The figures speak for themselves when it comes to the potato category. Data from Kantar Worldpanel shows values up 16.2 per cent but volume down by 49,000 tonnes, equivalent to three per cent as the perfect storm of weather conditions last year has pushed on into 2013 to continue to affect the market.
Typically in May, consumers would have moved away from wintry comfort food and would be buying more salad potatoes, but due to the prolonged cold weather, sales of maincrop potatoes have been unseasonably high. Andrew Ovens, marketing director at Produce World, says: “There has been strong value growth through increased price per kilo as well as a rise in frequency of purchase and a slight increase in penetration.”
Despite this, the sector is at pains to point out what good value the category represents for consumers. “Potatoes are still really cheap – you can buy a kilo of Everyday Value potatoes at Tesco for just 69p,” points out Graeme Beattie, managing director at Branston.
And Andy Clarkson, retail commercial director at Greenvale, adds: “Retail selling prices have been over 30 per cent higher year on year, but there has been a limited impact on market volumes, providing evidence that consumer demand in the fresh potato market is largely inelastic with consumer demand remaining the same regardless of the price of potatoes.”
The fact that there has been tight supply has also provided the category with an opportunity for insight. “Promotional levels are at record lows for the fresh market due to weather-induced shortages and this provides a real opportunity to track true shopper habits and give industry professionals a greater understanding of the category with a clearer picture of purchasing traits that would have been previously misconstrued by promotional labels,” says Clarkson.
Looking at retail performance, the discounters have put in another strong showing this quarter, with growth broadly in line with their top-line grocery share. Ovens explains: “The discounters have seen strong penetration gains as consumers add them to the repertoire of shops they visit. Aldi in particular has benefitted from TV advertising, which has attracted shoppers. Aldi’s Super 6 promotion on vegetables has driven sales among these new-to-Aldi shoppers.”
Growth in the Essentials range at Waitrose is coming through its increasing customer numbers boosted by new store openings.
New-season crops have gone into the ground later than usual due to the delayed spring this year, but progress in the main has been good. At Greenvale, there were still a few areas last week that had yet to start planting due to the cold weather, including parts of Scotland and much of Herefordshire.
Soil temperatures have been well below average for the time of year, but some crops could catch up if the temperature continues to rise throughout May and will make the market in the early summer.
Clarkson says: “The 2012 wet summer, tighter stocks in store, the late spring and continued cold weather combined will now add further issues to the continuous supply of potatoes in the UK well into the rest of the year.”
Suppliers have had to fill shortages with imports and be savvy in terms of using the entire crop where possible, including tighter management of the use of outgrades and small sizes.
However, the shortages that have been filled by imports are likely to open up due to the late spring. Gaps at this time of the year are more difficult to fill and recently the market has highlighted that a strong trade is likely to finish off the season.
Looking ahead, Beattie reports that Branston’s farming division had more than two-thirds of its planned acreage planted last week. “But the cold means it has not been growing fast. What we want now are bright warm conditions with occasional showers.” —
SCOTTY'S GRAND PLAN
Scotty Brand hopes its Ayrshire potatoes can come to be seen as something of a local delicacy.
Scotty Brand is promoting its new potatoes from Ayrshire in Scotland to try to establish them in the same niche in the market as Cornwall and Jersey.
The Ayrshire crop is among the first to come on stream in Scotland and runs from June to early September.
Now Scotty Brand is behind a drive to widen their distribution in the broader UK marketplace. Michael Jarvis, marketing manager for Scotty Brand, explains: “Ayrshire is an ideal location to grow early potatoes because of its proximity to the south-west coast of Scotland, which benefits from the warming waters of the Gulf Stream.”
The sandy soil in the area warms up quickly in the springtime to allow planting in February and March. The region then receives reliable rainfall from March to May. This is critical for the potatoes to bulk up. However, it is also sheltered from storms and receives only around half of the frost of areas further inland.
The loose texture of the soil subsequently allows the potatoes to grow large and regularly shaped early in the season. Being close to the sea, seaweed and seaweed extract are often used to fertilise the fields.
The brand started its push on the regional potatoes two seasons ago. “In 2011 we first began with Scotty Brand Ayrshire New Potatoes in Scotland only,” Jarvis says.“In 2012 we enjoyed tremendous growth in the major multiples across the whole of the UK.We are currently working with the retailers to build on that success both north and south of the border with a programme of activity. We work with a number of retailers including Asda, Morrisons, Tesco and Whole Foods.”
He admits that consumers in Scotland have a strong affinity with the Ayrshire produce, but the experience last year showed that enthusiasm for the potatoes is strong across the whole of the UK.
This season is kicking off slightly behind last year. “We are planning to launch with Ayrshires towards the end of June/beginning of July, which is a week or two later than last year, but we are confident in our supply thereafter,” Jarvis says.
The trade is an historic one as early potatoes have been grown in Girvan, Ayrshire since the 1850s. Ayrshire potatoes in the late 19th and early 20th century were primarily harvested by migrant Irish workers known as tattie howkers. In 1910, records show that some 1,000 tattie howkers were employed in the Girvan area alone and special trains were laid on to transport the crop around the UK from Girvan station. —
Scotty claims to be the first brand to offer a portfolio of solely Scottish grown produce that switches line according to the season.
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