As the great “green” debate gains momentum, retailers are increasingly under fire for being environmentally irresponsible, but Waitrose has been working hard to buck this trend. The chain, which was established in 1904, is associated more with the protection of hedgerows and sustainable production than it is foreign expansion or the monopoly of land.
It is this commitment to ethical trading and respect for its grower base, combined with its freshness of produce and ability to meet customer demand, which helped the chain win the title of Re:fresh Multiple Retailer of the Year 2006, sponsored by Foods From Spain. “We’re delighted with this recognition,” says Jackie Wharton. “Waitrose has always put fresh food first, and we are committed to offering our customers the best quality produce there is, sourced in the most ethical way.”
Fresh produce is clearly an important category to Waitrose, which seems to please its high-end customer base - according to a recent survey, they are the most loyal, along with shoppers at Marks & Spencer.
The retailer recently reported record Christmas sales with growth driven, in part, by its fruit and vegetables. It overtrades in many fresh produce categories against its overall share of the grocery market, which stands at just less than four per cent. These include organic fruit, vegetables and salads, where it has an overall share of 15 per cent. Other high-share categories include speciality vegetables at 8.3 per cent, tomatoes at seven per cent, soft fruit and cherries, both at eight per cent and speciality fruit at 10 per cent. Prepared fruit, vegetables and salads are also showing good performance, the market has grown by 15-20 per cent for Waitrose this year, with an overall share of seven per cent.
Waitrose always seems to be strengthening its commitment to fresh produce, whether it be through the introduction of innovative product ranges, - such as its black fruit and vegetables this year - fair trade initiatives or sustainable sourcing strategies.
Since its win in May last year it has made some massive strides in improving the way it goes about its fresh produce procurement, for one reason or another. This focus has led to the extension of existing fresh produce-related initiatives and the creation of new ones across the category.
One major development came last year, with the announcement that all UK-sourced conventional fruit and vegetables would all come from LEAF-certified (Linking Environment and Farming) farms. “LEAF pioneers the production of quality food alongside environmental protection and enhancement, and this commitment demonstrates our further strides in environmental welfare standards,” explains Wharton. “The move will help preserve some of the UK’s most endangered flora and fauna. Because hedgerows often link small woods, they are essential corridors along which wildlife can travel and feed. They provide vital food and shelter for many species including 80 per cent of our woodland birds, 50 per cent of our mammals and 30 per cent of our butterflies.
“By buying produce carrying the LEAF marque, Waitrose customers can help support a diverse range of British wildlife, many of which are in rapid decline such as voles, shrews, stoats and weasels, as well as more than 60 species of birds and hundreds of bugs and insects.”
It also introduced the Cooks’ Ingredients Range in summer, which Wharton says opened up new markets for some of the chain’s existing growers. The range, which consists of imperfect or “ugly” vegetables at discount prices, generated many column inches in the UK for its sharp contrast with multiple retailers’ normally stringent cosmetic standards.
“Our customers were already buying fruit to use for cooking and we had high market shares in these areas,” says Wharton. “However, we saw the opportunity to offer customers a range of cosmetically imperfect fruits and specialist varieties most suitable for cooking. All the fruit in the range is grown by the same growers and to the same farming standards as Waitrose class one produce, with British produce farmed to LEAF standards. We also sourced products that are not found widely in supermarkets, including Mirabelle plums, Morello cherries and British cooking pears.”
And reinforcing its commitment to ethical trading in fresh produce, the retailer has continued to develop the Waitrose Foundation, launched in 2005. The Foundation is a partnership between Waitrose and the South African farm workers who grow and pick its citrus, grapes and avocados. To date, the scheme has raised more than £700,000, which has been invested in 34 separate community initiatives benefiting 7000 workers. The Foundation is endorsed by the South African government and is in line with the AgriBEE (Black Economic Empowerment) reforms. Money raised is paid into a trust to pay for educational, social and healthcare projects chosen by growers and workers’ committees. The projects directly benefit the farm workers and include crèches, classrooms, adult education and skills training including craft and education initiatives. Because much of the farming work is seasonal, the craft and education projects help workers secure additional income all the year round.
“The Waitrose Foundation is distinct in that its ethical trading principles are achieved at no extra cost to the customer - funding comes entirely from members of the supply chain: Waitrose, the importers, export agents and growers. [Produce is] clearly identified by the Waitrose Foundation stickers, including oranges, satsumas, lemons, grapefruits, clementines, avocados, apricots, nectarines, peaches, plums and grapes. In February the range will be supplemented with mangoes,” says Wharton.
Waitrose has demonstrated increasing support to its UK grower base too. January 2005 saw the supermarket embarking on a range of regional fruit and vegetable initiatives, sourcing British, local and regional products wherever possible. An example of this in practice is during the British apple season, where roughly 70 per cent of its apples are UK-sourced.
The initiatives are in place in Kent, Scotland, East Anglia, the West Country, Wales, Yorkshire and the West Midlands, which means that half of Waitrose branches now have a local fruit and vegetable offer. And, according to Wharton, its buyers are working on increasing this. “[The products] by their nature are in season, and need to travel less distance to get to our shops,” she says.“Our regional fresh produce initiatives are an example of our work to bridge the crucial link between farmers and the food chain, and at the same time encourage customers to think more deeply about seasonality and the provenance of their food.
“Produce from the area is clearly labelled as such, providing customers with the opportunity to support local farmers, and at the same time raise awareness of seasonality.” This is a concept that is celebrated in all forms of customer communication, she says. “For example, our recipe cards are aimed at demonstrating to customers how to make use of products when they are in season and at their best. Waitrose magazine is also dedicated to responding to seasonality. ‘Seasons’ [magazine] is used to not only promote food when it is in season, but to provide ideas for how to cook that product in a seasonal way.”
Wharton says the key trends it sees emerging in fresh produce are growth in organic, local and regional and Fairtrade produce - all areas it continues to focus on. “Customers are seeking a stronger connection with the fruit and vegetables they eat; from where it is grown, to how it is grown and who has grown and picked it,” she says. “It is for this reason that we launched our regional fresh produce initiatives and that we continue to expand the schemes. Customers are also short of time, and seek convenient solutions in the fresh produce area - hence prepared produce is set for continual strong growth.”
Organic produce is another growth area Waitrose has capitalised on. The upmarket retailer currently offers around 1,500 organic lines to allow customers to do their entire weekly shop organically and it is the only supermarket to have consistently provided an organic offering since 1983. Despite holding under four per cent of the total UK grocery market, the retailer punches above its weight in the organic market, representing over 16 per cent of all organic grocery sales, according to independent AC Nielson research released this year.
The company has also managed to combine trends in organics and provenance, demonstrated by its procurement of more than 60 per cent of organic vegetables from the UK. It came top again this year in the Soil Association’s annual Supermarket Survey - a poll which it has topped since it was first introduced. This year it was praised for sourcing 89 per cent of the surveyed organic foods from UK farmers.
During 2006-07 it re-designed the whole of the Waitrose Organic range, which it says has given the range a more vibrant contemporary look with greater standout on shelf.
Within prepared produce, it re-designed its prepared fruit range with packaging to make the fruit inside more “visual” and according to the company, this resulted in more than a 20 per cent growth in the category.
Last year also saw Waitrose overhaul the design for its conventional fruit, vegetables and salads packaging, which will be completed in May. Wharton says the redesign has meant it is better placed to help customers shop its offer, reassure them about points of difference, help drive trade and inspire them to try new things - all part of its commitment to fruit and vegetables.
“We work hard to achieve the highest levels of freshness for all our fruit and vegetables, in line with our commitment to offering the highest-quality food to our customers,” she says. “Our desire and appetite to work closely with our farmer and grower suppliers in the UK means that more and more of our products are being packed and prepared as close to the farm as possible. And in some cases we are able to get products on shelves within hours of harvesting.”
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