“I think we are able to look at the sector in an entirely different way to suppliers to other supermarkets,” says Olins. “While others have looked on oranges, for instance, as mature and the market has remained relatively static, we have been able to keep the category moving forwards by concentrating on the top end and trading Waitrose customers up into bigger fruit and pack sizes and more sophisticated varieties.
“We have kept away from the 69p lines and tried to move the customer on to the £3.49 end of the market. And because we are not sourcing for 500 stores, we are able to cream off the top and stick to one country, one grower and one packer at a time.”
The volumes required for Waitrose are low in relative terms, therefore managing the programme is a more exact exercise and split between very few farms, most of which grow volumes and varieties exclusively for the retailer. “I am able to focus very much on Spain and South Africa,” says Olins. “We have one, dedicated grower in Spain and despite the size and varying microclimates of South Africa, we still only use dedicated growers.”
Poupart has managed to trade up the Waitrose sophisticates largely by sourcing more Navel varieties and moving out of the Valencia types, which are inferior in eating quality, according to Olins. He adds: “It is obvious that the consumer recognises the value of Navel varieties over Valencia. Sales decline on the occasions that Valencia is on the shelf.”
To eliminate those costly periods and eradicate gaps in supply, the 12-month supply of Navels is being facilitated by season extension, particularly in Spain. “We are sourcing later and later Navel varieties and within a few years, when our Ultra Lates from Spain are fully on stream we should have closed the gap between hemispheres.
“Our Spanish grower has been in partnership with Poupart and Waitrose for 15 years, and Waitrose took the decision to reduce its sources in Spain from five to one six years ago. The relationship is very intense and between us we have built the confidence to plant a range of varieties that are best suited to the final consumer at Waitrose.”
The grower has 1,000 hectares of citrus. “When I began working in citrus, a grower/exporter who owned three per cent of his export crop was unusual. Now, my grower has that proportion up to as high as 50 per cent, which is highly unusual, and in five years I would expect that to be as high as 80 per cent.
“Our grower is committed to the Waitrose business and has spent more than £10 million on upgrading packhouse facilities alone in the last few years.”
The Spanish orange season begins in mid-November with Navelinas and moves through the Navel Lates and into two Australian-bred varieties Lane Lates and - still in the development stages - Ultra Lates.
“Around now is a critical time for sourcing easy peelers, but because we have a dedicated grower of varieties we know suit the Waitrose customer, we do not have to start jumping around and looking elsewhere.”
The season has lengthened to the extent that there is now an overlap with South Africa’s early easy peelers. “We can grow satsuma and clementine varieties from late September right through to June - a nine-month season in which we grow selected varieties in the volume we require. We can tick along very nicely, and I don’t have to source from Morocco or Israel. While others now are filling gaps with Minneola, Fortuna, Suntina or Moroccan Nor, I have the option not to. We have large volumes of Afourer, which is a fabulous variety that we have been planting in increasing volumes. We have Afourer available from now through to the end of March.”
The Spanish soft citrus season begins for Poupart with a three-week burst of clemenpons - “we are one of the few to have that variety,” says Olins - and also includes significant volume of clemenules, the last of which were packed last week. The South African season kicks in during April with a grower in western Cape supplying satsumas, before moving into clems in June.
“Chile and perhaps Argentina are sources for us through the months of August and September, which represent the lowest point of the citrus calendar,” says Olins.
The Waitrose philosophy on the traditional downtime again differs from their high street counterparts. “Some retailers try to maintain a number of varieties through the quiet spell, but we tend to reduce the offer, and sometimes might even have a couple of weeks with no easy peeler offer, if the quality is below the standard expected,” he adds.
Waitrose prides itself on the percentage of organic produce it offers and in the mountains of Spain, Poupart has unearthed a grower that again produces specifically for the retailer. “We are still only in the third year of production and therefore nowhere near the peak of potential,” Olins says. “Our mission has been to concentrate on growing the same range of varieties we source as conventional lines and we are unique in being able to supply some of these varieties organically. The grower has a fast-expanding area of organic clems and is producing beautiful fruit. Waitrose sold his entire crop last year and expects production to rise considerably in the next four years.”
The generally more affluent Waitrose customer is more inclined towards organic purchases, but also towards larger fruit at the top end of the price scale. “We have navels as big as 88-99mm, four in a net and sell them for around 50p each,” says Olins. “Not many people can afford to pay that, but in Waitrose it is one of the better selling lines.
“We believe there is potential for more growth in oranges and soft citrus and within Waitrose the category is hugely important. It is one of the pillars of the produce department, underpinning the whole fruit department at this time of year before going on the backburner during the summer. We are given far more shelf space through the winter and far less in the summer and I have no problem with that. It is a realistic strategy and we will be happy as long as we continue to maintain our presence throughout the peak periods.”
Through evaluation of the marketplace and the desire for Waitrose to differentiate its citrus offer Poupart has also made significant strides in the grapefruit and lemon categories. “With grapefruit we took a view that as all the other stores are moving on a price basis - towards smaller fruit or sources such as Turkey - we would go in the opposite direction,” Olins explains. “During the winter we only source large sizes from Florida. A 3-pack retailing at £1.99 has proved extremely popular with Waitrose customers and we can’t get enough. It is another example of the niche marketing approach that has met customer requirements.”
Sales of lemons have traditionally centred on the loose, waxed offer. However, noting an emerging trend towards unwaxed lemons, Waitrose began to stock a four-pack of unwaxed fruit, packed at source in Spain. “Sales have risen dramatically,” says Olins. “The pack has gone from a small, added-value line to being the second biggest line in lemon sales. We are continuing to develop its potential, because despite the premium price, the foodie customer at Waitrose has recognised its versatility and quality.”
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