"Where is the fruit and vegetable price limit?"

The Nicolaï Fruit team at Fruit Logistica 2017. Left to right: Stijn Weckx, Masra Magomedova and Johan De Gendt.

Start with a challenge
At the start of the year he became the young director of Nicolaï Fruit in Sint-Truiden as the successor of Peter Nicolaï, who remains active in the company. "The start was challenging. January was a very difficult period with little supply and high prices due to the problems in Spain, among other things. Despite my years of experience it was a difficult period and tough decisions had to be made right away. On the other hand it was a tough challenge to start with."

Growth among current customers
Johan is positive about the future when it comes to growth. "The sector is fairly divided. We mainly focus on organic cultivation, so the current customer. Growing with the customer is a good way." He laughs: "Of course we don't say no to new customers and I like doing the pure business development side. I hope I can still make plenty of time for it in the future." He adds: "Selling isn't that hard, anyone can do that. Holding on to the customer: that's more difficult. As a company you have to prove that you're doing everything well over and over again and that you can help the customer so that they don't have to worry and can focus on their core business. And if something does go wrong we have to offer a solution as soon as possible. You can't sit back for even a day in the trade, you always have to be doing your best. You also have to remember that there are costs to be covered within your own company. All of this together is a challenge and at the same time the essence of our trade."

The brand Nicobel.

Import only at customer request
Around 50% of the turnover of Nicolaï Fruit is Belgian and the other half is in the rest of Europe. "At the start of the company we supplied almost everything for export. Our products are sold to retailers, wholesalers and packagers and we market a large share of our products abroad under our own brand Nicobel which a number of selected packagers work under." Nicolaï Fruit also imports directly. "We import customer-specifically, we don't just allow large volumes of mangoes or pears to come in and then try to sell them. As far as this is concerned we are perhaps more careful than other traders."

 
Every link is important
Retailers are becoming increasingly well known in the sector and at the source. Is the function of importer not slowly being taken over? "No, I really don't think so. Certain products are bought directly by retail, but the added value a trader supplies is huge. We have a purchasing team with years of experience that really has to be available all the time and of whom a lot of patience and flexibility is expected. What I'm saying is that it is possible it will happen, but that I don't expect it, as I notice that there is a lot of respect from the retailers for traders. Just like we have for the growers, for example. Every link in the chain knows their role and that's important. I can't imagine having to grow the products I sell. Producers, you're doing a great job, keep it up!"

Health
The consumption of fruit and vegetables isn't on the rise. "What is positive is that fruit and vegetables are in the news more often in a good light. I think there is still a job for the sector in doing more together with retail to tempt the consumer. It happens in the supermarket, that's where people have to be convinced and inspired; in particularly the younger ones. Maybe we should use multimedia or with the schools to win the attention of the youth, they are the ones who have to develop a taste for fruit and vegetables! Fruit and veg is very healthy and we must tell them."

Margins
The CEO doesn't like the fact that the consumer has gotten used to cheap fruit and vegetables. "When I see how it's going with the Conférence pear I think... Where did it go wrong? Oversupply? We have to make sure that the consumer knows the story behind the products. And tell consumers what has to happen before a product ends up in the store. In this way they will appreciate it and realise they are perhaps paying the right amount for each link. In this way all of the links in the chain can make their money, as the margins on fruit and vegetables are really small when compared to other sectors. And yes, we have to wonder: where is the fruit and vegetable price limit? How low can we take our products?"

Working together
Johan believes that one of the best things in the fruit and vegetable trade is working together. "I mean this very broadly. Working together can be done with all links in the chain and in multiple areas. It also means helping each other when it is needed and not immediately expecting something back. It's important to be there for each other and there is always a time when you need someone else's help too."

Peter Nicolaï founded Nicolaï Fruit almost 25 years ago. "He started out very small and over the course of the years the company has steadily grown. I joined in 2005. At the time Germany, Sweden, England and Norwegian markets were the main sales markets. We always consciously avoided the Russian market, until we received a few customers in 2010. It was risky, but we made sure that we only did business with well insured companies. In 2014 we were happy we never became too dependent on this market."

For more information:
Johan De Gendt
Nicolaï Fruit
Schurhovenveld 3124
3800 Sint-Truiden - Belgium
T: + 32 (0)11 69 55 55
F: + 32 (0)11 69 55 56
info@nicolaifruit.be
www.nicolaifruit.be