U.S.: Strong growth of snack tomato sector
Growing approaches have also changed, from Euro Fresh’s old focus on yield to the new NatureSweet model based on year-round set pricing and an exclusive focus on flavour. “We still have much learning to do, but we have made great progress and we expect Arizona’s facilities to be maxed out in terms of production within the year,” assures Michael.
The takeover also entailed the removal of peppers from the range, as Euro Fresh used to source them from third producers and NatureSweet exclusively deals with its own production. “We still work with cucumbers, primarily at Snowflake, and have continued some of the relationships and agreements Euro Fresh had in place,” affirms Michael, “And we are working on growing protocols to obtain cucumbers with a better flavour.”
Small tomato category
NatureSweet also stopped the production of Beefsteak and Vine tomatoes shortly after the purchase, but it still grows Grape, Cherry, Roma and Cocktail tomatoes, as well as some new varieties currently being tested. Michael assures that “studies have shown that 75% of consumers prefer small tomatoes, because they have more flavour, and we know that their expectations in this sense keep increasing.”
This trend has resulted in a rapid growth of the small tomato category, from 17% to 33% of total fresh tomatoes in the United States in ten years. In fact, one of the hurdles for NatureSweet and other similar growers is that retailers have not quite caught up with it yet. “We believe that at least 50% of the shelf space should be allocated to small tomatoes, as that is where the money is now,” says Michael.
Packaging also plays an essential role for NatureSweet; it protects the product, it extends the shelf life and it makes it more recognisable. Michael explains that “this is essential in building a brand, as packaging is the first thing that consumers recognise as part of the brand promise: the guarantee that they will have an enjoyable experience with the product or get their money back.”
The two biggest challenges for NatureSweet will be to maintain its relationships with the seed companies, with which it closely collaborates, and staying at the upfront with consumers of the varieties that are coming. “Right now we feel we are ahead of our competitors in that regard and we wish to continue driving and shaping the market,” concludes Michael Joergensen.
For more information:
Michael Joergensen
NatureSweet
Tel: +1 210.408.8530
Email: mjoergensen@naturesweet.com
www.naturesweet.com