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25.
July
2013.
Berry Gardens - Record Strawberry Sales

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RECORD STRAWBERRY SALES

"Although the start to the British soft fruit season has been the latest ever, we have achieved record sales of strawberries in the past three weeks with over 1,700 tonnes being sold to supermarket customers each week -a new record for Berry Gardens1." said Nicholas Marston, Managing Director of Berry Gardens Ltd, at Fruit Focus, the fruit industry's showcase event held on Wednesday, 24th July, at East Malling Research, Kent.

He continued: "The cool and dull spring weather2 this year created an unprecedented delay to the start of the season, which, as British Summer Fruits have already extensively reported, created bigger fruits that have had higher than average sugar levels. When the crops finally started to ripen, a lot of fruit came very quickly. Fortunately we had anticipated this situation and sales plans were prepared to reflect the later, bigger crops."

According to Mr Marston, the latest Kantar Worldpanel data shows that the UK strawberry market fell in the past 52 weeks, 1.03% by value but grew 1.88% by volume3, and the later season is easily seen in the past four weeks where the volume grew by 28.94% and sales values by 15.77% over the same period in 20124.

"A late start to the season usually places considerable pressure on some growers' finances." said Paul Kelsey, Chairman, "However, fortunately Berry Gardens was able to help its members by paying its annual commission rebate, customer, customer complaint and transport pool rebates much earlier than has been possible in previous years. In total £2.929 million was able to be paid to our members in May, nearly five months earlier than we achieved in 2012."

Mr Kelsey continued, "The concentrated flush of strawberries in mid-June gave growers a huge workload to get it all picked and packed but now that we are at the end of the Junebearer season growers are reporting above average yields, in some cases even as high as 40 tonnes/ha."

"Growers have also been assisted by higher sales values than 20125, enabling returns to keep pace with inflation, which has also been helpful."

Page Two

Mr Marston felt that their retail customers had really got behind soft fruit this year with large displays in stores, advertising and many promotional offers being used, including larger packs and free pots of cream to help maximise sales.

In summing up the season to date, Mr Marston felt that "Although late, the first half of the strawberry season has - by and large - gone well. There has been plentiful supply of some of the best tasting strawberries we have ever sold and the recent hot sunny weather has been a tremendous boost for sales, coming at a time when we have had good availability."

Ends

For further details, please contact:

Simon Merrick

ZestST

T: 01634 671167

M: 07803 931138

E: Simon.Merrick@thinkzest.com

About Berry Gardens

Based in Kent, Berry Gardens is one of the UK's premier soft fruit and stone fruit suppliers. Founded 40 years ago, Berry Gardens is the UK's leading berry and stone fruit production and marketing group with sales in 2012 of £202 million, a market share in excess of 30% and a year round business supplying all of Britain's leading retailers.

As a co-operative, Berry Gardens is wholly owned by UK growers making the Berry Gardens proposition unique in the UK agricultural market.

Notes

  1. This year is the first time that Berry Gardens have sold over over 1,700 tonnes of strawberries in a week consecutively:

W/C 23rd June 1,715 tonnes;

W/C 30th June 1,750 tonnes; and,

W/C 7th July 1,718 tonnes

  1. Differences calculated from Met Office data recorded at the Manston weather station in Kent. The relative values are:

Year Av max T°C Av min T°C Air frost Rainfall Sunshine
(January - June) days (mm) (hours)

2011 13.37 6.48 4 201.5 1,011.4

2012 12.25 5.47 16 308.0 812.7

2103 10.12 4.32 26 190.4 715.5

 

 

Page Three

 

There has been 11.96% less sunshine hours in January - June 2013 in Kent compared to 2012 and the average maximum monthly temperature has been 2.13°C or 17.39% less. Plants respond to the number of growing degree hours and in 2013 these have been c. 30% less than in the same period in 2012.

 

  1. Kantar Worldpanel strawberry market share data for the 52 weeks prior to week ending 7th July 2013.

  2. Kantar Worldpanel strawberry market share data for the 4 weeks prior to week ending 97th July 2013.

  3. Average invoiced sales values up to and including week 29 (W/C 15th July 2013) have been, on average, +3.87% higher than the corresponding period in 2012