"Last year was a great year for us, despite the pandemic problems. That was, unfortunately, not the case for everyone," says Alco Kappé of the Belgian nut wholesaler, Allnuts. He has more than 30 years of experience with fruit and nuts. He noticed that COVID-19 affected dried fruit and nut consumption.
Things like spending more time at home and people's growing awareness of nuts' health aspects have played a role. Allnuts supplies both organic and conventional nuts. The organic segment is growing, notes Alco. There is also more demand for granola and its ingredients. "That's showing an upward trend."
Trust
Allnuts carefully selects its suppliers. Product flow continuity is a vital factor in the choice, says Alco. "The trust in and relationship with the company in question is important. As is the confidence in certification." He has, however, realized that a certificate is, unfortunately, not always a guarantee of good quality, food-safe products.
The nut trader says Allnuts' approach is bearing fruit. The company is increasingly in the picture for supplying larger volumes. These are based on not only ingredients and certifications. Available knowledge about origin and quality plays a role too. "There are more and more customers who want to find the best wares, based on knowledge and experience."
Bundling
That is why Allnuts' assortment has only organic varieties of many ingredients. Even though these are sold as conventional. "I can source certain raw materials well in the organic segment. I sell these as conventional because then we can avoid things like cross-contamination," explains Kappé. Price is another consideration. "If the organic volume rises, the cost price stays the same or drops."
"So, if I supply both the organic and conventional versions of a certain product, I have twice the stock and need twice the storage space. If I bundle those products, I have a slightly larger volume. And I can serve both conventional and organic customers." In terms of client prices, Alco sees no problems with this. "Organic is a bit more expensive, but good products are priced differently." Another aspect that affects prices is increasing costs.
"We have to pass those on, and we do." But, says Alco, if suppliers have to raise prices more often, market resistance increases. That's why, where necessary, Allnuts has only passed on the increase in costs. That has reduced its profit margin. "If my goods' prices rise by ten percent, that could mean a seven percent increase for the customer. That's the reality for our regular buyers."
Year-round consistency
By focusing on high-quality ingredients, Allnuts can sell the same product year-round. That regarding quality and size, as well as variety and ratio. The nut wholesaler keeps nut mix ratios stable. He adjusts the price as the ingredients' prices change. "We don't keep the price stable and vary with the ingredients and mix ratio. For example, our student oats consist of very nice nuts with raisins. The ratio is always the same. So I have to adjust the price when the nuts become more expensive," Alco concludes.
Alco Kappé
Allnuts bvba
Industrieweg 1038
B-3540 Herk-de-Stad
+32(0)495 798742
info@allnuts.be
www.allnuts.be