2016 saw a 5.2% increase in fresh produce consumption compared to 2015. The data was published by Conad and concerns 3500 stores in 110 Italian provinces. We talked about it with Gianmarco Guernelli, fresh produce procurement manager at Conad.
FreshPlaza (FP): It looks like the crisis is over for you.
Gianmarco Guernelli (GG): As regards my segment, we are very satisfied with 2016, as it confirmed the positive trend of 2015. We worked a lot to rationalise supplies and assortments and it paid off. 2017 also started well, with an average increase in volumes exceeding 10%.
Gianmarco Guernelli
FP: What percentage does your own brand cover?
GG: We cover 33% of the total, but we're aiming at increasing that. Conad branded products have all been thoroughly checked and are certified. Our suppliers know it and out relationship is based on trust, representing a true cooperation. Those who work with us know they have to meet certain requirements and, at the same time, they also know there are certain guarantees because we regularly purchase large quantities. The Conad brand dominates for products such as bananas, pineapples, apples, pears, potatoes and kiwis. And for the fresh-cut range.
FP: What do you do to safeguard Italian produce?
GG: I take this chance to clarify that we always give priority to the Italian produce. However, when it's not in season, if there is no domestic produce or for exotic produce, we do buy it from abroad. We cannot not have certain products in stock. But I'd like to stress the fact that our foreign suppliers have to meet the same strict criteria of our domestic ones.
FP: Which foreign countries are your main suppliers?
GG: Central and South America in general, Spain, Holland and New Zealand.
FP: What is your fresh produce promotion policy?
GG: We don't use promotions a lot as it's not the only way to push purchases. We generally place Conad-branded products on special offer so people can get to know them.
FP: Which were the most popular products at the start of 2017?
GG: The main ones were: fresh-cut products in general, dried fruit, citrus fruit, grapes and potatoes. Persimmons, kiwis and some vegetables affected by the weather didn't do so well.
FP: What innovations are you introducing in stores?
GG: We are renovating the fresh produce sections. Consumers are increasingly aware of what they're buying and I don't believe it will be a fad. Consumption has changed: for example, people are buying less meat. We want to communicate with consumers more, have well-organised layouts and knowledgeable section managers.
FP: What is your view on the relationship between retailers and producers?
GG: Both are satisfied when there's collaboration and respect for the rules. The problems start when businesses are not well-structured and organised. In order to supply retailers, a business doesn't only need to supply the right quantities with regularity, but it also needs to guarantee traceability, respect for ethical work, phytosanitary practices and logistics to guarantee the freshness of products. It's not true that retailers only work with big suppliers. For example, for some of our ranges like Sapori&Dintorni, we work with small yet well-organised businesses. We are strict about the compliance with guidelines though.
FP: What is your policy at the moment?
GG: Conad is focusing on its "People beyond things" claim. We expect a lot from our suppliers, but ours is not a speculative approach. Most of our suppliers have been working with us for many years, they grow with us. We were often their first client and, with us, they found a balance. We believe this system is the best, it's a win/win situation. It's better to consider things in the long term.