Posted on

Why companies need a food safety culture

Listeria cases stemming from outbreaks traced to cantaloupe and, celery, and E.coli outbreaks linked to lettuce and bagged spinach are among various handled in recent years by Seattle law firm Marler Clark – a foodborne illness litigation specialist

Food poisoning outbreaks traced to fresh produce have become more prominent, according to Bill Marler, a US lawyer who specialises in food safety.

Listeria cases stemming from outbreaks traced to cantaloupe and celery, and E.coli outbreaks linked to lettuce and bagged spinach, are among various handled in recent years by Seattle law firm Marler Clark – a foodborne illness litigation specialist – where he is based.

But Marler, known in America as a food safety advocate, said it is not necessarily that more cases are occurring, but that they have become more noticeable.

It’s now easier to trace culprits

Marler’s focus on food safety stems back to the Jack in the Box E. coli outbreak more than two decades ago, which involved undercooked beef patties in hamburgers. He said the case prompted improvements in outbreak tracing and, in particular, more widespread use of pulsed-field gel electrophoresis (PFGE) – like DNA fingerprinting – which has made it easier to identify outbreaks linked to fruit and vegetables.

Simultaneously, consumption of fresh fruit and vegetables has increased in the US, as people aim to eat more healthily. With more people eating products such as lettuce, sprouts and baby spinach leaves – which are usually not cooked and therefore don’t go through a “kill step” before being eaten – the likelihood of more people getting sick has also increased, he said.

Tragic cases triggered changes

Among high-profile fresh produce cases in the US in the last decade was the 2006 E.coli outbreak linked to shredded lettuce in Taco Bell restaurants, which according to the Centers for Disease Control and Prevention (CDC) sickened at least 71 people, 8 of whom developed kidney failure.

Marler said such cases were the impetus for the Food Safety Modernization Act (FSMA), which passed into law in early 2011. “It would not have come about in the US but for these outbreaks linked to spinach and lettuce and other fruit and veg,” he said.

Similarly, farmers in California, where much of America’s lettuce and spinach is grown, created a food safety program – the California Leafy Green Products Handler Marketing Agreement (LGMA) – in the wake of an E. coli outbreak in 2006 that was associated with Californian spinach and saw 202 people become ill and 3 die.

Marler speaks at conferences around the world and said the number of outbreaks he hears about is not as high as in the early 2000s, “so that is a positive thing.” But he still sees cases linked to fruit and vegetable contamination, such as a Hepatitis A outbreak in 2013 linked to pomegranate seeds (arils) from Turkey in a blend of frozen berries.

Most outbreaks preventable

Marler said companies – especially branded companies – need to have a culture of food safety, to invest in it and make it as important as cutting costs and making a profit.

“One of the things we see many times is people talk about food safety and farm to fork safety but company focus tends to be more on sales and profit, which is understandable, and cutting costs.” However, after an outbreak they regret not having invested more in food safety and the personnel necessary for it, he said.

“In my view, if companies make food safety an afterthought and don’t invest in people to help run it and invest in processes to eliminate risk, and then don’t pay attention to details, they will eventually make a huge mistake.”

“i think really many of these outbreaks are preventable, or at least you can make them less severe and less of a major burden on the consumer and on the industry.”

Learning from past outbreaks

Marler said a common problem is the lack of attention paid to warning signs and another is that companies often don’t learn from other companies’ disasters, instead repeating the same mistakes, with tragic outcomes. “They think ‘it won’t happen to me.’ ”

He believes this was the case with the 2011 Listeria outbreak linked to whole cantaloupes from Colorado’s Jensen Farms. “So many people in the industry couldn’t have known, but every year there’s been a Salmonella outbreak traced to cantaloupe,” he said.

The Listeria case was America’s most deadly outbreak of foodborne illness in a generation, with the CDC receiving reports of 33 deaths and a miscarriage.

Direct reporting to CEO

In the US, the Sarbanes–Oxley Act requires CEOs and CFOs to certify the financial reports their companies file are accurate and complete. Marler said CEOs should similarly have to sign off on the adequacy of their food safety, a measure that would ensure it is on par with making money and cutting costs.

He stressed the importance of a direct relationship between the CEO and person responsible for food safety in a company, so they communicate any concerns directly to the CEO. Though critical, this is often lacking, he said.

Why leafy greens are vulnerable

Because they are grown on the ground, leafy greens are at more risk of contamination via animal intrusion or irrigation water and, furthermore, are often eaten with no ‘kill step’ between the harm and the consumer.

“Where produce is grown is critical, keeping animals out of the fields, paying attention to how it is manufactured and packaged, keeping the cold chain correct, all that comes into play. You can look at each outbreak and say there was a mistake made,” Marler said.

JB

Image of Bill Marler: courtesy of Bill Marler

Posted on

A look inside China’s premium fruit e-tailer Fruitday

E-commerce’s exponential growth in China is highlighted by that of its top online fresh fruit retailer – the premium fruit specialist Fruitday – last year doubled its 2013 turnover to 500 million Chinese yen (€74.6 million).

E-commerce’s exponential growth in China is highlighted by that of its top online fresh fruit retailer – the premium fruit specialist Fruitday – which last year doubled its 2013 turnover to 500 million Chinese yen (€74.6 million).

Fruitday began just six years ago in Shanghai and now has 4 million customers and covers more than 300 Chinese cities. It’s enjoying very strong growth but even so sees potential for much more. After all, explained Fruitday co-founder Loren Zhao, its own sales currently account for only about 5% of the total fresh produce market in China.

Speaking from Beijing, Zhao told ED that another interesting facet of Fruitday’s orders is they are increasingly being made via mobile devices. “About 70% of our daily sales revenue now comes from use of our mobile application,” he said. Peak times for orders used to be 9am, when people first went online in the morning, lunchtime, and then 7-8pm, when they came home. But now they are spread over 24 hours with people also ordering from the bus or subway.

Young people are the main customers

In the last decade, China has enjoyed the fastest e-commerce growth rate in the world. Fruitday’s customers are mainly young people who have become used to getting their fruit online “as long as we guarantee consistent and high quality fruit,” Zhao said. It’s not because they’re lazy or don’t have enough time, it’s because e-commerce became reliable and they trust it to deliver lower prices, higher quality, and safe food. Because parents are often buying fruit for their children, food safety is particularly important in China, he said.

Given food imported into China is already subject to a lot of checks and certification, Fruitday does not feel a need to enforce extra ones, but does guarantee that all its imported fresh fruit – which makes up 90% of the fresh fruit it sells – is imported officially, Zhao said.

How direct marketing makes it easy to manage the supply chain

Among the big pluses in e-commerce is businesses can closely tie their inventory planning and pre-sale marketing to end customers, something Zhao said is the case at Fruitday, which imports its fruit itself. “If we want to import 10 containers of oranges we make a marketing plan so that in one month we can sell all of them. We can easily target customers directly because we don’t rely on other distributors, wholesale markets or supermarkets.”

“But we do need to do a lot of market research and data analysis to ensure our plan is accurate,” he said. That’s very important because while Fruitday has invested a lot in hardware such as warehouse facilities, the reality is fruit – apart from produce such as apples and citrus – generally doesn’t stay fresh long, he noted.

Logistics is a challenge in China and something we “still need to improve,” Zhao said. In Shanghai and Beijing Fruitday has  its own logistics platform but in other cities cooperates with third parties.

Most popular fruits

Fruitday is a supplier of premium fruit and unlike the traditional market for fresh fruit and vegetables in China – where the most popular fruits are table grapes, bananas and apples – its biggest-selling fruits are cherries, kiwifruit and oranges, Zhao said. “Our main customers are people aged 30-35 with kids and they like to try new things.”

Cherries are a new product in China and delicious but expensive in most cities, but through our web site people can easily get them at a lower price, which makes them very popular,” Zhao said, adding that it’s estimated that nearly 7% of cherries imported by China last year were sold by Fruitday.

As for kiwifruit, the entrepreneur said it’s popular for Chinese parents to give their children one every day, so sales are frequent. An estimated 11 million trays of Zespri kiwifruit from New Zealand were imported into China last year and Fruitday is believed to have sold about 650,000 of them – about 6% of the total.

Its oranges are sourced from around the world, including the Sunkist brand from California; from European growers such as in Spain, Egypt and Cyprus; and in the Southern Hemisphere from South Africa, Australia and New Zealand.

Future fruit superstars in China: berries

But while cherries, kiwifruit and oranges are the current “superstars” of sales for Fruitday, Zhao said fruits showing potential to join them are berries, including blueberries, blackberries, raspberries and strawberries. “We see the market just beginning, especially for blackberries and raspberries. We’ve had blueberries in China for 5-6 years but just since last year we’ve been importing other berries (blackberries and raspberries) from Mexico and we can see huge demand.”

Also showing strong growth is the durian, a tropical fruit mainly imported from Thailand and Malaysia “and very popular in China now.” And lemon sales are growing, too, helped by the popularity in China of using it in tea.

Exploring new sources for stone fruit and melons

Zhao said Fruitday has been lucky to be on the scene in the last 2-3 years as China expands the list of fruits that may be imported into the country, such as pears from New Zealand, the US and the Netherlands. Customers are now starting to accept the different taste of these pears, which – unlike the Asian pear predominantly grown in China and eaten when still tough and crisp – are eaten when ripe and soft.

On stone fruit, he said China does not allow much to be imported but the most popular is the plum, which so far may only be imported from Chile and from California. Zhao said this year China will also be open to stone fruit from Australia for the first time but he was not sure yet if only plums would be included or also nectarines, peaches or other stone fruit. ”We have a plan to promote that with Australian growers.”

As for watermelon, China already grows a lot but Fruitday is looking to also source from tropical countries such as Malaysia and Vietnam where the season starts sooner.

Main overseas suppliers: the US, New Zealand and Chile

About 90% of the fruit the company sells is imported directly by it, with its main sources being the US, New Zealand and Chile. Zhao sees strong potential for growth in supplies from Mexico, given how fast Chinese demand for avocado, blackberries and raspberries is expanding. He also said the free trade agreement between China and Southeast Asian nations spells opportunities for increased imports from countries such as Thailand, Malaysia, Indonesia, the Philippines, Vietnam and Laos.

Vegetables: only cherry tomatoes for now

Fruitday may expand into vegetables in the future but for now needs to focus on its advantage in the fruit segment, said Zhao, who explained that the logistics for vegetables are different to that for fruit. While some of the fruit it sells can be stored for 1 or even up to 3 weeks, some vegetables can only be stored for 1-2 days. For instance, leafy greens are the most popular vegetables in China and can easily to rot in just a day, he said.

Fruitday does, however, sell clamshells of cherry tomatoes, which are used for both cooking and eating fresh in China.

Customer buying habits

Fruitday has lot of new customers so the average purchase rate overall is not very high but its longer-term customers tend to make an order at least once every 2 months. “Since we are not providing all products, just premium fruit, maybe they still need to go to the market for vegetables and other fruit and so on, Zhao said. But he said Fruitday can see a trend of its clients coming to rely on it: “They get used to high quality and delicious fruit and then don’t go back to traditional stores.”

“It’s very important for them to try us the first time so we have different kinds of promotion methods but the most useful is to get to try the first time at a low price or even free,” he said. “Any time don’t like it they can return it to us in 48 hours. The fruit is sold by unit numbers rather than weight, for instance 12 apples rather than 1-2 kg, but the size and weight of each type of fruit is consistent – the same colour, size and weight – so customers know what to expect. And Fruitday’s end-to-end service ensures customers receive their fruit within one day of ordering.

JB

This is an article from edition 137 of Eurofresh Distribution magazine. Read that issue online here.

Posted on

Why and how the Chinese plan to eat more potatoes

China’s bid to make potatoes the country’s fourth most important staple crop – after rice, wheat and corn – is motivated by food security and sustainability concerns, explains Euromonitor International.

China’s bid to make potatoes the country’s fourth most important staple crop – after rice, wheat and corn – is motivated by food security and sustainability concerns, explains Euromonitor International in an article by contributing analyst Simone Baroke.

China is already the world’s biggest market for fresh potatoes. The London-based market-research firm’s data shows that with a volume of 39 million tons last year, it accounted for 23% of total global potato consumption.

But, explains Baroke, the Chinese Government “has decided that its people need to eat more potatoes in order ease pressure on the country’s scarce agricultural resources.” According to the article, by 2020 the area allotted to potato cultivation in China will be doubled to 10 million ha (100,000 km2).

“The data also show that on the whole fresh potatoes are not doing too badly in China. In 2014 they achieved volume gains of almost 6%, double the rate registered by overall starchy roots in the country. Sweet potatoes, the next most “dynamic” type of starchy root, mustered a sluggish 1%,” Baroke said.

Chinese Government efforts to enthuse consumers about potatoes include messages about their nutritional value on Weibo (China’s equivalent of Twitter), and the sharing of recipes and promotion of discussion of potatoes’ merits as an ingredient in various dishes.

Read the Euromonitor International article here.

 

 

Posted on

Makro: the greengrocer for Spain’s food service sector

_JPM8001

Offering extensive fresh produce product choices – so food service businesses can differentiate themselves – is a feature of the cash & carry giant’s approach in Spain

Makro Spain
2013/14 consolidated sales: €1.23 billion (2012/13 €1.21b)
37 stores
3,700 employees
About 1 million registered customers
Logistics platforms: Madrid 9,000m2, Guadalajara 31,000 m2, Valencia 6,000 m2
45,000 different items, more than 400 in fruit & veg
Part of Cash & Carry division of Germany’s Metro Group, world’s 3rd biggest distribution group

Fruit & veg at Makro Spain
Delivers 10% of total/food turnover
6 in 10 Makro clients buy fruit & veg
80% Spanish, 20% imports (over full year)
Imports: mainly Costa Rican pineapple, Mexican & Brazilian limes

Imagine being the greengrocer for every kind of eatery ranging from the pub next door to a Michelin star restaurant. You must stock the simple spud through to the latest fad in exotic citrus and fungi. Meeting those diverse needs is the remit of Jorge Hernández, fruit and vegetable category manager for Makro Spain.

Part of the global Makro chain of warehouse clubs, also called cash & carries, for more than 40 years Makro Spain has specialised in supplying small and medium-sized catering companies. Today it is a multi-channel business – now also offering a delivery service – but still focused on hotel, restaurant and catering (HoReCa) firms and seeking to differentiate via an extensive assortment, differentiation, communication and innovation. Its 37 stores offer more than 400 items in fresh fruit and vegetables alone.

Speaking at his base in Mercamadrid, Hernández stresses Makro aims to be the best partner to its clients. “We want to simplify their business management and help boost their profitability.”

One way Makro does this is to shield clients from market fluctuations by locking in prices for Horeca customers on certain fresh produce for three months at a time. “It saves them a lot of price calculations,” Hernández said.

Double digit growth in convenience food

And the philosophy particularly applies to the provision of fresh cuts, “because they are meant to save our clients a lot of time and money.”

“We provide a lot of options based on what we see in our work with them. For example, when you put a salad based on iceberg lettuce on a plate it’s quite flat, it doesn’t fill it much, so we offer other mixes, such as with baby leaves or escarola, that add more bulk for the same quantity.” Hernández said.

“We’ve seen double digit growth every year for the last four years in both volume and value in our fresh cuts, and keep in mind prices in this category don’t change much,” he said. Pre-cut salads account for about 50% of total pre-prepared sales, with the rest mainly cut raw vegetables such as potatoes, garlic and onion. Makro also supplies peeled orange, sliced lemon, and watermelon and melon balls, and in ready-to-eat has popular Spanish foods such as roasted red pepper.

The key categories: fresh cuts, lettuce, tomatoes, potatoes

Along with fresh cuts and lettuce, potatoes and tomatoes complete Makro’s four pillars in fruit and vegetables. In the latter, it is adding very practical value for clients via a soon-to-be-released usage guide to the many varieties.

Makro offers more than 30 kinds of, although  the type that accounts for most of its tomato sales is the “firm salad tomato”. (This is also an area illustrating the importance of Makro’s regional buyers, as in the south of Spain they tend to like their salad tomatoes greener than they do in the Cataluña.)

Such a guide has already been released for Makro’s onions. Need to caramelise an onion? Try a mild white one. Making a sauce? Use a shallot. Granos are good for casseroles, Chata (flat) onions for baking, and so on, it explains.

Big demand for microgreens

Sales have also been increasing for one of Makro’s specialty items  – micro-mesclun. Sourced from Valencia, this mix of very young leaves and shoots  provides great volume and colour on a plate and is proving very popular. Makro is expanding its range of such products, including sprouts and edible flowers, as well as mini–vegetables such as zucchini, eggplant and cauliflower, plus algae and “living” lettuce (with roots in water).

Another specialty is the broccoli hybrid Bimi. So far it is better known in the UK but Makro is working with an exclusive supplier in Spain “with good results.” “Such products help our clients differentiate themselves,” Hernández said.

Wild about wild mushrooms

Another increasingly popular product is the wild mushroom. “Every year we’re seeing really strong growth in sales of them. They are the seafood of the grocery section – they’re exclusive and delicious but expensive, and all the time more chefs want to use them.”

The importance of fruit ripeness and rotation

As for fruit, Makro sells less of it than vegetables as in food service it is mainly used only in desserts. But of the fruit used in the sector, oranges in particular, but also the pineapple, lemon, melon, watermelon and strawberries, are the most important.

As its clients are not the end consumers, all Makro’s fruit is bought ready–to–eat either the next day or within a set number of days. It withdraws produce from shelves preemptively, usually 2-3 days – or in some cases 4-5 – before it becomes overripe.

Citrus: cost certainty and exotic options

Oranges are another key product for Makro and mainly end up in desserts or juices. Another illustration of Makro’s efforts to make running their businesses easier for its clients is its orange range that literally promises “3 oranges will provide 200 ml of orange juice.”

“Having a fixed cost like that is highly valued in hospitality,” Hernández said.

Makro’s citrus range also includes (according to season) exotic options such as citrus caviar, bergamot, and the ancient Buddha’s Hand. Mainly sourced from Elche, in Valencia, the latter is used in cocktails and desserts in upscale venues.

 

Recovering wild strawberry flavours

Berries – and by far strawberries – are another important category, particularly for pastry goods and desserts.

And as part of its Alma Makro (Makro Soul) project, the company is working with small-scale farmers in Aranjuez, south of Madrid, to recover wild strawberry (Fragaria vesca) varieties – and their different flavours – that centuries ago grew in extensive market gardens there.

New strategy for private label products

In terms of fruit and vegetables, Makro’s own brands – Horeca Select and Fine Life – currently account for 40% of sales. The three key values for its own brand strategy are traceability, freshness and food safety.

However, Makro plans to stop working with Fine Life, to focus on Horeca Select, and, under a Metro Cash & Carry project shortly to be piloted in Spain and Belgium, will generally reduce its involvement in own brand products while adding more value to those it does offer. It will be also be even more selective in the branded lines it stocks, maximising the value for clients, “not just in the product but the packaging and the communication on it.”

Potential but small sales in organic

Though Makro is seeing stable sales for its small but growing range of organic produce (mainly of products that can be eaten raw), 99% of its produce is still conventional as there aren’t many organic restaurants in Spain yet. “But there is a market trend there and so we want to be there,” Hernández said.

Regional, national and international purveyance

Makro tries to offer a range of local products in every store. Its emphasis on sourcing local produce not only helps local producers, it results in a smaller carbon footprint in transport and fresher produce. Local produce is sourced by regional buyers, of which there are four: one each in the north, south and east of Spain, as well as the Canary Islands. The national level is looked after by staff at Mercamadrid and the Metro Group’s international procurement office in Valencia sources certain imports and local products.

Overall fruit and vegetable category management comes under the wing of Hernández and his team – Beatriz Dominguez, José María Rubio and Miguel Heras – at Makro’s Mercamadrid platform. “We aim for long term relationships with our suppliers and three quarters of them have been with us more than a decade,” he said. These suppliers must comply with strict product specifications, such as on colouring, degrees Brix, weight, ripeness and firmness.

Makro’s clients and competitors

Makro’s clients – who tend to buy from it at least once a week – fall into three main categories: HoReCa (food service), resellers and office services, accounting for 75%, 5% and 20% respectively of its fruit and vegetable sales. Its strategy, however, is to increasingly focus on the hospitality sector, especially tapas bars and casual and fine dining restaurants.

As for its rivals, there are about 10,000 fruit and vegetables distributors in Spain. “It’s a very fragmented market,” Hernández said, admitting it’s a challenge, “as our clients could also shop at supermarkets, local stores, specialty suppliers or via our main competitor – the door-to-door distributor.”

Preference for ‘green’ packaging

Because it supplies the hospitality market, Makro can’t sell loose product. “We have to have traceability,” Hernández said, “everything has to have a bar code so you know who grew it.” Apart from that, Makro values “packaging that is attractive, that communicates according to what’s inside and is appropriate for its category.” It also prefers it to have the least net environmental impact – ideally recycled or recyclable – and tries to avoid double packaging, e.g. boxes with bags inside.

And in transport, multi-temperature trucks – for example with separate sections for frozen and chilled food – are used, which make groupage easier and increase efficiency.

JB

This article was originally published on pages 18-19 of edition 136 of Eurofresh Distribution magazine. Read it online here.

 

Posted on

Coop Group focused on sustainability and variety – and online sales

“Sustainability, variety, quality and pricing performance continue to be the attributes by which it positions itself,” Coop says.

Switzerland’s Coop Group says sustainability and variety are its leitmotif for 2015

Despite a difficult environment, total sales for the internationally active retailer and wholesaler last year inched up 1.4% on 2013. And this year it aims to repeat the feat.

“The supermarkets will focus mainly on sustainability and variety in 2015, when the Coop Group again aims to achieve above-average growth through the online formats Coop@home, Microspot.ch and Nettoshop.ch and the numerous other online shops,” the Basel-based group said in its 2014 annual report, published February 17.

“The Coop Group also aims to more closely combine bricks-and-mortar and online trading through cross-channel solutions.”
“Sustainability, variety, quality and pricing performance continue to be the attributes by which it positions itself,” it said.

The report shows the group – which claims to have the densest network of sales outlets in Switzerland – ran about 1970 retail outlets (supermarkets and specialist retail formats) and 199 in wholesale last year.

Strong growth in online business

Coop described its online business as a strong growth market, one in which its net sales exceeded one billion francs for the first time last year. “Online shops in the retail sector lifted sales 52.4%, while online sales in the wholesale business grew 10.4%,” it said.

Wholesale and production business areas: shift from cash & carry to wholesale supplies

The group’s wholesale operations are conducted through the Transgourmet Group, while the Bell Group and the Coop manufacturing companies comprise its manufacturing operations.

“In the wholesale/production segment, the potential for further growth lies in integrating activities across Europe. Political developments in Russia, including the weakness of the rouble, and the difficult economic trend in Romania pose a challenge.

“In wholesaling, the ongoing shift from cash & carry to wholesale supplies continues. The Transgourmet Group is systematically pursuing its chosen multi-channel strategy, i.e. combining cash & carry and wholesale suppliers, thereby further boosting wholesale supplies. Transgourmet continues to expand its market position by implementing a transnational own brand strategy,” the report said.

Retail: ‘greatest product range diversity in Swiss food retailing’

The group’s retail business spans the Coop Cooperative with its supermarkets and specialist formats, plus subsidiaries.

In 2014, growth In the retail segment was driven especially by the Interdiscount and Microspot.ch formats as well as by the 2014 acquirees Marché Restaurants Schweiz AG and RS Vertriebs AG with the Nettoshop.ch und Schubiger sales brands.

Stocking more than 40,000 items, Coop claims to offer “the greatest product range diversity in Swiss food retailing” with “manufacturer brands, affordable own-label brands, sustainable products or articles for people with allergies or for vegetarians.”

Coop ann report.retail food percentages.png

In 2014, Coop expanded its selection of regional and local products – now sold under its new Miini Region quality seal – and numerous sustainability ranges were extended, for instance the own-label sustainability brand Ünique.

Own-label sustainability brands & quality labels include:

Ünique – Comprising high quality carrots, a vegetable mix and now also cucumbers, Ünique has been marketed in Coop supermarkets since 2014 as an own-label sustainability brand, underpinning Coop’s view “that entire harvests should be utilized and not just parts of them.”

Pro Specie Rara – Parsnips were extremely popular among the vegetables in this line sold by Coop last year. Since 1999 it has been working with the Pro Specie Rara Foundation to maintain the biodiversity of Swiss farming.

Swiss no. 1 in organic

Coop says it is the market leader for organic products, with one in two organic products sold in Switzerland purchased at its stores.

Most of its organic food products are marketed under the Naturaplan own label brand, which posted sales of 1.1 billion francs for organic products in 2014, up 2%. For its organic products, Coop uses the Bio Suisse bud emblem.

Hochstamm Suisse: preserving heritage fruit trees

Since 2008, Coop has worked closely with the Hochstamm Suisse association, which is dedicated to maintaining and fostering standard fruit-tree orchards in Switzerland. These comprise a wide range of fruit varieties and provide habitats for endangered animals. Coop currently stocks around 40 products made entirely from Swiss Hochstamm fruit, including apple and pear juices.

Convenience foods

The Betty Bossi brand of fresh convenience foods – which Coop said is Switzerland’s most successful such range – is sold exclusively by it. In 2014, Coop launched around 150 new Betty Bossi products, for the first time including items to consume warm while “on the go”. In autumn, the “let’s cook” line was launched, comprising pre-prepared vegetables, ready-made sauces and pre-cooked side dishes, making “healthy home cooking easy and without any need to chop and peel.” Coop generated sales of 470 million francs with Betty Bossi products in 2014, up 2.2% on 2013.

Primagusto: first-class fruit and vegetables

Fruit and vegetables with particularly intense flavour are chosen for the Coop own brand Primagusto, which now comprises 42 seasonal products. In 2014, it posted sales of 21 million francs and growth of 26.9%.

Exotic fruit ripening

Among Coop’s manufacturing companies is Banana Ripening Plant Services, with activities including the sourcing, ripening and packaging of bananas and exotic fruit.

Last year it stored and order-picked six banana and three pineapple varieties, in addition to mango, avocado and 42 varieties of dried fruit and nuts, delivering a total of 22,870 tons of bananas, 1,569 tons of dried fruit and 4,256 tons of exotic fruit (pineapples, mangoes, avocados).

The share of bananas bearing the Fairtrade Max Havelaar quality label in the overall banana range rose to nearly 90% and the Banana Ripening Plant increased the share of organic items in its total output to nearly 35% in 2014.

source: Coop Group’s 2014 annual report:

Coop Group key figures for 2014

Total sales: 28,174 CHF million (+ 1.4%)
Net sales: 27,163 CHF million
Net sales in Switzerland: 19,821 CHF million
Net sales abroad: 7,341 CHF million (48.7% generated in Germany)
Net sales from online shops: 1,124 CHF million (+24.1%)
Profit: 470 CHF million (1.7% of net sales)
Employees: about 77,000 (46,270 in retail)
Based in: Basel, Switzerland
Parent: Coop Group Cooperative

Number of sales outlets
Retail: 1,971 (+38)
No. of Coop supermarkets: 837
Wholesale/Production: 199

Coop Group business areas.png

Coop net sales abroad.png

 

Read the report here.

 

 

Posted on

Tomato sales value slipped last year in UK

Tomato 3

The value of tomato sales in the UK slipped last year, Kantar Worldpanel data shows.

Figures for the 52 weeks to December 7 show total sales of £706.2 million, down 4.8% on the same period in the previous 12 months. This was despite the sales volume rising slightly – by 1.1% – to nearly 258,000 tons.

Screenshot 2015-03-11 at 20.26.43.png
source: Kantar Worldpanel

Tomatoes in one in four shopping baskets

But tomatoes remain popular with consumers, data from mySupermarket.co.uk shows. They came in 7th on its list of the 25 most bought items in its UK shoppers’ baskets last year. And they were in more than one in four shopping baskets bought in the UK from mySupermarket in 2014.

The company’s figures for December 2013 to November 2014 also show tomatoes are popular year–round. Over those twelve months, an average of 27.5% of all shopping baskets had tomatoes in them, with a dip to 19.98% in December 2013 and rise to above 30% last June and July.

Mostly non–loose and non–organic tomatoes

The vast majority of the tomatoes were pre–packed and very few organic. On average, just 0.87% of baskets had organic tomatoes in them. This level was fairly consistent throughout the year and while low, was higher than for other products, such as peppers (0.34%) and berries (0.61%), both of which showed more monthly variation.

An online shopping and comparison website, MySupermarket, gathers data from more than 50,000 unique shoppers and 4.5 million visitors each month. In terms of traffic it is the UK’s third largest supermarket after Tesco and Asda.


souce: mySupermarket.co.uk

 

 

Posted on

UK’s organic market grows despite fall in food spending

There were sharp increases for some organic products, among them fresh fruit – up 6.4%.

Sales of organic products rose 4% in the UK in 2014, a year when food prices fell 1.9% and food spending 1.1%.

The Soil Association’s 2015 Organic Market Report also shows fresh fruit and vegetables and dairy products were the most popular organic purchases.

And amid the context of sliding non-organic sales, there were sharp increases for some organic products, among them fresh fruit – up 6.4%.

“Sales of organic vegetables fell by 2%, but in a context in which non-organic sales plummeted at five times this rate,” the association said in a press release.

There was also significant growth in organic supply into catering, (13.6%),

The association said the nutritional credentials of organic gained a big boost in July when landmark Newcastle University research showed organic crops including fruit and vegetables are up to 60% higher than non-organic research from.

Soil Association chief executive Helen Browning said said three years ago commentators were writing off the organic market in the UK.” Now, with a third year of steady growth, and against a falling overall food market, it’s clear that reports of organic food’s demise were premature to say the least,” she said.

“Now, even the discounters are beginning to stock organic ranges.”

 

Details of 2015 Organic Market Report: http://www.soilassociation.org/marketreport

 

 

Posted on

Price cuts push up pepper sales in UK

PEPPERS Red - Edited

Peppers among top 25 food items, with mixed colour packs the most popular

People in the UK have been eating more peppers but paying less for them. So while retail sales of peppers in the UK are up 10.7% in volume on a year ago, Kantar Worldpanel data shows they’re down 10.4% in value.

Comparing figures for the 52 weeks to December 7 with the same period a year before, the volume of peppers per buyer rose 8% to 5.43kg but their spend on peppers fell 12.7%  to £15.66. The price per kilogram of peppers dropped 20% – or £0.68 – to £2.88, outweighing the gained volume.

In total sales, the volume rose 10,253 tons to 105,889 tons while the value slid £35.2 million to £305.1 million.

According to Kantar, the price decrease took place across both full-price and promoted peppers. The level of promotions has not just been higher, they have been more generous compared to the previous year and mainly involved temporary price cuts rather than an increase in volume-based offers such as multi-buy deals.

Kantar pepper data.png

source: Kantar Worldpanel

Consumers mainly buying pre-packed, non-organic peppers

Meanwhile, peppers were 17th among the top 25 most bought items in food baskets ordered from mySupermarket.co.uk last year.

Data from its 50,000 monthly shoppers for the 12 months to the end of last November shows that on average, 19.45% – or about one in five – of all shopping baskets had peppers in them. Almost all these peppers were pre-packed and non-organic.

It also shows a small spike in pepper sales in January after which they tapered to a fairly consistent level for the rest of the year.

In terms of pepper types, mixed packs were the most popular, followed by red peppers.

 

source: mySupermarket.co.uk

 

 
Posted on

Berries in one in four UK shopping baskets over summer

More than one in four shopping baskets sold by mySupermarket in the UK had berries in them last May–August. The average of nearly 26% for those warmer months – up from about 18.5% over twelve months – shows the seasonal nature of berry consumption.

More than one in four shopping baskets sold by mySupermarket in the UK had berries in them last May–August.
The average of nearly 26% for those warmer months – up from about 18.5% over twelve months – shows the seasonal nature of berry consumption.
Sales of organic berries were consistent with this spike. From January–November last year, just 0.61% of all shopping baskets contained organic berries but this rose to an average of 0.81% for May–August, though the vast majority of berries sold were still conventional.
The berries included in the data were strawberries, assorted berries, blackberries, blueberries and raspberries and all were sold pre-packed.
The data came from mySupermarket.co.uk, which said it is derived from its about 50,000 monthly shoppers.

Berry sales up in UK

Retail sales of fresh berries have risen 11% in both value and volume in the UK, Kantar Worldpanel data shows.

Figures for the 52 weeks to December 7 show total sales of nearly £893.4 million, up from just over £803,4 million for the same period the previous year. A total of 150,781 tons of berries were sold, up from 135,674 tons.
 

Screenshot 2015-02-23 at 17.21.37.png

Read more berry news on pages 104-111 of edition 135 of Eurofresh Distribution magazine.
 

Screenshot 2015-02-23 at 17.27.34.png

 

 

Posted on

Huge demand in China for fresh fruit, says CIQA president

There is huge domestic market demand for fresh fruit in China, according to Ge Zhirong, president of China Entry-Exit Inspection and Quarantine Association (CIQA) and former vice minister of the General Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ)

Interview with Ge Zhirong, president of China Entry-Exit Inspection and Quarantine Association (CIQA) and former vice minister of the General Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ – China’s customs and quarantine authority).

 

How many countries have now been approved for import fresh fruit approved, reviewed or amended by China ?

As at October 2014, fruit from 35 countries/regions had been approved for export to China, covering Asia, Europe, North and South America, Australia and Africa. Among the EU countries which have obtained market access are France, Spain, Italy, Belgium, Greece and the Netherlands.

AQSIQ issues the list of varieties of fresh fruits obtaining access to the Chinese market and list of the exporting countries/regions.

 

Are there any fresh fruit and vegetable products for which there is unmet demand in China and therefore room for more imports?

There is huge domestic market demand for fresh fruit. Along with the increased health consciousness and higher living standards of the people, fresh fruit and vegetables have become an indispensable part of their daily meals.

Consumer demand for fresh fruit and vegetables is diverse, with variations across regions and levels. With 1.3 billion people, China has great market potential in terms of fresh fruits and vegetables.

 

Do you have any advice for those hoping to export their fruit or vegetables to China?

Close attention should be given to laws, regulations and related rules of procedures on market access promulgated by Chinese government departments.

In regard to the entry-exit inspection and quarantine of fruits and vegetables, AQSIQ develops and oversees the implementation of the relevant technical regulations, standards and conformity assessment procedures on behalf of the Chinese government.

Both suppliers and buyers need to fully understand and comply with these rules so as to ensure smooth trade flow and avoid unnecessary obstacles to trade.

 

What steps has China taken recently to improve food safety and quality standards?

The Chinese government attaches great importance to food quality and safety and has developed a series of regulations and standards and keeps them updated along with developments in practice. For example, in 2009, China issued the “Food Safety Law”. Following the implementation practice in the past few years, an update was prepared. In December 2014, the draft revision was submitted to the National People’s Congress for examination and approval. Based on the original articles of the law, some new elements have been added to the draft version. These new elements include such points as to add some new specifications on food storage and transportation, market circulation of edible agricultural products, labelling of GMF (genetically modified food) and increased penalties for law breakers, and so on.

 

What role does CIQA play in improving fresh produce quality and safety and promotion of world trade? What specific activities have you carried out in this regard?

As a social organization approved by the State, the China Entry-Exit Inspection and Quarantine Association (CIQA) plays an important role in improving product quality and promoting international trade. It acts as a bridge linking the government departments and the import and export enterprises. On the one hand, the association promotes understanding and awareness of state laws, regulations and related procedures by organising technical exchange activities, seminars and training courses, On the other hand, it passes on to the government the demands of importers and exporters – based on their market operation and international trade – to fill regulatory gaps or enhance the applicability of current regulations. The association is always ready to offer quality technical service to enterprises.

 

What kind of technical services does CIQA provide for enterprises?

For example, since 2009, the association has organised the annual world FVF (Fruit and Vegetable Fair). During the fair, technical exchange activities are held. Based on the exchange content, we invite government officials and relevant experts to attend. Any producer, exporter or buyer at the fair may participate in these technical exchange activities.

Furthermore, depending on the needs of a specific country or organisation, we also organise bilateral seminars. For example, in November 2014, when China FVF 2014 was held, CIQA and the New Zealand Embassy in Beijing jointly organized the “China-New Zealand Fresh Fruit Technical Exchange and Trade Match-making Meeting” in Beijing, which was highly regarded by New Zealand’s fresh fruit exporters.
 

NEWS china NTW DU MOIS Ge Zhirong 葛局长肖像 (1).JPG

 

What international exhibition and technical exchange activities does CIQA have planned this year?

In 2015, the following four international exhibitions will be sponsored by CIQA:

1. The Shanghai International Exhibition on Food, Meat and Aquatic products in June 2015,

2. The Guiyang Eco-Origin Product and Technology Exhibition in July 2015,

3. The Beijing World Fruit and Vegetable Fair (China FVF 2015) in September 2015, and the

4. Beijing International Inspection Technology and Equipment Expo in September 2015.

During each of these exhibitions there will be various forms of technical exchange activities, in which friends from all countries are warmly welcome to participate.

 

zhirong.JPG

 

AQSIQ list of fresh fruit and exporting countries/regions with access to the Chinese market. Updated December 31, 2014.

(This English version is for reference only, the definitive version is in Chinese.)

 

AQSIQ list of fresh fruit and exporting countries/regions with access to the Chinese market. Updated December 31, 2014.

(This English version is for reference only, the definitive version is in Chinese.)

   

COUNTRY

APPROVED FRUIT IMPORTS

Argentina

Orange, grapefruit, tangerine (& hybrids), apple, pear

Australia

Citrus (orange, lemon, grapefruit, lime), mango, apple (Tas.), grape, cherry

Belgium

Pear

Canada

Cherry

Chile

Kiwifruit, apple, grape, plum, cherry, blueberry, avocado

Columbia

Banana

Costa Rica

Banana

Cyprus

Orange, lemon, grapefruit, tangor

Ecuador

Banana

Egypt

Citrus

France

Apple, kiwifruit

Greece

Kiwifruit

India

Mango, grape

Indonesia

Banana, longan, mangosteen, snakefruit

Israel

Orange, pomelo, tangerine/mandarin, lemon, grapefruit

Italy

Kiwifruit

Japan

Apple, pear

Malaysia

Longan, mangosteen, litchi, coconut, watermelon, papaya, rambutan

Mexico

Avocado, grape, blackberry and raspberry

Morocco

Citrus (orange, tangerine, clementine, grapefruit)

Myanmar (Burma)

Longan, mangosteen, rambutan, litchi, mango, watermelon, muskmelon, zizyphus mauritiana (last 4 must enter via Ruili or Daluo port)

Netherlands

Pear

New Zealand

Tangerine, orange, lemon, apple, cherry, grape, kiwifruit, plum, pear

Pakistan

Mango, orange

Panama

Banana

Peru

Grape, mango, citrus (grapefruit, orange & hybrids, tangerine, lime)

Philippines

Pineapple, banana, mango, papaya

South Africa

Tangerine, orange, grapefruit, lemon, grape

Spain

Tangerine, orange, pomelo (grapefruit), lemon

Taiwan

Pineapple, banana, coconut, sweetsop (custard apple), papaya, starfruit, mango, guava, wax apple, areca (betel) nut, tangerine, pomelo, prune, loquat, persimmon, peach, date (Chinese), plum, lemon, orange, pitaya, Hami melon, pear

Tajikistan

Cherry

Thailand

Tamarind, orange, cherimoya (custard apple), citrus, pomelo (grapefruit), papaya, carambola, guava, rambutan, wax apple, jackfruit, langsat, pineapple, ginseng fruit (sapodilla), banana, passion fruit, coconut, longan, durian, mango, litchi, mangosteen

Uruguay

Citrus

USA

Plum (Cal.), cherry (Wash., Oregon, Cal., Idaho), grape( Cal.), apple (Red Delicious & Golden Delicious: Wash., Oregon, Idaho), citrus (Cal., Florida, Arizona, Texas), pear (Cal., Wash., Oregon)

Vietnam

Mango, longan, banana, litchi, watermelon, rambutan, jackfruit, pitaya

 

NEWS china NTW DU MOIS Ge Zhirong 葛局长肖像 (2).JPG

 

Read the interview as it appeared on p25 of our latest edition, number 135.

 

aqsiq iv as it appeared.png