It’s not often you hear cherry tomatoes compared to high fashion. But third-generation Dutch grower Jos Looije says his Honing brand of cherry on-the-vine tomatoes is “the Armani or Chanel of cherry tomatoes”, recalling how it was born out of his desire to replicate the luxurious feeling of using expensive aftershave in the first taste of a tomato.
Translated as ‘honey’ in English, Honing-branded tomatoes are unbelievably sweet, grown using the Piccolo variety in particular areas of Looije’s Amsterdam-based glasshouses for the best flavour and quality. “It’s about trying to get that emotion into the sale. And we accept a lower yield for a better taste,” he says, explaining how premiumisation is a crucial part of Looye’s strategy (the company has rebranded away from the Looije name), to remain distinct in the wider tomato market.
Looije has the fanatic passion of a specialised grower that is somewhat lost among larger businesses. Alongside his brother, he was responsible for transforming the family-run company from a generic salad and veg grower to a premium tomato producer with a focus on high-end markets, such as UK multiple retail.
In 1996, he opened the company’s Spanish operations, Looije Aguilas, which now supplies loose cherries into Waitrose and Bakkavor in the UK, and Mercadona in Spain. Moving from loose into vine back in the Netherlands was the first step into diversification for the company, says Looije, and although he prides himself on a reputation for a highly specialised and premium offer, a declining cherry tomato market poses big challenges.
“The cherry tomato market is declining. Six or seven players have 80 per cent of the market, and it’s all driven by price,” he says. “But our biggest competitor is not other suppliers, it’s baby plum. Baby plum is doing very well because it has a new shape, it is a novelty. I think we will diversify into this at some point, because the market for loose cherries is only going down. We have a history of specialisation, we will never provide a full range.”
Specialisation is certainly not on the agenda over at neighbouring firm Levarht, where managing director Roland Gels says the company makes a point of offering a wide portfolio. “What I’ve found important is how a broad product portfolio gives you a worldwide network,” he explains, outlining how bell peppers are the company’s largest category, followed by tomatoes and then melon, with lettuce, citrus and strawberries also in the top 10.
The big story at Levarht is the retail trend for going direct to growers. As a middleman, or ‘service provider’, Levarht has adapted to offer a strong marketing and logistics role to customers, in partnership with its growing organisation Van Nature. In this way, the company can offer both the direct-to-grower route that UK retailers are increasingly looking at, and the super-slick sourcing and packing capabilities of the wider group.
It’s a strategy that has won its latest major customer – Levarht now supplies 30 per cent of a major UK retailer’s flow pack and loose bell pepper requirements in a direct-to-grower contract. “They go directly from the glasshouse to our customer, which is the first time we’ve done that for them,” says Gels. “We’re very happy and proud of that contract, and our first priority is to make a success of it.”
Levarht also supplies directly to other UK retailers, and Gels says the company is looking to “deepen” its supply relationships with its existing customers. “Direct-to-retail models are driven by clients and also by the increasing size of growers in Holland, who are becoming more professional as they get bigger,” he says. “I think it’s a good thing to go direct to growers but there is still a place for us as a specialist in logistics.”
Thanks to Brexit, suppliers aren’t the only ones reiterating their role within the supply chain – it’s a discussion at national level, too.
Richard Schouten, MD of Dutch trade body Fresh Produce Centre (FPC), says the Netherlands is committed to a good exit discussion, but also a good entrance discussion, with Britain, with the country “willing to be a good partner to retail and other customers in the UK post-Brexit.”
“The priorities of the EU are changing, Brussels is waking up,” he says. “The European Union is waking up but the UK is one of our favourite partners, like Norway or Switzerland. You’re still European,” adding that Brexit discussions in Brussels are “giving new energy to what we’re doing”.
Tomatoes remain a strong opportunity for Dutch suppliers in the UK, according to Schouten, as well as berries and the growth in foodservice. The industry put on a united front at the recent London Produce Show, choosing a harmonised display of Dutch produce, rather than promoting individual companies.
On new markets, Brazil has just opened to Dutch exporters for apples and pears, as has China for peppers, and Schouten says they are waiting on pears to Mexico, tomatoes to China, and topfruit to South Africa and Colombia. From a domestic point of view, the FPC is trying to reverse a decline in produce consumption by working with young children, and lobbying government, as well as a new trial encouraging foodservice operators to promote higher intake of fruit and veg.
Dutch suppliers have a central role in the global trade of fresh produce, and Levarht’s recent investments reflect this. The company has invested in a 2.5 hectare glasshouse expansion in Mexico to serve a US retail client, as well as new land in New Zealand earmarked for avocado production. Closer to home, the company has expanded its principal warehouse facility, and is implementing a major new ERP system.
The company has a strong exotics business into the Middle East and plans to build a bigger presence in Asia, where it already has an established customer in Japan. The UK remains its biggest market, although the portfolio is balanced and Gels has a clear global strategy. “We’re looking at different production areas, it’s important to not only focus on what’s going on in Holland. We should fully promote Dutch produce but also look at other markets,” he says.
Exploring growth opportunities in every corner of the globe while promoting close links with its longstanding partners in the UK, the Dutch produce industry is ready for every opportunity.
