UK Growers

Let me start with a big thank you from ASDA to all it's UK growers for the 2002 season and we are looking forward to 2003, as there is much more to be had.

Summer 2002 we saw sales of 8m, which was an increase of 25%.

Local deliveries:

Local is a process where we deliver the product from a grower to nearby stores which are in the same county or have a radious of approx 25 miles. This process helps us to deliver the following:

- Awareness of UK strawberries so helping to increase sales for the summer
- Customers support to all our local growers
- Positive PR with stores and customers
- Also ASDA and UK grower working together to satisfy customers' needs.

And we only delivered this in Kent, Cornwall and Scotland, so there are a lot more opportunities to be had in 2003 and we would like you to be involved.

The benefits to the growers are having his/her name/farm area on the label - we see it as a way to help those growers who used to have very successful pick your own businesses which have been affacted by changes in consumer lifestyles. The consumer is still very loyal to the farms products but they do not have the time to pick it themselves. if it was made available in ASDA the consumer will be loyal to the product, especially on our products (soft fruit). Plus it will provide good sales, which means a good return.

We, at ASDA would be grateful for your help to deliver this in 2003.

Good results for 2002 - Looking forward to 2003.

Once again we are pleased to announce record growth in 2002, which has followed the same pattern as the previous three years. With this in mind we are expecting a simiilar growth in 2003 not only with our existing product portfolio but with organics which we are expecting to double.

With the major changes expected in food retailing during 2003 the effects in the soft fruit sector could be significant and we are well placed to take the next step forward to respond to the challenges ahead.

Spring 2003