First WPE South African strawberry exports
For the first time since sanctions were imposed on the South African economy, strawberry exports have once again found their way onto European supermarket shelves.
Well-Pict European (WPE) has been able to open up the UK, French and Dutch markets to the South African grower base it has established over the last 4-5 years. Although other companies from American and European followed WPE to the region to develop their own grower base, WPE is the only one to have actually exported product for UK retail sales, whilst also dominating the domestic market. The fruit has been well accepted by both consumers and retailers in the UK, it looks set to become a real competitor to the traditional source of winter strawberries.
WPE have already received positive feedback from a number of retailers interested in the product. Economies of scale remain Well Pict South Africa's biggest chellenge but they intend to overcome production to overcome this.
The European export window is available to South African growers from October until early January; this coincides with peak production in the two main regions (George and Stellelbosch), which has a positive impact on the domestic market by giving producers a greater degree of control over supply.
As well as developing its export markets, Well Pict SA has been focusing on its original objective, which was to build and establish the Well Pict brand in South Africa.
Members of the Well Pict Marketing Trust may choose any varieties of the current list and supply Well Pict's markets with branded fruit. the fruit must comply with a minimum standard or specification. Well Pict SA Director, Chris Charter believes their focus on quality will drive consumers to demand the brand from their retailers. In order to establish this Well Pict SA actively tries to educate the consumer on the hygiene and health aspects associated with Well Pict SA berries. All growers supplying fruit under the Well Pict brand must company with the EurepGAP code of practice, which guarantees traceability and adherence to pesticide and chemical guidelines. Most consumers in South Africa have never heard of this accreditation, Well Pict promotes it with POS and advertising. Likewise, the positive health aspects of berries are well known to some, however there remains an enormous potential to educate consumers in this regard particularly in the country where healthy eating is paramount in the fight against HIV.
South Africa has a strong retail sector. Between 70-80% of the total demand for fresh strawberries is channelled to the consumer via this market. Well Pict SA supplies the largest retailer of strawberries in the country, Woolworths. The chain has largely been modelled on Marks & Spencer and has experienced significant growth this season. it is hoped that the supply by Well Pict of a consistently superior quality berry will lead to sub-branding in the future.
November 2005 |