The grape market is experiencing something of a sales boon as the introduction of smaller packs gives the category broader appeal.
Whereas in the past the only way to get a smaller portion was to buy a single-serve snack pack, now there are sizes to fit every appetite and budget.
Asda, for example, is currently selling an 80g snack pack for 48p – and five for £1.50 – but the supermarket also has a 170g pack of green grapes for just 50p, the same sized pack of red grapes for 75p and 500g punnets of every colour for between £1.75 and £2. No longer do consumers need to baulk at £4 price points for purchases they may not be able to finish.
These new lower price points are helping drive sales, according to the latest figures from Kantar Worldpanel, which show an extra 11.2 tonnes having been sold in the 52 weeks to 6 November, a 5.1 per cent increase. Values are also up by an additional £12 million at £777m, but lower prices have prevented the category from growing further.
The retailers are all taking steps to ensure they are competitive and presenting a compelling offer, with Tesco appearing to have gained particular traction with its farm brands, under which grapes are sold in 500g punnets for 125g as Suntrail Farms. “We’ve noticed that Tesco is proving particularly influential in growing the market,” says James Miller, commercial manager at Capespan. “It could be that the launch of the farm brands is having a halo effect on [category] sales.”
Aldi has been selling snack packs in good volumes, while at the other end of the spectrum, Sainsbury’s – as well as investing in price – has also developed the premium end of the market and selling larger packs.
The picture is not all rosy from a production point of view, however, with projected lower sendings from Namibia and Italy suffering from a severely cold bout of snowy and icy conditions. Thomas Drahorad of trader NCX Drahorad says conditions continue to be challenging for producers and distributors across much of the south of Italy, with snow and ice raising fears of potential damage to a range of crops.
“Since 5 January, there has been unusual snow, cold and strong winds throughout southern Italy. The region of Apulia has been the most affected, but Sicily, Catania and Palermo have also been affected,” he reports.
In grave danger, Drahorad suggests, are the plastic tunnels used by growers to protect their crops. Not only do the conditions raise the cost of artificial heating sharply, there is also a fear of collapses. “Thousands of hectares of table grapes grown in tunnels could be crushed under the weight of accumulated snow,” he explains.
Quality and volumes from South Africa have also been affected by rain in the Orange River and Hex regions, according to Miller, though there is better news with Indian supply looking set to come on stream early.
Short-term production issues notwithstanding, this is a category that is going places. With consumers starting to recognise varietal names such as Sable and Cotton Candy, and a wider selection than ever before to suit every taste and budget, there is optimism that there will be many more years of growth to come.
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