As the UK weather perks up in the springtime, consumers inevitably move to lighter meals and convenience, in a sometimes vain attempt to welcome the summer months.
Prepared salad sales have already seen the benefit and there are hopes for stir fry sales, which have recently sold consistently regardless of the season. “Prepared vegetables, particularly stir fry packs, have been fuelled by permanent link-save deals in the multiples, which are devised to make consumers buy more,” says one insider. “Prepared salads are doing well, but more so in a bowl or tray format, which is showing good growth for us. This is mainly due to the link-save deals. But it has been a bit of a surprise, as they are all high-value items.”
As the country gingerly comes out of the recession, the prepared fruit and vegetable industry is finding its feet again.
In the last quarter, Bakkavör’s sector marketing manager Alan Richardson called for the prepared salad industry “to make sure it is ready to react to the end of the recession” and said that the industry “may well see an increased focus on higher-priced products”.
While some say it is undeniable that the prepared produce sector has gone through a lull over the last 18 months, others believe that the effects, if any, have been blown out of proportion.
Prepared sprouted seed producer and packer Aconbury Sprouts maintains that sales have remained stable throughout the recession, with 13 core lines going into major and high street retailers. “Nobody ever turned away from high-end prepared lines, in my opinion,” says the company’s sales and marketing manager, Alison Wilmot. “In terms of new business, we have increased. We deal with a handful of major retailers, a lot of independents and some major high street chains and we haven’t seen any drop in sales at all. We even hope to introduce two new lines this year - once word is out there through promotion, there will not be a problem with sales of the new lines.
“On the prepared side, I really don’t think there has been much effect at all. You only have to look at how the supermarkets are doing; their figures back it up. Every single one has seen an increase in the last year.”
Del Monte is one company that hasn’t held back during the recession. Its new Naked Fruit range will launch into the convenience sector as a branded proposition in May, ready for summer. It aims to offer an option for convenience retailers, as a competitively priced product range that can add value and stand-out to their on-the-go and impulse offers.
“Del Monte is also working towards the launch of Fruitini, a bagged range of fresh prepared fruits aimed at children, again with listings secured in major retail from May,” says James Harvey, managing director at Del Monte UK. “We have seen a number of challenges in the last quarter. The category growth has slowed and now remains static, which is why it’s imperative for brands such as Del Monte Naked Fruit to enter the category and refresh, reinvigorate and renew the offerings available to consumers.”
Many have noticed an increased level of promotional activity in the multiple retail sector, on own-label propositions as well as branded. But Del Monte believes that this isn’t driving penetration or bringing in new customers. Del Monte has managed to increase volume significantly in convenience, through offering a more competitive price point, attracting new shoppers and driving volume and penetration. “We hope that we’ll be able to replicate these results with the launch of Del Monte Naked Fruit into multiple retail,” says Harvey.
However, others disagree and find that having their products on multi-buy solutions - like combining a stir fry pack with a sauce and noodle offer - encourages people to buy more. “Supermarkets are sharing the returns made,” says one insider. “We are seeing a substantial uplift in sales.”
Meanwhile, availability for stir fry product has been tight, with weather problems affecting cabbage and spring green supply, particularly in Cornwall. But the situation is looking far more flexible as the summer months approach.
The prolonged cold snap that affected Europe earlier in the year created massive challenges for the prepared salad category, due to the impact on product supply and quality. Florette had to source from not only European growers but from the US to ensure continued supply.
“There is no denying that when consumers tightened their purse strings, the prepared sector felt some of the pinch,” says one insider. “But as day-to-day lifestyles remained just as demanding, there was still a very real need for convenience, which guaranteed a steady level of sector sales that the category could capitalise on. There really is all to play for this summer thanks to a more settled post-recession mood and a summer season amplified by the World Cup.”
POTFRESH: NEW PREPARED ONION FACILITY WITH HOME-GROWN FOCUS
Potfresh, a prepared vegetable firm for the catering and wholesale industry, is looking ahead to the unveiling of its new production facility and sister company in Pewsey, Wiltshire, later this month.
The new enterprise Southern Prepared Vegetables (SPV) Ltd will provide a host of fresh prepared products, but mainly fresh prepared onions, in answer to increasing demand for UK-grown onions in the industry.
After trading successfully for the past 20 years in Cornwall, family-owned Potfresh believes that the time is right to expand.
“Over the past few years, we have not been able to service demand for our products due to the logistical difficulties associated with our location,” explains Potfresh general manager David Bickerton. “Pewsey is a central location and offers us the opportunity to supply a host of major cities and locations in both England and Wales within just a few hours. We are finding that customers prefer suppliers to be in close proximity, so emphasis is on the freshness of product. In our experience, importing prepared onions places great pressure on the quality of product, especially as the product may have been in transit for up to three or four days. Our aim is to offer same or next day delivery after production.”
Potfresh has invested heavily in its production facility. The new operation includes an eight-lane peeling line that will have the capacity to prepare up to 80,000kg of peeled onions per week. To complement this, SPV will also offer a full prepared range and actively continue to source products grown and supplied from Devon and Cornwall.
“We are excited at the scope of work between the two sites and the potential volume that we will produce,” says Bickerton. “We will be working closely with all of our growers in England, throughout Europe and the southern hemisphere, to offer year-round supply.”
Potfresh is ready to utilise the opportunities that local sourcing can offer at both its Cornwall and Wiltshire facilities and at the moment, its core lines mostly make their way into bakeries and ready-meal providers. “The local trend is a great benefit to our business and there is a wide range of produce to tap into in both areas,” says Bickerton. “There is much greater emphasis to reduce food miles wherever possible and this is why we source locally where we can. We strive to get our produce direct from the grower, prepare it and send it to the customer all within 24 hours.”
Bickerton believes that it is a tougher trading environment for suppliers now that the industry has been through recessionary times. “There is a lot more emphasis on suppliers now and there is a real demand for quality, service and price, leaving very little room for error,” he says. “We are not doing anything different ourselves, but we have been looking at the different channels we can take to get new product to market, such as the new facility in Wiltshire. We are already in talks with companies who share our views and we hope that this will be the base in forming strong working partnerships to help both our customers and SPV be successful in the future.”
