EXPORTS: Innovation is the Key to Success
Recent Western Cape Business News
THIS year has been exceptional in that the export markets started on an unbelievably high level and thanks to a combination of factors, Capespan realised on average 43% higher payments to growers of deciduous fruit in the first couple of months this year, compared to the same period last year, while citrus was up 70%, according to group managing director Neil Oosthuizen.
But in an interview with CBN he sounded caution, indicating that recent developments on the world’s economic scene have brought their own uncertainties.
“It’s clear that consumers in most countries are taking financial strain and although we aim to keep prices low on the retailers’ shelves, sales may be strained as fruit products, especially grapes, are often viewed as a luxury”, Oosthuizen says.
Consumers will have less money to spend on expensive fruit. And because supermarkets will be fighting to retain shoppers and because fruit is often regarded a high profile item, they’ll want to show that they’re offering the lowest possible fruit prices.
It is for this reason that Capespan will continue to be innovative particularly so in specialised packaging and value added products. So for example Capespan has launched its new fresh-cut products.
In partnership with UK processors Orchard County Foods and Superior Foods, Capespan is meeting the need for convenient fruit snacks with a range of products under the CAPE label. These are Snack Bags (apple and grape) and Fruit Pots, a fruit medley and pineapple and grape.
Another innovation is individually sleeved CAPE fresh pineapple sticks, which were launched earlier this year as part of the British Airways long haul menu. So far feedback has been extremely positive, Oosthuizen says, with the demand currently 80 000 sticks a week, but this is forecast to increase to 100 000 sticks a week. It is now looking at increasing the range in the future with additional fruit products.
Capespan also launched its new Capespan Gold brand in the UK market to meet demand from its top-end global customers for fruit of exceptional quality. Customers range from independent retailers to catering and food service organisations supplying the UK’s boardrooms and airport business lounges.
It’s anticipated that once Capespan Gold grapes are established in the market, the brand will be extended to other fruit kinds. A simple, stylish livery has been developed for the brand.
He also notes the continuing trend for retailers to get closer and better understand producers. “As the middleman, we the exporters, acknowledge the growing importance of supply chain management services in supporting the marketing process. Continual pressure to cut costs and find the most effective routes will beef up supply chain management challenges further. Therefore we’ve examined ways to elevate our service delivery and offering to the highest levels”.
“This is essential in guaranteeing Cape-span’s exceptional services, featuring quality and innovation – factors which distinguish us from our competitors”, he says.
Of strategic importance is also securing Capespan’s fruit supply. To this end it has, through its associate company Rapiprop, purchased the 490 ha Applethwaite farm in the Grabouw area. “The purchase of this large apple, pear and plum production unit underscores Capespan’s continued focus on growth and development”, says Oosthuizen.
“Because the farm has been a Capespan supplier for more then 60 years, we know the business intimately”, he says.
With orchards covering 300 ha, Applethwaite annually exports 260 000 cartons of apples, 50 000 cartons of pears and 100 000 trays of plums. Apart from having its own pack house and cold stores, the farm was one of the first in the country to offer a creche, pre-school, clinic and church facilities to staff members. The company’s infrastructure is a producer’s dream. Plus, it was one of the pioneers in computerised quality control, according to Oosthuizen.
Rapiprop, a joint venture between Capespan, Total Produce plc and the Cape Empowerment Trust, owns and operates farms in South Africa. The organisation buys farms that are good investments, secures a strategic fruit supply and will plan an important empowerment role in future.
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