The weather hasn’t exactly been the friend of the salad industry in the past year, with the sun seemingly having not come out since early last summer and winter now making a belated appearance.
In spite of that, sales have held up well, with value sales up 1.9 per cent to £1.56 billion and volumes also rising by 1.5 per cent, or 9,400 tonnes. However that masks the fact that the 5.6bn consumption occasions over the last year represent a 2.4 per cent drop on the previous 12 months [Kantar Worldpanel Usage, 12 m/e November 2011].
A 15 per cent increase in production costs, driven mainly by fuel prices and other production inputs, has put pressure on producers at a time when salad crops remain at the heart of supermarket promotions and discounting.
Nevertheless, there is optimism on the horizon. The upcoming ‘summer of sport’ and the Queen’s Jubilee is expected to give a real boost to barbecue products, of which salads are key lines, and if the sun chooses to shine it could be a vintage summer.
“It’s pretty much a normal year at the moment, which I like to see as a positive thing [given the tough economy],” says David Piccaver of lettuce supplier Jepco.
Of the current season, Piccaver reports: “Producers are under pressure, of course. There’s lots of product about at the moment. It’s not fantastic quality but there’s plenty of it, and Spain has had a good winter. From the consumption point of view, it’s about where we expected it to be.
“But the Jubilee and the Olympics are all positive developments and we just hope the weather plays ball as that would help quite a lot.”
Florette has taken advantage of the mild January to post strong sales figures for the start of the year, reporting its highest-ever four-weekly market share of 11.8 per cent [Nielsen] on the back of 13 per cent year-on-year growth.
“As ever our brand’s contribution to overall category growth remains significant, especially across our premium products, which have been making gains thanks to marketing investment designed to deliver incremental value,” says commercial director Sandy Sewell.
The lettuce brand leader has supplemented its Duo range with a new four-week Valentine’s promotion to drive awareness and frequency of purchase, by tapping into the trend for consumers treating themselves with home cooking. It has also been running a promotion offering £5 towards a bottle of wine to boost sales further and inject interest into the aisle.
Florette has promised a raft of similar initiatives around the various key events coming up this summer. “We will look to maximise the retail opportunities around key occasions and events including the Olympic Games, Euro 2012 and the Queen’s Diamond Jubilee, by providing inspiration for the consumer, as well as fresh touch-points,” explains Sewell.
Florette has pledged that its 2012 marketing campaign will be its biggest spend yet and, though details are still under wraps, it is expected to heavily focus on the British and sporting themes offered by this summer’s events.
The one flip side of good summer weather could be concerns over water availability, but Piccaver insists that growers are doing what they can to prepare for that eventuality.
“Most salads in the UK are grown in coastal regions,” he says. “That could be a concern. Everyone is aware of the problem so they are planning to mitigate it through things like rotation, careful use of water and maybe new technology.”
With the news in December that the British Leafy Salads Association had won €140,000 of EU co-funding for a marketing campaign to promote the crop, there is a feeling that better times are around the corner.
The market will remain tough, but rarely has the industry had a better opportunity to catch the eye of the consumer than this summer. All that’s left is for the sun to come out to shine. -
INNOVATIVE THINKING
The Greenery is a leader in introducing new formats to the salad category, and the company last week continued that trend by unveiling a number of new products at Fruit Logistica. Michael Barker reports
ast week at the world’s largest fruit and vegetable show, Fruit Logistica in Berlin, the Dutch underlined their status as world leaders in terms of innovation and NPD. A Dutch one-two-three in the Innovation Awards showed that the economic crisis hasn’t dampened the country’s appetite for new product development, with Syngenta’s Angello Sweet & Seedless Pepper -marketed by The Greenery in northern and western Europe - carrying off the overall prize.
And that was just the start of the new initiatives The Greenery had on show. A multi-purpose plum tomato called Red Egg has been introduced that is being pitched as ideal in soups, sauces, sandwiches, stir fries and pasta dishes. The fruit has a deep red colour and oval shape, and releases less liquid when cut, without affecting the flavour. Its shape also allows it to be cut into uniform slices, according to the company.
Red Egg was developed in collaboration with The Greenery’s Red Flesh growers’ association members Themato, Nico Duyvestein and Fred van Zeyl. “Working with The Greenery, we were looking to develop a versatile and unique product,” said Themato’s Martien Duindam. “International cultivation of the Red Egg brand will be essential to guaranteeing a year-round supply of these plum tomatoes, and represents the next step in the development process.”
Targeted at the foodservice and catering sectors as well as retail, the Red Egg comes from the Romanella variety and will be available from early April.
Elsewhere, the popularity of baby peppers has seen The Greenery take the concept a step further by launching seedless variety Sweet Pepper Power. The shape of a normal orange pepper, but smaller at 25-55mm long and 25-40mm in diameter, their sweet flavour and attractive colour is expected to make them popular with children. The variety has been produced after three years of development work between The Greenery and grower Dolf Boekestijn of P Boekestijn & Zn, and will be available from mid-March to late October.
“We are seeing growing consumer demand for special pepper varieties,” said Boekestijn. “After years of testing, selection and tastings, we came up with the seedless mini pepper. It then took us another three years to develop this Sweet Pepper Power. For us, the customers’ wishes are key. Our entire business operation - including our growing facilities and packaging hall -is designed to respond effectively to changing demands.”
In a further move, Greenery subsidiary Hagé International showcased its Solentes mix, a product range designed to meet demand for luxury packaged exotic products. Ideal for the corporate gift market, customers can request which products are included in baskets. Options include standard exotics such as mangoes and papayas, as well as star fruit, pomegranates and luxury potatoes. -
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