What did it mean to Capespan to win the Re:fresh FPJ Importer of the Year accolade for the second year running?

It meant a lot to us - it was a really good feeling, and the fact that it was our peers that recognised us is very important. When you look at the judging panel, our competition was represented on there. Winning the award was very good for morale here at Capespan.

What have been Capespan UK’s greatest achievements since then?

Award-wise, late last year we won The Co-operative’s Collaborative Supplier of the Year award, across both the bakery and fresh produce categories. The Co-op is our biggest customer and we have never won it before, so this was very important to us.

We have also been very successful in the School Fruit and Vegetable Scheme tender over the last 12 months and increased our business substantially back in September, going from one line to five lines. Getting these new contracts was a bit of a coup for Capespan.

The biggest development, however, was probably the launch of Fresh Chain, which opened for business in September as an entirely separate legal entity to provide logistics services for growers, importers and UK retailers.

Capespan has recognised that the produce industry in the UK is changing and there is a desire from the major supermarkets to source their fruit and vegetables directly. They want security of supply, complete transparency in the supply chain and control of the supply chain to drive their own economies.

With the fresh produce industry changing, opportunities for importers are diminishing. However, for the supermarkets that want to source directly, there are still logistical problems in helping fruit departing at source reach a retail distribution centre. So we have launched Fresh Chain purely as a logistics company, offering a menu of services to retailers, growers and importers in a complete change from the commission-style arrangement, where the importers used to cover all aspects.

Fresh Chain operates as a completely separate logistical entity, independent from Capespan. The company now has up to half a dozen customers and business is progressing well.

The recession hit everyone in the fresh produce supply chain hard, but Capespan has maintained a steady position in the market and even managed to win new business. How have you been able to achieve this?

The last 12-18 months have certainly not been easy - it has been hard for everybody.

But one of the key factors for us is that we are part of a much bigger group and that makes us financially strong. This is particularly good in the current environment, where it is hard for growers to get insurance and even hard for companies like ours to get insurance for some of our customers. With us, growers know their monies are secure.

Capespan also has a wide customer base, serving big and small retailers, as well as a significant foodservice business and heavy involvement in the markets. Compared to a lot of importers, this gives us a wide base. We also have a wide portfolio of products so that if major climatic issues occur on one line, our risk is spread.

How have the Capespan brands managed to secure such longevity in the fresh produce market, in a business renowned for only offering a handful of well-known brands?

Aside from our retail business, we have a significant wholesale business and brands are really sought-after in this industry. Wholesalers and their customers know what they are getting when buying those brands. Capespan is consistent on quality and service values and this is why we introduced premium brand Capespan Gold, which has a following in the markets and represents the crème de la crème, mainly on grapes.

How much progress has Capespan made in its environmental and corporate social responsibility (CSR) initiatives over the last 12 months?

We have done a lot on CSR, as we take it very seriously. This is not about just wanting to be a responsible company, but also because commercially it is very smart too.

A lot of our product that historically we used to truck into Sheerness now comes in containers on barges through Tilbury and Thamesport. This barge service is saving Capespan a huge number of road miles.

Last year, we carried 300-400 containers on this service, and we are looking to increase that number this year. It is saving us money as well, as using the barge is working out cheaper than using trucks.

We have also done a lot of work on Fairtrade in the last 12 months and are sponsoring the School-Aid project in South Africa. This involves us shipping containers of books and computers over to schools to provide practical support for education in under-privileged areas in the country.

Our work on packaging is also progressing well thanks to our corporate affairs director, Alistair Phillipson, who has done a lot of work on trialling new films and technologies to look at reducing our packaging and regulating the packaging we bring in. Around 90 per cent of the packaging we bring in now is recycled and that is the highest level we have ever hit.

Are local sourcing strategies becoming increasingly important to Capespan?

Yes, but only in the salads category. We have moved a significant amount of our supplies to UK salads and Scottish tomatoes, especially in the last 18 months. We supply a lot of salads to The Co-operative and this need for local food has largely been customer-driven. We have strategic partnerships with salad companies around the country.

Should the new direct sourcing model for fresh produce being rolled out by some of the major supermarkets in the UK be of concern to importers?

It should be of concern to most importers. The business model is changing, as supermarkets want to source directly and eventually, the same amount of importers will be serving a shrinking market.

Asda and Morrisons have been doing this for a while now and Tesco has followed suit. I am sure that Sainsbury’s also has plans in place. Outside the big four supermarkets, it will take a little longer.

However, I believe that the prize that most supermarkets can see in terms of cost savings will not be as great as they think, although the model will offer them security of supply and transparency in the supply chain.

It won’t be as easy for supermarkets to achieve on some of the more sensitive products, but it will be easier on mainstream lines.

What do you predict will be the big trends to affect the fresh produce sector over the coming 12 months?

I have been saying for a while now that there will be more consolidation in the import base. It has already happened in other sectors, such as the meat industry, and the same will happen in fresh produce. We will see a lot more mergers and acquisitions.

The next 12 months will remain very tough as disposable incomes will come under huge pressure, and that means there will be even more competition between supermarkets - hence the pressure will be on suppliers.

The environment and sustainability will also remain high on the agenda - I can’t see those issues going away.

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