UK and Northern European Season

UK Strawberry exploded into life in late April and has continued to go from strength to strength as the season progressed through the summer. Volume has grown circa 15% on 2001 due to additional acreage and a larger percentage of covered production. In adverse response to this the Dutch/Belgian season whilst continuing to be a success with the creation of Well-Pict European, has shown a significant decrease in export volumes for 2002.

Quality feedback
We have seen significant quality improvements on UK/Dutch/Belgian fruit this year and are proud to report that a large drop in the number of multiple raise quality concerns. With this in mind our store originated quality complaints have fallen by over 18% year on year and we are well on our way to our annual target of 30% lower thatn 2001.

Middle Eastern Season Preview
The Middle Eastern season is expected to start in early November which is likely to be slightly earlier than last year. Early indications are that the crop is expected to be of improved quality with some of the trial varieties from 2001 going into production this year. The major change affecting Israeli fruit will be the change in labellilng policy. All fruit will need to be marketed not only with the country of origin, but also the area of production.

Chiller trial for 2003
After two years of development work between ASDA and AMS, the first chilled promotional fixture has just been finished. It has been sited at ASDA Mansfield and AMS plans to spearhead a robust summer fruit marketing programme in 2003. It is situated at the front of the produce department and combines chilled space for perishable soft fruits with ambient shelving at the rear for link-saved items (i.e. raspberries and pavlova bases). If the trial proves to be a success as expected the unit is to be rolled out across the chain in the near future.

Catering and Processing Sectors
Significant in-roads were made into this sector in 2001 and we have continued to expand during 2002. We pride ourselves on our excellent service and attention to detail when delivering our exact customer requirements which can range from growing specific berry varieties to highly graded and sized fruit.

Organics
AMS has continued to increase supply to ASDA within this area. Our current supply range includes strawberry, Kiwi, Plum and Grape with Avocado starting in a couple of weeks. This sector has been outlines for significant growth in 2003 and sales to date are 500% up year on year.

Cherries
2002 saw AMS complete is first full cherry season as category managers for ASDA. Our excellent supply cources and robust marketing strategy has made it a year to remember with ASDA reporting a year on year increase of 30% by volume. Ouor aspiration for next year is to increase by similar volumes with an extended picota season and attempts to move loose cherry closer to a 12 month supply.

English Plums
The 2002 season has been dissappointing in relation to the bumper crop of 2001. Whilst our marketing strategy echoed the successes of last year, difficulties with quality and availability meant that our promotional drives were limited to two weeks instead of the programmed four. It is hoped that these disappointments can be turned around in 2003.

Summary
AMS's sales are in a very strong position year on year. UK and Northern European berry seasons have been very successful along with catering, cherries and organic sectors. Plans to develop on the already successful "local" scheme as well as improving our current product range will only suppoprt our sales growth as we move towards 2003.

Autumn 2002