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China FVF 2016, at the heart of the Chinese market

More than 220 exhibitors from 15 countries boosted their trade opportunities at China FVF 2016 through talks with Chinese authorities and the country’s leading distributors

Jointly organised by the China Entry-Exit Inspection and Quarantine Association (CIQA) and China Great Wall International Exhibition Co., Ltd.(CHGIE), the 8th edition of ChinaFVF took place at the China National Convention Center (CNCC) from October 30 to November 1.

Throughout the past 8 years ChinaFVF has kept its finger on the pulse of the Chinese market, making every effort to promote the development of the fruit and vegetable sector and seek business opportunities for exhibitors and visitors. It has become the most important fruit and vegetable trade show on the Chinese mainland, attracting participation from government authorities and professionals from around the world.

More than 11,000 professional visitors from 31 countries and regions around the world gathered at ChinaFVF 2016. International visitors accounted for 24% of all visitors. The top 10 countries of the professional visitors were Russia, South Korea, Ukraine, Singapore, the UAE, Australia, Thailand, Japan, india, New Zealand and Indonesia. The Chinese visitors drew from 28 provinces and autonomous regions, accounting for 76% of all visitors.

International Exhibitors

ChinaFVF 2016 attracted 220 exhibitors from 15 countries and regions, including Australia, Belgium, Chile, China (inc. Taiwan), Egypt, France, Italy, New Zealand, Peru, Poland, South Africa, Spain, Thailand and the US. There were national pavilions for eight countries – Australia, Chile, France, New Zealand, Peru, Poland and South Africa, Thailand – showcasing their highly reputed fruits and vegetables.

 

Worldwide supply chain, 16 seminars and B2B meetings

Gathering most kinds of products and brands from China and all over the world, over 500 new varieties and 1,200 brands demonstrated successfully during ChinaFVF 2016. The exhibition covered the whole fruit and vegetable industry chain from the various continents. Among them are Egyptian citrus and pomegranate, California strawberries, Poland apples, French kiwiberries, artichoke and endive.

Matching meetings generated more than 400 face-to-face discussions with 140 invited buyers from China and abroad. Among the major China buyers are the Ecommerce platforms like JD.com, Benlai.com, Yiguo. com, Fruitday.com, Tianmao.com; big fruit chains like Guoduomei, Pagoda and Greenery Fruit; large retailers like Sunlon, Wal-Mart, Ito Yokado, Tesco Lotus, Parkson and Aeon; traders from Beijing, Shanghai, Guangzhou, Chongqing, Shenyang, Shandong, Henan and so on.

16 seminars and 45 experts

The organisers held 16 forums and seminars gathering 45 experts to offer the latest information in the fresh industry. Both Australia Nectarines Exporting to China Launching Event and Shaanxi·Luochuan Apples Exporting to Australia Launching Event chose to launch on the first day of the exhibition.

The International Fruit and Vegetable Industry Development Forum focuses on analysing the inspection and quarantine policies of China and other huge amount fruit exporting countries.

Cooperated with China Agricultural Wholesale Markets, “Agricultural and Commerce Collaboration”– Fruit & Vegetable Supply Chain Summit and China Agro-products Dealers Conference (Beijing Session) was also held on site. There was also a South Africa Macadamia nut seminar and a flower tour. 

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Piotr i Pawel’s innovation in the F&V space

Piotr i Paweł, one of Poland’s biggest supermarket chains, is once again promoting a range of innovations in fruit and vegetables in stores nationwide

Piotr i Paweł, one of Poland’s biggest supermarket chains, is once again promoting a range of innovations in fruit and vegetables in stores nationwide.

Special areas where customers can try fresh fruit and vegetables, new sections featuring wooden tables and racks for fresh organic produce, and new stands promoting produce that is not familiar to the Polish – such as collard, black salsify and exotic fruit – are among the measures.

“We have been using the slogan ‘Cheaper than you think’ to promote a line of vegetables including Polish tomatoes, cucumbers, iceberg lettuce and also peaches grown in Małopolska, in southern Poland. And we have the ongoing promotion of our own brand products with the ‘Always Quality’ tagline,” said Jacek Grzyb, from Piotr i Paweł’s fruit and vegetable sales department.

“Fruit and vegetables account for about 10% of all our products. In 2015 our general turnover increased 5.6% to 2.12 billion zlotys, making Piotr i Paweł one of Poland’s most fastest growing food retailers.

“The same year, our fruit and vegetable sales totalled over 200 million zlotys,” Grzyb said.

“Right now in Poland there is a trend towards demand for better quality food, particularly in regard to fruit and vegetables and especially among young and middle-aged professionals.

“We are also trying to introduce our customers to lesser known vegetables such as topinambur and pitahaya. These specialty items will be sold in the majority of our outlets in different regions across the country,” he said.

Founded in 1990 and fully Polish-owned, Piotr i Paweł is also well-known for the premium class products offered in its expanding food store chain.

“In just two years we have opened over 130 new stores in 61 towns across the country. The average sales area is 1,100 m² and our assortment is up to 27,000 different articles.

“The number of our private label products has increased to 1,000 items and covers various categories of products. Piotr i Paweł is able to compete with other retailers whose fruit and vegetables are often cheaper,” Grzyb said.

Focus on medium size cities

Regarding the constant development of the fruit and vegetable sections in Piotr i Paweł supermarkets, there is a need to ask how the retailer will develop its purchase strategy in years to come concerning various categories of fresh produce.

“Our main task in the near future is to invest over €9 million each year from our sales revenue in making our shops more attractive for our customers.”

And while Piotr i Paweł plans to build new supermarkets in Poland’s medium size towns, it won’t neglect bigger cities.

“In Warsaw alone we have six supermarkets and plan to open more,” Grzyb said.

Piotr i Paweł now has 138 stores, including one opened in late October in Warsaw’s Koszykowa St.

TK 

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Modern retail in Ukraine

Tavria V is the top retailer from Southern Ukraine in online sales

Founded in 1992 in Odessa (southern Ukraine), Tavria V started out selling food in kiosks but in 1998 opened its first supermarkets.

“Tavria V is a multi-format retailer,” said Elena Seyrik, director of its import department. “We operate via 70 stores: hypermarkets, supermarkets, convenience stores and delicatessen supermarkets. Our shops are located in central and southern Ukraine.”

In addition, Tavria V was the first retailer in the region to begin e-commerce, opening its internet shop under the same brand.

“Sales of fresh produce, and fruit and vegetables in particular, are very significant for us,” said Natalia Muzyka, the company’s import manager.

“We import fruit from Greece, Spain, Egypt and Turkey, mainly citrus and stone fruit. The vegetables are imported from Turkey, Poland, and Egypt. Nonetheless, domestic fruit and especially vegetables account for a considerable part of our trade, especially in summer and autumn.

“Ukrainian producers keep improving the quality of their products, expanding their assortment and building modern cold stores so they can extend the seasons’ supplies of local fruit, berries and vegetables.”

To offer better quality and better prices, Tavria V has direct contracts with both Ukrainian and foreign producers.

“Our company keeps growing; we not only have shops, but also two restaurants and a chain of Sprint cafés, so we are open to new contacts,” Seyrik said. 

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Fresh produce sales on the rise in top Polish convenience chain

Zabka Polska, the leading convenience store chain in Poland, now boasts fresh produce sales worth the equivalent of more than US$ 150 million.

Zabka Polska, the leading convenience store chain in Poland, now boasts fresh produce sales worth the equivalent of more than US$ 150 million In the last two years, its turnover from fresh fruit and vegetables has risen about 3-4% compared to in 2012/13.

And 2015 was a particularly good year, with Zabka’s fresh produce sales rising 6.2% on 2014 despite the Russian food embargo.

Its sales of apples, for example, increased by 4,000 tons, a gain of 15% on the previous year. And the chain expects to end 2016 having rung up 2-3% more in fruit and vegetable sales.

“Citrus sales in 2015 have also increased but not in all the categories. Tangerines and oranges were up 0.4% and banana sales improved by 1.5% but the sale of other exotic fruit fell about 0.8%,” said Zabka press secretary Anna Jarzebowska-Kwiatek.

Since 2013, Zabka has been on a quality improvement drive and now avoids lower quality fruit. All fruit arriving at its depots is carefully inspected, Jarzebowska-Kwiatek said.

Founded 18 years ago, today Zabka operates in almost every part of Poland – from small towns to big cities. Polish consumers now have a Zabka outlet on almost every street corner so they visit these shops more often than bigger supermarkets, which are located further away.

By the end of December, it will have launched 417 new stores in 2016, bringing its total number of outlets to almost 3,600.

“Next year we plan to maintain the same rate of openings, however everything will depend on the current economic and political situation,“ Jarzebowska-Kwiatek said.

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Pagoda: 1,540 stores by 2017

Pagoda, Asia’s leading fruit specialist, enters the Taiwanese retail market and launches an app

Last August, Pagoda took a significant step towards globalisation by opening its first experimental shop, in Tachung, Taiwan. It was designed along the same successful lines as Pagoda’s Chinese stores, with an area of 200 m2, an attractive design and display, and a wide assortment of premium products. With this move, Pagoda became the first Chinese fruit retailer to establish a presence on the island. By moving into the Taiwanese fruit retail sector, the company is enacting a long-held plan for its operations in Taiwan. It sees great potential in the Taiwanese market due to the relatively few fruit stores there. Pagoda now hopes to help develop the fruit retail market in Taiwan and strengthen its ties with local fruit businesses there.

The award-winning retailer has also launched its own digital application. “Our aim is to start selling our products online,” said Pagoda CEO Peter Zhu. And the chain continues to innovate with the launch of the new store concept Sarahpick, a convenience format serving fresh food based on fruit and vegetables. “Following the success of our first trial stores, we are now planning to open up to 200 by 2020,” Zhu said.

10,000 Pagodastores by 2020

Zhu also stressed the company’s ambitious target of opening 10,000 Pagoda fruit stores in Asia by 2020. “The other Southeast Asian countries have similar consumer habits to China, so we hope to be equally successful in those markets, too,” he said. Founded in 2001, Pagoda has since expanded rapidly, establishing a growing presence throughout the fruit sector in China. As a further demonstration of its vast ambitions, Pagoda acquired the large fruit supermarket chain, Guoduomei, in Beijing at the end of 2015.

On the logistics side, Pagoda is now directly sourcing about 80% of the fruit and vegetable volumes it distributes, supplying its stores via its 3 major regional logistics centres (in Shanghai, Shenzhen and Guangzhou) and its 12 city warehouses. As a boutique fruit retailer, Pagoda’s own brand provides premium quality fruit at affordable prices. To ensure the quality of its produce, it imports directly from overseas suppliers with whom it strives to maintain close relationships. About a third of its products are directly sourced from abroad.

Rise in cherry sales

Pagoda’s stores sell an average of 90 different items daily, with cherries, usually imported year-round, among the items seeing most growth. Its top Northern Hemisphere sources are the US and Canada, and in the Southern Hemisphere (November-March) it’s Chile, New Zealand and Australia. China’s own cherry season runs from March to June. “Melons are our second item in terms of growth,” says Zhu, “but we find it difficult to source overseas the kind of crunchy, sweet and juicy melons that Chinese consumers want.”

At the 2016 PMA Fresh Connections event in China, Pagoda took a big step towards securing a large share of the Chinese avocado market by signing up to a joint venture with US grower Mission Produce and importer Lantao. At the moment, there are few recognised fruit brands in China, so this represents a major opportunity to establish Pagoda as a leading brand. Avocados are still relatively new to Chinese consumers, with Mexican avocados reaching the market just four years ago, followed in 2015 by Peruvian and Chilean brands. Pagoda shifted its focus towards securing the Chinese market for avocados as the company believes it will represent a large part of the fruit market in years to come. 

Among the top 100 retail chains

This landmark joint venture agreement for Pagoda comes hot on the heels of receiving the prestigious title of Produce Retailer of the Year at the Asia Fruit Awards at Asia Fruit Logistica 2015. What is more, this year Pagoda was named on the list of the Top 100 Chain Retailers; the only Chinese fruit retailer to claim this honour. Pagoda places great emphasis on educating consumers about the importance of a quality diet in a healthy lifestyle, and there is now an ever growing interest in China, across all the generations, in consuming premium quality fruit. That’s why Pagoda promises consumers it will refund their money if not fully satisfied.

Pagoda, whose headquarters are in Shenzhen, is the largest independent fresh produce chain in the world with 1,500 stores across China. It is looking to grow its business and form professional partnerships with excellent fruit suppliers from across the globe. The company promotes Pagoda Orchard as “everyone’s garden.”