“My experience within the company has served me well,” John states. “I started in the warehouse, and then I spent about ten years working in various departments, including operations, sales and marketing. Because of that, I gained a deep knowledge of the company.” These years turned out to be a good preparation for his current position as chairman, president and CEO. “Through my experience, I understand what it takes to get the job done at every level, and as a result have so much appreciation for the hard work done by everyone within Oppy.”
John Anderson at his desk.
Oppy, T&G Global and Total Produce
With a history going back to 1858, when four brothers decided to follow the Gold Rush, the company boasts a long history. The brothers weren’t engaged by the gold rush, but they became the suppliers of the fortune-hunters. They supported the adventurers with food and other materials. That trade also turned out to be a gold mine. In the following decades, the four brothers opened multiple shops and warehouses. David Oppenheimer, one of the brothers, even became mayor of Vancouver.
Nowadays, Oppy is a well-known name on the international market. The company has been coupled to Total Produce and T&G Global through ownership of shares. These two multinationals each owns a percentage of Oppy. “The model we created has many advantages. We can profit from each other’s strength and our combined expertise,” John explains. Each company can retain its own, unique culture, which is a key to sustained success.” Last year, Oppy bought 50 percent of Delica North America, a T&G Global operating company. An “exciting step.” Oppy has exported through Delica for some years. “We have now integrated even more, so that we can expand our trade, and ship a larger assortment to more destinations.”
Year-round local product impossible
The best yields will always be the deciding factor. “The US and Canada will have to compete with developing economies to retain their share of supply,” John predicts. “We see new suppliers emerging due to increasing global demand.” He mentions, among other countries, Peru, which expanded their supply and which has managed to get a good range of products including grapes, avocados, mangoes and citrus. “Regarding local cultivation, local growers and production are a strong marketing tool for retailers and those products have definitely found their place. Demand, however, is year-round, and that simply can’t be met with just local product.”
“Our growers are our lifeblood,” John says. The company works with the growers in various ways, varying from marketing the products to exclusive contracts and joint ventures. “We are flexible and willing to work with the growers in the way that works for them.” John mentions some companies for which Oppy does the exclusive sales: Divemex, Oceanside Pole, Orchard View Cherries, Ocean Spray and SunSelect. The company has set up a joint venture with the Californian strawberry grower family Hasegawa. “We put our growers first by offering various marketing formats, and by finding the best place to market their products.”
Urban Farming for foodies
“We have a geographically diverse group of growers, which helps us limit the risks,” John continues. He means, for example, the risks of extreme weather, such as earlier this year in South America. “This has considerable consequences for the supply chain, which results in difficult circumstances for the growers in particular.”
The urban farms that are on the rise especially in American cities are a good way to teach consumers more about food. “Urban farming is a wonderful idea that creates communities and teaches generations about food production,” John says. “It’s a solution for foodies who want to grow their own products but don’t have large gardening space available in their urban settings.” Although interest in this is increasing, John doesn’t expect it’ll have much impact. “We encourage it, because there’s no downside to it. It won’t have an effect on the sector, except perhaps on the way consumers spend their money in certain periods of the year.” As an example he mentions consumers who grow tomatoes, and may choose to spend their produce dollars on cherries or other, more expensive, summer fruit.
Hard discounters
The American landscape is changing in sales. In Europe, hard discounters Aldi and Lidl are setting the retail landscape. Now that Lidl is also going across the pond, the question is how the American market will respond to them. John is unconcerned but always monitoring the landscape. “We can supply the full breadth of retail, so we aren’t very worried about the discounters entering the American market. We expect they’ll create more competition and increase the pressure on price margins.” Although both the Americans and the Canadians are sensitive about prices, John also indicates other aspects that play their parts. “Both consumer groups look for the best quality, flavour, appearance and general consumption experience for their dollar. Canadians might be a bit more price sensitive because of the unfavourable exchange rate with the US dollar, which causes retail prices for import products to increase.” However, the consumers are more willing to pay for certain products, such as cherries, premium apples, gold kiwifruit, and berries in the winter months.
However, that isn’t the only trend on the American market. Convenience, Fairtrade, organic and ready-to-eat are also advancing. “All these trends challenge us to supply products that meet these demands. We have seen how the convenience trend changed the citrus sector, which saw shelf space for traditional varieties decreasing in favour of the seedless and easy-peel varieties.” A similar image was seen on the ready-to-eat market, and demand for organic products also continues to increase. “We recently hired an organic category manager,” John says. “Chris Ford will help us to build this segment within Oppy. We have also noticed the organic supply at conventional retailers is growing significantly. Fairtrade and other socially responsible products are also preferred in certain retail formats and geographic regions. There are many opportunities to capitalize on these trends.”
During Oppy’s long history, the company was a frontrunner in the produce industry multiple times. In 1891, the company imported the first Japanese mandarins to Canada. In 1956, the first Granny Smiths were imported from New Zealand, and four years later the first kiwifruit followed to the Canadian market. The company was also one of the first to set up an import flow of grapes, stone fruit and other summer fruit from Chile. With that, year-round supply was created. How does John see the future of the sector?
“Demographic shifts can be seen, and the way consumers buy their fruit and vegetables is changing. Online sales are increasing, as is in-store technology. Demand for a more diverse supply is rising. These developments will shape the Oppy of the future.”
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