The fresh herb category is one of the most dynamic in the fresh produce sector. A vast number of lines are now sold in the UK to help create all kinds of tastes and flavours, and the category has reached a retail value of £80 million a year across all varieties.
Growers and suppliers across the herb industry are working hard to build on the growth of the sector, and capitalise on the increased interest in food and cooking that has gripped the UK in recent years.
The most popular products are coriander, flat and curly parsley - although flat is overtaking curly as the favourite - basil, and mint, which have all retained their status as the big volume lines. The UK number one - coriander - makes up 18-25 per cent of total sales, and the top six lines account for 60 per cent of retail sales. Thyme, rosemary, chives, dill, sage and tarragon make up a middle tier, which has proven increasingly popular, while a third band includes speciality and less-used products, such as lemongrass, lemon thyme, oregano and bay leaf.
The Fresh Herbs group, which is made up of R&G Fresh Herbs, Lighthorne Herbs, in Warwickshire, Scotherbs, north of the border, Sussex-based Humber VHB, and Swedeponic in Lincolnshire, as well as Israeli exporters Agrexco and Arava, has just mounted its second campaign to target young professionals.
The £100,000 campaign is driven by the five UK suppliers and supported by the two Israeli exporters. “We want to bring young professionals into the category, because they are more likely to be adventurous,” says Mathew Prestwich, chairman of the British Herb Trade Association (BHTA), and a partner at R&G Fresh Herbs. “The people who already buy herbs will continue to buy them, but we have to attract new consumers, who previously thought that buying herbs was only for scratch cooks.”
The 10-month initiative is close to securing a celebrity chef as the face of the campaign, with the aim of engaging the media with hints and tips, and increasing the weight and frequency of purchase.
“We are trying to raise awareness about fresh herbs and encourage consumers to see them not as an elite product, but as something that can be used in everyday cooking, even as an addition to ready meals or pizzas,” says Prestwich. “We want to see more people buy into the category.”
The launch of the campaign comes in spite of production and supply issues, which have hit the fresh herb market this year. This season has seen some of the worst problems in recent memory affect imports, leaving the UK market short of product and giving suppliers little option but to temporarily pull out of their commitments.
Israeli production, which accounts for a significant proportion of UK imports, was halved after a bout of disastrous weather conditions in January, when temperatures dropped to -3ºC for five days, followed by storms and 150km winds. Both protected and open field sites - which make up some 60 per cent of Israeli herb production - were affected.
Israeli herb growers have renewed the majority of the product struck by recent sub-zero temperatures, and supply is expected to be back on track in the next week. But the situation has cost Israeli growers an estimated €10-15 million (£7.5-11.2m).
“I have never seen anything like it,” says Prestwich. “It happened so quickly. A lot of the companies that supply the retailers had to pull out altogether or had some days on, some off. In the past, we have always been able to get product from other sources, but this has hit us over a long period of time, over the last six to eight weeks.
“The situation even hit wholesale markets, where basil was three times the price it normally is.”
Basil, tarragon, dill and lemongrass were amongst the worst hit.
“The situation in Israel made an impact on the entire herb market, and it was really significant,” says Prestwich. “It is rare that you see suppliers pulling out or having to buy from sources that they are not 100 per cent familiar with, such as Egypt, Colombia and Ethiopia, and, in some cases, struggling to get the right certification.”
The shortfall was so widespread that UK retailers had no choice but to listen to their suppliers, and wait for sendings to get back on track. “The situation was something we all had to live with because it has affected everyone, from importers and exporters, to wholesalers and retailers,” says Prestwich. “In these scenarios, you have to be on the ball and obtain auditing certification and cover your technical bases, rather than just buy on the open market.
“But I would expect everything to straighten itself up within the next week.”
It has been a difficult period for Israeli herb growers but, according to Assaf Adar, product manager for herbs at Israeli exporter Agrexco, their outlook has remained positive. “The plants renew themselves quite quickly, so we believe we will be back up to full supply very soon,” he says. “Most of the plants have been renewed, and we are expecting a good crop for the spring.”
Agrexco supplies around 35 herb lines to the UK, and at the top of the list are basil, chives, mint, coriander and rocket. Some 35 per cent of the fresh herbs grown for Agrexco are marketed in the UK. “In terms of fresh herbs, we are selling our service, as well as our product,” says Adar. “Herbs are not a commodity product, but to chefs and hoteliers in particular, they are very important. They need a very reliable service and consistency of supply and that is what we aim to deliver.
“To be able to do this, we have had to build a group of producers in different areas with different climates, and using different growing methods, to make sure that the product can be grown in a consistent way.
“It can be hard to manage, but the main job is to control a product ordered by a customer which has to be produced especially for them, because this is a very specialised category.”
The wide range of demands and tailor-made service can prove challenging and, as a result of this, Agrexco has to make up some 35,000 different boxes of fresh herbs, which have to be delivered individually. In fact, the 35 different herbs can make up some 1,500 different formats, if all the different packs and combinations are taken into consideration.
There has been a steady increase in interest from the UK supermarkets, Adar says. “Consumers are looking to use fresh herbs in their cooking more than they have done in the past,” he explains. “People are travelling more than they ever have, and coming back with new ideas on how to use fresh herbs.
“But it is not a product that simply by reducing price, you will sell more of,” he warns.
The sector is evolving to cope with changing weather patterns and technical challenges, to ensure that situations similar to the one seen in Israel this year do not hit the market in the future. The UK season stretches from April to September and, in that time, around 85 per cent of the product available in the UK is home grown.
The BHTA has supported the industry since the 1970s, and has a strong technical team. “The technical group looks at research and development, and keeps up to date on both legislative issues and on pest control,” says Tim Mudge, who manages the BHTA. “The fresh herb sector works very well together as a group to look at the issues it faces, but a lot of the pressures in the herb market are similar to those experienced by the rest of the fresh produce industry, such as price pressure and increased costs.
“The BHTA’s quarterly newsletter with technical updates and industry news is sent out to members, and our website - www.bhta.org.uk - has an area for members to help them keep in touch.”
The portfolio of countries that tops up the UK market throughout the rest of the year is expanding, with rising costs and increasingly extreme weather patterns forcing importers to consider new options. The biggest exporters of herbs to the UK are Israel and the south of Spain, but new sources such as Morocco, Egypt, Thailand and Ethiopia are coming into play.
“Production in Spain is becoming similar to the UK, in that it is getting more expensive, and producers have realised that it is easier and cheaper to move production to the likes of Morocco,” says Prestwich. “However, the effects of climate change mean that, as Israel, Spain and Morocco are not that far from each other geographically speaking, if there is a problem in one country, it will most likely hit the others,” he adds. “Importers are looking further afield to break that climate issue.”
But while herb production will become more dispersed, it will take a number of years for the new sources to establish themselves as reliable alternatives to existing exporters, Prestwich says.
The supply issues that have taken hold in the fresh herb sector since the beginning of the year are likely to prove a minor blip in what is, essentially, a growing category.
“There are two ways of measuring the growth of the category,” Prestwich explains. “Like-for-like sales of herbs have grown by six to 10 per cent this year but, if you look at overall growth, retailers such as Asda have increased their range dramatically and have got product into more stores.
“The herb category is very much a growing market. This period, since the New Year, has seen retail sales up by 15 per cent, probably because product has not been available from wholesalers, and the foodservice sector, particularly independent restaurants, has had to buy product from local supermarkets.”
Innovation is key, as in any fresh produce category and, in order to build on its promising growth, the fresh herb sector must continue to push itself forward. Those involved in the industry are working towards developing the best possible production methods for fresh herbs, and on producing the right products to meet consumer demand.
The UK market is made up of two tiers, with consumers first buying into fresh cut herbs, before trading up to potted product, when fresh herbs become more frequently used in their kitchen. The most popular fresh herb format is cut product, which makes up some 45 per cent of sales, while potted lines represent around 30 per cent, and herb bunches - generally weighing more than 35 grams - make up 19 per cent.
Humber VHB, which backs the Fresh Herbs campaign, specialises in potted herbs and grows around 12 potted lines, including some, such as Greek basil, which are generally not available on the cut market. Leon Mundey, marketing manager, expects the potted sub-category to grow as cut herbs become increasingly popular. “Cut herbs are convenient and simple to buy, and are a good way of getting consumers interested, and getting them to buy fresh herbs,” he says. “They then move onto potted herbs once they want a product to be more readily available, and want to have it to hand on their windowsill.”
A third of people who buy cut herbs will trade up to pots, while two thirds of those who buy potted herbs will buy cut product, Mundey says, and in both cases the switch is often driven by availability.
Humber VHB has started to grow some of its potted lines from cuttings rather than from seed, to maximise on the maturity of plants and achieve stronger favours. “Herbs get their flavour and aroma from their oil content,” Mundey explains. “If you grow from a seed, the plant has only had a limited amount of time to produce oil, but cuttings are more mature, so their oil content is higher. We are growing all our mint from cuttings now, and we are getting a much better product in terms of flavour. We want our potted herbs to look and taste like garden-grown herbs, and this is one of the ways we can achieve this.”
Trials for new varieties are an ongoing process for the Sussex-based producer. The products that are most popular will depend on what consumers want to cook at home, Mundey says, and products like Thai basil are becoming increasingly sought after as UK consumers continue to experiment in the kitchen.
Agrexco is working on some new lines, including pesto basil, which is more aromatic than conventional product, barbecue rosemary, and spicy mint. “We are working on new ideas and trying to identify markets that could accept these products, but you have to be patient,” says Adar.
The Israeli exporter launched a carton for herbs and edible flowers this month, to improve product presentation and provide a showcase for customers with eight punnets of mixed edible flowers.
The best way to secure the ongoing growth of the category is to market products that have the widest uses, to get the consumer to buy into fresh herbs, Prestwich says, and he warns that novelty products must be introduced to the market in the right way. “Chocolate mint is absolutely fantastic, but you can only use it for one or two things, such as ice cream or desserts,” he explains. “But garlic chives are a multiple-use product, which can be used in a stir fry or eaten raw in salads.
“The quirky lines are good, but you have to market them properly and you have to be careful because, when you put something new on the shelf, something else will have to come off, so the success of a product could come at the expense of another,” he adds.
The future of the fresh herb sector looks very promising, with continued growth on the cards. A minimum of five to 10 per cent growth a year is expected in the retail sector, Prestwich says. “Everyone is always looking at ways to improve their offer,” he explains. “Packaging is always an issue, and all suppliers have been looking to reduce the amount of plastic they use, and how we can advise retails on display.
“Importers are also considering different sources to ensure high quality and continuity of supply, and all suppliers are trying to improve their cool chains to ensure their customers get the best possible product.
“The BHTA is working closely with the Horticultural Development Council to find new products and varieties, as well as work out how to reduce the use of pesticides.
“UK herb production will continue to be at the top of the agenda,” he adds.
CREATING A MODIFIED ATMOSPHERE FOR HERBS
StePac LA has expanded its Xtend® line of modified atmosphere/modified humidity (MA/MH) packaging for herbs.
The Israel-based packaging supplier will offer Xtend pre-formed retail packaging, together with its Xtend bulk packing products.
Dr Gary Ward, technology development director at StePac, says the complete range of MAP solutions were developed to meet customer needs. “Along with preformed bags, we offer lidding film and flow pack solutions and, unlike standard herb bags, our Xtend retail products provide optimal modified atmosphere for the specific herb in the package,” he explains. “Herb freshness and aroma is retained for longer than with any other available solution.”
StePac is keen to introduce its Xtend zip lock and re-sealable herb bags to the market. Each time consumers open and re-close the bag, the modified atmosphere is naturally recreated. This is possible because Xtend technology is based on passively controlling the atmosphere within the bag by engineering the bag’s polymer so that the correct balance between oxygen and carbon dioxide is maintained, while excess moisture is allowed to escape.
The added value to suppliers and retailers, according to StePac, is reduced logistical costs through sea and land transport instead of airfreight, as well as minimised waste in the supply chain because herbs stay fresher longer.
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