Look around and you will see brands everywhere. It seems that from buying clothes to appliances, everyone needs to know the brand value before a sale is secured.
In the fresh produce sector, times are a changing. It is not easy being a fresh produce brand these days - take a look at Geest for example. One of the most iconic names of the trade, Geest is no more following the takeover by Icelandic company Bakkavor last year.
It is fair to say that the number of fresh brands has certainly declined in recent years. But while some have fallen by the wayside, others are flourishing.
Del Monte is one of the best known brands in the fresh produce business and enjoys high recognition among consumers. Yet the multinational is not resting on its laurels and in the summer burst onto TV screens with a prime-time campaign.
“Our new campaign aims to appeal to consumers in different countries and of different ages,” explains Peter Miller, Del Monte’s md of UK operations.
The TV advert, which encouraged customers to eat more fresh produce, has been well received, not only with consumers but also retailers.
“We’re looking to build on the campaign next year and develop a programme with retailers to emphasise stronger links between our brand and product,” says Miller. “Del Monte will be running in-store promotions, bespoke retail advertising and even advertising in retail car parks.”
Del Monte is not the only company to make the most of the nation’s love of TV. Rooster, the UK’s first branded fresh potato, made its terrestrial television debut last month. “We have had a great response to the TV campaign and have already noticed an increase in sales,” John Hicks, Albert Bartlett’s marketing manager tells FPJ.
Hicks says that the Rooster brand has allowed Bartlett’s to communicate directly with the consumer. “Potatoes aren’t included under 5 A DAY and we need to continue getting the key message that potatoes are healthy across to consumers,” he adds.
“Consumers are more aware, they want to know where foods are coming from and good brands build on that confidence.”
Size does not matter in the world of brands, believes Tom Binet, managing director of Jersey Royal Potato Marketing Company. “If a brand has a purpose, then the value has never been higher,” he argues.
Jersey Royal new potatoes have a limited season of around 10 weeks in the spring-early summer and Binet says Jersey Royal has been enjoying a renewed focus since the recent operational restructuring. “We’ve seen an improvement in quality and supply,” he claims.
While some high profile fresh produce brands are diversifying into new products and are shunning the limelight, other major brands refuse to retreat into the background.
“We believe Cape and Outspan are truly consumer brands which, although losing some market awareness recently, still have a franchise with the consumer,” says Martin Dunnett, Capespan’s trading director. “Fruit brands have value if they represent something positive to the consumer.”
“I believe that brands - the bigger ones - such as Fyffes, Cape, Outspan and Jaffa can carry the value. That’s providing they are delivering points of difference or consistently deliver in line with the brands’ expectations,” he says.
Given that the firm sources fruit from around the world, it has also developed the trade brand, Capespan. “This is for our new production countries such as China, Egypt, Peru and Turkey where we are working or looking to work with growers,” Dunnett explains.
Zespri believes there are only a few “real” brands in the fruit and vegetable sector. “A major brand like Zespri must be very active to keep in consumers’ minds and support trade partners,” says Jean-Louis Warnimont, marketing services manager, Europe.
“It should communicate its values and create a high demand at consumer level. It has to support the sales of all its customers through advertising, promotions, in-store tasting, etc.”
Zespri develops marketing and communication activities throughout the year to support sales. Warnimont explains: “Regardless of the season, Zespri consumers are very loyal and are happy to buy Zespri-branded kiwifruit regardless of the origin of the fruit.”
A national TV advertising campaign in The Netherlands will focus on Zespri Gold this year, and in Spain, Zespri Green will be in the spotlight. Both campaigns will be supported by extensive roadshow activities and national consumer promotions.
Having a number of different fruit and vegetable varieties under a brand umbrella inevitably helps, according to Amos Orr, general manager Agrexco UK.
“Agrexco’s brand Carmel is very important to our UK activities and awareness is growing as we add new items and varieties all the time,” Orr tells FPJ. “Innovation is needed to secure the brand name.”
Mike Caddy, Agrexco’s product manager, says consumer response to the Carmel brand has inevitably changed over the years.
“Initially, the Carmel brand was highly recognised by the consumer but now retailers prefer their own branding, it’s become more of a B2B brand,” he says.
“But if a brand with a strong identity can be created and has the characteristics of good quality, freshness and value, then it’s worth doing. Consumers are prepared to pay more for a premium product if they know it’s going to be good and have a longer shelf life, strong packaging etc.”
With supermarkets preferring to use and promote their own branding, fresh produce companies concede that branding is not as big a marketing tool as it once was.
However, non-supermarket business such as small shops and catering through the wholesale sector accounts for 30 per cent of Agrexco’s business and the Carmel brand is very well known in these areas, says Orr.
He even claims the brand is one that inspires envy. “You know a brand is successful when others try to copy you, which many companies have tried to do with us in the past,” Orr says.
“The Carmel brand is 50 years old and is associated with good quality products. We haven’t diluted the brand and use it only for fruit and vegetables, not soft drinks etc. We invest in the brand and what’s behind it - real quality.”
Recently, Agrexco teamed up with the Mothers who Care project to promote healthy food habits. This new programme is targeting some 500,000 mothers with the aim of establishing good eating habits in the next generation.
“Agrexco has committed to this project for a year with the opportunity to extend the venture,” Orr says.
The evolution of brands is also apparent. Not only are company brands available but generic products also have their own trademark.
“There is no doubt that Pink Lady is the first successful apple brand,” claims Andy Macdonald, managing director of Coregeo, adding that much effort has been made to associate the Pink Lady brand with quality and style.
The Pink Lady 2007 campaign will continue in the same vein as last year, by promoting Pink Lady apples as a part of an overall healthier diet and lifestyle. “We are currently working on a health and fitness campaign which will hit in January,” says Macdonald. “Pink Lady will also be the official apple of the London Marathon for the second year running.”
The Pink Lady campaign concentrates on three or four larger projects each year. The UK team also works with its overseas counterparts to ensure that the campaigns have synergy across Europe.
“Each campaign we execute includes ideas for in-store activity, so we can reach a wider audience via retailers where appropriate,” Macdonald says.
Elsewhere, prepared salad producer Florette launched a high profile £2.5 million television and PR campaign to further boost its brand awareness in the UK. “Brand recognition was a key aim and our campaign has certainly succeeded,” says md Mark Newton. “An immediate result is that brand recognition has leapt to 70 per cent.”
Florette believes that its challenge has been to establish a household-name brand in a sector which was traditionally own label. With its abundant salad ranges, Florette says it has been able to drive forward the category and bring innovation and points of difference to its fixtures, both in prepared salads and vegetables.
“The recent launch of Florette’s new Steam Vegetable range is a good example of the brand helping us target new customers and meet consumer needs,” Newton says. “Our research showed that prepared vegetables - and vegetables-in-sauce in particular - was a strong category proposition. Having achieved success in the prepared salad sector, we have the expertise in place for vegetables. The fact that we can offer a known brand name is an added bonus.”
At a time when retailers are looking to promote foods under their own private labels, it may be surprising to see that some are working closely with brand-owners, but that is exactly what is happening.
The organisations behind Pink Lady, Jersey Royal and Rooster have all said they enjoy tremendous support from retailers for their brands.
“Some retailers see positives in the values the brand carries and can make it part of their own range offer,” says Dunnett. “In our case, Morrisons has featured the Outspan brand in a jointly branded pack of six oranges.”
Miller insists that good-quality brands can develop overall sales in store, and argues that brands are as relevant today as they have ever been. “Companies have to demonstrate that a brand brings something that consumers can appreciate,” he says. “Consumers need to know that something they buy from us is of consistently great value for money and produced to the highest standards.”
“Del Monte believes it brings a positive message to the overall fresh produce category. It adds value and increases overall sales, rather than cannibalising sales from retailers’ own labels.”
Sources agree maintaining the image of a brand is hard work and it’s important to continue the momentum. With new consumers appearing on the marketplace all the time, brands have to do what they can to attract new business, while maintaining their core base.
When questioned about the falling number of brands in the fresh produce sector, Miller is realistic.
“Consumers don’t know a lot of fresh produce brands apart from the big names, and I don’t see the situation changing,” he says. “However, all companies have a responsibility to act if they want brands to remain. They can’t complain about a loss of a brand if they allow it to happen.”
“The Del Monte brand has been around for more than 100 years and I hope it’s around for another 100,” Miller says.
Pink Lady is pleased with its performance and Macdonald says sales increased 25 per cent last year and have also made strong gains in 2006.
However, there is never any room for complacency. “We have excellent opportunities for getting Pink Lady apples to the next level and for that we need our present consumers to increase their purchase and new consumers to be impressed from the first taste,” Macdonald says.
Florette’s Newton agrees: “While we have achieved much success as the top-selling brand, we are certainly not complacent. The challenges are part of the opportunities and include meeting and anticipating consumer needs, driving innovation and spotting trends.”
So what is the future for fresh produce brands? Caddy believes one developing trend is that grower groups are working together again, buoyed by recent successes. “In the long term, they [grower groups] may begin to invest in identifying themselves by branding and so we could well see a resurgence in fresh-produce branding,” he speculates.
COMMUNICATING BRANDS
Building a consumer brand in the fresh produce market requires attention to a number of key considerations. So says David Desbrow, md of New Perceptions Advertising Ltd.
“Product must inherently be of a high quality, deliver a regular, consistent supply during its season, be well presented both loose and pre-packed, and sell at a price that represents good value for money to the consumer,” he says.
Desbrow believes it is essential that a realistic level of effective advertising and PR is used to establish and maintain brand awareness. “This is a point all too often forgotten or dismissed as being too expensive - a big error by so many fresh produce organisations,” he claims.
The marketplace is constantly changing and new purchasers appear on a daily basis. “Young people enter the market with little or no knowledge as to the performance of the brands or why they should be purchased in preference to alternatives,” says Desbrow, adding that effective communication is needed more than ever.
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