Direct. He told the audience that when he started the company it had only five customers. “Now we have lots of them, but are we still attracting the same customers as when we started? The answer is no.”
The reason, according to Harris, is that business gets too big. “We can’t chit chat with our customers anymore, we’ve become less personal.”
Harris spotted a gap in the market for a more personalised approach, and launched Roots of Oxford, a business he has decided must never get too big.
DIRECT TO CONSUMER
The ability to communicate directly with the public is a powerful tool in the current global marketplace, according to Facebook’s Elizabeth Linder. Giving examples of successful campaigns on the social networking site, Linder said that people are “already discussing your product” on Facebook and it is important to engage with them. This type of “conversational leadership” is a real opportunity for companies to reach large volumes of people and get their message across, she added.
REAL-TIME SOLUTIONS
It’s all about real-time planning in terms of IT and systems these days, Peter Dent of Prophet told the conference. Real-time data feeds and visibility of information are now about to bring much more transparency to the supply chain, he said. But he warned that poor supply chain discipline can prove a challenge in providing accurate visibility.
FUTURE OF WHOLESALE
Wholesale markets have a bright future, provided they adapt and grasp the opportunities that exist, Covent Garden Market Authority CEO Jan Lloyd claimed. Lloyd pointed out that all the top 20 restaurants in London buy at New Covent Garden, but stressed that traders can continue to learn by listening to the end consumer.
CHINESE OPPORTUNITY
chinese opportunity
Opportunities for bilateral trade with China look set to increase in future, according to minister counsellor Zhou Xiaoming from the commercial section of the Chinese embassy. Zhou said the landscape of China’s fresh produce industry had undergone a huge transformation, with more opportunities than ever to supply fruit and vegetables to consumers interested in trying new things. Tariffs have been slashed and regulations streamlined to make it easier for exporters to China.
FOOD IN FASHION
“Food is like fashion, in that new trends emerge and then eventually reach consumers,” claimed Noel Kershaw of Delifresh. Kershaw spoke about innovation in foodservice and revealed that Delifresh will launch a new product range called Heirloom Britannia, which will include micro vegetables, in a total of 80 varieties. “These are products that don’t conform to the norm. They’re visually exciting and full of flavour.”
"GROW ITALIAN," SAYS CHEF
Re:fresh conference delegates were treated to a chef’s perspective of the marketplace from the venue’s own chef Theo Randall. Renowned for his Italian cuisine, Randall threw down the gauntlet to suppliers: “To cook good Italian food, you need to have good Italian ingredients… There is nothing better than English peas or broad beans, but I would love it if English growers would grow more Italian vegetables; they would be cheaper and fresher than imports.”
