UK Berry Market

Dr Drew Reynolds

Total Produce

Our Group In Numbers

Introduction To Total Produce

Growing andNew Product Development

Sourcing AgronomicSupport

Importationand Quality Assurance

Storage, Order Assemblyand QC

Distribution

1 2 3 4 5 6Our Supply Chain

People

5000+Operating Facilities

120+Countries

22Cartons of producedistributed annually

340m+

Sales

€3.45bn

Introduction to Total Produce

Global Position

Berries in Total Produce UK

UNITED KINGDOM

Food Service

Wholesale

2017 Turnover

Soft Fruit 75%

Berries in Total Produce UK

2%

20% 0%

0%

0%

10%

0%

3%

65%

Retail Split by Kilos

Blackberries

Blueberries

Raspberries

Redcurrants

Rhubarb

Strawberries

3%0%

11%

0%

0%

8%

6%

72%

0%

Wholesale Split by Kilos

Blackberries

Blueberries

Raspberries

Redcurrants

Strawberries

Strawberry: 65% of retail sales but 72% of wholesale

Significant increase in Blueberry at retail

UK Market Growth

Data Source: Kantar

By 2020, berry category in the UK could be worth almost £2bn!

The berry market has grown by almost 50%, over £400m in last 4 years

Sales driven by more households buying MORE OFTEN

Households Frequency Trip-volume

2013

2017

81% 15 times

422g

84% 21 times

431g

Market Size

£ 833m

£ 1,267m

HUGE further potential

Increase frequency of purchase to just 24 times pa. will add over £180m to the category

UK Market Growth

Data Source: Kantar

Easy to enjoy“convenient”

Graze ability = expandable consumption

Unique place in customers

hearts & minds

Ever-improving availability

No mess; No fussOccasion links e.g.

breakfast

Always room for another berry!

An emotional bondEveryday treat

‘Superfood’ status

Growth in winter sales

What is Driving the Sales Growth (Demand)

Data Source: Kantar

What is Driving the Sales Growth?

£1.124

£0

£200

£400

£600

£800

£1.000

£1.200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F

Berry Market Value £m

The Sales have doubled in 10 years!

TRUST&

CONSISTENCY

Data Source: Kantar

Strawberry Procurement

› For the UK consumer 12 month supply is seamless!

› The variety, origin and pack size may change but to the consumer it is still a berry

› Basically the consumers see a perfect berry every time!

› Strawberries are fast approaching the realms of a “commodity” item.

› Procurement is managed by an experienced and knowledgeable category team

Blackberry; 3%

Blueberry; 27%

Raspberry; 21%

Strawberry; 49%

Soft Fruit Market• Worth £1.1bn• Growing, up 18% YOY• Driven by more customers

buying berries more frequently

› Integrated Supply Chain

› Full grower traceability

› Programmed Volume

› Forecasting

› Seasonal Pricing

› Market and Customer Data

Product share of soft fruit market (by value) shown on chart (right).

Soft Fruit Market• Worth £1.3bn• Growing, up 7% YOY• Driven by more

customers buying berries more frequently

£611m ↑6%131,000t ↑3%

£38m ↑ 16%3,300t ↑ 22%

£342m ↑ 8%34,700t ↑ 5%

£261m ↑ 8%22,800t ↑ 9%

Sales Strategy

Data Source: Kantar

Total Strawberry Sales versus British Strawberries

70,000t UK

Data Source: Kantar and BSF

Weekly Strawberry Sales - 2017

The English Season is getting longer!

Managing the Peaks of Production!

› The move to ever bearers has given a sales issue!

› The second flush of production comes when the UK sales are in decline.

British Summer Fruit SalesTWL Forecast

Varieties

› Eating Quality is highly important!

› Brix is a key measure

› Retailers have approved variety lists

› Consumers do not like dark berries

› Yield per plant is vital as price comes under pressure

Strawberry - June Bearers

› Elsanta and Sonata being phased out

› Malling Centenary growing in volume

› Magnum – Top tier

Ever bearers and Day Neutrals

› Overcrowded sector

› Best tasting varieties do not always yield and are often soft!

› CIV / Driscoll / PSI / Vinson all have approved varieties

Cultivation Systems

The Spanish Tunnel , Table Tops & Substrate

› Step change in quality and consistency.

› Improvement in Customer confidence.

› Additional benefits in picking management and disease and chemical control

Glass Production

› Seasonal extension – variety and origin

› Again the customer becomes more confident.

Cultivation Systems: The Future

› Table tops and substrates are here to stay.

› Increased densities.

› New Varieties – Yield and eating Quality.

› Seasonal management and extension (managing the peaks!): LED

› Sustainable growing systems (Cost reduction)

› Retractable Rafter Houses & Robots to pick and pack?

Marketing

Standard Packs and Consistency

› Dependant upon availability – Winter / Summer

› Similar across retailers

› Grower Labelling

› Varietal labelling and quality tiering(wonky or basic to taste the difference).

Packing

Heat Seal

› Tamper proof.

› Consumers confident that all the berries are 100%

› The packs are easy for the consumer to pick up

Shelf Life Enhancement

› Cool chain and refrigerated display.

› Ethylene absorption.

› Perfotec – Respiration measured MA packs.

Opportunities and Trends

Celebrate Occasions with Strawberries!

Marketing Data! Inspires Confidence

Customer Quality PanelsLEAN – Cost Chain analysisSmart phone shopping

Threats

Perhaps the Biggest Threat to Our Industry?

› The industry is dependant upon migrant labour

› The majority of the plant stock is from Europe

› 12 month availability is dependant upon European fruit principally from Spain and Holland

Available Labour Down

20%

Migrant salaries falling behind EU neighbours

Conclusion

The UK market for berries has grown because:

› The consumer sees and buys consistently good quality week in week out

› The retailer has built “Trust and Confidence” into their supply chains

THANK YOU