There will be a race to snap up the first European fruit as soon as it comes on stream in what is expected to be a seamless crossover to the northern hemisphere.
Suppliers are looking at a strong market, given a number of shortfalls in key top-fruit producing countries and little overhang from the southern hemisphere or stored stocks.
European volumes are expected to make a notable recovery on last year to reach around 11 million tonnes, representing a significant step up from last season’s 9mt.
This sets the scene for what could be one of the most promising English seasons for a long time and could give UK sales a kick start.
The latest Kantar Worldpanel figures show that the biggest driver of growth in the top-fruit market is the increase in the average price, which has seen value sales rise by 4.5 per cent to add £41m to the category.
At the same time, volumes have slipped by 0.7 per cent as fewer shoppers have picked up apples and pears in stores.
Tesco and Sainsbury’s are fighting it out for the top spot on British and are locked in a battle for market share for one of the most iconic home-grown fruits.
Only last month, Tesco narrowly overtook Sainsbury’s to become the UK’s biggest seller of English top fruit, selling 31,408 tonnes this year to Sainsbury’s 31,325t up to 29 May. This has since switched back, with continued sales of Bramley apples as well as pears pushing the Sainsbury’s share to 27.1 per cent.
English Apples & Pears chief executive Adrian Barlow insists that the two retailers have reached a “dead heat” as the differential is within the margin for error. He maintains, however, that this competition is expected to play out again this autumn.
“We know that this coming season, Tesco and Sainsbury’s will be competing very strongly with each other to be the number-one retailer on English apples and pears,” says Barlow. “They will be putting considerable emphasis on selling the product, but both are determined that they will not consider selling English apples before they are ready to eat.”
But Barlow warns of the “danger” in retailers chasing volume “without sufficient attention to the returns that are necessary”. This is especially important as production costs have risen by around eight per cent this year, caused by energy and labour costs.
“It is crucial that retailers work closely with their growers to understand the cost increases that have been imposed in production and make sure that the returns they give back are sufficient to sustain businesses and allow for investment in the future,” he says.
This is a call that is echoed across the top-fruit market if the sector is to safeguard production in the long term.
In fact, the latest World Apple Report released last week identifies a “breakeven gap” for new plantings and forecasts that only the biggest players will be able to renew orchards at the rate needed to keep up with consumer demand in future.
It reads: “One would expect average rates of orchard renewal to be much higher than they currently are. Since the more progressive growers in many producing districts are investing heavily in orchard renewal, this indicates that a large number of other growers are not renewing fast enough to stay in business.
“The major reason for the low renewal rate appears to be lack of access to sufficient capital.”
But prospects for the next few months look strong and suppliers are hoping for another season of stronger returns to build on last year, following unsatisfactory prices for three years before that.
Home-grown production is running as much as three weeks ahead of last year, which means that the season will kick off later this month.
Sarah Calcutt, spokesperson for Kent supplier Norman Collett, recognises that promotions are key to building sales but she insists that retailers must work with the rest of the supply chain to make this work, especially ahead of the UK season.
“There will always be a place for well-placed, managed promotions to build sales volumes, but long-term brand loyalty has to come from consistency in quality, which is a partnership deal between the marketing desks and the buyers that they talk to every day,” she says. “There has been a lot of attention recently on who grows our food and a strong start to the season with growers talking positively about their product is the way to go.”
Voyage of Discovery
The countdown to the start of the English apple season has begun. Anna Sbuttoni reports on the race to be first as the major supermarkets put their fingers on the trigger
The first box of Discovery apples to hit the shelves is taken as the start of the new season - the opportunity to make headlines ahead of the much-anticipated supplies, and an achievement in itself.
This year’s kick off will come later this month, when one of the big four will stake their claim to be the first with home-grown fruit in one of the earliest ever seasons for the UK.
Tesco and Sainsbury’s are going head to head in their battle to come out on top of the English apple market, alongside the other key players across the competitive grocery scene. The race is on, but what does this mean for how the season will play out and most importantly, the eating quality at the crucial time when consumers are being introduced to the new season?
Adrian Barlow, chairman of English Apples & Pears, insists that there is “absolutely no kudos whatsoever” in being first to market with English fruit and that starting too early will “jeopardise return purchase”.
But he is confident that the retailers will not risk this after lessons learnt in previous years.
Jane Speakman, former fresh food trading director at Morrisons, insists that “the industry only reacts to what the customers require” so shoppers have to “take some responsibility” for the competition in the market. “The supermarkets want to be the earliest so producers react to that,” she says.
But she insists that there is an “integrity around seasonality you have to protect” and recognises that eating quality is key - “on something like Cox, if you enter the market even a week early you just put customers off if the flavour is not there,” she says.
“What Adrian Barlow has managed to do is work with both parties,” she continues. “He has worked well with the grower base but also done an excellent job in managing supermarket expectations. If a retailer demands something, it’s about managing expectations when the product isn’t there. Now the challenge is how the UK apple industry maintains and grows this awareness.”
However, there remains healthy competition to be the first on the market.
Sarah Calcutt, spokesperson for Kent supplier Norman Collett, maintains that communication is key and “a good dialogue with the sales desks will ensure the right fruit is in front of consumers at the optimum time”.
“There is always a need to build sales and establish shelf space,” she says. “A strong sale of the earliest varieties can only be good for the main celebration at the end of September.”
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