Fruit and veg trendsetter in development food concepts

New food concepts are popping up everywhere. In various places in Europe and the US, shops are emerging with a different look and feel than in the past. The Netherlands and Belgium are not lagging behind either. We have Marqt, the Foodhallen, Bilder & De Clercq and the Markthal in the Netherlands. CRU, HNGRY and Exki from Belgium are also household names now. Not only the foodies and early adopters are interested in these concepts, the ‘ordinary’ consumer is also increasingly looking for ‘pure’ products. Marketing professor Gino Van Ossel (Vlerick Business School) gives his vision on new food concepts, and answers the question whether this will influence the classic supermarket.

He says the potato, fruit and vegetable product group has been a trendsetter during the development of new concepts. “The forgotten vegetables, for instance, have made a comeback. In addition, fresh produce had been taken from growers to the other end of the country for years. By shortening the chain and local sourcing, that has diminished. Local growers are now almost always able to sell their produce in their own region. For stores and supermarkets, that provides added value, and the consumer is asking for it as well. In the past, only the local grocer sold products from the grower, now supermarkets are doing it as well. It’s flourishing, and there are still more opportunities in this development. Like selling processed fresh produce: jam or other home-made products of own cultivation.”

The marketing professor sees the convenience channel grow everywhere in Europe, at the expense of the large supermarkets. “This means that the larger supermarkets slowly but surely enter a state of decline in the product lifecycle. It’s not happening very fast, but the square metres that are added, are always in smaller shops with new initiatives. The implementation has to be done differently. That development is less noticeable in the Netherlands, by the way, because historically this country has the smallest supermarkets in Europe.” The good thing, according to him, is that there is a bigger opportunity in this area for supermarkets to distinguish themselves, by making a combination with convenience. “That way, they can get out of the price war, and change the way they implement their stores. Adding value instead of competing for price.”

He continues: “Gradually, people are moving away from the industrialized food market, dominated by internationally strong brands. You’re seeing supermarkets go along with this development as well. Initially, the food concepts seemed to be a threat to the classic supermarket. They faced competition from all sides on smaller accounts. In addition to a threat, it also offered opportunities for supermarkets. You’re clearly seeing them respond to that now, like JUMBO with its Foodmarkt. It’s really a cross-pollination between classic retail and the food service, and that’s expanded upon in a great variety of ways. There are many examples of concepts where you can buy things to consume on the spot (food service) or buy to take home (classic retail). It provides a real ‘market feel’, and there are many variations on this theme. Both small and large scale.” Another example of a supermarket responding to the food trends, Gino says, is Tesco in the UK. “Tesco bought a bakery chain, with a reputation selling traditional and tasty bread. These bakeries were integrated into large supermarkets. For the smaller supermarkets, they’re presented in a special manner and sold under the brand. That’s a smart response.” He expects these trends to be further continued in the supermarkets in future. “Then things will expand very rapidly. Organic used to only be available in specialty stores too, but when it entered supermarkets, you could see it grow. You’ll also get that with these food trends.”

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Gino Van Ossel