The people organizing the next Fruit Attraction took the opportunity to remind the participants that we are getting closer to the event in October 2014 and that users may consider making use of the incredible range of services they offer. According to the director, Raúl Calleja, “The world is connected through personal relations,” and Fruit Attraction’s main aim is to bring together all the core features that make up the fruit and vegetable market. His lecture began by giving clues about the top things that any product must achieve to attract customers’ attention permanently. It must cover some needs; it must be able to be personalized, reliable, original, and be able to create new experiences. This list, which should be observed in any financial activity, is described point by point within this international fair. The event has become the main focus for business affairs in the fruit and vegetable industry and Raúl Calleja advises future participants to defend their interests and to establish new business relations using the facilities provided. With a wide range of activities, the event takes place in four adjoining halls at the main fair venue in Madrid: IFEMA.
Uncategorized
Expoalimentaria Lima is coming
Expoalimentaria is the main food fair in Latin America, and in 2014 it will be held from 27 to 29 August at the Jockey Exhibition Centre in the city of Lima, Peru. The fair will show the exportable supply from more than 650 national and international exhibitors from over 20 nations present. Every year, the Lima fair is visited by more than 35,000 domestic buyers and over 2,500 buyers from five continents. In 2013, it generated $660 million in business in the food industry, accounting for categories such as consumables, processed foodstuffs, beverages and liquors, machinery, equipment, packaging, services, training, transportation, logistics operators, insurance and financial services, and certifications. It is becoming established as a unique business platform for producers from different regions of Peru and the world. «In 2014, on an area of over 23,000 m2, we will see International Pavilions including Argentina, Brazil, Canada, Colombia, Ecuador, France, the Netherlands, Malaysia, Mexico and Turkey. The new International Pavilions are India, Spain and France, and we are rounding off our negotiations with China. The fair this year will revolve around the theme of green and inclusive business,» explains Zaide Arauco.
Metro Group lifts global ambitions
Emmanuel Langdorf, head of fruit and vegetables for Metro AG and Laurent Renard, trading office manager, provide a comprehensive overview of Metro Cash & Carry’s activities
Metro AG, also known as the Metro Group, is a leading international retail and wholesale company. The Düsseldorf- based group’s food activities consist of wholesale trade and hypermarkets. Metro Cash & Carry represents the largest and most international business in the group and is a leading player in self-service wholesale trade, active in 29 countries in Europe, Asia and Africa.
Metro Cash & Carry’s main clients are hotels, restaurants, catering firms, independent retailers, service providers and public authorities.
City center locations and delivery services
Our sales lines offer customised assortments and services and are excellent value for money. This offer is complemented by innovative solutions as retail concepts and professional services to optimally support professional customers in their respective business.
The Metro Cash & Carry sales concept is flexible and adapts to meet specific evolutions, conditions and needs of the respective countries. The format of our stores varies significantly, with an assortment depth from 2,500 m2 to 16,000 m2. In addition, Metro Cash & Carry has introduced new sales formats to take into account differing customer specifications. For example, the wholesale company in Poland (under the brand Makro) offers a new store format called Makro Punkt. Targeting the needs of small independent retailers, the stores under Makro Punkt primarily offer beverages, tinned foods, dairy products and fruit and vegetables – exactly those products that a kiosk or small grocery store needs. Meanwhile, Odido is a retail-franchise concept initiated by Makro Poland. These stores are run by private owners. Small traders who choose to enter Odido’s franchise programme have the opportunity to grow their competitiveness in the market. Makro Cash & Carry Poland supports small independent shops with advice and marketing tools. In return, these retailers agree to include a number of Makro’s own branded goods in their stores. In addition, discounts are available if goods are purchased from Makro’s wholesale stores. Shop owners keep their financial and managerial independence throughout the entire process of the programme. Independent traders – particularly those in emerging markets- are important to Metro Cash & Carry. For this group, our sales lines have been tailored towards trader support programmes to help them modernise and make their business completely professional. Together with the customer, specific store parameters are assessed and measures are pinpointed in term of assortment and layout. We also develop special formats for city centre locations. These have already been successfully introduced in Paris, France, in addition to Madrid, Spain and Italy, Rome. These stores have a selling space of up to 3,000 m2 and address the needs of hotels, restaurants and catering firms, offering primarily fresh foods. Thanks to central downtown locations, Metro France can shorten trips made by customers and contribute towards improving the quality and freshness of the fresh produce offered. Another major development within Metro Cash & Carry is the development of the delivery service. This option has become an integral part of the service and is creating value for customers as it saves them time. Professional customers can quickly place their individual orders by e-mail, fax or telephone and the delivery service guarantees that customers consistently receive high quality fresh fruit and vegetables. Our logistics organisation ensures the cold chain is unbroken and that the principles of HACCP, the internationally recognised quality assurance certification, are adhered to.
Strong emphasis on local producers
As an international retailer, we have considerable strengths. These strengths benefit not only our customers but also the community as we believe growth is created in the regional economy and that we play a significant role in improving the quality of life in these areas.
Indeed, our stores and buying organisations in the 29 Metro Cash & Carry countries secure local supply, create and expand supplier relationships. The fruit and vegetable category is a prime example of this. The ‘De ale Nostre’ programme in Metro Romania supports and offers local products to our customers. The local organization has implemented a specific programme with growers, mainly in vegetable sourcing areas in the country, and provides growers technical support and marketing pointers to better serve the needs of Romanian customers. Metro Cash & Carry emphasises local products: in general up to 70 per cent of our assortment is purchased from local producers and providers. But local does not mean excluding global!
200,000 tons delivered by the International Trading Office
Metro Cash & Carry is more international than any other Metro Group sales group. It operates on three continents and faces different opportunities in each market. A new global sourcing strategy has been created to identify specific customer needs and exploit market potential. The international trading office concept was created in 2009 to source and procure fruit and vegetables. Located in Valencia, Spain , the newly created organisation aims to support the group in :
• Developing competence and innovative products for customers
• Increasing quality and freshness of products by shortening the length of product marketing
• Creating synergies and meeting Metro Group’s needs on Mediterranean assortment, overseas products and processed fruit and vegetables
• Developing direct sourcing with growers and suppliers in certain areas based on long term and transparent relationships.
The Valencia trading office accounts for 200,000 tonnes of the volume generated in 2013 by the Metro Group. There are regular deliveries to more than 20 countries where Metro operates. Thanks to the collaboration of the group’s buying organisations, this figure is on track to double within 3-5 years. It is a competitive business but the Valencia trading office focuses on nurturing transparent and progressive relationships and initiatives to increase its percentages of sourcing fruit and vegetables. Sourcing activities are focused on Spain, Morocco, Italy, Greece and Turkey for products such as citrus, tomatoes, vegetables and summer fruits. Other core selected countries are used to source overseas specialties or dry fruit.
Social and ecological objectives too
Sustainability has many facets. A range of activities and cooperative partnerships are needed, as well as the commitment of each individual who can contribute to achieving predefined milestones. Our commitment is not an end in itself. We always consider social and ecological factors alongside our economic objectives. Metro has developed a group- wide sustainability vision. This provides all employees, not just the fresh produce team, with a solid starting point and framework and starting. The Valencia international trading office aims to provide safe, quality products, implementing HACCP but also using other procedures related to the sourcing of products. These include product specification to elicit technical information about product compliance with safety and legislative requirements, and compositional and packaging information. It forms part of the binding agreement between Metro and the fresh produce providers and ensures clarity and transparency in these transactions.
Efficient procurement structures, bundling volumes and efficient transport in well-organised logistical chains also reduce the amount of energy required during the various stages of the supply chain.
PE
UNIVEG rises to consumer challenges
The solution developed in partnership with the distributors is eating-ripe fruit
“The decline in European fruit and vegetable consumption is a real paradox in view of the consumers’ increasing need for healthier products”, exclaimed Francis Kint, the managing director of UNIVEG Group. This observation is all the more bitter because fresh fruit and vegetables constitute a significantly more sustainable value chain than other food products. “The first thing we have to do is to guarantee a positive eating experience”, he warned. For this reason, UNIVEG has staked a lot on offering its customers pre-ripened “ready to eat” fruit. “We are the largest European fruit and vegetable ripener and can now use this infrastructure to expand our range of ripened products”, he pointed out. UNIVEG ripens nearly 500,000 crates a week of bananas and tropical fruits, approximately 10% of the fruit ripened in Europe according to the group’s estimates. It is the unchallenged leader in Germany and also has its own ripening facilities in Britain, Austria, Spain, France, Italy, the Netherlands and Poland. UNIVEG Katopé UK and Bakker Barendrecht were the first in their respective markets to ripen stone fruit and tropical fruit (largely mangoes and avocados). Each of the group’s subsidiaries has made major technological investments. “Facilities for avocados and mangoes constitute 20% of our total ripening capacity”, explained Francis. On the strength of this achievement, UNIVEG’s eating-ripe tropical fruit clients have more than doubled in 2013, with Germany accounting for 25% to 30% by volume. The group is also increasing its undertakings to farmers and last month announced the renewal of 2000 ha of banana contracts in Suriname following the privatisation of the state-owned farms. The UNIVEG group has around 9000 ha of its own crops, including 3000 ha of apples and pears in Argentina and avocados, apples, pears, grapes and citrus fruit in South Africa “We have sourcing teams in all the main growing countries worldwide. Our latest location is Colombia”. The group is also pursuing the expansion of its distribution network, particularly in the United Kingdom, where at the end of January it acquired the third-largest pear and apple importer, Empire World Trade, a neighbour of its subsidiary UNIVEG Katopé UK. “We will continue to move forwards in the UK market and achieve our strategic objective of becoming one of the top five British importers”, revealed Francis.
PE
Choithrams invests in fresh produce logistics centre
The chain plans two new investments in logistics to support its expansion and improve the quality standards of its fresh items. One fresh cuts division of 20,000 square feet, and another facility of 13,000 square feet for readymade food including fresh juices, will be built in Al Quoz. The fresh cuts unit will cover storage and processing of fresh cut fruits and salads with a capacity of 10 containers of products.
Choithrams stores distribute consumer packs of a variety of greens in specially procured breathable bags that help retain freshness. A variety of freshly cut vegetables, freshly peeled seasonal fruit and easy carry bags of popular fruit and vegetables is also available. “We comply with local customs (Halal) and HACCP guidelines. Regular training for the counter staff is organized through in-house training in order to keep up with the latest industry trends,” said the company’s perishable manager Pravesh Sawlani. Choithrams today runs 30 stores in convenient locations in the UAE, with 24 hour shopping at selected stores, and home delivery services. A further 17 stores are in planning in the region. The group operates under the brand names Mega Mart and Shop Right in Qatar, and in Bahrain under Babasons and Macro Mart. As one of the UAE’s leading supermarket and department store chains, Choithrams is both a favorite place for tourists to shop and a feature of daily life for residents.
Al Maya, a winning format with 12 more stores
Starting from a single supermarket in the UAE in 1982, the Al Maya Group has become one of the the Middle East’s leading supermarket chains. Today it has 33 supermarkets and hypermarkets in the UAE, as well as 5 supermarkets in the Sultanate of Oman. “We continue to expand and plan to open 12 new stores in Dubai, Abu Dhabi and Al Ain this year,” said Kamal Vachani, the chain’s managing director. Current Al Maya shop formats are very diverse, ranging from 3000 to 50,000 square feet. “A new design and concept is being implemented in all our stores,” he said. Headquartered in the UAE, the Al Maya Group has strengthened its regional presence across Oman, Bahrain, Kuwait and Qatar in the past two decades. The group has also been fortifying its global spread with stores in India and the UK. Its successful strategy has been to maintain high quality standards of fresh food supplies all season and covering 97% of the market, with formats ranging from small grocery stores to large hypermarkets. Fruit is the top-selling category in fresh produce. Apples and pears come first and represent 9.44% of turnover, second are bananas with 8.66%, then exotics with 6.46% and citrus with 6.03%. “We deal direct with most of the leadings suppliers of fresh produce around the globe, in order to provide our valued customers with the best quality.” Taking the apple category as an example, 45% of Royal Galas come from New Zealand, 40% from France, and 15% from Chile, Spain and Brazil. Red Delicious mainly come from the US (60%), France (25%), and Chile and Spain (15%). About 45% of the Granny Smith apples are from France, 15% from Spain, 15% from the US, and the rest from South Africa, Chile and New Zealand. The US supplies 35% of Goldens, France 25%, and Chile, Spain and South Africa the rest. As for pears, we handle D’Anjou (60% from the US and 30% from South Africa), Forelle (60% from South Africa), as well as Packhams from South Africa and Ya Pears from China. Tomatoes are the top vegetable item, representing 8% of total fresh produce sales. A third of its volumes comes from Jordan, 25% from Oman, 12% from India and 5% each from Egypt, Malaysia and Holland. Potatoes make up 6% of fresh produce sales. About 30% come from Lebanon, 20% from Jordan, 10% from Egypt, and also some from China, India, Pakistan and Bangladesh. “Our organic product sales achieve their margins and are tending to improve, forming about 2% of total fresh produce sales this year.” Local organic farms are developing new growing technologies like hydroponics and making more products available on the market. With the largest distribution centre in the UAE, the Al Maya Group holds the sole GCC rights to distribute a spectacular variety of FMCG products across the region. This ranges from foodstuffs to apparel and luxurious salon treatments. All brands are completely synonymous with the Al Maya Group vision of high quality standards. BS
Healthy eating trend in the Gulf
Premium supermarket chains like Spinneys have opened 50% more shops and are investing in new logistics operations
Spinneys’ CEO Jannie Holtzhausen confirms a 15% annual sales increase and the continuous expansion of the chain in the Gulf. Spinneys stores have increased from 40 to 66 units over the last 3 years, with formats of 10,000-40,000 square feet. The chain also includes a few convenience formats between 2,500 and 4,000m2. Its estimated food retail market share in the UAE is between 7 and 8%.
“Due to our strong focus on fresh produce, our sales of fruit and vegetables have grown 17%, above the average for the other food categories,” Holtzhausen highlighted. The pre-packing of specific categories has helped stimulate sales, particularly for berries, cherries and grapes. “The growing interest in healthy habits is helping boost fruit and vegetable sales in all consumer categories,” Holtzhausen said. This global trend of increased health consciousness is also seen in the GCC countries, inducing consumers there to buy fresh rather than processed products. When asked about Spinneys’ approach of customer profiling, Holtzhausen said it preferred to focus on stores and categories to improve sales and performance as: “We manage products, not customers”.
“Ready-to-cook” vegetables successful
The chain has successfully developed a full line of pre-cut, “ready-to-cook” vegetables over the last 4 years which now has more than 15 items. Among the popular ones are baby potatoes (microwavable), cut beans, baby cabbage, squash, peppers and mixed vegetables. Each item comes in two sizes: smaller packages for individuals and larger formats for families. The microwavable potatoes product has become the most successful, due to its convenience, and enjoyable taste and firm skin on eating. “Surprisingly, the smaller and baby potatoes outperform the standard potato line in the medium and higher consumer segment,” Holtzhausen pointed out.
“But pre-cut fruits are now our fastest growing range,” he said. Most of the items are made at the farm and sourced from various African countries (Tanzania, Kenya, Senegal and Zimbabwe). Holland remains the main supplier for vegetables though in general its origins have become more diversified.
Berries continue to enjoy strong sales. Strawberries and blueberries dominate but a full assortment is offered. About two thirds are sourced from North and South America, 25% from Europe (still very seasonal), and some also from Australia and New Zealand. “We believe the most successful suppliers will be Egypt and Peru,” Holtzhausen predicted. Lettuces come mainly from Europe (85% from Spain and Holland), with still only 5% from Africa. “We hope Africa, being closer, will become a major supplier of lettuce as it has a more predictable climate and better political milieu.”
Tasty, Fresh and Healthy
“We have a quite large team of 10 food scientists, looking closely at our suppliers with regular audits at their farms and packing houses, particularly for fresh cuts items.” GlobalGAP protocol is required as much as possible. US and European items are naturally all certified, the other origins are audited by Spinneys’ own quality managers.
Logistics is an essential part of the a total control of the foodchain. Over a third of fruit and vegetables are directly imported and most are stored and handled within Spinneys’ own facilities. The group is now busy constructing a new logistics centre for dry, frozen and chilled products which will be located in Kizard, Abu Dhabi. “Our plan for the next three years is to continue to expand as fast as the economy will allow,” Holtzhausen said.
PE
Intermarché wants to become France’s No.1 in fruit and vegetables
The retailer’s three-year strategic plan aims to raise its market share from the current 13% to 15%
Intermarché wants to become France’s No.1 supermarket for fruit and vegetables. “In 2013, a consumer survey showed that none of the major French retailers is identified as the leader in fruit and vegetables”, explained Cédric Briais, the chairman of Sca Fruits Légumes Fleurs, Intermarché’s central produce purchasing organisation. “Evidently there is a gap to be filled and Intermarché, which has a store every 17 km throughout France, is in a good position to fill it”. Intermarché has 1813 stores in France (230 in Portugal, 80 in Belgium and 168 in Poland), in four formats (Hyper, Super, Contact, Express), but has lagged somewhat in fruit and vegetables up to now. While the Kantar ranking places it first for fish and second for meat, its market share in fruit and vegetables is only 13.1%. “We have accepted the challenge to increase it and make Intermarché the benchmark French supermarket for fruit and vegetables”, said Cédric Briais.
A three-year strategic plan has been adopted to achieve a 15% market share at the end of 2015 and 16% at the end of 2017. The concept that has been developed is based on consumer demands. The main emphasis has been on staff training. “We have rewritten our training materials so that everyone has the knowledge to make a real career in produce, so they know the products, varieties and seasons and know how to optimise their freshness”. The decision was also taken to keep someone in the produce section all the time, to underline its traditional appearance. Shelf capacities have been reviewed to adjust them to the most delicate products. Also, the range has been expanded and segmented for greater clarity. For most lines, Intermarché will be offering budget, core, premium and rarer products. Segmentation by use will also be introduced for some products such as potatoes (baking, gratin, frying, firm-fleshed, microwaveable). Two brands have been created to make repeat purchasing easier. Mon Marché Plaisir, launched in January 2014 with an objective of 60 products by June, is intended for core products. “We have revised the specifications and worked hard on the varieties to guarantee the quality standards of these products”, emphasised Cédric Briais. Itinéraire des Saveurs is the brand that identifies local products but was not being used for fruit and vegetables, which it now will be, and also for PDO, PGI and similar products (Rate du Touquet potatoes, Corsican clementines, strawberries from Plougastel, etc.). POS advertising and information efforts will be made to tell consumers about the products, regions and recipes and showcase local products.
Developing partnerships
Another line of work is to develop partnerships with the growers. “Nowadays we need real partnerships to ensure supplies and continuity of quantities and quality, particularly for the products we sell under our own brands”. At the end of 2013, 3 to 5-year contracts were signed with the growers and suppliers of Mon Marché Plaisir products. They are based on undertakings concerning volumes, a certain number of depots to be delivered to every day, and seasonal or market prices depending on the product. Intermarché, which distributes 70% French products, has 6 buying offices at Perpignan, Cavaillon, Agen, Nantes, Arras and Tréville. These six offices supply the 18 depots that provide 80% of the stores’ procurement, while the rest is bought direct. “We make French and regional supplies a priority”, Cédric Briais said. “In lettuces, for example, although the south-east delivers to all the depots in winter, from April to September each depot buys locally”. Imported products are bought from the importers except for bananas, a flagship product for Intermarché that it buys direct. “The majority are grown in partnership with farmers in the West Indies. We buy full container loads, and each depot has its own ripening facility”. In 2013 the 1813 Intermarché stores achieved a turnover of €21.3 billion (up by 3.2%), excluding fuel, and consolidated the group’s 3rd place in the food rankings with a 14.2% market share (0 .3%).
VB
SA2PE readies to launch “farm direct” stores
Catalan group SA2PE, focused on fruit and vegetable distribution, plans to add a sixth brand to its stable this year with a new business model centred on farmer-direct produce.
With competition fierce in its traditional line of greengrocers, SA2PE aims to innovate and differentiate with the new line of bigger stores, which in addition to the basic fruit and vegetables will offer dairy products, pre-cooked food, wine from the barrel, and other items. “Like Spain’s colmados (grocery stores) of days gone by.”
CEO Salvador Rodrigo said the new brand – the name of which will not be announced until late April – will complement the group’s chain of Fruit SA2PE fruit and vegetable stores, which spans 85 franchised and 53 group-owned stores around Spain and is expected to enjoy sales growth of ten percent this year. Sales in the Fresh Quality business line, a SA2PE brand focused on the food service (Horeca) segment, are forecast to rise 10-15 percent. SA2PE has been honing its new business model with trials in two stores and will open a third, in the Barcelona suburb of Gracia, in about two months. It handles about 300 different product types each day at its logistics platform at Mercabarna but the Fruit SA2PE stores each offer about an average of 100 varieties, with about a 60-40 split between vegetables and fruit. While they have an average floorspace of 80-120m squared, those in the new line will have a minimum of 120m squared. Apart from drawing on its existing network of suppliers at Mercabarna, SA2PE is working on establishing new suppliers, particularly from Andalusia, for the coming chain centred more on local produce direct from the source.
JM
Mercabarna’s major transformations
Its managing director Josep Tejedo sets out how the market plans to convert itself into the Mediterranean’s food hub.
“Barcelona City Council, Mercabarna, the AGEM wholesalers’ dealers association and representatives of the market’s agricultural cooperatives signed a historic accord in February. The agreement allows for the modernization of the central fruit and vegetable market which has operated in our food complex for 43 years. Under the deal, the market’s various business owners will pay the full cost of the works, about €20 million. In return, the council will extend their concessions – due to expire in 2020 – a further 17 years, the estimated time needed for them to amortize their investment.
“This agreement between the public and private sectors will see the market upgraded such that it remains both a national and international reference. Work will start in late 2014 and last five years, during which the market will continue operating. Furthermore, the businesses can make progressive payments over the course of the project.”
The Mediterranean food hub
“Our goal is to convert Mercabarna into the Mediterranean’s food hub, an international center where fresh produce from around the globe is received, has value added to it, is grouped with other foods, and then again dispatched to anywhere around the world. To us the sea is not a border but a major highway. “We have therefore created the Foodstuff Cluster of Barcelona, an umbrella for the Foodservice Cluster, Retail Cluster and Mercabarna Export Cluster. Each of these brings together businesses in our precinct that have interests in different market segments, and together we aim to strengthen the resulting synergies. With companies in the foodservice cluster, for example, we are studying how to sell more to companies in the hospitality sector, and in the export cluster we’re exploring information and business contacts to promote exports.”
Increasing exports to Europe and beyond
“Exports already form 25% of sales by the companies in the fruit and vegetable sector at Mercabarna and, through the export cluster, we aim to help them increase this percentage and also to increase the number of companies exporting.
In order to do this, we are gathering initiatives from the business people involved and commissioning market research on certain countries, participating in international trade fairs, and organizing trade missions and meetings between overseas importers and Mercabarna exporters.
“In regard to those in fruit and vegetables, we have studied the markets of Germany and Poland. We also participated in Fruit Logistica in Berlin, where we facilitated business meetings, and we’ll do the same during our participation in Alimentaria (Barcelona) and Medfel (Perpignan).”
Capitalizing on expertise
“We continue to export our know-how through our international consultancy, which has become very highly regarded. At present, we’re in the last phase of our consultancy on the fresh food market in Montevideo and have four more international projects in the pipeline.
Another interesting project involves providing training for food sector managers. Mercabarna training services has more than 25 years’ experience in the education of food sector employees and is now expanding it to management level. To this end, we are working and establishing agreements with various universities in order to provide courses on the subjects of international food trade, logistics, food technology, and so on.”
A ‘greener’ market
“On environmental issues, since we launched our environmental project in 2002 and built our specialized ‘Green Point’ – which was a pioneer in Europe – we’ve maintained extremely high levels of recycling, namely 80% of waste generated on our premises (more than 35,000 tons annually). This year we are planning for an upgrade of the Green Point to take place next year.
“Other Mercabarna infrastructure will also be upgraded over this period, such as the central fish market and multipurpose hall. Furthermore, to increase mobility in our complex, we are building a multi-storey car park with a 300-vehicle capacity.”
JMB