According to Seminis special projects manager Steve Parrott, the group’s strategy is a simple one. “We want to bring a range of vegetable varieties that have considerable health benefits to the consumer. Innovations are crucial to the development of the market. There is little room for expansion now, and it’s increasingly difficult to sell larger volumes of seeds of carrots and cauliflowers, so it’s important we strive to offer something different.”
Seminis came together in 1995. Mexican company Savia brought together US companies Asgrow Vegetable Seeds and Petoseed, along with Dutch firms Bruinsma Seeds and Royal Sluis, and Seminis was born.
Innovation is a byword at Seminis. With over 2,800 employees globally and 49 research facilities in 17 countries across the world, innovation is essential to the company’s development.
Parrott says: “The company spends 10 per cent of its turnover on research and development. This equates to over $50 million, which is a sizeable amount. Although there is no R&D station in the UK, we do plenty of screening and development work. We have three research facilities; Wageningen in the Netherlands; Nimes in France and California in the US. The European trial and breeding programmes tend to serve the UK best due to the similar climate.”
With the shape and structure of businesses changing so much Parrott feels specialisation is crucial to future success. He says: “There are so few growers around these days to work with, it is vital that our sales specialists know the industry inside and out. Seminis introduced sales specialists two years ago and has not looked back. These employees are product specialists rather than regional-based, and they interact with colleagues across Europe and liaise with breeders so their knowledge increases daily.”
Parrott feels that because Seminis is the world’s largest vegetable seed company, the relationships between specialists across different countries is necessary for the business to thrive. He says: “It is important that our specialists are out in the field and have a close ear to the market as the exchange of information with growers is so important. Prior to Christmas we spent a week in Murcia around various grower sites. Our Spanish team is knowledgeable about the demands of the Spanish market, but not so knowledgeable about the requirement of UK retailers. So by sharing experiences we can improve how the business operates. Our Spanish products are being grown to meet UK specifications, so our products can guarantee continuity. Nowadays retailers expect 365 days a year supply.”
In-house development of IT systems, says Parrott, is essential to the development of the business. “We are currently installing the SAP IT system. We will be fully connected here in June, and with the growing importance of traceability this is necessary. We will be able to follow seed all the way back to the field and where it was planted,” says Parrott. “We have basic access to the system now, but full integration will enhance operations. At least with being connected we can look at stocks across the world. Our bigger offices were fitted with SAP first and we’re now moving onto our regional distribution offices.”
Having strong infrastructure in place is necessary so the company can develop its innovating products. The company has a host of new seeds, which have the potential of a strong future. The company has been developing new products, with a focus on health. With cancer affecting one in three people in some form, there is evidence that a number of naturally occurring compounds found in certain vegetables have a preventative and repressive action against cancer and other major diseases. Parrott explains that Seminis has been working closely with the John Innes Institute developing a “super broccoli”. He says: “The broccoli has high sulphoraphane levels, which help neutralize cancer-causing substances found in the human gut. The enhanced variety contains 80 times more cancer-fighting ability than the ordinary version of the vegetable. The broccoli has been developed over a five-year period. We’re not yet in a position to offer it commercially just yet, but there is a lot of interest.”
There is also work being done on a carrot called Nutri-Red which is high in lycopene. Parrott says: “We have begun to market Nutri-Red, which has the same high levels of lycopene as tomatoes. Lycopene has been proven to prevent oxidation of low-density lipoprotein cholesterol. This reduces the risk of coronary heart disease and is believe to help against prostate and cervical cancers. This carrot’s popularity is increasing. In its raw stage, the colour has a slightly pale look and the texture is not as appealing, but when cooked, there is a complete transformation of texture, colour and taste. Its unique deep-red colour is very attractive.”
Seminis is also busy with a mini-seedless watermelon. In this modern age where convenience is key they have developed a new product. Parrott says: “Bambino™ is about the size of a large grapefruit. It eliminates the waste of left over melon, it’s small enough to share for breakfast or take along for lunch. Bambino™ is not only sweeter than normal melons, but its naturally high in lycopene and a good source of vitamins A and C.”
Parrott also says when offering such products trade marking now has growing significance. “It is just as important to protect our brands, as it is to protect the varieties,” he says.
In November 2001 Seminis applied to trademark the name “Premier Greens” for their range of UK developed cabbage greens. The idea was to create a brand for the range increasing their appeal. Parrott explains: “The idea came after speaking with some Dutch colleagues. They have a pepper called “Goal” and for the promotion of the product, footballs were sent to growers with the “Goal” logo on them. The idea came around in a late-night meeting as we looked to combine the notion of Premier as the best, with cabbage greens. The idea of the branding is that promotions can create not only curiosity with growers, but gives focus to products.”
The Premier Greens™ range is thriving in the UK. It includes Summergreen F1, Evergreen F1, Winter Special F1 and Wintersupreme Plus F1. Parrott says: “The complete range was 10 years in the making. Bernie Gilbertson, who recently retired and had over 20 years of industry experience, was instrumental in the development of the range. With the interest in stir-fry food among consumers rising and taste becoming more important the demand has really taken of. All of the products in the Premier Greens™ range have excellent taste qualities. The products within the range, as their names would suggest, can be UK sourced all year-round which is important to the retailers.”
Parrott says that with issues of health and convenience constantly in the national press, it is important that Seminis continues its effort to address these issues when developing products, but it is not easy. “As an innovator ourselves, we look for partners to develop with. We always try to work and stay ahead, but there are limits on how quickly you can get your products to the market. Root crops can take from eight to 10 years, whereas you can get a new lettuce to the market within two years, if trials and production goes your way.”
The nature of the seed industry means predicting causes plenty of headaches. Parrott explains: “With seed production it is important to get quantities right. We are currently predicting for 2006 and for the parent lines we are predicting for 2008. By having to prepare so far in advance, good relationships are everything in this business. If there is a product which a grower likes, it is important that they let us know.”
New ideas for products can come into fruition in many ways. Ideas normally stem from a Seminis core team, according to Parrott. “The team is formed from product managers, breeders, product sales specialists dedicated to the specific area or crop. New items are always on the agenda at these meetings. Ideas can often stem from a conversation between a grower and a sales specialist. What may start out as a pipe dream can soon become an opportunity once discussed with breeders.”
Information from growers is essential to business development. “We must have a good bond with the growers, packers and processors. These are the people helping our business to grow, but these relationships are a two-way street.” says Parrott.
One such idea is a new pointed savoy cabbage. “This is being developed with the retailers. Berzoni F1 has the advantage of looking good and more importantly tasting better than other savoy cabbages,” he says.
There are also numerous developments taking place on the glasshouse side of the business. “With tomatoes and peppers, while taste is important, both colour and shape play an important part,” says Parrott. “Our specialist glasshouse crops division, Bruinsma, has developed a chocolate-coloured pepper, in a range of sizes. These have reached a semi-commercial stage. There are also the Ramiro peppers, which are red and orange in colour; they look like chilli peppers but are very sweet in taste. These products, which are developed in Honselersdijk in the Netherlands, are premium varieties and retailers want exclusivity with such lines.”
Looking to the future Parrott talks of a new exciting lettuce variety being worked upon. He says: “Trials are taking place in the US and UK. This is a new type bred for the food service and convenience market. We’re looking at the snack and dipping market for further expansion. Developing markets such as China and Asia are concerned with feeding their families, whereas the developed market is looking for new benefits. I’m sure that through our continued efforts we are heading in the right direction.”
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