An important category for both retailers and the foodservice industry, fresh-cut products have opened up a world of opportunities for the UK fresh produce industry. The convenience and healthy-eating boom has given the industry a welcome shot in the arm, both in terms of innovation and consumer interest.
Fresh-cut fruit is leading the sector in growth, while fresh-cut vegetable and salad products pull in a higher, yet steady, trade. According to TNS, fresh-cut vegetables have performed ahead of the prepared category with a 13 per cent growth in the last 52 weeks, but fresh-cut fruit has been the principal winner, with year-on-year value growth of 31 per cent.
“The fresh-cut industry is doing well across the board, but prepared fruit is the main driver at the moment,” says Sarah Cooper of Coopers Produce, supplier of fresh-cut produce to the foodservice industry. “There is a lot more innovation to come and a lot of opportunity there, especially with exotic fruit mixes.”
Retailer Waitrose has noticed that fresh-cut fruit and vegetables have taken over the growth of prepared salad, and argues that it has become a huge category in its own right. “Prepared produce offers convenience, but still enables customers to enjoy fresh products,” a Waitrose spokesperson says. “This fits in well with customers who are time-poor, but also still want to feel they can interact with fresh foods and cook. Fruit is a growing area, and we continue to put quality and ripeness first when looking at varieties, to ensure customers have a consistent eating experience throughout the year. Products such as prepared pomegranate offer a huge convenience factor, and are an opportunity to make more unusual fruits accessible to consumers.”
JO Sims, a supplier to fresh-cut processors and retailers, has seen a growth of 30 to 40 per cent year on year in its lines that go on to be fresh-cut products. “It is the fastest-growing sector in the industry,” says Amry Jones, processing and category manager of the importer, which supplies mainly melons, kiwifruit and grapes to fresh-cut processors. “Organics was dominant in growth at one point, but now it has slowed and left fruit processing as our number-one growth area.
“Fresh-cut fruit has followed in the footsteps of fresh-cut vegetables and salad, and consumers are looking for the same things they find in those products: convenience and cost efficiency. Consumers are time-poor, and are less likely to buy a whole pineapple or melon to make a fruit salad, and that is why the sector is growing. People are eating more fruit than ever, which means that we can diversify the mix and become more innovative, and therefore increase growth further.”
In the UK, chilled prepared fruit has seen a rapid growth in the last three years, with total spend increasing by 42.6 per cent, according to TNS Worldpanel. JP Fresh supplies melon, pineapple and citrus fruit to fresh-cut processors, and thinks that the strong demand for fresh-cut fruit will continue. “UK consumers are very convenience-orientated, and prepared to pay a bit extra for what they want,” says Dickon Poole, group marketing manager of the company. “A move to lunchtime 250g snack packs is leading the way, along with the introduction of new ingredients, such as pomegranate. Retailers have also introduced upright tubs to show off the fruit, and I think we will see a lot more innovation with packaging in the future.”
Although fresh-cut fruit has experienced a rapid growth in the market, penetration in store is still very low, according to Jones. “Marks & Spencer is leading the way regarding its offer of fresh-cut fruit, and Sainsbury’s is following closely,” he says, “but generally multiples have not really given fresh-cut fruit much focus in the past; it has been a difficult area to get right. Now customers are able to buy the products at affordable prices, and I think this growth will continue for another three years. Compared to fresh-cut salad and vegetables, fresh-cut fruit has a long way to go.”
JO Sims started to cultivate Class I melons for the processing industry in Central and South America five years ago, in an attempt to provide good-quality fruit with traits essential to fresh-cut lines. “Processors used to buy Class II fruit for the prepared lines and all Class I produce would go straight to the retailers for wholehead sale,” explains Jones. “But we are focused on producing the best varieties for all kinds of fresh-cut melon packs, such as skin-on slices, large fruit for chunked and smaller for sliced. Some of the farms we work on are larger than 2,000 hectares and, although we do produce a commercial volume, our emphasis is largely on trial work and developing better varieties for use in the processing industry in the future.”
The UK prepared salad market accounts for 45.5 per cent of the total prepared products sold in the UK and, although the sector experienced a lull in sales at the beginning of the year, despite the traditional New Year health drive, it is now experiencing a vibrant sales period.
“Florette continues to accelerate ahead of the market, fuelled by strong marketing support, distribution gains and new listings,” says Mark Newton, managing director of Florette UK, which has seen demand for prepared lettuce from the retail industry increase, as consumers demand innovative meal options. “While the prepared salad market has matured recently, innovation remains a vital ingredient to drive forward the sector. New leaf innovation continues to be important, and certainly greater focus is now placed upon it to improve the freshness of all products.”
Florette’s Crispy - a mix of frisee, lamb’s lettuce and radicchio - and Mixed - escarole, frisee and radicchio - salad bags are perennial favourites and number-one sellers in major multiples, and special packaging for the Christmas season proved popular with consumers. “Quality and freshness are prime concerns for UK shoppers, which work well for Florette’s quality image,” says Newton. “Florette’s growth is recorded at 18.1 per cent, ahead of the salad market total, which grew at 1.8 per cent. The explosion of consumer interest in premium leaves over crunchy, everyday salad products, is a dominant force set to have far-reaching effects. They currently hold a 40 per cent share in the prepared salad market.
“Other trends that make a difference to the prepared salad market include the 5 A DAY initiative and the consumer interest in healthy-living and convenient eating, with demand also increasing in the foodservice industry. The restaurant boom has created a trend for exciting salads, and for new leaf varieties with different textures and flavours - driving salads to the front of plate, rather than as an accompaniment to a main meal. Florette has been an important pioneer of these trends.”
Waitrose has found that adding new products to a mix of salad has helped the category in the same way as it has for fresh-cut fruit. “We have had great success looking at new varieties of leaves, such as amaranth in prepared salads, and are working closely with our growers and packers to be first to market with innovation,” says a Waitrose spokesperson. “We have introduced warm salads and salads that contain prepared fruit, which is pushing the boundaries of the salad category.
“Key successes in prepared vegetables include the steamer pouches, which offer convenience but with the advantage of steaming, and again the introduction of new ingredients into prepared, such as the Kumara sweet potato.”
Cooper believes that the constant demand for fresh-cut vegetables in both the retail and foodservice industry is down to consumers’ tastes and lifestyles changing, and demand will evolve with them. “People are more adventurous, and our customers are going for vegetable mixes with something a little bit different in them,” she says. “Restaurants are making people more adventurous, by introducing new products that people then want to cook with little effort at home.
“Our largest line is sliced mushrooms to the foodservice industry,” says Cooper. “This is because it is labour saving and provides continuous quality; it means that a catering business can have the same sized mushroom slices in Scotland as it does in Kent. Fresh-cut vegetables are becoming more and more popular with catering businesses, as they help them to control their costs, and they take labour - and therefore further staffing costs - out of the kitchen.”
A greater emphasis on UK sourcing in season is another issue expected to influence the sector in the future, according to Florette, and the company is gearing towards supplying that demand. Cooper agrees: “We have a responsibility to make sure products are used by the customer at the right time. I think we should move towards eating produce when it is in season, and the UK growers need to focus on what they produce well. Fresh produce tastes better when it has been produced in season, and taste is fundamental to the fresh-cut industry.”
Family-size packs of fruit and vegetables in the multiples are in decline, with consumers leaving the 500g packs on the shelves and picking up the 250g or less packs. Poole believes that one of the reasons for this shift is the fact that, although consumers are on the lookout for convenience, people are becoming more price conscious as food costs rise. “If the consumer demand is there, then the industry has to follow,” says Poole. “The problem we may see with this in the future is that processors may want to stick with larger packs, because they make more money producing them. But you have to watch and follow what the consumer is doing.”
As the fresh-cut industry develops in the UK, there are fears that the sector will not be able to maintain such growth. “There have been problems recently in the industry, and the fruit specification the prepared processors are demanding is not realistic,” says Jones. “Some processors are lacking in experience and skill when it comes to dealing with fruit, and are really just at the infancy stage. When it comes to procuring products year round, it is a difficult business, and some processors are naïve about the idea of bringing produce in. The problem is that some processors expect too much of the fruit. When supplying UK retailers with fruit, they understand that there could be issues with yield and so on, but certain processors do not have that kind of understanding yet.”
Dutch company The Greenery is active in different fresh-cut markets across Europe, and recognises that all aspects of the fresh-cut industry must work together for it to succeed.
“A fluid supply chain, where producers and retailers work together as partners, is very important to the fresh-cut industry,” says Hans Verwegen of The Greenery. “This is partly because a lot of retailers have developed private-label fresh-cut product ranges.”
The Greenery believes that, in developing markets, the fresh-cut industry might face a temporary imbalance between supply and demand, as demand increases drastically.
“In markets like the Netherlands and the UK, the issues of logistical efficiency and shorter leadtimes make it necessary for producers to develop strong category management activities,” says Verwegen. “Producers need to help retailers, foodservice and the industry to optimise the process in terms of store replenishment, demand fluctuations and production capability. Additionally, communication in terms of promotion and packaging becomes increasingly important - not only to sell the products, but also to enable consumers to keep a clear view on the category.
“In the coming years, there will be a transition from exclusively fresh-cut products to ready-to-eat meals that combine fresh produce with non-produce ingredients like meat, sauces or dairy products.”
Whatever the future holds, the fresh-cut industry is continually on the lookout for a point of difference.
“The industry is always looking for new colour combinations, packaging and different sizes of fresh-cut,” says Poole. “There are certainly different ways of innovating and adding other elements - such as a fork, or dips. To have success in this category, you have to know how to please your customer.”
ADVANCED FLOTATION WASHING LINES FROM FTNON
Food engineering company FTNON’s new flotation washing system is specifically designed to ensure products such as salads, herbs and vegetables are perfectly washed for the fresh-cut industry.
This new washing method enables excellent results to be achieved with less water, meaning considerable reductions in water usage.
The machine consists of a water bath with various water injection points, depending on the product to be washed. At the bottom of the water bath injection pipes are mounted, through which air or water is blown or pumped into the washing water and turbulence is created. Foreign material removal is effected by fly-catchers with exchangeable screens to handle any and all products, and there are various systems designed for both larger and smaller capacities.
EDIBLE COATINGS EXTEND SHELF LIFE
AgriCoat Industries develops edible coatings designed to maintain quality and shelf life in fresh-cut produce. These proprietary vitamin and mineral blends were developed specifically to offer long-life sliced apple products, but the Natureseal product range can now be applied to various kinds of prepared top fruit, exotic and stem fruit, such as rhubarb. Natureseal is also helping to maintain quality in prepared vegetables, especially in root crops, including snacking carrots, prepared sweet potato and, most recently, parsnips.
AgriCoat Industries is the UK subsidiary of the US company Mantrose Inc, and its involvement in the fresh-cut industry began 10 years ago when Natureseal products were developed in conjunction with the US department of agriculture.
The fresh-cut industry wanted a sulphite-free product, and traditional acid dips impart an unacceptable taste taint. Natureseal maintains colour and texture in fresh-cut fruit, without affecting flavour.
“For us, the UK market is continuing to grow: while current applications continue to expand, we are successfully adding new capabilities,” says Simon Matthews, general manager of AgriCoat Industries. “It is true to say, though, that we feel that in the coming years, Europe will become an increasingly significant driver of growth.
“One of the new areas we seek to address is produce washing and decontamination. We are working and trialling a new product line designed to be an alternative to chlorine washing,” continues Matthews. “We hope that this system will be rolled out commercially in the coming months.
“Sliced apples are not designed to compete with whole apples, but rather with crisps and fries. Fast-food restaurant chains are now offering more fresh produce on their menus; this is part of a long-term trend to alter, or rather improve, the snacking habits of the next generation. Healthy snacking is here to stay,” he adds.
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