Rustler Produce knows its alliums - onions, leeks, garlic and shallots - and, while the category has faced a series of challenges in the last few months, the dedicated Sainsbury’s supplier has succeeded in growing its sales volumes and providing just what the customer ordered.
The business, which was formed as a joint venture between Whitworth Growers Ltd and Russell Burgess Ltd in 1997, includes 10 UK Farm Assured growers that produce on some 1,500 acres of onions and more than 700 acres of leeks. The firm is majority-owned by the Burgess family - with 40 per cent belonging to the growers - and the team is keen to point out that, as a family-run enterprise, the business has benefited from common values, loyalty and determination.
The company has enjoyed impressive growth in recent years and its motto, Growing Trust, which intends to demonstrate the honesty and commitment both within the company and in relation to its customers and growers, has proven to be the catalyst for success, according to site director Jonathan Tole. “The aim of the business is to grow our volume by putting the right products on the shelf for the consumer, in the right format, the right size, and the best new products,” he says. “We are passionate about what we do, and the fact that this is a family-run business is part of this.”
And the figures stack up nicely. Total turnover at Produce World this year is expected to be in the region of £136 million. Rustler Produce, which has seen turnover grow by more than 50 per cent in the last two years as a result of industry consolidation to drive economies of scale, is forecast to earn £21m for the year ending June 2007.
So what has driven the notable growth experienced by the award-winning firm? And what are the secrets to its success? Rustler Produce has made notable outlays in order to improve its offer to its customers.
An investment in state-of-the-art premises in 2001, which feature an optical grading system that uses an advanced camera system to identify defects, has facilitated the growth of the business. “The grading process means that the crop we grow can be sorted efficiently by size and grade, with the best product going to Sainsbury’s,” Tole says.
A committed 60-65-strong workforce drives the operation and has also helped fulfil business potential. “It’s a very competitive market out there and the only way we can drive our business forward is to have motivated staff,” says Tole. A number of training initiatives are available to employees and, according to the team, progress is driven by everyone working within the company, from senior management to staff on the factory floor, who each have the opportunity to generate ideas.
Rustler Produce has drawn on all its resources to develop its long-standing relationship with Sainsbury’s, according to Produce World account manager Sam Trebbick. The retailer receives the majority of its volumes, contract packing, processing and foodservice contracts accounting for the rest, and assisting with full crop utilisation.
Produce World has supplied Sainsbury’s for more than 25 years and Rustler Produce has continued to grow the business relationship since 2001. “We know what Sainsbury’s is thinking and doing, and we work closely with them to achieve their aims,” says Trebbick. He insists that, when it comes to supplying major retailers, honesty is the best policy. “We have a very honest relationship with Sainsbury’s and we expect the same from them. This is what works for us and we have grown our business together,” he explains. “We challenge both ourselves and Sainsbury’s - it works both ways.”
Trebbick says Rustler Produce always puts the customer first. “Sainsbury’s knows its own customers and, ultimately, we are led by what consumers want,” he says.
The firm supplies a range of onions into Sainsbury’s, from premium lines to standard varieties. “The brown and red onions are the most popular and we have to choose varieties that are a good size, store well and match the soil type. Spanish and Chilean-type product, which is easy to peel and looks nice, is used for a net of three in Sainsbury’s, sweet onions are becoming more and more popular, as are shallot strings from France,” Tole says.
A quarter of the product supplied to Sainsbury’s by the company is certified organic and Rustler Produce is the sole supplier of organic onions and garlic to Sainsbury’s. This part of the business alone has seen good volume growth in the last two years.
Product development is an important part of the business, Trebbick says, but progress can be slow. “An onion is an onion, and better onions are not always easy to find,” adds Tole. “When we come across something that has potential, we research it and see if it fits into the range, but some ideas never get past the site.”
Trebbick says that what the consumer wants is fundamental to the development process. “We start at the consumer and work backwards, when it comes to finding new products, because we also have to get it right for Sainsbury’s and for the grower,” he says. “It is important to understand the usage, whether it’s for salads, sauces, or curries, and that gives us a head start in understanding how the product has to work.”
But the search for new products has been put on hold this year following a difficult season, says Tole. However, he insists this has not put a stop to progress. “There are a lot of developments that go on behind the scenes, which the consumer doesn’t necessarily see, such as reviews of agronomic processes, management, sources, due diligence, food safety and environmental issues, and this goes on all the time,” he says.
Rustler Produce has worked hard to overcome the challenges facing the onion category this season, following low temperatures in May, the June and July heatwaves and a wet August, and the firm has continued to boost its sales volume growth at Sainsbury’s. “We are facing the most difficult onion season that any of us can remember for many years,” says Tole. The shortfall in Europe is some 1.2m tonnes and the UK supply is down 40,000-60,000t, he adds.
“The conditions, which have affected the whole of Europe, caused reduced yields and poorer-quality produce. Quality has been a real challenge and a lot of energy has gone into making sure the right product goes out the door. We have been working closely with Sainsbury’s and, by focusing on the people in the business and knowing what is coming from our growers, we have been able to make sure there have been no surprises along the way,” Tole explains.
The hardships facing the category have not held back Rustler Produce. “We have continued to grow our sales volumes in Sainsbury’s, despite the difficult season. Shoppers may have noticed that onions haven’t been as bright as usual, but it has not stopped them buying,” adds Trebbick.
The difficulties faced by producers this season have seen a slight inflation in prices and, while this has been welcomed across the industry, Tole warns this is likely to be a short-term fix. “Prices need to stay up - sustainability is important for growers,” he says. “This is the first year that the price of onions has moved up for the last 10 years and, meanwhile, the cost of utilities, gas and fuel has been creeping up.”
But while they are very aware of the challenges facing the industry in the next five years - increased energy costs, tight supermarket specifications and demanding consumers - Tole and Trebbick are upbeat about the future of the business and are aiming to build on the relationship that Rustler Produce has with its major customer.
No comments yet