The global pandemic sent greengrocer sales skyrocketing. "Throughout 2019, this segment showed a downward trend. That has now been decisively reversed. People have rediscovered greengrocers in the past two years. On the one hand, that offers opportunities for independent businesses to retain these customers," says Willem Dijk AGF's commercial director Richard van der Helm.
"But the supermarkets aren't sitting idle either and are developing further in terms of fresh products, healthy products, and convenience. Competition from online stores is also increasing. The specialist stores will therefore really have to distinguish themselves if they want to keep up with the retailers."
Richard joined this Dutch company at the end of 2020. He considers the enormous margin pressure as the greatest current challenge. "Price increases are the order of the day; just think of the cost of energy and transport. That will be the biggest challenge for the coming year," he says.
"You can't directly translate that into product prices. Consumers will pay for top quality, but there are limits. And that must be done carefully, what with the foodservice reopening, the changing COVID regulations, and the growth of online."
Diverse client base
Nonetheless, Willem Dijk AGF excepts further revenue growth this year. "We have a very diverse customer base which helps tremendously. Our catering and foodservice customers are still having a tough time. Eventually, people will find their way back to the hospitality industry. I think that, even before the summer, the Dutch will return to restaurants in droves," says Richard.
"The overseas tourist influx may need a little more time. Another great thing is that greengrocers appreciate us being a quality supplier as well as having unique brands. So, we have good growth in that segment. That remains our core activity. Our marketing and field services offer extra support there."
"We've grown tremendously on the German market in recent years too. By now, we have a 50/50 sales ratio on the Dutch and German markets. We have buyers all over that country and get a new one almost every week. Also, there's massive growth potential. More than 80 million people live in Eastern Europe, making it the largest economy in Europe," Richard explains.
"Our German client base is diverse too. We supply wholesalers, but also many Polish and Russian supermarket chains. They're very happy with our trade. That's true for our entire range, but there's certainly a lot of demand for things like herbs, potatoes, eggplants, and tomatoes," Van der Helm says.
"We're even the second-largest gherkin exporter from the Netherlands to Germany. And top fruit also finds its way to German customers." Willem Dijk has always also supplied several Irish wholesalers with fruit and vegetables. "There are still export opportunities to Scandinavian markets, like Denmark. But, for now, our export team is focusing on expansion on the German market."
Retail man
"But, I'm quite surprised that we're still growing so well on the Dutch market. Though, recently, because of the pandemic, the acquisitions we've made have been by phone," adds Richard, a true retail man who previously worked for Sanders Supermarket, EMTÉ Supermarkets, Sligro Food Group, and Action.
What strikes Richard in the fruit and vegetable sector is its business community's positive energy. "Also, many choices are made based on emotion and less on reason. That doesn't make it easy to add value because people don't easily abandon ingrained habits. Yet, this sector is tremendously dynamic too. Last year, at this time, we couldn't get to some customers because of all the snow. This year, crops are starting later because of the high gas price. Every day has a new surprise," he concludes.
For more information:
Richard van der Helm
Willem Dijk AGF
2 De Ossenboer
7547 SJ, Enschede, NL
Tel: +31 (0) 534 864 751
Email: richard@willemdijk.nl
Website: www.willemdijk.nl