The JGroup Fresh-cut Fruit Research Center and the Premium Cut Fruit Exposition Hall simultaneously opened with a grand ceremony in the middle of November. The Fresh-cut Fruit Research Center will accompany the fresh-cut fruit processing factory and add innovative technology and production value to every step of the production process. Mr. Wang, a spokesperson for JGroup Fresh-cut Fruit, recently talked about the current conditions in the domestic market for fresh-cut fruits as well as the future market prospects.
According to Mr. Wang, small boxes of fresh-cut fruit have been popular in overseas markets for years. They are readily available in almost every supermarket. However, they are still rare in Chinese supermarkets. Only now are they gaining more popularity.
"Firstly, the pace of life in China is quickening and fewer people have the time to cut their own fruit every day, especially when it comes to difficult fruits such as pineapples, durian, and jackfruit. Second, most people do not consume larger fruits all in one go, so the leftovers often spoil. This is a waste of good fruit and quite expensive too. That is why many people consider buying small boxes of fresh-cut fruits. And third, consumers pay more attention to healthy fruits because their living standards have improved and they have become more aware of health concerns. In addition, small boxes of fresh-cut fruit are quite suitable for venues such as cinemas or playgrounds."
Small boxes of fresh-cut fruit are popular with consumers, and this in turn has an impact on the fresh-cut fruit supply chain. "Take the jackfruit as an example, the jackfruit is mainly sold in physical stores as fresh-cut fruit. The sales of whole jackfruit only account for 3%-5% of the total sales volume.
"Traditionally, wholesale suppliers bought whole jackfruit from plantations and transported them to the wholesale market where retailers purchased them. Retailers then transported the jackfruit to processing factories, and the processed jackfruit was then transported from the factory to the retail location. JGroup Fresh-cut Fruit changed this supply chain. Our processing factories purchase fruit directly from the plantation and the processed fruit is then transported to wholesale markets or retail markets. We cut out the intermediary and thus reduce the cost price of transport and the risk of waste during transport. This is the most efficient way to bring fresh-cut fruit to even more consumers."
Retailers and consumers are quick to realize the benefit of this streamlined supply chain. JGroup Fresh-cut Fruit receives orders for around 200,000 boxes of fresh-cut jackfruit (200 gr each) per day. That is five times the order volume of 30-40,000 boxes around this time last year. "Unfortunately, our production capacity is limited around 50-60,000 boxes. In order to expand our capacity and satisfy consumer demand we have already constructed another processing factory in Jiaxing Fruit City, and are currently building another processing factory in Guangzhou Jiangnan Market. These processing factories each have 2-4 processing lines with an hourly processing capacity of 8-10,000 pieces."
When asked about the reasons for the sudden growth of their sales volume, manager Wang replied: "We have always sold a certain amount based on consumer demand, generally through specialized fruit stores, but now that supermarkets carry our products, we see a large increase in scale. Brand awareness is growing among Chinese consumers, and we are visible in every large supermarket in first-tier cities throughout the country. There are also fresh-cut fruit vending machines in front of many supermarkets, which makes the purchase of fresh-cut fruit even more convenient for customers in a hurry. We have also recently reached agreements with Pagoda, XF Fruit, and Sam's Club for the retail of fresh-cut fruit. Their stores now sell small boxes of our fresh-cut durian, pineapple, and pomegranate."
JGroup Fresh-cut Fruit supplies plastic cups full of fresh-cut fruit to retailers, but the company also supplies large volumes of fresh-cut fruit to large chains such as KFC, 7-11, Xicha, and Starbucks. "These large chain stores could cut their own fruit, but that would waste a lot of time and work hours, which would raise the cost price. That is why they purchase fresh-cut fruit from us. Considering the cost benefit, I predict that a growing number of businesses will purchase fresh-cut fruit directly from top-quality fresh-cut fruit processing factories."
For more information:
Mr. Wang - Manager
Jiangsu JGroup Fresh-cut Fruit Co., Ltd.
Tel.: +86 18606112777
E-mail: thomas.wang@jgroup360.com