The wholesale scene is a vibrant part of the fresh produce game, but the stand-out offer on markets around the UK has more often than not been built on the foundations of brands designed specifically for this trading environment.
The UK market has changed significantly in the last 10-15 years but while the rise of the retailers’ own brands has taken over from supplier-owned names on the supermarket shelves, the concept of wholesale brands has continued to thrive.
The main branded lines match up with some of the best-selling categories, including citrus, apples, bananas and even pineapples, which are just some of the lines that get a boost from recognisable, reputable names.
Not surprisingly, there is a big difference between business-to-business and consumer-facing brands. So what makes them work? And how can wholesale traders make the most of this dynamic offer as they fight to remain profitable in an increasingly competitive environment?
Tim Willaert from The Greenery maintains that wholesalers “rely on their customers making a connection with the brands they sell” to promote their produce.
“The major benefit ofselling branded produce is that the products are recognisable,” says Willaert. “They represent a certainvalue; a value that is created by theguarantee of quality and grading. This means that buyers know what they will get when buying the produce.”
The Greenery-branded produce can be spotted at all the major UK wholesale markets and the firm has made a name for itself across a number of lines, boxed in its distinctive green packaging.
“If you are able to build a good reputation for your brand and customers choose your products in the marketplace, this creates good demand and better prices,” says Willaert “The value of the brand is defined by the added value it represents to customers. A brand gives a certain guarantee. That can be the assurance of a certain origin of the produce, the guarantee that it has been grown sustainably or the guarantee thattaste or quality are excellent. If that promise is what customers value and if they’rewilling to pay for it, then a branded product can command more money than a standard line, which does not give the same guarantee or benefit.”
Across the fresh produce industry, a number of international companies have harnessed brand power as a way to get recognition and boost returns in a cut-throat sector, in both wholesale and retail. A brand needs to be tailored not only for specific characteristics but for individual markets, for maximum impact. This means that more often than not, fresh produce brands - wholesale or otherwise - are years in the making.
In fact, some of the most recognisable names on the wholesale markets have achieved that status after working to shape their presence for decades. It is only now, when trading conditions are harder than ever, that these brands will really reap the benefit of their reputation.
Produce heavyweight Capespan is a well-known name in the wholesale sector, in terms of both the corporate brand and the company’s individual product brands Cape, Outspan and the most recent addition, Capespan Gold, which is a premium line targeted at non-retail customers.
Steve Holland, commercial trading manager at Capespan, maintains that branding is an important part of the business, both now and in the future.“Good brands engender confidence and trust,” he says. “They stand out in a cluttered and fast-changing wholesale environment and can offer a competitive advantage for trade partners. I believe brands have a good future in wholesale.”
He admits that “worthwhile premiums are achievable” and within the wholesale trade, “opportunities for established brands remains strong”.
“Capespan Gold stands for very select quality,” Holland explains. “It is only used on lines that are demonstrably superior to the rest. For example, our Capespan Gold grapes have bigger berry size, better colour and eat superbly. The brand is targeted at the top-end specialist grocers and caterers supplying executive lounges and board rooms. Consequently, the lines are exclusive and relatively limited in volumes due to super stringent quality criteria that have to be met.
“Our brands retain resonance with consumers and with the wholesale trade, which continues to identify with the Cape and Outspan brands,” Holland adds. “After 70 years, quality expectations remain high.”
Another high-profile name is Agrexco, which has been building the reputation of its Carmel brand since it was created back in 1956 when the business started trading.
Oded Yacovson, general manager of Agrexco UK, says the brand has “helped build a following in the wholesale market” and stands for “quality, reliability and service”.
“It was a lengthy process, but we knew that we had to get the produce right before we could think of exporting under our own label,” he explains. “So much stood on it. Meticulous care was taken in research, trialling varieties and working with growers in order to reach the standards we wanted.
“We created the Alesia brand to label produce that we export from around the world, but this was only done once our agronomists had worked with growers to attain the high standards required. We have so much confidence in our limes, for example, that the 52-week supply is all branded Carmel.
“We have to work for not only the customers’ benefit, but also our growers,” he insists. “There are always changes in the market and we have to adapt accordingly and we believe that brand loyalty - providing that the quality and service are there - will always be of importance.”
But brands do not have to be recognised on a global scale to get results and in the UK, the more forward-thinking firms have harnessed brand development as a point of difference on a regional level.
Bristol Fruit Sales, for one, created the Growfair brand three years ago to promote Cornish produce both locally and elsewhere in the UK and it has since expanded into Devon and Wales.
David Pearson, Growfair sales manager, says the brand “stands for the best quality seasonal Cornish, Devon or Welsh produce”.
“The intention was to improve availability and packaging and to standardise the quality and pack sizes so that the end customers know that they can ask for Growfair and they know they are getting the same producteach and every time they order,” he says. “We are looking to increase the sales of Cornish produce around the country, especially into Total Produce stands with Growfair winter cauliflower promoting Cornish new potato sales and so on.
“UK suppliers are on the whole notvery good at branding unless it is from the bigger packers - it is the overseas suppliers that are best branded, with buyers waiting for the brands they bought last season to appear on the wholesale markets each season. Smaller UK suppliers have to improve their game, possibly helped by collaboration with their local wholesalers and doing some own-label branding, which is where Growfair has been so successful across the South West and Wales.
“But brands are only as good as the produce being packed into the cartons,” he insists. “One or two poor deliveries and the brand can be destroyed in the eyes of the customer, who will move onto another one. Produce quality is key to any brand’s success - without it, brandsrarely last long but longevity is key to building a successful brand that can then begin to command a premium.”
So what’s next for brands on the wholesale market? How can firms continue to establish and build on their profile in a sector that relies on well-known names to push sales?
And perhaps most importantly, how can those with brands make sure their investment pays off?
Premiums may be limited by the economic downturn, but a strong brand will put produce in the best position to be sold again and again. At the same time, growers and exporters must uphold that reputation by making sure they supply the right varieties and the best quality for reasonable prices.
“Brands will always play a big role within wholesale,” says Willaert. “With the increasing need for guarantees in terms ofquality, food safety, sustainabilityand traceability as well as taste, brands will become even more important. Wholesalers communicate with their customers through the brands they carry. In that sense, the importance of brands is obvious.
“The requirements for brands to develop, however, is a consistent quality and decent exposure. Producers will not only need to promote their brands, but also have a strict policy on quality assurance. If that is assured, customers will continue to buy the branded product.”
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