Thanks to generous publicity by TV chefs and supporters championing their cause, sweet potatoes have moved away from specialist ethnic stores and have captured a wider UK audience in recent years.
Sweet potatoes are a nutritional powerhouse and even celebrities such as Glee star Matthew Morrison are singing the praises of this not so humble vegetable.
According to Kantar Worldpanel figures, in the 52-week period to 21 February, the UK sweet potato market handled 22,343 tonnes, worth £31 million. Though encouraging, this is a 4.2 per cent value fall from £32.3m in the same period of 2009-10 and a 1.4 per cent drop on volumes.
According to Barfoots commercial manager John Barfoot, a schism has evolved between retail and wholesale performance and double-digit deflation in retail over the last 24 months is putting category managers under pressure. “The issue with the retail market seems to have evolved through the merchandising decision to range sweet potatoes next to white potatoes,” he explains. “While the rationale behind the move was no doubt based on that of inspiring consumers with similar end-usage, the consequences were unintended.”
Barfoot says penetration has been lost and value deflated and he insists that “some intelligent leadership” is needed. “Specification management and pack-size price point repositioning tactics will help, but the value needs rescuing,” he adds.
However, Barfoot maintains that the UK wholesale scene is buoyant, indicating growing consumer awareness and demand through foodservice channels. “The retail loss is wholesale’s gain as the discard from tighter retail specs then goes on to make better money on the markets,” he adds.
Elsewhere, potato giant McCain Foods has decided to withdraw its sweet potato range, following a range review. “McCain is unable to guarantee the consistent quality of product that we and our customers expect, so took the decision to withdraw the range,” says Bill Bartlett, corporate affairs director at McCain Foods. “The budget for the range is being reallocated across other McCain marketing activities.”
However, supporters say the sweet potato market remains one category whose star is in the ascendance.
The US is a key supplier of sweet potatoes and North Carolina accounts for 47 per cent of stateside production. State growers and shippers are optimistic following a bumper 2010. According to recent reports, North Carolina farmers intend to plant 60,000 acres of sweet potatoes this year, up 5,000 acres on 2010. Acreage has been rising since 2005 and growth has been attributed to rising domestic and international demand.
Other key growing regions such as Louisiana and Mississippi are expecting a return to form following heavy rains that have damaged harvests for two consecutive years.
Scott Farms UK has recently launched a new sweet potato campaign and although it’s early days, the company is building the blocks to deliver a long-term campaign that encourages consumers to try sweet potatoes and view them as an everyday vegetable.
“The key to the campaign is showing the versatility of sweet potatoes in recipes that can be made at home without any fuss, using good quality, healthy ingredients,” says Stan Smith, managing director at Scott Farms UK.
Continued investment by parent company North Carolina-based Scott Farms Inc in increased storage capacity facilities ensures year-round high quality product.
Smith adds: “We have enjoyed year-on-year growth in the last five years and that hasn’t altered since the recession hit in 2008, so we are optimistic and see no reason why this should not continue.”
The nutritional value of sweet potatoes also creates opportunities. “We want people to understand sweet potato value in shopping baskets, impacting their health and purses in a positive way,” Smith says.
Maritime Food Group says that its Carolina Sun brand has experienced significant volume growth and has plans to boost demand. “We are in formative discussions with one of the UK’s leading retailers, in terms of using a different mechanic to attract new sweet potato buyers into the category and our senior PR team is in discussions with Channel 5 to boost activity,” says Anthony Whitmore, handling sales and marketing for the firm.
The company works with its North Carolina-based farms and imports 4,500t of sweet potatoes. “Volumes have steadily increased as the UK mainstream consumer switches from a loose product to a branded pack offering,” says Whitmore.
Maritime Food Group has invested £4.5 million in its operations in the last year, with an additional £50,000 providing for the Carolina Sun line.
Production and packing operations have recently been relocated to a purpose-built facility, covering 10 acres in Bicker, Lincolnshire, where a dedicated new production development (NPD) team conduct cooking and presentation activities.
Elsewhere, Agrexco forecasts a 10-12 per cent rise on last year’s volumes, with sweet potato supplies from Israel, Honduras and the US. “The Honduran season began in mid-March and currently this is our main line, particularly into the wholesale market,” says Mark Erven, sales manager who has recently taken responsibility for sweet potatoes and other root vegetables for Agrexco UK. “We run a year-round supply from the US and the supply from Honduras will supplement this through the summer months.”
The UK remains Agrexco’s main important market, with 70 per cent of volumes supplied to the multiples and the wholesale sector. The exporter handles a number of different varieties including Georgia Jet from Israel, Covington from the US and Beauregard from Honduras.
NPD is a major part of Agrexco’s business and it is continually trialling other varieties for taste, appearance, shelf life and yield.
“There are a number of possibilities that we will introduce in trial quantities in the UK but nothing as yet in commercial volumes,” Erven tells FPJ. Agrexco is investing in its sweet potato operations and says that the quality and reliability of product that has been achieved from Honduras is down to the investment made in sending its agronomists and technicians to work with growers there.
“In turn, our Honduran growers have invested heavily in a new packhouse and grading machinery, which is already reaping rewards as seen in the excellent quality of the early arrivals this season,” Erven explains.
The producer is confident that the UK market will see a continuing rise in demand, particularly now that the multiples have moved sweet potatoes from exotics to the conventional potato category, making them more accessible to consumers.
Though encouraged by this move, Erven says more work is needed. “It is a slow process encouraging consumers to treat sweet potatoes much in the same way as regular potatoes or as an alternative,” he adds. “Profiling the product on cookery programmes helps with this, but we know we still have a long way to go.”
The economic climate being as it is, Erven forecasts less speculative shipping and a continued effort to supply directly and limit costs. “As with most fresh produce items, the returns available will dictate the supply,” he adds.
As the industry weighs up its options, marketers are confident demand for sweet potato will continue finding support among the wider audience.
No comments yet