BanaBay hasdiversified their product range since the last time they attended FruitLogistica a year ago and have seen expansive growth. Their product line hasexpanded from a banana business with a few pineapples with intentions to starton plantain, to now being able to source bananas from all of South America, alongwith the Philippines. They are also sourcing pineapples from Costa Rica and Ecuador,along with limes, mangoes and plantain. BanaBay believes that this productexpansion is important to the business because this enables them to offer customersa portfolio of everything they are looking for.
Previously,most bananas were coming from Ecuador, but Banabay is also working closelywith Costa Rica to supply bananas and pineapples. According to BanabayManaging Director, Mark O'Sullivan; “It is a perfect fit because there are always a couple ofmonths a year when the quality drops in Ecuador due to weather conditions. Thistime period is precisely when Costa Rican bananas are at their strongest.Banabay has a system which works, to get volume during the best months and look elsewhere during the low period to fill the gap.”
The companynow has total coverage for South America. Along with Ecuador and Costa Rica,they now have 12 containers a week coming out of Mexico with mangoes andlimes, from different producers. The Dominican Republic is where they gettheir supply of organic bananas, which are fair trade. Finally, they also sourcemangoes and bananas from Peru.
Something new for 2015 is the offering of a new type of baby banana called Banabino. "Banabino is supplied by a fantastic producer out of Ecuador. The bananas are on the water as we speak on their way to China for trial, and we are very excited at theprospect of developing this into a regular business," said Mark O'Sullivan. "The taste is sweet and delicate which is a perfectfit for the Chinese market. The sweet flavour appeals to all ages, it is perfect for babies and small children, but it also has a sweet flavour that adults will love too. We plan on making more contact withretailers over the next 12 months. Banabino fits well into the idea that if you can provide a spread of products to a customer, it gives moreopportunities for success."
China is Banabays biggest marketplace and they are currently shipping around 40 containers a week. The company believes that it is important to look for one strong partner, sometimes two in a large country such as China. They are happy to grow with the main ports Shanghai, Dalian, and Qingdao and not create too much conflict with the set customer base they have established there and develop their business along with their partners. Mark O'Sullivan says that this works for Banabay, because the partner feels that it is their brand to sell and market which reduces conflict while increasing customer loyalty.
The banana supply being sent to China and New Zealand is sourced from the Philippines. The company has a good relationship with their customers in New Zealand which has led them to looking into the possibility of additional products they can provide, such as apples. There are three apple varieties that they are looking at sourcing so that the company would also have the possibility of having a 12 month solution for their customers.
When it comes to closer to home, Banabay has been dipping in and out of the UK market. Unlike container sales in other countries, the UK market deals more in ripened pallets which are sold directly to wholesalers. Working with daily market prices which adds more risk to the business, so they recently partnered with Fruesh in Shifnal who are now dealing with all of the sales in the UK. This ensures that Banabay has no infrastructure costs in terms of people to sell the daily pallets. The company would still love to start working with retailers in the UK to help develop their business in the country.
Mark says that the UK price wars are still going strong. He feels that using bananas as a loss leader to get people into their stores is not a solution. "With Sainsbury’s and Waitrose charging the same price for 100% Fairtrade bananas as they do for conventional ones, is this really giving people the right message about what the fair trade message is about? I feel that somewhere, sometime, things need to change and that someone needs to have the courage within the retail environment to make that step with a different message and a different story that the consumer would love and would actually buy into. If they were made to realize just what happens in the industry, they would understand why things need to change and be willing to pay more, just like they do for other fair-trade products.”
Mark O'Sullivan, BanaBay Managing Director.
“We want to keep improving each year. We want to develop so we are able to double the size of our business year on year and have plans to make sure this growth continues. We started back in January 2014, with 9 containers a week and this had grown to just under 150 containers a week by the end of the year. However, it is important that we are careful in our approach and are maintaining a stable environment for our business.”
For more information:
Mark O'Sullivan
Banabay
Tel: +44 1213928756
Fax: +44 121236 8627
Email: mark.osullivan@banabay.com
www.banabay.com