The markets of North-Central Europe have different eating habits than Italy and, in addition, with the current economic crisis, there are some limits in prices that consumers are not willing to surpass. This is what Paolo Marconi, sales manager from Alegra (an ApoConerpo business unit) has found out after an analysis of the campaign trend of winter fruit in the German and Austrian markets.
"Despite the type of analysis that is carried out, our summer and winter fruits destined for North Central Europe are affected by the latter's economy. It might be a psychological response, nonetheless people tend not to spend more than a certain amount of money."
"This of course is a limit for us. This year, for example, because of very low volumes - we are talking about a 42% decrease for pears and 20% for kiwis - price expectations were very high, however we won't be able to make the profits we would need in order to compensate such a difference in production."
"On top of the price limits, we are affected by international competition on the European markets. In addition, Northern Europeans tend to buy substitute products more easily."
"The trend has therefore been lower than expected until January 2013 for pears and until the end of February 2013 for kiwis. After that, once competition from Greek kiwis and Spanish and Dutch pears was over, and because of low stocks, we managed to obtain higher prices. Now prices are better but it's too late as the season is ending and therefore it is hard to recover. Thankfully, our stocks are helping, as we have high quality kiwis and pears."
"Our main channel in German and Austria is mass retailing, which absorbs 85% of our supplies carrying the Alegra and Valfrutta Fresco marks as well as our customers' private labels."
"Austrian consumers are slightly less inclined on novelties, whereas the German ones are used to having a wide range of products available and are more responsive to packaging, varietal innovation etc."
"An interesting phenomenon in Germany is the increase of discount stores, which now manage 42-45% of the total fresh and vegetable turnover. Traditional mass retailing has downsized as, after many years of policies based solely on prices, discount stores are changing their strategies. Nowadays, in fact, efficiency is so levelled out that such stores cannot compete only on prices, but they have to try to attract consumers in other ways i.e. displaying the produce in a less impersonal way or paying more attention to quality aspects such as sugar content, colours, size and packaging. This new trend could lead to interesting responses for our producers," concludes Paolo Marconi.
Contacts
Alegra sca
Paolo Marconi, Area manager
Via G. Galilei, 5
48018 Faenza (RA)
Tel.: (+39) 0546 624401
Fax: (+39) 0546 622513
Email: [email protected]
