Surging sales in the soft-fruit category show no sign of slowing down as the sector continues to grow. And, despite a slump in supply in the run up to Christmas, the sector is valued at £786 million, seeing a 15 per cent increase in value and a rise of 14.4 per cent in volume, year on year.
Blueberries look set to steal the show in the early months of the new year, as diet-conscious shoppers turn to the fruit for a tasty and healthy way to eat well. The timing couldn’t be better as the Chilean season is in full swing and Moroccan supplies are coming on stream.
The category as a whole looks in a good position to maintain this growth as the Egyptian season draws to a close at the end of a disappointing season. In December, cool, wet conditions delayed the Egyptian season and supply at the UK’s wholesale markets ran extremely thin, causing strawberry prices to rocket.
Berry Gardens’ managing director Nick Marston says the delay in exports from Egypt was a big loss for the country. “Egypt has not had a good year because [its harvest] was late and only reached good volumes two weeks into the peak of its season,” he continues. “It missed a big opportunity.”
However, a major project by Total Berry to enhance the quality of its strawberries and reduce production costs is underway and, before weather difficulties plagued the campaign, it expected to import around 2,500 tonnes of the crop between December and March.
Over on British soil, the mild conditions helped soft fruit under tunnels carry on longer than usual, allowing shoppers to enjoy home-grown strawberries all the way through into December.
Last year was strong for Spanish and British production. “Last year, Spain had a good season and so did the UK so we saw a good year for supply and quality,” says Marston.
“The actual product itself is getting better. The Maravilla in the UK is a raspberry with a better flavour and the varietal mix is also improving. Also, for the consumer trying to eat healthily, [berries] are a very good way of eating well.”
His comments are backed by the most recent Kantar Worldpanel figures, which show the value of the soft-fruit category grew from being 14.5 per cent up year on year, in the 52 weeks to 2 October 2011, to 15 per cent up year on year in the 52 weeks to 25 December. In the same period, the value of the sector increased by £4.8m, meaning the sector was worth £102.7m more on Christmas day in 2011 than in 2010.
Marston says the figures are evidence the sector is booming. “It is outperforming other fruit categories quite measurably when you look at that 15 per cent increase compared with the next best-performing category, which was stone fruit with 2.7 per cent,” he says.
Some of this success could be linked to promotions, as Marston says soft fruit enjoys the greatest publicity in the sector. “Because raspberry volumes build up as we go into the main season, they are typically promoted heavily and put prominently on display as a calling card for the whole fresh produce section in the supermarket,” he adds. “Berries also outperform in terms of TV ads and marketing. They taste good and look even better so they’re always used in advertising and there’s a great deal of consumer interest. Promotions such as the Seasonal Berries campaign have a big impact too.”
Marston is also confident the growing appetite for blueberries won’t bite into raspberries sales. “Blueberries are generally consumed for health while raspberries are more of a dessert fruit,” he said. “While, the raspberry sector is currently up more than 20 per cent and blueberries by 14 per cent, if this continues to rise in the first months of the year, 2012 could be a great year for the sector.”
Looking ahead, Marston is very enthusiastic about the first produce coming in as the Moroccan season begins to get underway. “Supply is looking good and the crop is looking great, so it should be very strong. We’ve got modest volumes coming in from Spain now that look very good too, but it’s too early for the Spanish season yet.” -
DRIVING THE BERRY CATEGORY
Co-ordinated marketing has been central to the soft-fruit category’s remarkable success over the past eight years
Berries topped retail fruit sales for the first time in August 2011, beating sales of apples and bananas. They now account for nearly a fifth (18.4 per cent) of the total UK fruit spend, and the category has doubled in value from £342 million in 2004 to £761.1m in 2011.
So how did berries, once considered a treat or saved for calendar events like Wimbledon, become such a staple of the UK shopping basket? The answer to some extent lies with British Summer Fruits (BSF), an organisation representing 90 per cent of berry growers in the UK. It is a voluntary organisation of six full-time and six associate members.
Its core functions are sixfold. Namely to finance and oversee the year-round Seasonal Berries PR campaign; to act as a lobbying organisation with government and industry bodies; to collect and disseminate weekly historic sales data to members, and to customers annually; to carry out strategic targeted market research and tastings; to collaborate with overseas exporters; and in the event of major industry-wide issues, provide crisis management support to the industry.
But what really sets British Summer Fruits apart from its peers, and has played a vital role in increasing consumer demand, is the Seasonal Berries campaign. “The 12-month Seasonal Berries campaign is unique within the fruit industry because it is supported by UK importers, UK growers and overseas exporters all happily using the same PR company. That, in my view, is key to ensuring the campaign is a success,” says Laurence Olins, chairman of BSF.
Managed by Sputnik Communications since 2004, the campaign has been described by DEFRA as a gold standard for the industry. It is year-round, supporting both UK fruit and imports from Chile, Spain, Africa, Egypt, Argentina, Uruguay and Morocco during winter and spring. At the core of the creative Seasonal Berries campaign is a comprehensive marketing and PR programme to promote the use and health benefits of berries.
Communicating the health benefits of berries, through commissioned analysis or using international studies, is crucial for validating the consumer decision to buy in-store. Most recently, Sputnik commissioned leading nutritionist Juliette Kellow, who has updated health information in line with EU regulations.
During the last 18 months, the Seasonal Berries campaign has evolved to develop strategic partnerships with third parties, to reach consumers in new places and develop consumption occasions. Last year, Berries for Breakfast was piloted with an exceptional response from 180 schools.
Sputnik also identified a strategic opportunity to drive health and fitness associations for Seasonal Berries under the Berry Power sub-brand. After reviewing a range of opportunities, the Bupa Great Run series was identified as ideal and autumn activity was trialled with leading sports nutritionist Anita Bean. She developed the Ultimate Berry Recovery Shake plus pre-race and race-day nutrition tips, which resonated well with the UK’s ever growing running community. The activity is set to be expanded in the autumn and winter of 2012-2013.
Olins acknowledges that alongside the Seasonal Berries campaign, trade and importer support has also been a core part of developing the category, and praised the UK supermarkets for their “excellent” support. -
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