The merger of Norman Collett, the Society of Top Fruit Growers (SGT) and the Fruit Growers Alliance (FGA), to form Avalon Produce Limited (APL), was one of the biggest top-fruit stories of the year.
It came at a time when “none of the companies were without their challenges”, APL said, and growers were looking for ways to future-proof a viable way forward. In the wider context of a deflationary retail market, the move also reflects the shift towards consolidation and collaboration that many have predicted is the only way growers will survive aggressive price wars and a tough trading environment.
Drawing directors from across the three organisations, APL believes one of its strengths is the experience of its new team. Chris Browning and Giles Cannon joined the new board as representatives from SGT, along with Norman Collet’s Sean Charlton, and James Smith and Dan Barker from the FGA. Ashley Bernhard, formerly of Norman Collett, is the CEO of the new company, with Andy Sadler as chairman of the board.
Having once been described by one of its directors as “the true grower group”, APL is the culmination of careful negotiation and “a willingness of all parties to get the merger right in every way”. A proportion of ownership is now held by growers, who in return have greater control over their marketing, while the marketing fee structure isn’t profit-generating so the model is cost-effective for all parties, APL said. The company said it has a “clear vision” for the future with no current plans to expand from their core growers. It believes the industry is moving towards a position where the bulk of the UK crop will be within three organisations, which it sees as essential for economies of scale and cost control.
Future growth will come from the productivity of existing members who benefit from the collective skills of the team, APL said, and by “attracting the right sort of grower”.
What the directors say...
“It feels like a breath of fresh air,” says Giles Cannon, chairman of the SGT producer organisation. “It’s really given me, as a grower, something to look forward to, and at long last it offers the hope of doing a better job. This is where the motivation comes from for investing so much time into establishing Avalon Produce Ltd.”
Chris Browning, SGT representative, feels that staff from the three organisations have come together very well. “We can see that it will make a good team for the future,” he explains. “Some of the senior members of SGT have taken this opportunity to retire, but their guidance and industry knowledge has been passed onto the new group by the others who have transferred.”
“We basically want good growers,” says James Smith, grower representative from the FGA. “It’s not about volume, it’s about the right growers with the right mentality.”
“The new group has removed a great deal of duplication and with that gives significant improvement in net return,” says Sean Charlton, of Norman Collett. “And with such a comprehensive varietal spread, the retailers benefit from excellent choice and quality. It sets a solid platform for growers for the next five to 10 years.”
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