Woolworths – The Premier Berry Retailer in South Africa

In Southern Africa the name Woolworths is synonymous with consisten, exceptional quality and real value across a wide range of merchandise. Founded in 1931 by Max Sonnenberg, the stores have become a benchmark for excellence and an icon of quality. Sonnenbergs belief that success lies in providing real customers with superior quality at reasonable prices has established Woolworths as one of South Africa’s leading retail chains. A position only further enhanced by an on-going relationship with British giant Marks and Spencer dating back to 1947.

Woolworths sell all its products under one trusted brand name through more than 190 stores in South Africa, Africa and the Middle East. It is one of only a handful of major retailers throughout the world operating with a “single brand” philosophy and the only store of its kind doing this in South Africa.

The Woolworths food division, encompassing fresh prepared foods, long life groceries, wines and fresh flowers has built its foundation on the pillars of quality, freshness, innovation, health, convenience, safety and value. Woolworths was the first retailer to introduce the “sell by” and “best before” shelf life system in South Africa.

Unlike UK consumers, South Africans are not always able to find certain products on retailers shelves 12 months of the year, something often taken for granted on UK shopping lists. WPE South Africa is working towards filling that gap in the berry market and providing Woolworths with a high quality, home grown product 52 weeks a year.

This couldn’t come at a better time for the strawberry industry in Southern Africa. Bad press has been abundant after a two year legal battle involving the abuse of Israeli plant rights. Woolworths along with other SA food retailers were dragged into the argument after being accused of selling strawberries, which were unlawfully obtained.

However, with the availability of new plant varieties thanks to Plan Science Inc and Well-Pict European South Africam Woolworths is once again leading the way in South Africa’s soft fruit industry.

Colin van den Huevel, fruit technologist for Woolworths answered a few questions on the category.

How has your supplier base developed over the last few years?

Quite dramatically. Some suppliers (growers) have not been able to keep up with the pace of change – demands on infrastructural improvements (high humidity coolers, etc) and production technique enhancements (EurepGAP etc) have forced them out of the strawberry business. On the other hand we have taken on board quite a number of new suppliers. Initially Woolworths tried to regionalise their supplier base – we have three major regions and we tried to have a grouping of suppliers in each area. More recently, with the introduction of newer varieties into SA and the possibility of year round production (until 6 or 7 years ago strawberries were only available from end-August to Christmas), we have strategically placed our supplier base to achieve at least 10 months full supply. We have also entered into agreements with suppliers who have allianced with international breeders (eg. Plant Sciences Inc.)

2003 has seen new plant stock availability in South Africa, what effect has this had on consumer demand?

We have noted a trend where consumers want eating quality (flavour, texture, sweetness and aroma) above all else. Although we have only a few of the new generation strawberry varieties on our shelves, we have had tremendous customer response. This has resulted in our strawberry sales being significantly up on previous years. We have also seen a resistance to some of the firmer varieties, such as Camarosa, and now question their long term future with Woolworths.

Where do Woolworths see the product, as a commodity or luxury?

Due to their price and they very nature of strawberries, they are seen as a luxury item. However, as volumes and year-round availability increases we see strawberries becoming more of a commodity type line, within the reach of more and more South Africans. Almost at the dividing line between commodity and luxury.

Does the Woolworths consumer demand this production 52 weeks a year?

Our ultimate goal is 12-month supply. We have never experienced the luxury of full supply from just before Christmas to the end of summer and it is just this period where we believe we have a peak demand for the product. However, with South African summer temperatures often in the mid thirties, it will take a concerted effort to supply large volumes of good quality consistently over this period.
Generally how many strawberry lines run at one time in store?

We start and end the season with 150g punnets, but quickly move to a combination of 250g and 400g punnets. As soon as volumes allow we launch an 800g punnet which retails at abour R21.99 (approx £1.70) which accounts for about 90% of our sales. We have recently launched organic strawberries which we see as a fundamental part of our offer. We also have “Flavourburst strawberries” – a range of niche varieties which may have phenomenal flavour, but may only be available for a limited period.

How do you see the sector developing over the next five years?

I see the introduction of a number of newer, improved eating varieties and, hopefully, 12 month production. Our growers are currently in a trial phase where the characteristics of every variety are being identified. A lot more work is needed in the field of nutrition as our strawberries, at times, lack the full flavour that we require. I believe that there is still a lot to be learnt regarding post harvest handling, particularly cooling and the maximising of shelf life.

Winter 2003