he promotion of English apples is now well underway and early reports from growers and marketing companies indicate that the various media and in-store campaigns are hitting the mark, with sales of apples increasing significantly.
With strongholds in the South East, Tesco and Sainsbury’s are at the forefront of a retailer battle to sell the biggest share of the English crop, with Sainsbury’s featuring English Cox in its high-profile TV ad campaign (see p48) and Tesco filming an ad for the plasma screens in its network of UK stores. This, coupled with investment in a radio and digital TV ad from the industry itself and other retailer and supplier initiatives, is giving home-grown apples a timely boost. Most importantly, the promotional efforts are supporting a high quality, good volume crop - and at this stage, the sector is anticipating a successful year.
It is rare, however, to paint such a feelgood picture without the addition of a caveat. And this is it. Amid the optimism, there are rumours of an inability for some suppliers to keep up with demand. “It is creating a lot of sales at the moment which is very good, but apparently a lot of growers are under severe pressure to keep volumes going,” explains one grower.
“We’re working extremely long hours to get it all filled. Otherwise marketing groups would lose orders or be forced to use foreign fruit to make up the orders and nobody wants that - we don’t want to lose shelf space,” he says.
However, talking to several other major players in the supply chain, it seems most are united in the belief that the season has got off to an excellent start, with an abundance of apples available, and many feel this could be a real turning point for English apples in the long-term.
James Simpson, managing director of Adrian Scripps, a top-fruit grower for Tesco, suggests that any problems with supply are likely to be attributable to smaller operations experiencing hiccups. He says that at his farm in Kent, the season has begun swimmingly: “One or two smaller suppliers are having logistical problems and generally these still have staff picking the fruit, but that’s it,” he says. “Demand has been extremely strong over the last week to 10 days, particularly for Cox, and we are very pleased.”
Adrian Barlow, chief executive of English Apples & Pears, says he would be surprised if there is a supply shortage in the next few months: “New varieties like Braeburn have got double the volume than last year and this is the largest crop of Gala that we have ever had,” he says.
His opinion is being echoed by growers, some of whom expect their sales to pick up even further during the rest of October.
Paul Mansfield, owner of FW Mansfield & Son and supplier to Sainsbury’s through Worldwide Fruit, insists that there have been no problems fulfilling orders and in fact, his crop this year could not be better proportioned: “We have got good volumes and a crop which has the right size profile for the customer. It works out as a 60 per cent polybag and 40 per cent loose split. It has worked out well,” he says.
“We can totally fill demand. The biggest requirement from UK growers is shelf space and provided we are given that, we can sell. So far our takings have increased in excess of 30 per cent. That is very positive and I’m absolutely over the moon,” Mansfield says.
Clive Baxter another Worldwide Fruit grower, based in Kent, is equally positive about the promotions to date: “If anything the constraints are on how fast we can get the fruit packed - uptake is very good,” he says.
Historically, the industry has wrangled with retailers over the quality and care of point of sale promotions, but most feel that this year marks a significant change in tack: “We’ve had enormous problems selling sufficient volumes at the start of the season. For the last four years we had a situation where we did not achieve sales. Faced with a lot of product, which hadn’t been sold, retaining its condition meant promotions in January had to move very large volumes of fruit,” Barlow says.
“The huge support we have received right from go is tremendous. This is what we [the English apple industry] have been waiting for, I do not want to under- estimate the benefit of co-ordinated action from the multiples - at head office and with store staff, the correct amount of space has been devoted and the signs are there for consumers to find apples. There’s also been a lot of hard work from the marketing agencies,” he says.
There is an overwhelming impression that the new approach has had a hand in strengthening relationships right down the supply chain, with all involved working together to reach a common goal and boost English apples. Apart from being one of the largest, most extensive promotions the sector has experienced for many years, it has also been one of the best organised, as Baxter explains: “In the past, we wanted the best money we could get, going for too high a price, but this time there’s more planning and co-operation between growing groups and a lot of work was done in summer on promoting right from the start,” he says.
But while the multiples may be able to help the English apple industry expand its consumer base, the question of that translating into profits from the grower’s perspective seems yet to be satisfied. Clearly, in addition to some successful marketing strategies, an element of the appeal to consumers is an attractive price, which is undoubtedly pushing up sales: “As long as the promotions go well we need to be in a position to have orderly approaches to marketing and then prices can go up. The prices we are getting at the moment are not sustainable once you’ve incurred storage and other costs, but I don’t object to the promotion clearing the large volume we are currently experiencing,” says Baxter.
“There are always battles in the high street and it is always the supplier that gets hit hardest. But at the moment we are justified in doing what we are doing because we are getting the consumer to eat, and to like, our product.”
Undoubtedly, the speed at which the produce hits the shelves is key to ensuring sustainable success after the promotion’s initial burst has ended. It makes sense that if the product is good it will encourage repeat buying from customers in the future and, according to reports from growers, this year’s crop has been top notch.
They say that the English summer’s weather conditions; warmer days and cooler nights in September, have ensured a good finish and a sweet taste - with perfect timing for the promotions: “I expect to maintain those sales due to the good eating quality and cosmetic nature of this season’s crop. We’ve had some good sugar levels,” says Mansfield. And Simpson agrees: “The quality is absolutely cracking” he says. “The skin finish is good and they are a nice, bright colour...the eating quality is so good. The texture is there; there is a good flavour. I definitely think we will find repeat buyers.”
So, growers’ outlook for the sales over the long-term seem positive - as long as the multiples continue to support local and keep the growers in pocket.
Barlow explains that if the co-ordinated approach continues, he has no doubt that uptake of English apples in the future will increase: “I’m certain that the situation will continue to be satisfied. The great problem that we have experienced over the last few years is getting the necessary actions at store level. When any new season comes along they need to switch from imported to local. That has happened this year. I would expect us to see the shelf space being maintained and sales to continue at a high level.
“This is about meeting consumer demand and making sure retailers are giving consumers what they want. Provided one has got the shelf space then I feel confident that we will see a continued growth in sales levels and that is going to be very good for English growers.”
Aside from boosting sales over the next few weeks, and even over the next year, it could be that the promotions have an even longer term affect on the sector. Barlow says that the increased demand and revenue generated could help the sector for many years to come: “Consumers get the best tasting apples in the world and it gives the industry the confidence to invest in and plant new trees, which is crucial to the quality of English apples in the future,” he says.
WORLDWIDE WHIPPING UP UK CONSUMERS ON NATIONWIDE TOUR
Forget Mr Whippy - apple suppliers are taking a leaf out of the ice-cream trade’s book with the launch of Mr Pippy.
Worldwide Fruit has teamed up with marketer Arbor, along with backing from English Apples & Pears, to create a specially adapted ice-cream van to help promote the English apple season.
The Mr Pippy tour, which kicks off next week, will take place in town centres and supermarkets as well as visiting radio stations, says Steve Maxwell, marketing director with WWF.
“We’ll be doing radio in the morning and then heading to the supermarkets or town centres to hand out apples in the afternoon, we’re letting people know that English apples are out there,” he says.
“At each stop, we’ll have apple growers themselves handing the fruit out, after all the best salesman for the apples are the people who grow them.”
The aim of the campaign is to gain local press coverage throughout the towns and regions the tour will visit, which include Birmingham, Manchester, Liverpool, Newcastle and the Isle of Wight.
WWF and its partners have invested £25,000 in the project which is also gaining support from the supermarkets. However Maxwell says it is still something of a gamble. “We’re under no illusions, we’ve not done anything like this before so it could be a complete flop or a total success.
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