Poupart stands as a leading example of how a business can evolve to meet the changing demands of the marketplace.
As retail supply chains altered during the nineties and noughties, Poupart realigned its business and created new divisions to ensure it stayed relevant to customers.
Nevertheless, with a wide product base the company has been exposed to the vagaries of the weather, and difficult climatic conditions in a number of key production regions made life a challenge during the most recent accounting period.
That led to a combination of volume constraints and price inflation, pushing up both turnover and profitability.
Soft fruit remains a star performer for Poupart, with BerryWorld increasing turnover by 12.3 per cent to £191.8 million, boosted by its proprietary strawberry and raspberry varieties.
“The demand for healthy options appears to have struck a chord among consumers, which was also reflected in the increased sales of blueberries,” chairman Laurence Olins wrote in the annual report.
Indeed, soft fruit has been a great source of success for Poupart, thanks in no small part to Olins chairing the industry campaign that has helped berries to score consistent year-round sales growth over the last decade.
Poupart’s soft-fruit venture in the Netherlands also saw a 25 per cent increase in turnover, with BerryWorld buying a controlling interest in the business a year ago as part of moves to grow its trade across Europe. The Dutch company in turn bought a controlling interest in a German soft-fruit marketing company, further extending Poupart’s interests abroad.
It’s not just in the supply of pure berries where the company is finding markets for soft fruit. In November, BerryWorld and Alpro won an ‘innovation online’ award at the Tesco Digital Summit for an online exclusive with Atlantic Blue blueberries and Alpro Simply Plain, a cross-sale promotion which inspired Tesco to comment: “Thank you very much for your innovation and understanding of how Tesco dotcom works, and utilising it to reach different customers through bespoke online promotions.”
Top-fruit division OrchardWorld has had a tougher time of it, though, as it grapples with supermarkets’ desire to deal direct with growers on apples and pears. Norton Folgate also found life heavy going thanks to adverse climatic conditions in 2013, but is now “better placed to exploit new opportunities”, according to Olins. Poupart Citrus had a “solid” year, meanwhile, and has a firmly established customer base.
“The group’s gross margin saw a slight increase despite the many trading difficulties mentioned,” Olins added. “This was achieved through scale benefits, having recruited in advance of requirements.
“The board recognises that the diverse nature of the group allows it to support those businesses which, from time to time, struggle with the intense trading conditions in their market sector. In common with other businesses in the sector, the Poupart Group is exposed to the vagaries of the climate around the world having a direct impact on fruit availability and on the values of that production. Nevertheless, it remains optimistic for all its businesses.”
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