What Supermarkets Expect From Table Grapes

What Supermarkets Expect From
Table Grapes
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Introducton
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Asda Produce & Fruit Business
Overview of Internatonal Produce Ltd (IPL)
Asda Grape Business
South African Supply
Asda Produce Business
Produce Turnover (Asda Sales):
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Fruit – ₤630 million
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Veg – ₤600 million
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Salads – ₤550 million
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House Plants and Flowers – ₤100 million
Asda Fruit Business
Fruit Turnover (Asda Sales):
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GRAPES – ₤80 million
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Apples & Pears – ₤130 million
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Bananas – ₤100 million
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Citrus – ₤95 million
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Berries – ₤86 million
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Stone Fruit – ₤30 million
Fastest Growing Category = Berries
IPL 2011 Summary
IPL will manage a total of £939 million CoG
Asda / IPL Grapes
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Asda Sales – ₤80 million
52 week supply (opportunity for Black
Seedless in May)
Sourced from 16 countries
Equivalent 4 million x 9kg cartons
South Africa – 800K x 9kg cartons
Asda Grape Range
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Good
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Beter
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Smart Price
Loose Green and Red, Punnet Green, Punnet Red,
Punnet Black, Mixed Punnet
Best
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Extra Special Punnet
All punnets in the UK (we only purchase fnished
grapes from Europe)
Asda Retail Ofer
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Loose Green & Red
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Straight Price per kg
Punnets
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Straight Price Per Punnet
2 for ₤3.00
Or
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2 for ₤4.00
ALL GRAPES REFRIGERATED
Grape Sales (cash & volume)
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Loose vs Punnet
2010
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Loose
Price
can –be35%
clearly
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displayed
Punneton
- 65%
punnets
Punnets easier to
promote
than
Loose
2011 (year
to date)
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Loose – 25%
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Punnet – 75%
South African Grape Summary
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Fixed Price to all suppliers before packing
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Purchase Ex Works or Ex Cold Store
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Open to weekly pricing, 2 weekly, monthly, seasonal
Can load Grapes anywhere in South Africa
IPL manage the supply chain and freight
Work Directly with Growers
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IPL system enables us to work with the largest and
smallest growers!
Quality
Requirements driven by Customer Complaints.
Our customers complain about:
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Taste (poor taste and the lack of favour)
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Decay
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Browning on Green Seedless
Generally our customers do not complain about:
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Pale Colour on Red Seedless
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Fruit Size
Percepton of SA Supply
Strengths
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Generally good eatng quality. Green from the Orange River & Crimson
from the Hex rivals any in the world.
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Experienced farmers and packers with good internal systems and
practses.
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Generally strong exporters and growers with a good understanding of the
UK market.
Opportunites
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Opportunites to be more proactve towards varietal and packaging
developments.
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Resistance to change.
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A beter understanding of the end consumer is needed.
Future Strategy
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Procurement driven by Quality
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Green – move into Sugraone & Thompson ASAP. Limit Green from
Western Cape.
Red – Maximise Crimson
Increase volumes of Black
Packaging - Developments & Reducton
New Varietes
Emerging Growers
Work Directly with Growers
Questons?