Sales served ice cold

Interest in frozen produce is warming up as fresh produce suppliers start to see it as a lucrative route to export markets rather than a tired solution to food waste.

Frozen fruit in particular has seen “staggering growth” over the last year, up 35 per cent in value year on year for the 52 weeks to 4 December 2016, according to the British Frozen Food Federation (BFFF). Berries in particular have replicated the success in the category’s fresh counterpart, with sales boosted by a trend for smoothies and healthy breakfast recipes.

One company already capitalising on this is soft-fruit supplier CPM Retail, which established a business alongside six Moroccan berry growers to supply both fresh and frozen sectors.

iBerry is seeing a growing global demand for its frozen berries, and this year expects to ship 50 per cent more to customers in France, Belgium, Germany, China and the US, according to supply chain director Rachel Montague-Ebbs.

“We grow varieties that work for both our fresh and frozen customers because this is the most economic model,” she says. “Typically we pick strawberries for example from November to April for fresh – and then pick for frozen for May, June and July. This will differ dependent on the farm, variety and the season.

“We aim to take every single fruit from September to June from our group of growers, whether this is fresh or frozen. Every berry counts.”

The company is now expanding supply of frozen strawberries from selected growers in Spain and Egypt, continues Montague-Ebbs, to complement iBerry’s own production and satisfy customer demand. “Meanwhile, with our UK strawberry growers we operate slightly differently,” she adds. “The costs of the freezing process are a lot higher. Here we look at solutions for non-supermarket grade fruit and how we can maximise its value.

“Every year growers have a percentage of their product that is picked off the plants but is not suitable for the supermarkets. Normally this is handled through a waste process at the cost to the grower. With our growing processing business, we are enabling the growers to have a revenue stream rather than a cost.”

John Hyman, chief executive of BFFF, believes there are also significant opportunities for fresh produce suppliers in the frozen sector, in other on-trend products such as frozen sweet potatoes, which have seen sales rise 119 per cent year on year. “The current trend around health and wellbeing that has seen huge fame for food bloggers and influencers has had hugely positive effects for frozen, in both the way that it is perceived as well as in tangible sales,” he says.

“The nature of frozen produce – because it is often pre-prepared and ready chopped – means that suppliers and producers do not face the same rigorous standards on what the crop looks like on shelf. This means that suppliers are not faced with mountains of perfectly good quality produce going to waste because consumer standards deem it ‘ugly’.

“Similarly, there is a lesser risk to suppliers trying to balance crop supply and consumer demand, because of the longer shelf life offered by frozen.”

Montague-Ebbs adds: “By diversifying into frozen and processing, we are able to offer more opportunity to our growers to maximise their crop value, have a longer harvesting season and increase their presence in the market.” Exports is a big incentive for those moving into frozen, Hyman says, with Germany, France and Scandinavia all big consumers in the sector. And this taste for frozen berries is likely to continue, according to CPM sales manager for processing and frozen Nicki Gladwin, who says: “Government initiatives around the world, such as the sugar tax, will direct consumers to look for alternatives to get their sugar hit. Frozen berries are one of those alternatives.”

Meanwhile, demand for frozen blueberries is expected to follow on from the fruit’s popularity in frozen, according to Montague-Ebbs, while she also sees opportunity for new niche berry Haskap.

As analysts have started advocating a proactive approach to the coming years of post-Brexit uncertainty, growing frozen sales might well offer an iceberg of consolation.