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Paolo Pagali (Conad)

Italy: Tomato category is not well managed

During the Information day on Sicilian tomatoes held on 28th February 2014, Paolo Pagali (in the photo below), national category manager for Conad, presented a report on the evolution of the product in stores.



"The instruments ruling the market are price and quality, which are obtained with constant work throughout the whole chain." The fresh produce section is becoming of strategic importance in stores as it is essential to retain customers, especially in neighbourhood supermarkets.


Value and trend of Conad's fresh produce purchases.

The evolution of Conad's purchases
"The total purchase of table tomatoes went from 256,000 quintals in 2007 to 300,000 in 2013 for a total value of €44 million. It is the main category aside from fresh-cut produce. "

Some varieties are always on the rise, like Cherry (from 18.54 to 20.05%), Green oblong (from 11.97 to 14.64%), Piccadilly (from 5.34 to 9.03%), Beef (from 3.30 to 5.56%) and Date (from 1.67 to 3.33%) tomatoes. The popularity of varieties like Bunch (from 32.57 to 26.67%) and Salad (from 16.58 to 11.57%) tomatoes is though decreasing. category

Innovation in supply - the requests of retailers
Retailers demand good organoleptic qualities, long shelf-life, resistance to handling and a guaranteed chain. Product availability and standardised processes are also important, just like special offers and promotions.

Consumptions
"In 2013 there was a 3.9% decrease in consumption of table tomatoes with respect to the previous year, determining a 4.5% decrease in value. Discount stores are more and more popular but traditional channels still represent 45% of sales."

"Tomatoes are still very popular but at times like these, competition generates price wars. Operators therefore rely on a wider assortment of varieties that look good and are easier to manage."

"Of course this does not satisfy consumer demand for high quality produce and, in addition, the initiatives carried out to relaunch the product are few and not well-organised."



"There is no leading brand or product that makes consumers aware of the price scale to distinguish premium produce form that with the lowest price. The category is not well-managed."

The research done to achieve a high-quality produce must be perceived by consumers, and that is why Conad constantly works with suppliers.

"It would be ideal to explain and make people taste different tomatoes, to tell a story and make purchases less banal. But is it possible to achieve all this when there is too much fragmentation and there are too many companies on the market?"
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