Table potatoes in Dutch and Belgian supermarkets Criteria for potato varieties in the Dutch and Belgian supermarket chains.
Piet-Hein Briët International Agribusiness &Trade June 2011
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Table of Contents
Glossary ...... 4 Context ...... 5 1.0 Background ...... 5 2.0 Objective ...... 7 3.0 Methodology ...... 8 4.0 Chain analysis...... 9 4.1 Role chain actors...... 10 Purchase organizations in the Netherlands ...... 15 Purchasing organizations in Belgium ...... 17 4.5 Conclusion Dutch and Belgian potato chain ...... 19 5.0 Table potato market in the Netherlands ...... 20 5.2 Distribution channels ...... 21 5.3 Consumption...... 22 5.4 Cooking types ...... 22 5.5 Varieties ...... 23 5.6 Prices ...... 24 5.7 Conclusion Dutch table potato market ...... 25 6.0 table potato market in Belgium ...... 26 6.2 Distribution channels ...... 26 6.3 Consumption...... 26 6.4 Cooking types ...... 27 6.5 Varieties ...... 27 6.6 Prices ...... 28 6.7 Conclusion Belgian table potato market ...... 28 7.0 Selection criteria in the potato chain ...... 30 7.1 Netherlands ...... 30 Packers...... 30 Purchase organization/supermarkets chains ...... 30 Supermarkets (shop level) ...... 31 Consumers ...... 32 Conclusion criteria in Dutch table potato chain ...... 32 7.2 Belgium ...... 33 Packers...... 33 Purchase organization/supermarkets chains ...... 33
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Supermarkets (shop level) ...... 34 Consumers ...... 34 Conclusion criteria in Belgium table potato chain ...... 35 8.0 Decision making in the potato chain for potato varieties ...... 36 9.0 Role of a breeding company in varieties introduction ...... 38 10.0 Conclusion ...... 39 Netherlands ...... 39 Belgium ...... 39 11.0 Recommendation ...... 40 12.0 Annex ...... 42 Annex 1 Questionnaires ...... 42 Annex 2 Elaboration of interviews ...... 46 Annex 3 Interviewed parties ...... 49 Netherlands ...... 49 Belgium ...... 49 Contact information of people of interest ...... 50 Annex 4 Table potato varieties in Dutch and Belgian supermarkets ...... 51
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Glossary AGF Dutch abbreviation for “Aardapplen Groenten en Fruit”; segment of fresh potatoes, vegetables and fruit.
Category Manager (CM) Individual responsible for the purchase of a product assortment (category).
Chain actor Actor in a chain.
Commercial variety Variety that meets the requirements for commercial use.
Common variety products Varieties that because of the familiarity among consumers have become a product by itself, for instance Nicola or Charlotte.
Consumption potato grower Farmer who produces consumption potatoes.
Cooking type products Products (table potato) that can be distinguished only by the cooking type for instance firm or mealy.
Discounter A shop with a small range of successful products with relatively low service and prices.
Formula (shop formula) The overall approach of a retailer to attract and bind a certain type of customer.
Free variety Variety that can be used freely without having to pay royalties to breeder/owner of the variety.
Monopoly variety Variety that can only be used, traded or multiplied by or with permission the owner of the variety.
Niche products Products purchased by a specific target group.
Packer Packer of table potatoes for the retail.
Potato breeder Someone who deliberately and systematically is trying to acquire new and better potato varieties.
Preferred supplier This is a supplier with which the supermarket wants to develop a medium/long term relationship, is seen as the main source of designated goods and services.
Product assortment The variety of products that a retailer stocks.
Purchasing department The department in a company that buys raw materials or goods for use in the company.
Purchasing organization Purchasing organized by an organizations on behalf of all its departments or branches or members.
Retailer The sale of goods or commodities in small quantities directly to consumers. In this report interchangeably with supermarket.
Seed potato grower Farmer dedicated to the multiplication of potato seed.
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Context This thesis assignment is assigned by C. Meijer B.V., a Dutch company specialized in breeding new potato varieties. This thesis assignment will be executed by Piet-Hein Briët and will be supervised by Johan van der Stee, manager sales of C. Meijer B.V. and Marise Heasendonk, major coordinator IAT at Van Hall Larenstein.
1.0 Background There are thousands varieties of potatoes but only a few hundred are suitable for commercial production. These commercial varieties are specially bred to meet the requirements of the industry. These new varieties can be registered and are protected by plant breeder rights; any person or company who wants to produce or trade this new variety has to pay royalty to the breeder. After thirty years the variety is ‘free’ in The Netherlands, anybody can multiply, cultivate or trade the variety without having to pay royalty to the breeder. There are four main industries were potatoes are used for: starch, crisps, French fries and table potatoes. A new variety distinguishes itself on various points, for example; it can be produced or processed more efficient, it is more resistant to diseases and viruses, or it offers other advantages for the consumer. In general, successful potato varieties are varieties that meet the requirements and add value for all actors in the chain. For each industry there are other potato varieties that can be used best for the specific requirements for that industry. Besides the different requirements for the four different industries there are also differences per region/country/continent. The varieties are sold worldwide and therefore it must meet international standards and be able to perform well to different growing and climatic conditions to be successful. International successful potato varieties are Spunta, Bintje, Agria, Fontane, Lady Rosetta and Innovator. Some of these potato varieties can be used in different industries.
Description of the company C. Meijer B.V. is a family company founded by Cees Meijer in Kruiningen in 1920. The company started as a trading company of consumption potatoes and onions. In 1965, the company decided to get involved in seed potato production. In the eighties C. Meijer B.V started with the breeding activities Not much later C. Meijer B.V. also created the subsidiary MFF (Meijer Frozen Food), a processing plant for frozen potato products. This Processing plant is now half owned by Lamb Weston (the second French fries processor in the world). Meijer also used to pack potatoes for supermarkets. The packing facilities were sold to Nedato (around 7 years ago). Today Meijer’s core business is breeding, growing (under contract) and marketing of seed potatoes for the French fries, crisps industry and the table potato market. Meijer has a strong position in the crisps industry, 55% of the total turnover (in yield). The French fries segment is the smallest segment for Meijer and the table potato segment represents about 35% of the total seed potato sales and is growing steadily.
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Sales seed potatoes per segment 2010 (tons)
7262
26242 French Fries Chips Table potato 41550
Figure 1 sales seed potatoes per segment 2010
The table below shows the importance of each individual table potato variety for Meijer in the Netherlands and Belgium. The table shows the kilograms sold ‘Class A‘ seed in The Netherlands and in Belgium.1 Class A seed can only be used for the production of consumption potatoes. A part of these seed potatoes will be sold to consumption potato growers in the Netherlands and Belgium. Another part of the consumption potatoes will be exported. Melody is the most important table potato variety, followed by Lady Christl. Musica and Orchestra are strong growing varieties. Meijer B.V. table potato varieties 4000000 3500000 3000000 2500000 2000000 Sales seed potato 'A' varieties in The Netherlands (kg's), year 1500000 2010 1000000 500000 Sales seed potato 'A' varieties in Belgium (kg's), year 2010
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Jazzy
Turbo
Accord
Cupido
Musica
Bionica
Murato
Melody
Soprano
Orchestra
Terra Gold Terra
Lady Felicia Lady Lady Christl Lady
Figure 2 Sales figures table potato in the Netherlands and Belgium
1 Higher classes seed can be multiplied to be used as seed (S, SE, E, A, C classification). The higher the class, the higher the varietal purity and the better the physiological quality is.
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2.0 Objective As mentioned before there are four different potato segments; starch, French fries, crisp and the table potato segment. Each industry demands other potato varieties. The potatoes needed for the French fries and crisps must meet technical specifications. For example the French fry industry wants potatoes that have length and specific dry matter content. For C. Meijer BV, the company in the beginning of the table potatoes chain, the requirements of the supermarkets are still less clear. Meijer used to do business directly with Albert Heijn through their packing facilities. This meant an exclusive agreement about supplying packed potatoes only to the Albert Heijn supermarkets. Meijer withdrew from this exclusive agreement to be able to sell their varieties to other Dutch packers as well. Today Meijer doesn’t sell table potatoes anymore and focuses completely on their core business of breeding and selling seed potatoes. As a consequence Meijer lost their connection with the supermarkets in the table potato chain. The criteria which are used by supermarkets today are not completely known but necessary information to know what the market wants and needs. To be able to respond this question it is necessary to know which actor(s) (figure 3) make that decision. Is the table potato segment demand driven, driven by the wishes of the consumer? Or supply driven, driven by the available varieties offered by the breeding companies?
This report must provide an independent and clear overview of the criteria for Dutch and Belgian supermarkets to add a specific potato variety to their assortment and which people make these decisions.
The following sub questions will help to answer the main question: Which actors are involved in the table potato business? Which potatoes varieties are sold in Dutch and Belgium supermarkets and what is the origin? Within the supermarket chain, who is responsible for purchase and who for changes in their assortment? Are there differences between criteria of supermarkets for choosing a specific potato variety and why? If the market is demand driven then, what are consumer criteria for table potatoes?
The report includes a description of the table potato chain and the criteria for all these chain actors to sell or buy a table potato (variety). With the outcomes of this report C. Meijer B.V. will be able to take actions to increase the sales of the table potatoes varieties in The Netherlands and Belgium.
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3.0 Methodology The study is based on desk study together with interviews with the relevant key actors in the table potato chain in Belgium and The Netherlands. For each actor in the chain after the breeding companies, (packers, purchasing organizations/supermarket chains, supermarket managers and consumers) a specific questionnaire was made to get a clear understanding of the differences in criteria for choosing a specific potato (variety) in both countries (annex 2 ,p.46). These criteria were chosen because they are possible valid criteria for all actors in the chain and therefore possible to compare mutually. The intention is to interview all supermarket chains or the people who are responsible for buying table potatoes on behalf of the supermarkets. Because of the limited number of supermarkets chains/purchase organizations in Belgium and the Netherlands, processing the outcomes of the questionnaires into statistical data is not possible but observe tendencies is possible. Consumers in several supermarkets and supermarket managers will also be interviewed to get insight in consumers’ preferences and if they match to those of the purchasing organizations of
Consumers
Potato Purcahsing Supermarket organisations variety managers criteria
Packers
Figure 3 which criteria are used by the different actors the supermarkets. Dutch and Belgian consumers (50 in each country) are interviewed in supermarkets on three locations; Breda (south), Ede (center) and Assen (north) in the Netherlands and two locations in Belgium, Antwerpen (north) and Anderlecht (center) to get a good impression of the consumers’ preferences nationwide. In the Netherlands the interviews were done in 10 different supermarket formulas (Albert Heijn, C1000, Super de Boer, Jumbo, Aldi, Lidl, Hoogvliet, Emté, Poiesz, Boni) in Belgium only in 3 different supermarket formulas (Colruyt, Delhaize, Cora). This data will be analyzed in SPSS. The opinion of the supermarket managers will also be included because in some cases they can purchase independently but more important because they should translate the consumers’ criteria to the purchasing organization or purchasing department of the supermarket. And finally the criteria of the packers of table potatoes will be asked, as suppliers of the Dutch and Belgian supermarkets.
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4.0 Chain analysis The table potato chain consists out of several actors. Some actors cover multiple roles in the chain. As shown below C. Meijer BV is active in the beginning of the chain. Meijer’s seed of table potatoes are sold to Dutch and Belgian packers of potatoes, consumption potato growers and seed potatoes are exported directly or through agents.
Consumption Wholesalers and Potato Trader EXPORT potato grower Supermarkets
Contracted seed Contracted Consumption Meijer B.V. Packer potato growers farmers potato grower
Supermarket/
T Purchasing R organisation O P X E
Cosumption potato grower
Licence Export
Contracted Consumption Potato packer farmers potato growers
Seed potato growers Supermarket/ Purchasing organisation Figure 4 C. Meijer B.V. flow chart seed potato (table potato varieties)
There are many different chain flows of table potatoes and different relations between the actors in the table potato chain. Two common ways are shown in figure 5 (p.10). In the first example a breeding company (e.g. C Meijer BV) sells their potato seed to a table potato packer and they sell their products directly to the supermarket. The physical potato flow is from the contracted seed potato growers to the consumption potato growers who are contracted by the table potato packers. The seed potatoes are stored in a cold storage normally at the farm of the seed potato growers and therefore they receive financial compensation. When the consumption potato grower needs the potato seed, they communicate with the packer, who in their turn contact the breeding company and make sure that the seed potatoes are transported from the seed potato growers to the consumption potato growers. The consumption potatoes are often stored at the farm of the consumption potato grower until the packer needs them. Packers need the potatoes gradually through the year because when washed and packed, potatoes have a limited preservability and therefore can be stored only for a limited time. In the second flowchart the client is an independent consumption potato grower, this is however a less frequent way of doing business in the table potato business in Belgium and the Netherlands.
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Client
Breeding company Contracted Seed potato (e.g.: C. Meijer Consumption PPF Packer PPF Supermarket growers B.V.) potato grower
Physical potato flow (PPF)
Client
Independent Seed potato Breeding company Consumption PPF Trader/Packer PPF Supermarket growers potato grower
Physical potato flow (PPF)
Figure 5 Simplified chain flow chart table potatoes. 4.1 Role chain actors. Professional organization of potato trade In the Netherlands the professional organization for the potato business is NAO (Nederlandse Aardappel Organisatie). Their task is to look after the interest of the seed potato, consumption and industry potato traders. In Belgium BELGAPOM is the recognized association for the Belgian potato trade and processing industry. Its task is to defend the interest of the Belgian potato merchants, the prepackers, the exporters, the potato peeling industry, the potato processing industry and the producers and traders of seed potatoes.
Breeding company The breeding companies develop new varieties potatoes (i.e. breeding). With the help of breeding programs these companies develop varieties that are better than existing varieties. Breeding new varieties is an expensive and long process. A breeding program that starts with 60000 crossings in year 1 may only deliver 0 to 2 new varieties in year 9. The varieties will be tested by all actors in the chain and in different climatic conditions. After nine to fifteen years after the start of a breeding program, that new variety is introduced to the market. Because breeding potato varieties needs a high investment and time, breeding companies need to have a long term vision in order to breed potato varieties that meet the requirements of the customers in nine years from now. There are many factors that are taken into account to develop better potato varieties. Besides the requirements for all actors in the potato chain from production to market, also global developments such as the water shortage and salinization in potato growing areas are taken into account.
The new varieties are multiplied by seed potato growers. These growers are contracted by the seed company which secures the market for the seed potatoes. In the case of C. Meijer B.V., these growers are selected by the company and have experience growing Meijer’s potato varieties. The breeding companies sell certified seed to different actors all over the world. The breeding companies compete, physiological characteristics, quality (namely yield and keeping qualities), a wide range of varieties, good export infrastructure and on costs. 2 The potato growers need the seed potatoes as input for consumption and industry potato production (figure 4, p.9). The table below shows some of the largest breeding companies in the Netherlands and one in Belgium which is smaller than the Dutch breeding companies
2 Rabobank, Kiezen is de Kunst, 2010.
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Table 1Overview of important breeding companies in the Netherlands and Belgium.
Breeding company Country Type of company Number of sold table potato varieties3 Agrico Nl Cooperative 62 HZPC Nl Cooperative 35 C. Meijer B.V. Nl Private 13 Binst Be Private 41
Seed potato growers The seed potato growers are professional farmers who are dedicated partly or completely to the growing of seed potatoes. Some of them have contracts with multiple breeding companies and others work exclusively for one breeding company. Especially The Netherlands is a worldwide leader in growing seed potato, accounting for 70% of the global trade in seed potatoes4. Their expertise and the good geographic location for trade are some of the reasons for their leading position.
Consumption potato growers 80% of the consumption potato growers are contracted by the processing industry or potato packers5. The packers in their turn have contracts with the supermarket chains to supply the supermarkets their potato assortments year round. Nedato/CZAV is one of the largest consumption potato growing cooperation in the Netherlands.
Trading company The trader is a free actor in the market. Traders buy seed potatoes from the breeding companies but also free varieties in the market. Often they sell also table potatoes or offer potato sorting services to seed and consumption potato growers. Traders sell the seed potatoes abroad or to packers in The Netherlands and Belgium.
Packer The table potato packers have the role of “chain coordinator” within the chain. Packers can buy their potatoes directly from the consumption potato growers or through a trading company. The role of the packer is sorting, washing and packing the potatoes in consumer packaging (figure annex 2, p.46). The larger packers like Nedato, Werkman, Jansen Dongen en Schaap are estimated to supply 50% of the Dutch table potato market. Some packers also export their products abroad. In Belgium there are fewer table potato packers than in the Netherlands, Warnez, Muyshondt and Potato Masters supply the majority of the Belgian supermarkets. All of them have consumption potato growers under contract who cultivate free and monopoly varieties for the packers. The situation for the packers is different compared to the Netherlands, it has become more difficult for packers to advise category managers compared to the past. Some of the packers accuse supermarkets category managers’ lack of interest and knowledge about the potato varieties. Category managers of Belgian supermarkets have a fast job rotation. This makes it more difficult to build a good relation.
The table below shows Dutch and Belgian potato packers, the supermarkets which they supply and a shortlist of some potato varieties they work with.
3 Including free varieties. 4 Rabobank, Kiezen is de kunst, 2010. 5 Rabobank, Kiezen is de kunst, 2010.
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Table 2 Dutch and Belgian table potato packing companies
Dutch and Belgian potato Shortlist of approved potato Supplied supermarket(s) packers varieties6 Nedato Melody, Victoria, Mozart, Lady Cristl Albert Heijn Werkman/Landjuweel Nicola, Annabelle, Mozart, Red Poiesz Baron, Folva, Milva, Victoria, Golff Bellarosa, Berber, Solist. Spar C1000 Plus Emté Deka Jansen Dongen7 X Jumbo Schaap Holland Nicola, Bildstar, Maritiema, Coop Eigenheimer Deen Detailconsult Hoogvliet Jan Linders Boni Vomar Plus Aldi C1000 Sanders AC Loogman & Zn BV Nicola, Melody, Milva, Maritiema, Dirk vd broek Bildstar, Eigenheimer Bas vd Heijden Hoogvliet Makro/Metro Nederland Aldi Jac van den Oord Nicola, Sante, Bildstar, eigenheimer, Spar Frieslander, Melody Nettorama Leo de Kock & Zn. BV Nicola, Ditta Albert Heijn C1000 Van Kampen X X Greydanus X X Spriet aardappelen Melody, Artimis, Victoria, Sirco, Lidl Monalisa, Charlotte, Nicola, Cora Franceline, Galante Intermarché Muyshondt/De Wulff No preferred varieties Delhaize Carrefour Aldi Makro/Metro Match Warnez Charlotte, Nicola, franceline, Cecile, Delhaize Marlyn, Annabelle, gourmandine, Carrefour Pepite, Musica, Victoria, Marabel, Lidl Alegria, Ballerina, Milva, Melody, Artemis, Turbo, Crano, Challenger, Solist, Borwina, Caesar, Bintje De Aardappelhoeve Agila, Alegria, Challenger, Gala, Delhaize Borwina. Colruyt Lidl Okay Potato Masters Bintje, Nicola, Charlotte, Franceline, Carrefour
6 Answer to question 3 of the questionnaire; these varieties are the varieties they used most, also varying on demand. 7 Jansen Dongen, van Kampen and Greydanus were not prepared to cooperate with this report
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Gourmandine Aldi Intermarché Match Delhaize
Dutch packers supply the Dutch supermarket and Belgium packers only the Belgium supermarkets. 92% of the potatoes packed in the Netherlands are also sold there8. For the Belgium packers the French market is also important.
Potatoes sold to the Dutch supermarkets 2010 (tons) 100000 90000 AC Loogman &Zn BV 80000 Schaap Holland 70000 60000 Nedato 50000 Van den oord 40000 Flevo Star 30000 20000 De Kock 10000 Jansen Dongen 0 Werkman Van Kampen Greydanus H Quick & Zonen
Figure 6 Potato sold to Dutch supermarkets 2010 in tons910
8 Rabobank, Kiezen is de Kunst, 2010. 9 Some companies decided not to give their total sales figures because they consider it confidential information. The gradient filled bars are estimates of their sales made by C. Meijer B.V. 10 Nedato indicated to pack 100.000 tons/year including export.
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Potatoes sold to Belgian supermarkets. (ton) 60.000
50.000
40.000 Warnez 30.000 Muyshondt 20.000 Spriet aardappelen 10.000 De Wulff 0 Potato masters De aardappelhoeve
Figure 7 Potato sold to Belgian supermarkets 2010 in tons1112
Purchase organization and supermarket In the Netherlands, supermarket chains are often united in purchase organizations. By uniting themselves they increase their purchasing power. In The Netherlands there are three big purchase and two discounter purchase organizations, namely; Ahold, Superunie, Bijeen and Lidl and Aldi. Together they have a market share of more than 85% 13 (figure 8, p.15). In Belgium the supermarket chains; Louis Delhaize Group, Colruyt group en Carrefour occupy together more than 70% of the Belgian market (figure 9). These organizations often combine purchasing for their different supermarket formulas, forming even more powerful purchasing blocks with a better negotiating position (elaborated in chapter 6).
There are different forms of doing business between the supermarkets and the suppliers (the packers). First of all there is “category management” (supermarket has one supplier for each AGF category), the “service provider” (the supermarket has one supplier for the entire AGF segment), the “preferred supplier” (supermarket chooses periodically the cheapest supplier from a limited group that participated in a tender) and finally the “free market purchasing” (supermarket chooses weekly from a big group of suppliers per product category). The trend is that supermarkets will choose more and more for regular suppliers.14
In the Netherlands and most of Belgium, packers are paid the market price for the potatoes. Packers and supermarkets adapt weekly or every other week the price for the potatoes, a flexible system. In Belgium, Delhaize works with a tender system. Packers are asked to give their price for the demanded assortment. After negotiations the packer can supply a certain quantity to the supermarket for a certain period at a fixed price. This system is detested by the Belgian packers because the risk of having to deliver potatoes below market price. Packers have no option other than except this system.
11 The bars with a gradient fill are estimates of their sales made by C. Meijer B.V. 12 De Wulf is part of Muyshondt. 13 Nielsen 2010 14 From article; ING: “verandering inkoopsystematiek supermarkten voor groente en fruit door schaalvergroting”, february 2010.
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Purchase organizations in the Netherlands Marketshare Dutch supermarkets 2010
1% Albert Heijn 8% 6% 34% C1000 Super de Boer 30% Jumbo Superunie (totaal) 11% 5% 5% Aldi Lidl Other
Figure 8 Market share Dutch supermarkets 201015
Bijeen: The in 2009 formed purchasing organization of Jumbo, C1000 and Super de Boer, plans to have also their fresh fruits, vegetables and potatoes purchased through their organization by 2013. Until that time fresh fruits and vegetables are purchased independently by the three supermarkets formulas. Bijeen will have to reduce the number of suppliers to obtain a cost reduction.
Superunie Superunie is a buying organization for 14 independent supermarket chains in the Netherlands (table 3). They negotiate for most of the members the table potato assortment. The supermarket formulas decide what needs to be in the assortment and the Superunie’s category manager will compare (benchmarking) the offers and accordingly negotiate with different packers to get the demanded table potatoes for the best price in the supermarkets.
Table 3 Overview Superunie menbers
Superunie member Supermarket formulas Number branches Boni Supermarkt Boni 34 Boon beheer MCD 35 Coop supermarkten Coop 171 Deen supermarkten Deen 61 Detailresult DekaMarkt 90 Dirk van den Broek 45 Bas van der Heijden 30 Digros 20 Hoogvliet Hoogvliet 60 Jan Linders Jan Linders 56 Nettorama Nettorama 30 Poiesz Poiesz 58 Sanders supermarkten Sanders 22 Sligro groep Sligro. 45 Emté 107 Spar Spar 320 Attent 100 Sperwer groep Plus 270
15 Nielsen 2010.
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Vomar Vomar voordeelmarkt 56
Although most supermarkets are united in this purchase organization, some of the supermarkets do their fresh buying still independently. One reason is that a supermarket can distinguish itself from its competitors by the quality and variety of their fruits and vegetables assortment. Another reason is that there are local differences in potato consumption which requires a local approach in assortment16. Some of the Superunie members are cooperatives and franchised supermarkets and have limited freedom to (partly) purchase their own assortment. For example a Super de Boer franchise manager indicated that he was allowed to purchase 10% 17“vreemd”, meaning not from the Super de Boer purchasing organization. Other franchises are rewarded with bonuses when they take more products of the purchasing organization.
Ahold: Ahold is the purchasing organization for the largest supermarket chain in the Netherlands; Albert Heijn. Because of the size of Albert Heijn, they are able to have exclusive agreements with their suppliers meaning that a supplier can only sell their products to them. In return they get total responsibility of the product group and become Albert Heijn’s service provider for the table potato segment. This is also the case for table potatoes; Nedato only delivers potatoes to the Albert Heijn in the Netherlands. The category manager “potato” of the Albert Heijn is even employed by Nedato.
Discounters: Hard discounters in the Netherlands are Aldi and Lidl, together they have more than 14% market share in the Netherlands. Their AGF purchase is done by their purchase department in the Netherlands. There are 9 Aldi distribution centers, each supplying about 60 Aldi supermarkets. Discounters typically work with more than one supplier.
Table 4 Overview connection Dutch supermarket/packer
Organization Supermarket formulas Packer Ahold Albert Heijn Nedato/Leo de Kock C1000 C1000 Leo de Kock, Werkman Jumbo Jumbo Schaap/Jansen Dongen Super de Boer X18 Aldi Nord Aldi AC Loogman Schaap H Quick &Zn Lidl X Superunie - X Boni Supermarkt Boni Schaap Boon beheer MCD X Coop supermarkten Coop Schaap/Van Kampen Deen supermarkten Deen Schaap/Van Kampen Detailconsult DekaMarkt AC loogman/Schaap /Werkman Dirk van den Broek AC loogman/Schaap Bas van der Heijden AC loogman/Schaap Digros AC loogman/Schaap Hoogvliet Hoogvliet AC loogman Van Kampen Schaap Jan Linders Jan Linders Schaap Nettorama Nettorama Jac van den Oord
16 Mainly difference in packaging sizes, see chapter 5.3. 17 Not clear if this is a % is of the number of products or turnover. 18 “X” means no supplier information.
16
Poiesz Poiesz Werkman Sanders supermarkten Sanders Schaap Sligro groep Sligro. Werkman Emté Werkman19 Spar Spar Jac van den oord/ Attent Werkman
Sperwer groep Plus Schaap/Werkman Vomar Vomar voordeelmarkt Schaap
Purchasing organizations in Belgium In Belgium the Louis Delhaize group, Colruyt group en Carrefour occupy together more than 70% of the Belgian market. Louis Delhaize group and Colruyt group are Belgium supermarket organizations. Carrefour is a global retailer of French origin. The majority of the Belgian supermarkets chains are owned by one of these three retail organizations. Discounters Lidl and Aldi account together for almost 20% of the Belgian market.
Marketshare Belgian supermarkets 2009
7% Delhaize 6% 26% 11% Colruyt 3% Carrefour Spar 23% 24% Aldi Lidl Other
Figure 9 Market share Belgian supermarkets 200920
Table 5 Overview Belgian supermarkets 2010
Supermarket Number formulas branches Colruyt group Colruyt stores 214 Okay stores 70 Bioplanet 7 Spar retail 265 Spar Lambrechts Spar Lambrechts 60 Louis Delhaize Group Delhaize21 655 (S)Match 16 Cora 7 Profi Red supermarkets 5 Carrefour Carrefour 686
19 Landjuweel supplies Emté through the wholesale company; Smeding groenten en fruit. 20 AC Nielsen figures, in article from profnews.nl “Drie supermarkten strijden om marktleiderschap België” 21 Total of Delhaize, AD Delhaize, City Delhaize, Shop n’Go.
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Champion 67 Les Musquetaires Intermarché 60 Ecomarché 16 Lidl Lidl 250 Aldi Nord Aldi 380 Makro Makro 7 Metro 5
Colruyt group: The Colruyt is a family owned company with the formulas; Colruyt stores, Okay stores, Bioplanet, Spar retail. The Colruyt purchasing department purchases table potatoes for the Okay stores. The service and price level of the Colruyt and Okay formulas is lower than the Delhaize and the French retail formulas. 22 Colruyt occupies the segment between the discounters and the others.
Louis Delhaize group: Delhaize is the largest supermarket chain in Belgium with integrated and franchised supermarkets such as; AD Delhaize, Proxy Delhaize, City Delhaize, Shop n’ Go, Red Market. Furthermore they have a large share in the supermarket formulas Cora and Profi. Delhaize launched in 2009 the Red market concept, a discounter formula, to compete with the discounters but also the Delhaize formula moved towards its biggest competitor Colruyt were price level is becoming more important than quality.
Carrefour: Carrefour is one of the largest supermarket companies in the world. In Belgium they are the third largest supermarket chain present. Besides the supermarkets and hypermarkets, Carrefour also supplies the Belgian Champion formulas.
Discounters: Aldi and Lidl are like in the Netherlands, two successful discounter formulas. Together they have a 17% market share.
Table 6 Overview connection Belgian supermarkets/packers
Organization Supermarket formulas Packer Colruyt Colruyt stores De Aardappelhoeve De wulf Warnez Potato masters Moespom Okay stores De Aardappelhoeve Bioplanet X23 Spar retail Go Patat Delhaize Delhaize Muyshondt Warnez De Aardappelhoeve Match Muyshondt Cora Spriet Profi X Red supermarkets X Carrefour Carrefour Muyshondt/Warnez Champion De Wulf
22 Belgian consumer organization “test aankoop result” 23 “X” means no packer information.
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Les Mousquetaires Intermarché Spriet Ecomarché Spriet Lidl Lidl Spriet Warnez De Aardappelhoev Aldi Nord Aldi Muyshondt Metro Metro Muyshondt Makro Muyshondt
4.5 Conclusion Dutch and Belgian potato chain The composition of the Dutch and Belgian table potato chain is similar. The Netherlands is the largest seed potato exporter in the world and therefore most important breeding companies are located there. These companies are internationally orientated and export their varieties all over the world. In both countries breeders and packers work with contracted farmers to share risks and secure quality and supply. Packing companies are often the connection between the breeding companies and the retailers. Some breeders, like Agrico, are also active in packing table potatoes. The packing companies are more national orientated due to the preservability of the packed products. The majority of the packers supply different supermarkets.
More and more supermarket chains see the opportunities in fresh fruits, vegetables and potato segment, which compared to the rest of the supermarkets is less developed24. The cooperation between Ahold and Nedato is a good example of how a supermarket tries to bring the potato segment to a higher level. However the majority of the supermarkets are conservative and hold on to sell old but familiar varieties such as Nicola and Eigenheimer.
In Both countries the supermarkets are powerful; in the Netherlands by uniting in purchasing organizations (Superunie, Bijeen) and in Belgium because of three retail organizations who dominate the market (Colruyt group, Louis Delhaize group and Carrefour). These purchasing blocks result in better negotiation position for the supermarkets. In Belgium more than in the Netherlands, this position is misused by some of them because the packers are highly dependent on them and are at times forced to deliver products below cost price25. The larger supermarket chains are supplied by more than one packer at the time.
The vision of the breeding companies is long term one, a consequence of the time that it takes to breed a variety. Breeding companies are forced to look years ahead to see how the market will develop and what requirements a variety must meet in 9 years from the present. The packing companies have a shorter vision, testing new varieties at about 2 years in advance. The supermarkets have a short time vision about table potatoes or even look back. This is also one of the reasons why the table potato business hasn’t changed much the last decade. Although, the way of working of Albert Heijn and Nedato as service provider, can be seen as a positive development for innovation in the table potato business. The table potato will remain an important product group for the supermarket, contributing around 1% of the total turnover of a supermarket26. For example for the owned (not franchised) Albert Heijn supermarkets this is around 60 million Euros27.
24 Vakblad supermarkt, Nr 6. 25 From interview with director of Potato Masters, Arjan van de Burg. 26 Data from questionnaires, average 10% AGF turnover 10% potato of AGF. 27 From questionnaire Frank Loos, Ahold.
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5.0 Table potato market in the Netherlands Table 7 Dutch potato flowchart from data CBS 2010
Total Dutch potato yield 6,84 mln ton
Total Dutch Import fresh Consumption and chilled Starch potato potato yield potatoes 3,54 mln ton 1,16 mln ton
Export fresh Processing and chilled Table potatoes industry potatoes 0,32 mln ton 3,3 mln ton 1,17 mln ton
The total potato yield in The Netherlands was 6,8 million tons in 2010. 3,5 million tons are consumption potatoes, the vast majority is used in the processing industry for French fries and crisps among others. The table potato market was estimated between 0,32 million tons and 280,31 million tons (C. Meijer B.V. estimate). The Dutch table potato segment has an estimated value of around €200 million (excluding the foodservice channel: restaurants, schools, hospitals and catering operations.).29 Most of the year the potatoes packed by Dutch packers are of Dutch origin. Potatoes can be stored for months under good conditions. Before the harvest of the Dutch and Belgian potatoes, new harvested potatoes are often imported from the Mediterranean countries but still packed by Belgian and Dutch packers. The moment where packers switch from stored potatoes to imported new potatoes depends on the offer of new harvest import potatoes and the quality of the stored potatoes in the Netherlands and Belgium.
Table 8 Origin of table potatoes year-round in Dutch and Belgian supermarkets J S M J A N D F M J A O u u e a e u o e p a a n c l p n b g v c y r y t r e t
New harvest Mediterranean; Israel, Egypt and later Spain and France.
New harvest NL & BE
Ware potatoes from the Netherlands Ware potatoes from the and Belgium Netherlands and Belgium
28 CBS, 2010. 29 Rabobank, Kiezen is de kunst, Toekomstbeschouwing van het akkerbouwcomplex in Nederland. 2010.
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5.2 Distribution channels The distribution channels in the Netherlands can be divided roughly into 5 segments; directly at the farmer, on the market, in fruit and vegetables specialty shops, and in supermarkets. In 2010 the supermarkets accounted in volume for 84,4% in the distribution of table potatoes (figure 10). The Albert Heijn and Superunie account for more than half of the volume distributed table potatoes (figure 11) Distribution channels table potatoes 2010
4% 3% 6% 3% Supermarkets Specialty fruit shops Market 84% Farmer Other
Figure 10 GFK market study, distribution channels for table potatoes in The Netherlands.
Volume share table potato distribution in Dutch supermarkets
1% Albert Heijn Jumbo 15% 28% Super de Boer
27% Aldi Lidl 9% 11% 4% Superunie 5% C1000 Other
Figure 11 GFK service, volume share table potato distribution in Dutch supermarkets.
The Dutch supermarkets can be divide roughly in two groups; the hard discounters, (Lidl, Aldi) which can be recognized by low prices, low service level and small assortment without the “A labels”, and others. Since the beginning of the supermarket war, the middle segment has disappeared and these supermarkets became more similar. They are in continuous competition on price level, assortment and service. In 2010, 90% of the table potatoes volume sold in the supermarkets was pre-packed30. The table potatoes account for about 8 to 10% of the turnover in the fresh segment (AGF) in the Dutch supermarkets31. The AGF segment accounts between 7- 9% of the total turnover of a supermarket. 32
30 GFK market study, Marktinformatie tbv de markt voor verse onberwerkte aardappelen. 2011 31 As indicated by the interviewed supermarkets. 32 As indicated by the interviewed supermarkets.
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5.3 Consumption The Dutch consumer consumes yearly about 18.5 kg table potatoes33. Potato consumption has dropped the last decade but is now stabilizing again34. Young consumers buy relative smaller packages of 1kg to 1,5kg while older people and families buy relatively more potatoes packed in 2,5 to 5 kg packages. There is also a preferred packaging size in the different regions in the country. Market studies 35and own impression during visiting the supermarkets showed that the smaller packaging is popular in the western part of the Netherlands while in the northern part of the Netherlands relatively more potatoes in larger 5-10kg packaging are sold. 5.4 Cooking types The majority of the Dutch supermarkets use colors to show the cooking type of the potato. The consumer can pick their preferred cooking type at a glance. Firm potatoes are often packed in a green packaging, rather firm in a red packaging, mealy in a blue packaging and very mealy potatoes in a yellow packaging. The cooking types are categorized in the percentage dry matter of the potato variety. Firm potatoes have lower dry matter content than mealy potatoes. Firm and rather firm potatoes are the most sold cooking types in the Netherlands (figure 12). Share in sales volume cooking types 4% 5% Firm 28% 27% Rather firm Mealy 36% Very mealy Other
Figure 12 GFK service: Share in volume cooking types
Data from the interviews in the Dutch supermarkets show that;36 firm potatoes “vastkokend” resulted to be the preferred cooking type by the consumers followed by mealy “melig” potatoes. Almost 20% of the interviewed consumers indicated to have no preference in cooking type at all (figure 13). Cookingtype preferences of Dutch consumers
2% 18% "Vast kokend" 50% "Kruimig" 30% "Melig" No preference
Figure 13 QR; cooking type preference of Dutch consumers
33 From NAO figures 2010, 307822 ton consumption divided by a population of 16,6 million. 34 From NAO Annual report 2010. 35 GFK market study, Marktinformatie tbv de markt voor verse onberwerkte aardappelen. 2011 36 Albert Heijn, C1000, Super de Boer, Jumbo, Aldi, Lidl, Hoogvliet. Emté, Poiesz, Boni.
22
Some consumers indicated that the cooking type preference also depends on the dish they are planning to prepare.
5.5 Varieties varieties sold in Dutch supermarkets april 2011 20 18 16 14 12 10 8 6 4 2
0
Jelly
Ditta
Irene
Folva
Milva
Laura
Santa
Bintje
Nicola
Tolura
Allians
Borger
Supers
Platina
Marlyn
Mozart
Biogold
Bildstar
Melody
Victoria
Anabelle
Lady Cristl Lady
Franceline
Maritiema
Challenger
Frieslander
Eigenheimer
Gourmandine Not mentioned Not
Figure 14 Table potato varieties sold in Dutch supermarkets April 201137
The table above shows the number of products by variety found in the supermarkets in the month April. In total there were 117 products in 10 different supermarkets found (annex 4, p.51). Nicola is the most popular variety in the Dutch supermarkets. Assortments are changing throughout the year, so this graph is only a snap shot of the situation. The majority of these varieties are stored potatoes. This means that varieties with good storing qualities could be over-represented in this list. Some products are sold under variety name like Nicola and Eigenheimer and in season also Opperdoezer. The majority of the products are sold under the cooking type; the variety is mentioned less explicitly or not at all on the packaging. From these products 31% was sold as firm potatoes, 32% mealy, 3% very mealy and 34% is sold without cooking type mentioned on the packaging.
37 The name Borger is used in Friesland for the Eigenheimer variety.
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5.6 Prices Price level in the Dutch supermarkets (March 2011) € 1,40
€ 1,20
€ 1,00
€ 0,80
€ 0,60 price 5 kg Vastkokend €/kg € 0,40 Assortment price average €/kg € 0,20
€ 0,00
38 Figure 15 Overview of the price level of table potatoes in Dutch supermarkets, March/April 2011
Potatoes sold in smaller packaging can be up to 4 times more expensive than the same potatoes in the larger packaging. Table potato product assortment in Dutch supermarkets can differ on shop level for the same supermarket. Supermarkets (on shop level) can decide to order quantity and decide to leave a product out the assortment when they experience slow sales. 18 16 14 12 10 8 1-1,5 kg 6 2-4 kg 4 5 kg 2 10 kg 0
Figure 16 Table potato assortment in Dutch supermarkets, March/April 2011
The most significant difference is the assortment of the discounters (Lidl and Aldi), which have a limited assortment for a low price compared to the other supermarkets. The other supermarkets offer besides their “house brand” potatoes more choice like a red potato, organic, new harvest, or “culinary” potatoes. The 5kg packaging account for 50% of the volume packed39 but the 2-4 kg packaging products seem to be the largest product group in number.
38 Assortment price average is the sum of the kilo price of all table potato products divided by the number of products. 39 Rabobank, Kiezen is de Kunst, toekomstbeschouwing van het akkercomplex in Nederland, 2010.
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The table potato assortment (number of products) in the Dutch supermarkets is more limited compared to the Belgian supermarkets.
5.7 Conclusion Dutch table potato market The Dutch table market is characterized by a high consumption of table potatoes at home. Consumption of table potatoes is stabilizing after some years of decreasing table potato consumption. Three buying organizations dominate the Dutch market; Ahold, Bijeen, Superunie (85%). These organizations form powerful purchasing blocks. Firm cooking potatoes are the largest product group in the supermarket and preferred cooking type by the Dutch consumer.
The assortment can be divided roughly into three groups: - Common variety products Nicola and Eigenheimer are important varieties for supermarkets (Opperdoezer in season). These are old varieties but the only varieties known by the Dutch consumer. These products are in volume and margin important products - Niche products Culinary and potatoes selected on their taste, color or shape. These products are sold in 0,7-1kg packaging. These products can be characterized has high margin low volume products. - Cooking type products The Dutch market is focused more on cooking type than variety. The varieties are easier to replace (shown by the number of varieties found in Dutch supermarkets). This group is also the majority of the products and volume sold in the Dutch supermarkets.
There were more different varieties found in Dutch supermarkets than in Belgian supermarkets. This can be explained by the observation that most of the products are sold under cooking type and therefore can be filled in with various varieties.
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6.0 table potato market in Belgium Table 9 Belgian potato flowchart, 2010.
Total Belgian potato yield mln ton
Total Belgian Import fresh consumption and chilled Starch potato potato yield potatoes 3,22 mln ton 1,4 mln ton
Export Processing consumption Table potatoes industry potatoes 0,3 mln ton 3,4 mln ton 0,65 mln ton 40,41
The total yield of consumption potatoes was 3,22 million tons in 2010, the vast majority is used in the processing industry for French fries and crisps among others. Because of the different sources used, the flow is not completely in balance. The table potato market was estimated 0.3 million tons (Meijer estimate) Al large part of the potatoes packed in Belgium is produced in France. In 2009 the table potato market in Belgium had a value of 291 million.
6.2 Distribution channels In 2010, 78% of the table potatoes were sold in the supermarkets and 10% directly from the farmer42
6.3 Consumption The Belgian consumer is like the Dutch consumer a large potato consumer. The Belgian consumer accompanies in 63% of it meals, potatoes. The average consumption consumer of table potatoes of the Belgian was about 27 kg per year43. The most favorite place to eat potatoes (products) is at home 81%, 13% dine out and 7% take away. 44 As result of marketing campaigns paying attention to the sustainable and local production, the Eating locally produced products is also becoming more important in Belgium. In the table potato segment this is development is shown by table potatoes with a “Terra Nostra” label. Potato products with this label are produced in Wallonia and are of “superior quality”.
40 The table potato figure of 3,0 million ton is an estimation of C. Meijer B.V. 41 Source; Statbel, Eurostat, Belgapom 42 Marktonderzoek GFK panelservice. 43 Dividing 0.3 million ton by a population of 11 million. 44 GFK marktonderzoek.
26
6.4 Cooking types 14% of the interviewed people indicated no preference of cooking type. Cooking type preference 14% 4% "vast kokend 42% "Kruimig 40% "Melig" No preference
6.5 Varieties The most purchased variety in Belgium is Bintje with a market share of 29%, followed by Nicola (19%) and Charlotte (10%) 45 These varieties were also well represented in the supermarkets. Typically for the Belgium assortment were the French fries potatoes, varieties such as Turbo and Challenger and the small (salad) potatoes with varieties such as Corne de Gatte or Ratte du Touquet. varieties sold in Belgian supermarkets april 2011 25 20 15 10 5 0
In total 82 different products were found in 8 different supermarkets. From these products 32% was sold as firm potatoes, 17% mealy, 1% very mealy and 50% is sold without cooking type mentioned on the packaging.
45 Marktonderzoek GFK panelservice.
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6.6 Prices € 1,60 € 1,40 € 1,20 € 1,00 € 0,80 € 0,60 price 5 kg Vastkokend €/kg € 0,40 € 0,20 Assortment price average € 0,00 €/kg
Figure 17 Price level Belgian supermarkets April 2011
20 18 16 14 12 10 1-1,5 kg 8 6 2-4 kg 4 2 5 kg 0 10 kg
Figure 18 Table potato assortment (number of products) in the Belgian supermarkets April 2011 6.7 Conclusion Belgian table potato market Like the Dutch, Belgian consumers are true potato eaters. Belgians dine out more than the Dutch, this result in a slightly lower share of potatoes sold through the supermarkets. Delhaize, Carrefour group and Colruyt are the most important and powerful buying organizations (more than 75% share). Suppliers have to meet more and more requirements of the supermarkets (quality conditions, special packaging).
The assortment in the Belgian supermarkets can be divided roughly into three groups: - Common variety products Nicola and Charlotte are part of almost every supermarket assortment, Bintje and Franceline in a less extend. These varieties are popular and wanted by the Belgian consumer. These products are in volume and margin important products. - Niche products Small potatoes, special region or barbeque potatoes, these products are sold in 1kg packaging. French fries potatoes are sold in larger packaging (2-2,5kg), but also fetch a high price. These products can be characterized has high margin low volume products. - Cooking type products
28
The cooking type is less important compared to the Netherlands, on 50% of packed potatoes the cooking type was mentioned, but still contribute to the majority in volume of the products sold in the Belgian supermarkets. Besides the three groups mentioned above, unpacked potatoes are part of almost every (except discounters) Belgian supermarket. These potatoes are almost always sold without the variety’s name.
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7.0 Selection criteria in the potato chain Dutch and Belgian packers, purchase organizations, supermarkets and consumers were asked to indicate the importance of 15 criteria (12 criteria for the packing and purchasing companies). On a scale from 1 to 5; 1 meant highly unimportant, 2 unimportant, 3 neutral, 4 important and 5 highly important. The criteria were chosen after a desk study and discussion within the company (C. Meijer BV.). Although the same criteria were asked to all of the actors, they can be interpreted differently. For example keeping qualities for the consumer is the time within the potatoes can be consumed while for a packer it also means the period he can store the potatoes before packing them. A number of important criteria for packers are not included in the questionnaire. Because the packers also involved in production, yield and stability in production are very important criteria for selecting a table potato variety46. The criteria “Carbon footprint” was left out for the Belgian consumers because in the Netherlands almost none of the respondents knew what this meant. The results show the tendency of the importance of criteria at the moment of purchase of table potatoes. The median separates the higher half of the sample from the lower half. Because of the limited number of responses for the packers and purchasing organizations/supermarket chains, the number of responses per criteria is given as well. 7.1 Netherlands
Packers In the Netherlands 6 table potato packers (annex 2) filled in the questionnaire (annex 1). These packers represent a large majority of the volume packed for the Dutch supermarkets. The appearance, taste and presentation (in their case the packaging) were declared as the most important criteria. Peel color, keeping qualities and the variety were in a less extend also important for the packers. Remarkable is the different view on carbon footprint as criteria on buying or selling potatoes. Criteria Median Highly Unimportant Neutral Important Highly supermarket unimportant important Appearance 5 6 Taste 5 1 2 3 Presentation 5 1 2 3 Peel color 4 1 2 3 Keeping qualities 4 1 3 2 Variety 4 2 3 1 Price 3 1 3 2 Meat color 3 4 2 Year round 3 1 4 1 Carbon footprint 3 1 2 1 1 1 Local 3 2 3 1 Organic 2 4 1 1
Purchase organization/supermarkets chains Appearance, taste and presentation are pointed out as most important criteria by the CM’s of the supermarkets
Sustainability and quality are two points where retailers are focusing on. 47 All of the interviewed category managers in both the Netherlands and Belgium find sustainability of the
46 From interviews with packers and C.Meijer BV. 47 ING Economisch bureau.
30 products important and expect it to become more important in the future. The supermarkets who anticipated on the suitability development years ago don’t see sustainability as something to differentiate but use it as a standard. The definition sustainability can be interpreted in many ways but potatoes produced within the Netherlands and controlled use of pesticides and fertilizer were often used factors to define it. An explanation why keeping qualities rank highest on the list could be because it can compete with imported potatoes, which are probably less sustainable.
The questionnaire to Ahold was different from the later version and can’t be processed in the figure. According the CM of Ahold criteria used for the selection of varieties are; skin finish, meat color, yield, resistance, pressure on environment, taste, peel color and size. Sustainability is somewhat important for the selection of varieties for their assortment. He pointed out price, appearance and taste as the most important criteria for consumers.
Criteria CM’s Median Highly Unimportant Neutral Important Highly unimportant important Keeping qualities 5 1 3 Appearance 4,5 2 2 Taste 4,5 2 2 Presentation 4 3 1 Price 4 1 2 1 Variety 4 2 2 Peel color 4 1 3 Meat color 3,5 2 2 Year round 3,5 1 1 1 1 Local 3 3 1 Carbon footprint 3 3 1 Organic 3 1 2 1
Supermarkets (shop level) The supermarket managers or head of the fresh assortment of ten different supermarkets were also asked their opinion about what criteria important for (selling) table potatoes in the supermarkets. The criteria of the supermarket managers indicate that appearance is the most important criteria followed by keeping qualities and cooking type. Although most supermarket managers/AGF assortment managers have no or limited influence on the assortment in their shops, they have in some cases direct contact with the purchasing department of the company. The supermarket manager is the link between purchase organization and consumer. The purchasing organizations may use this feedback as input for their criteria to add a variety to the supermarkets’ assortment.
Criteria supermarket Median Appearance 5 Keeping qualities 4,5 Cooking type 4,5 Year round availability 4 Packaging 4 Taste 4 Presentation 4 Price 4 Peel color 3,5 Meat color 3,5
31
Organic 3,5 Carbon footprint 3,5 Variety 3 Sustainability 3 Local 2
Consumers Appearance and taste are considered the most important criteria at the moment of purchase of table potatoes. Cooking type is more important than the variety of the potato. Around half of the population indicates to look at the variety of the potatoes at the moment of purchase. Half of the people who say they look at the variety can actually name a variety of their preference. The most preferred varieties are Nicola, Opperdoezer, Eigenheimer and Bintje. These older varieties are also the few varieties sold with their own name and therefore more familiar to the average Dutch consumer. Price, keeping qualities and sustainability are also considered important. Keeping quality as important criteria is peculiar while the sell by date is seldom put on the packaging. Roughly the same results are shown by a study of the LEI48 about the question how consumers think about sustainable food. Their results show that is a sustainability important criteria but in the shop consumers are guided by habits and pay more attention to price, taste and health.
Criteria consumer Median Appearance 5 Taste 5 Cooking type 4,5 Price 4 Keeping qualities 4 Sustainability 4 Year round availability 3 Variety 3 Meat color 3 Presentation 3 Packaging 3 Peel color 2,5 Carbon footprint 2 Local 2 Organic 2
Conclusion criteria in Dutch table potato chain In general, the order of the criteria is about the same for all actors in the chain. This means that all actors in the chain know what consumers find important. The appearance of the potato/variety shows to be the main criteria throughout the chain. The taste scores high as criteria, but in practice it does not seem possible to translate this successfully into products (take Pommonde concept as an example, so far no extreme success) Sustainability also scores high among consumers. The supermarkets and packers also see that sustainability is important and will become a prerequisite for any product in the supermarket
48 LEI information centrum of WUR, Voedselbalans 2011, Marleen Onwezen, Jonathan van ’t Riet & Jos Bartels.
32
49assortment. How the term sustainability is interpreted is less clear and probably different throughout the chain. Criteria dealing with sustainability such as carbon footprint as locally produced score low for every actor.
Chain actor Criteria indicated as “highly important” Consumer Appearance, taste Supermarket (shop level) Appearance Purchasing organization keeping qualities, Appearance50 Packer Appearance taste, presentation
7.2 Belgium
Packers In Belgium 5 table potato packers (annex 2) filled in the questionnaire (annex 1). These packers represent a large majority of the volume packed for the Belgian supermarkets. The results of the survey from the Belgian packers showed appearance, taste and presentation as the most important criteria.
Criteria Median Highly Unimportant Neutral Important Highly unimportant important Appearance 5 5 Taste 5 5 Presentation 5 1 1 3 Variety 4 1 2 2 Keeping qualities 4 1 2 2 Peel color 4 1 3 1 Price 3 3 2 Year round 3 3 1 1 Meat color 3 3 1 1 Local 3 1 2 1 1 Carbon footprint 3 1 3 1 Organic 3 2 3
Purchase organization/supermarkets chains Three supermarket chains filled in the questionnaires, together representing more than 50% of the Belgian market. Taste, presentation and appearance are the most important criteria for the purchasing organizations.
Criteria Median Highly Unimportant Neutral Important Highly supermarket unimportant important Taste 5 3 Presentation 5 1 2 Appearance 5 1 2 Price 4 1 2 Variety 4 1 1 1 Meat color 4 2 1
49 Jan Kranghand, Head of International External Infrastructure, Strategic quality management at METRO AG.VMT, Nr 22. 50 Appearance would have ranked highly important when the answers of Ahold would be included.
33
Peel color 4 1 1 1 Keeping qualities 4 2 1 Organic 4 1 2 Year round 3 1 1 1 Local 3 2 1 Carbon footprint 3 1 2
Supermarkets (shop level) The Belgian supermarket managers or managers of the fresh fruits, potato and vegetables assortment pointed out that taste was the most important criteria for the potatoes in their supermarkets. Criteria supermarket Median Taste 5 Appearance 4,5 Cooking type 4,5 Keeping qualities 4,5 Price 4 Variety 4 Organic 4 Presentation 3,5 Year round availability 3,5 packaging 3,5 Peel color 3,5 Meat color 3,5 Local 3 Sustainability 3 Carbon footprint 2
Consumers Belgian consumers indicate; taste, cooking type, appearance and keeping quality as important criteria when buying table potatoes. Locally produced and organic potatoes are not important criteria. The same criteria (taste, and appearance) were also found to be the most important by German consumers 51 Of the Belgian consumers 86% looks at the cooking type at the moment of purchase. Half of Belgian consumers look at the variety of the table potato at the moment of purchase.
Criteria consumer Median Taste 5 Cooking type 4,5 Appearance 4 Keeping qualities 4 Peel color 3,5 Year round availability 3,5 Presentation 3,5 Price 3 Packaging 3 Variety 3
51 Konsum- und Kaufverhalten bei Kartoffeln, kartoffelbau, 3/2011.
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Meat color 3 Sustainability 3 Local 2,5 Organic 2
Conclusion criteria in Belgium table potato chain Packers, purchasing organizations and supermarket managers are more critical about table potatoes compared to the consumer, shown by the number of important criteria (score 4 and up; 7 supermarkets, 4 consumers). Taste can be seen as the most important criteria within the Belgian potato chain. In Belgium the appearance is also very important but subordinate to the taste.
Chain actor Criteria indicated as “highly important” Consumer Taste Supermarket (shop level) Taste Purchasing organization Taste, appearance, presentation Packer Appearance taste, presentation
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8.0 Decision making in the potato chain for potato varieties The Netherlands In the Netherlands the packers and supermarkets decide together which varieties are sold in the supermarkets. Most supermarkets work with one or two (depending on the size of the supermarket) suppliers for their table potato segment. Discounters work with more suppliers. First the category manager (CM) responsible for potatoes makes a description of what the assortment should look like (table 10), this is done with the knowledge and experience they have from the past. This product package must sometimes include some varieties with the varieties name (e.g. Nicola, Eigenheimer, Opperdoezer). The varieties which fill the cooking type assortment are often not fixed so packers can suggest different varieties. Packers advise on quality, presentation, taste and assortment. Since most of the packers grow a part of the potatoes they pack, they will also advise and suggest these varieties for the cooking type products. In the offer they make to the supermarket they describe each variety on taste, shape, skin finish amongst other things.
Table 10 Example of demand and offer potato assortment.
Requested assortment supermarket Offer packer 1 Offer packer 2 Nicola year round Opperdoezer in season Firm: 5kg, 2,5 kg, 1 kg Lady Cristl, Allians, Nicola Mealy: 5kg, 2,5 kg, 1 kg Melody Folva, Platina Red skin (preferable Mozart): 2 kg, 1 kg Mozart Mozart Bio: 2 kg, 1 kg Ditta, Laura Ditta, Tolura Culinary potato (special variety) 1kg Franceline Gourmandine
Finally the supermarket or purchasing organization will negotiate with the packers who made an offer for the requested assortment.
For the Albert Heijn the decision-making is done in a different way. They make use of service providers for their fresh fruits and vegetables but also for table potatoes, who they call “preferred suppliers”. In their case the CM for table potatoes is hired by Nedato and is in charge to decide the assortment for table potatoes, the final decision is still made by a CM of Albert Heijn. The supplier (Nedato) has complete access to the sale figures of table potatoes on shop level to be able to optimalize the turnover and margins of this segment. Furthermore they are allowed to do shopper analysis to analyze consumer purchasing behavior and benchmark the quality of their products (comparing objectively their products with those of the competitors)
The trend is that other supermarkets will also switch to service providers because it proves to be a successful system. C1000 cooperates this way with a company for their fresh fruits and vegetables (Olympic fruits) and it is possible that C1000 also cooperates intensively with Werkman for the table potato segment. When the AGF of purchasing organization Bijeen is functioning, they will probably also work with preferred suppliers or service providers with as side note that it will be more complex because C1000, Jumbo and super de Boer are still competitors and therefore need to differentiate at the same time. The same applies for Superunie, which is even a more complex organization because of the number of members. Because of the size of the retail organizations of Superunie, some of them prefer to outsource the complete AGF assortment supply (service provider). Within the Superunie at least two retail organizations outsourced their AGF assortment completely. Smeding, is responsible for the complete AGF assortment supply in the Sligro group and Spar retail and their supermarket formulas. They carry out market and customer research for each individual supermarket chain and translate them into plans, advising on assortment en presentation on shop level. These
36 commercial plans have to be coordinated and approved by the management of the respective supermarket chains.52
Belgium In Belgium the packer decides together with the purchasing organization/supermarket which varieties will be delivered to the supermarkets. Most Belgium supermarkets want to have a year- round supply of varieties that are popular with the Belgian consumer (e.g. Nicola and Charlotte). For the rest of their assortment the supermarkets demand cooking types instead of varieties (same as in the Netherlands). The Belgian packer has a role of advising the supermarket about the differences in the varieties for the different “references” but will always recommend the varieties they are growing (under contract) unlike the table potato packers who buy potatoes from the free market. According to some packers, the category managers who are responsible for purchasing table potatoes have only limited knowledge about potatoes and need to be educated about the differences of the available varieties. At least one Belgian supermarket chain (Delhaize) works with a half yearly tender for the supermarkets potato assortment. Packers can submit their best offer before a certain deadline. The supermarkets negotiate then with the packers with the best offers
52 Job description for a vacancy “Commercial manager Food retail” on the website of Smeding.
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9.0 Role of a breeding company in varieties introduction Knowing the criteria used for adding table potato varieties to the assortment and knowing who makes the decision to add a variety to the supermarkets assortment, the next step is to know what a breeding company could do for the packers, supermarkets/purchasing organizations and supermarkets on shop level when they introduce a new table potato variety. The supermarket managers referred to the purchase department of their supermarket because the product assortment is decided there but some suggested free tasting samples for the customers. The category managers of the supermarkets are generally not open to get into contact with anyone other than their direct suppliers. Table potato is only one of the many products they purchase and the CM’s have no need to talk to the suppliers of their suppliers. Most interviewed category managers did not have any suggestions about what a breeding company could do for the supermarkets for the introduction of new table potato varieties. The CM’s of some smaller supermarket chains wanted to have more information of the varieties that can help them with the variety selection.
“explain clearly the differences of the varieties, mention the plus points Boni supermarkten of the new varieties in comparison with the other (older) varieties” “early tuning with the complete chain” Plus supermarkten “knowledge transfer, help with variety selection” Poiesz supermarkten “nothing, we do the selection of the varieties together with the packers, Ahold there is no need to involve or talk with breeding companies”
A breeding company can mean more to a packer compared to a supermarket. Besides the production information and assistance in cultivation, some packers are also in need of information that is suitable for their clients and the final consumer. Schaap in the Netherlands and Warnez in Belgium are open to greater involvement by supporting marketing campaigns and positioning of products.
“Provide independent and useful information about the new varieties” Schaap
“Support marketing actions” Schaap
“Provide reliable information for customers and consumer” Nedato
“Think along with packer, market positioning of a variety, premium, Warnez standard or discount” “Guidance during cultivation and storage” Muyshondt, Spriet “Look together to the wishes of the customer and possibilities on Leo de Kock & Zn breeding”
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10.0 Conclusion
Netherlands The appearance, taste and keeping qualities prove the main criteria for the Dutch supermarkets that cooperated with the research. In practice, these criteria are rarely communicated to the consumer. There is still missing product awareness among the category manager and the consumer that is needed to get rid of the commodity image of the potato. Price is important for the supermarket but ultimately other, more important criteria as mentioned earlier, have to be met first. For the discounters the price is the main criteria according to their large number of suppliers and indicated by packers in interviews.
The choice, which varieties are added to the assortment, will eventually be made by the Category Manager and the packer together. Nevertheless, the table potato packer seems to have more influence in selection varieties because the potato packer often works with contracted growers and has therefore already invested in varieties. These varieties have already been tested and approved on production criteria. The packer will advise these varieties for the cooking type segment of the supermarkets. Besides the cooking type segment, the category manager wants some common varieties in their assortment, varieties that are familiar with the consumer and can be sold by their variety name.
Belgium Belgian category managers find taste, appearance and presentation of varieties the main criteria for table potatoes in their assortment. These are ultimately the same criteria as for the Belgian consumer. In Belgium there is a development going on were price is becoming more and more important. The Belgian market was characterized by the high quality of the products in their assortment, but changes now to mostly price driven. One reason is that the high-end retailers (Delhaize, Carrefour) are forced to compete with the discounters and other cheaper supermarkets like Colruyt which is performing better. As a consequence all supermarkets are bringing the purchase price down.
In Belgium, the category manager determines the assortment and varieties together with the packer, the same way as in the Netherlands. Yet there is an increase in the power of supermarkets and a hardening of relations between the packer and retail. The advisory role that the Belgian packer used to have is becoming is smaller.
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11.0 Recommendation There are two strategies that can be used to get more table potato varieties of Meijer in the Dutch and Belgian supermarkets; pull and a push strategy.
Pull Strategy This strategy stimulates the demand by addressing directly to end-user of the product. In the case of table potatoes, category managers of the supermarkets and consumers have to be convinced of strong points of one or more Meijer’s table potato varieties. Two possibilities are; Varieties for the cooking type segment
Create awareness about Meijer’s varieties directly to category managers. Convince them about the unique selling points of Meijer varieties linked to the criteria they find important. The qualities of a variety should be communicated to a Category manager so that it matches his criteria.
Appearance: good visual appearance seemed the most important criteria in the Dutch table potato chain and ranked high in Belgium as well. Category managers can be convinced by promoting varieties with a good skin finish. Skin finish is one of the appearance aspects that can be managed (shape or color are determined by the variety). A good skin finish is; a bright and shiny potato skin, free of diseases such as silver scurf and skin spot. The variety is not the only aspect that determines the skin finish (factors in production, harvest and storage have a larger impact on the skin finish of the potato).
Taste: Show, with the results of (independent) tests, that the taste of a variety is exceptionally well judged by consumers or top chefs. The Category manager can even decide to use this as a selling argument in the supermarket.
Price: About the price of a variety the breeder can’t guarantee anything. But emphasize that the high and stable yield of the variety will guarantee a lower and stable cost price compared to other varieties is possible.
Sustainability: Because the sustainability of products is important in the Dutch and Belgian supermarkets and will become even more important in the future, also for the table potato segment. Therefore it is good to highlight all kinds of qualities of the variety that make it more sustainable. The storage qualities of a variety could be emphasized because fewer potatoes have to be imported from countries such as Egypt or Spain (reducing food miles). The natural resistance against diseases like potato blight reduces the need for chemical input (reducing carbon footprint). The fact that all actors in the chain are satisfied with this variety; a high average yield (farmer), good packing qualities (packer) and consumer preference (supermarket), shows its sustainability in another way.
This strategy is more suitable to increase volume than that it helps to add more value to a variety.
This strategy could work out well for the Belgian supermarkets, because Belgian supermarkets are taking over the advising role of the potato packers. Therefore it makes more sense to talk directly to with the category managers.
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Introduction of new common variety product.
With this option the most value can be added to a (new) variety. To launch a product successfully in the market, intensive cooperation with a number of national supermarkets and packers is required because; -Only together, they can assure the quality of the variety from farmer to consumer and create brand awareness. -Marketing is still the weak point of the AGF segment and there is hardly any money spent on marketing. 53 One of the reasons is the lack of cooperation, making investing in marketing risk full. Sharing the benefits and costs of a marketing campaign will make a marketing campaign more feasible.
The opinion that it must be possible to familiarize consumers with other stronger varieties than a for example Nicola, is shared by packers such as Warnez54. There are in fact a number of examples where this strategy is used and is working out well. The best example is probably Rooster table potato variety of Albert Bartlett in Ireland. This company has spent a significant share of their budget in marketing (TV commercials, ads in magazines, website etc55.). After twelve weeks of television advertising, sales more than doubled and brand awareness increased significantly. 56 The Rooster variety is now the most popular variety in Ireland and a recognized brand in Ireland and the United Kingdom as well. Albert Bartlett has also earned recognition for its innovative marketing of the Rooster potato Marketing Campaign of the Year in 2010. Also other products succeeded to distinguish themselves with branding in the fresh produce industry as Kanzi and Pink Lady apples. Creating a brand or product will be easier if it is really distinctive from other products. For Rooster potato this is the color, shape and the packaging featuring recipes created by Britain’s top chefs. The apples are easily identifiable by flavor, color and a heart-shaped sticker.
(C. Meijer BV has experience with market a new variety on consumer level. In the late 1980’s, Meijer tried to introduce the Turbo variety on the market with a large marketing campaign to replace the Bintje variety in the supermarkets. C. Meijer BV at that time was also involved in the packing business and together with four other packers they agreed to make a budget to pay the marketing bureau. Agreed was to put road ads and advertisement on billboards, radio commercials amongst others. The marketing campaign wasn’t successful and the agreement was ended four years after the start. The main reason for failure was the lack of cooperation between the packers and as a result, the available budget was not fully used.)
-Push strategy Stimulate sales of seed potatoes to packers by pushing products upwards through the chain. The seed potato business can be characterized as more driven by push activities because production decisions are based on long term forecasts. This is the way C. Meijer B.V already works. Sales can be improved by giving more attention to the packers in the Netherlands and Belgium. The interviewed packers indicate that a breeding company can do a number of things with the
53 Only 0,2% of the total turnover in the AGF sector is spent on marketing. GroetenenFruit Bureau. 54 Director Peter van Steekiste of Warnez; in Vakblad AGF, 2009. 55 Rooster potatoes marketing budget is estimated to be 15% of the turnover. 56 Agent-IPA effectiveness Awards Case study 2010 Albert Bartlett Potatoes.
41 introduction of new varieties. Their diverse answers show that each packer needs a unique approach to make the introduction of a variety successful. Reliable information is necessary, not only for production but also for the customers. As with the pull strategy it is good to give criteria like taste, appearance and sustainability a value. These criteria showed to be “highly important” in both the Netherlands and Belgium. Giving these criteria a value will be a challenge because taste and appearance are more difficult to measure than for example the color of a potato variety. Besides describing and classifying the varieties in taste categories (like Pommonde concept of HZPC) also the sustainability of the potato variety is difficult to define. Some models are being made to measure carbon footprint, one of the many sustainability indicators, but this model is not (yet) linked to the variety. Nevertheless this is information a packer can use to meet the demand for customer information and will help the packer in advising and selling Meijer varieties to the Belgian and Dutch supermarkets.
Other packers indicate that the breeders cannot do much with the introduction of new varieties. They point out that any involvement of the breeder could be seen by the supermarkets as confusion of interest, since they also have an “independent” advising role for the supermarkets/purchasing organizations.
Push strategy Pull strategy
C.Meijer B.V. C.Meijer B.V
Flow of promotion;
f f d d o o
n mainly directly n
a a
w to table potato w m m o o l l e e
F packers. F d d Flow of promotion; mainly directly to supermarkets and Packer Packer consumers.
Supermarket Supermarket
Consumer Consumer
12.0 Annex Annex 1 Questionnaires The questionnaires below are made for the Dutch market. The questionnaires for the Belgian market are the same except question; 6 of the purchasing organization questionnaire and question 2 of the questionnaire for the packers.
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Vragenlijst tafelaardappel verpakkers Nederland
Naam ………………. Bedrijf ……………….
1. Hoeveel ton tafelaardappelen verpakt en verkoopt uw jaarlijks aan de Nederlandse supermarkten?
2. Aan welke supermarkt(en) levert u aardappelen? a. AH f. Lidl k. Golff p. Spar b. C1000 g. Coop l. Hoogvliet q. Plus c. Super de Boer h. Deen m. Jan Linders r. Aldi d. Jumbo i. Detailconsult n. Vomar s. Anders. e. Sanders j. Em-Te o. Poiesz
3. Vraagt u als verpakker naar een bepaald ras tafelaardappelen? a. Ja, omdat…….. b. Nee, omdat……
4. Als u een lijst (shortlist) heeft met bepaalde goedgekeurde rassen, welke rassen zijn dat dan?
5. Op welke criteria (productspecificaties) zijn deze rassen geselecteerd? a. Prijs Onbelangrijk + + + + + Belangrijk
b. Ras Onbelangrijk + + + + + Belangrijk
c. Uiterlijk Onbelangrijk + + + + + Belangrijk
d. Smaak Onbelangrijk + + + + + Belangrijk
e. Jaarrond aanwezig Onbelangrijk + + + + + Belangrijk
f. Vleeskleur Onbelangrijk + + + + + Belangrijk
g. Schilkleur Onbelangrijk + + + + + Belangrijk
h. houdbaarheid Onbelangrijk + + + + + Belangrijk
i. Presentatie Onbelangrijk + + + + + Belangrijk
j. Lokaal geteeld Onbelangrijk + + + + + Belangrijk
k. Biologisch Onbelangrijk + + + + + Belangrijk
l. Carbon footprint Onbelangrijk + + + + + Belangrijk
Anders, namelijk…. 6. Wie maakt de keuze welke rassen er in het supermarkt assortiment komen? a. Supermarkt b. Inkooporganisatie c. Verpakker van aardappelen d. Anders, namelijk …
7. Adviseert u de supermarkt bij de keuze voor een bepaald aardappelras? a. Ja, hoe ? b. Nee
8. Kan een kweekbedrijf iets betekenen voor de verpakkers bij de introductie van nieuwe aardappelrassen? a. Ja, hoe? b. Nee, omdat…. Hartelijk dank voor uw medewerking
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Vragenlijst inkooporganisaties AGF
1. Wat is (ongeveer) het omzet aandeel van tafelaardappelen in het AGF segment?
2. Vraagt u als supermarkt/inkooporganisatie naar een bepaald ras tafelaardappelen?
c. Ja d. Nee
3. Als u een lijst (shortlist) heeft met bepaalde goedgekeurde rassen, welke rassen zijn dat dan?
4. Op welke criteria (productspecificaties) zijn deze rassen geselecteerd? a. Prijs Onbelangrijk + + + + + Belangrijk
b. Ras Onbelangrijk + + + + + Belangrijk
c. Uiterlijk Onbelangrijk + + + + + Belangrijk
d. Smaak Onbelangrijk + + + + + Belangrijk
e. Jaarrond aanwezig Onbelangrijk + + + + + Belangrijk
f. Vleeskleur Onbelangrijk + + + + + Belangrijk
g. Schilkleur Onbelangrijk + + + + + Belangrijk
h. houdbaarheid Onbelangrijk + + + + + Belangrijk
i. Presentatie Onbelangrijk + + + + + Belangrijk
j. Lokaal geteeld Onbelangrijk + + + + + Belangrijk
k. Biologisch Onbelangrijk + + + + + Belangrijk
l. Carbon footprint Onbelangrijk + + + + + Belangrijk
5. Wie maakt de keuze welke rassen er in het supermarkt assortiment komen? a. Supermarkt b. Inkooporganisatie c. Verpakker van aardappelen d. Anders, namelijk …
6. Bij welke aardappel verpakker koopt u tafelaardappelen in? a. Nedato e. De Kock i. Schaap b. Loogman f. Jansen Dongen j. Greydanus c. Van den Oord g. Werkman k. Quick d. Flevo star h. Van Kampen/Vanka l. Anders, namelijk
7. Wat kan een kweekbedrijf betekenen voor de supermarktketen bij de introductie van nieuwe aardappelrassen?
8. Hoe belangrijk is duurzaamheid voor de keuze van een bepaald aardappelras. a. Doorslaggevend b. Belangrijk c. Enigszins van belang d. Speelt geen enkele rol Hartelijk dank voor uw medewerking
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Vragenlijst consument in de supermarkt
Supermarkt ………………… Locatie ………………… Man/ vrouw ………………… Leeftijd …………………
1. Kijkt u naar het ras als u aardappels koopt? a. Ja b. Nee 2. Zo ja, welk aardappel ras heeft u voorkeur? 3. Kijkt u naar kooktype als u aardappels koopt? a. Ja b. Nee 4. Zo ja, welk kooktype heeft u voorkeur? a. Vast kokend b. Kruimig c. Melig 5. Hoe belangrijk zijn de volgende criteria voor u bij de keuze van aardappelen?
e. Prijs Onbelangrijk + + + + + Belangrijk
f. Ras Onbelangrijk + + + + + Belangrijk
g. Uiterlijk Onbelangrijk + + + + + Belangrijk
h. Smaak Onbelangrijk + + + + + Belangrijk
i. Jaarrond aanwezig Onbelangrijk + + + + + Belangrijk
j. Vleeskleur Onbelangrijk + + + + + Belangrijk
k. Schilkleur Onbelangrijk + + + + + Belangrijk
l. Houdbaarheid Onbelangrijk + + + + + Belangrijk
m. kooktype Onbelangrijk + + + + + Belangrijk
n. Presentatie Onbelangrijk + + + + + Belangrijk
o. Verpakking Onbelangrijk + + + + + Belangrijk
p. Lokaal geteeld Onbelangrijk + + + + + Belangrijk
q. Biologisch Onbelangrijk + + + + + Belangrijk
r. Carbon footprint Onbelangrijk + + + + + Belangrijk
s. Duurzaam Onbelangrijk + + + + + Belangrijk
6. Bent u tevreden over de kwaliteit van de rassen aangeboden in deze supermarkt? a. Ja, omdat……………………………………………………………. b. Nee, omdat………………………………………………………….. 7. Wat ziet u als verbeterpunt bij de verkoop van aardappelen in de supermarkt? a. Groter assortiment b. Andere verpakking c. Andere presentatie d. Meer productinformatie e. Anders, namelijk….. Hartelijk dank voor uw medewerking
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Annex 2 Elaboration of interviews
Wessel van Doesburg: Category manager Boni supermarkten. Some varieties have to be in the product assortment year round such as Nicola and Opperdoezer in season because the consumer knows that Nicola is an easy to use potato, everybody can prepare a Nicola potato. Opperdoezer is a variety of which the consumers appreciate the taste. Eigenheimer is also a known potato but it could be replaced more easily by any other variety. About the rest of the assortment Mr Doesburg says the colors (referring to the cooking types) must be right and continuity is also appreciated. For example the Maritiema variety (mealy) is almost year round in their assortment. About the role of the Superunie, Mr van Doesburg says they do the negotiations with the packers. Because they represent more supermarkets they have a better negotiation position. The Category manager of the Boni supermarkten decides the assortment; Superunie invites several packers and uses benchmarking to get the best deal with the packer. Nevertheless, Boni supermarkten doesn’t change every year from supplier. Schaap is already a long time their supplier of table potatoes. Filling in the questionnaire he makes the remark, the term “tafelaardappel” is used for the lower segment potatoes, like the offer them at the Aldi or Lidl.
Arjan van den Burg: Direcor Potato Masters In the past the packer had an advising role in the potato assortment of the supermarkets but that has changed, category managers now decide what they want. This also has consequences for the quality because the CM’s ask for varieties which are not available at that moment and another variety would be more suitable. At the same time it stops the introduction of new potato varieties because the CM’s usually ask for the products they already know. Mr Van den Burg says that the assortment has become more segmented in Belgium with small potatoes, Corne de Gatte, red potatoes becoming more important in the supermarket’s assortment. Mr van den Burg was very negative about the supermarkets. He pointed out the lack of knowledge about potatoes of the CM’s and at the same time their negotiating power. The supermarkets take over the role of the packers, diminishing the advisory role of the packers. Packers nowadays just have to deal with the supermarkets demand, reasonable or not, according van den Burg. He gave an example of the refusal of organic potatoes by a supermarket because it didn’t meet the quality standard of a conventional potato. Especially the relation with the Delhaize supermarket has changed negatively. The CM’s of most supermarkets change often, making it impossible to plan, build a long term relation and mutual understanding. CM’s of discounters are even not allowed to visit the packers, also with the same consequence of less understanding and harder negotiations.
Bart Nemegher: Director De Aardappelhoeve bvba
De Aardappelhoeve is a small family business that has grown fast the last years. At the moment they supply Delhaize, Colruyt, Lidl and Okay. For the Aardappelhoeve production criteria, such as yield and keeping qualities, are very important because they produce a large part of the packed potatoes. A smaller part is bought on the free market. Packers decide together with the Belgian supermarkets which varieties will be in the assortment. Nicola and Charlotte are two varieties which form the base for the assortment of every supermarket. The varieties which are sold in the cooking type packages (green, yellow, red for Delhaize supermarkets) are recommended by the packer. A packer like de Aardappelhoeve describes the varieties (on cooking type, taste, peel color) they can offer for the generic assortment. Aardappelhoeve also invites the Category managers to the field to show their varieties. Small potatoes are an important and growing segment in the Belgian supermarkets. Jazzy, A C. Meijer variety, could be benefit from this development.
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Mr Nemegher says that a breeding company cannot do much for them to promote their varieties because it could give the impression to the supermarket of conflict of interest.
Jan den Boer, Nedato Mr den Boer tells to use Meijers varieties such as Melody and Lady Cristl. In total they pack 100 thousand tons of table potatoes a year including the export market. About one of the criteria Mr. den Boer says; sustainability is already important, “consumers expect that the products in the Albert Heijn are sustainable”. Sustainability cannot be used anymore to distinguish your products from the competitors. The challenge for the suppliers is to give meaning to this term. Locally produced is therefore becoming more important. But about how this message is being communicated to the consumer, is controlled by the supermarket. He describes the relation with the Albert Heijn as good. According to Mr den Boer the most important characteristics of a variety are the appearance and a good and consistent taste. Normally they use more than one variety in on segment (for example 5kg firm potatoes) because of the nature of the product where availability depends a part on the weather and other factors that can’t be controlled completely, so to spread risks. About one of their products Pommonde, a product that sells the potatoes on type of taste, he says it is still growing every year but not very fast.
Simplified description of Nedato’s table potato packing line:
Potatoes are The potatoes are The potatoes are stored in the Potatoes are washed with The potatoes go The potatoes are transported sorted on size. cooling of the warmed up in the water. floating through a brushing to the Nedato (28-40, 40-70, 70- consumption Storage of Nedato potatoes are machine up) potato grower. removed.
The clean The potatoes are After drying, the potatoes are Table potatoes are The potatoes are packed in different The cars and pallets are potatoes pass one sorted, bad quality ready to put into stacked on cars or packaging for transported to the DC’s more time a potatoes are the assortmert in boxes on pallets national and manual check sorted out by a export market computer.
Wim van de Ree, Director Nedato Nedato is a cooperative of around 500 potato growers. In the Netherlands Nedato supplies only Albert Heijn supermarkets. The relation between Nedato and Albert Heijn is quite unique in the Netherlands because they are completely responsible for the assortment in the supermarkets. They are a so called “dedicated supplier” this means that Albert Heijn gives the complete responsibility to supplier to guarantee the quality and profit for the potatoes in their supermarkets. Turnover and sales are monitored and compared with the competitors. AC Nielsen has sales figures at their disposal per variety, packing type, cooking type etcetera also for the discounters. This type of partnership is unique in the table potato business and is based on trust. The trend is that other supermarkets will copy this retailer-supplier relation model where the supplier is in fact a service provider. The responsibility of managing risks and guarantee the best quality of table potatoes by the supplier has a price but both parties profit of this type of doing business. Retailers like Aldi and Lidl have more suppliers and compete only on price level. Most other supermarkets have but one potato supplier. Other than in the supermarkets, the category manager for potatoes is employed by the supplier; Nedato. Part of their work is to do extensive consumer research, once or twice a year. They research purchasing behavior of the clients such as the moment of purchasing when they are in the supermarket or how their csutomers make the actual choice of one product. With this information they make a selection of potato varieties which could be suitable for their
47 assortment. These varieties are proposed to the supermarket which is almost always adopted. But the final decision is always made by Albert Heijn New varieties need to be tested; this takes 2 years at least. In these 2 years Nedato want to get to know the variety, the storage qualities, production, processing. These and other criteria determine the consumer value of the variety. Besides commercial interest Nedato also needs to take into account the technical cultivation interest, in other words a variety needs to have a good appearance but also give a good yield. Nedato compares the quality objectively of their products with those of competitors on a frequent base by collecting products from other supermarkets and testing the quality. According to Van den Ree, they are often performing as one of the best. Nedato doesn’t lose contact with the potato breeders; the potato business is a small world and trends are always discussed although packers don’t look that far ahead compared to the breeders.
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Annex 3 Interviewed parties
Netherlands
Supermarkets Name Function Mail NL Albert Heijn Frank Loos Category manager [email protected] onbewerkte AGF Plus Jack Nijboer Category manager [email protected] Coop Peter Kok Category manager [email protected] Boni Wessel van Category manager Doesburg Poiesz Gerben Walsma Category manager AGF g.walsma@poiesz- supermarkten.nl
Packers NL Name Mail AC Loogman Christine Loogman [email protected]
Nedato Wim van de Ree [email protected] Schaap Holland Andre Adamse [email protected] Jac van den Oord Leon van den Oord [email protected] Werkman/Landjuweel Alex Janssen [email protected] Leo de Kock & Zn. BV Mariska Werring [email protected]
Belgium
Supermarkets BE Name Function Mail Colruyt Christophe Mertens Purchaser Potato 0032(0)23601040 Okay Delhaize Kathy De Ruyter Assistant purchase [email protected] fruit and vegetables 0032(0)24122611 Sven van de Voorde Category manager [email protected] fruits and vegetables 0032(0)24128977 Spar retail Jan Schockaert Category manager [email protected]
Packers BE Name Mail Muyshondt Dirk Cornelis [email protected]
Warnez N.V Peter van Steenkiste [email protected] Spriet Aardappelen Ruben Lagrou [email protected] De Aardappelhove Bart Nemegher Potato Masters Arjan van den Burg [email protected]
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Contact information of people of interest Not all category managers of the Dutch and Belgium supermarkets have responded the questionnaire. Nevertheless these people could be contacted in the future by C. Meijer B.V. at the time of introduction of new table potato varieties.
Supermarket Name Function Contact Hoogvliet Mr. van Venray CM 0172 418218 Detailresult Cor Smit CM 0251 276611 Superunie Joachim CM [email protected] Nieuwhoff Vomar Erik Mafait Head CM C1000 Joost van CM [email protected] Haarlem Jumbo Gijs van den Reek CM [email protected] Deen Rob v.d. Weele CM [email protected] Lidl Belgium - Purchase [email protected]
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Annex 4 Table potato varieties in Dutch and Belgian supermarkets
Supermarkt Gewicht type ras Verpakker/m Prijs per kilo erk Lidl 5 kg Kruimig - Maasdriel 0,56 5 kg VK Nicola - 0,60 3 kg Bio - Biotrend 1,13 2,5 kg Grof iets kruimig - H Quick & Zn 0,90
0,79 AH 5 kg Iets kruimig - - 0,56 5 kg AH Grote aardappelen Jelly - 0,60 5 kg AH VK Lady Christl - 0,80 5 kg Bintjes Bintje - 0,70 3 kg Eigenheimer Eigenheimer - 1,0 3 kg AH P&E Biogold - 1,16 3 kg AH roodschillig Mozart - 1,0 3 kg AH VK Lady Christl - 0,93 3 kg Kruimig Jelly - 0,93 1 kg VK Nicola - 1,69 1 kg Iets Kruimig Milva - 1,69 1 kg Kruimig Eigenheimer - 1,69 1 kg Bio VK Ditta - 1,99 1 kg Bio Kruimig Laura - 1,99 1,5 Pommes Primeur Ditta - 1,66 1,5 Pommes Culinair Franceline - 1,33 Gourmandine
1,23 Aldi 5 kg VK Nicola Schaap 0,64 5 kg Kruimig Maritiema Holland 0,56 0,7 Aardappel culinair Vast Nicola - 1,13 0,7 Aardappel culinair Franceline - 1,13
0,85 C 1000 5 kg Kruimig Folva - 0,56 5 kg Kruimig rood Mozart - 0,98 5 kg Kruimig snelschillers Folva - 0,90 5 kg Vast Nicola - 0,90 3 kg Bio kruimig Tolura - 1,33 3 kg Bio vast Ditta - 1,23 2,5 kg Kruimig snelschillers Folva - 0,92 2,5 kg Kruimig Folva - 1,16 2,5 kg VK Nicola - 0,92 2,5 kg Kruimig roodschillig Mozart - 1 kg Bio VK Ditta - 1,99 1 kg VK Allians - 1,69 1 kg Kruimig Milva - 1,69
1,18 Hoogvliet 5 kg - Linditta Without 0,54 5 kg - Challenger brand 0,60 5 kg Vast Nicola Vanka 0,80 2,5 kg Vast Nicola Vanka 0,80 2,5 kg - Challenger Vanka 0,80 2,5 kg - Mozart Vanka 1,0 2,5 kg Extra kruimig Eigenheimer Vanka 1,0 2,5 kg - Victoria Vanka 0,88 1,5 kg - Biogold Vanka 0,86 1,5 kg - Challenger Vanka 0,56 1,5 kg Vast Nicola Vanka 0,56 Vanka 0,76 Jumbo 5 kg Vast Nicola - 0,65 5 kg Vrij kruimig Platina Nicola - 0,64 5 kg Vast Melody - 0,78 5 kg Kruimig Melody - 0,99 3 kg Kruimig Eigenheimer - 0,96 3 kg Extra kruimig Bildstar - 0,99 3 kg Rood Nicola - 0,96 3 kg Vast Nicola - 0,90 3 kg Bio vast - - 1,33
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3 kg Bio Kruimig Melody - 1,33 3 kg Primeur super extra groot - 0,96 Vast Marlyn 1kg Kruimig Melody - 1,49 1 kg - 1,49
1,03 EMTÉ 5 kg Voordeel - Smeding 0,56 5 kg Vast Annabelle 0,88 5 kg Kruimig Victoria 0,80 5 kg Friet Supers 0,99 5 kg Rood - 0,54 2,5 kg Friet Supers 0,99 2,5 kg Kruimig Victoria 0,99 2,5 kg Vast Annabelle 0,99 2,5 kg Rood - 1,10 2 kg Eko Eigenheimer Landjuweel 1,30 1 kg Kruimig - 1,79 1 kg Vast - 1,79 0,75 kg - Gourmandine 1,99 0,75 kg - Franceline 2,34
1,21 Super de Boer 5 kg Vrij kruimig Platina 0,80 5 kg Vrij kruimig Platina 0,99 5 kg Kruimig Platina 0,80 5 kg Vast Nicola 0,80 3 kg Kruimig - 1,33 3 kg Vast Nicola 1,33 2,5 kg Extra kruimig Eigenheimer 0,99 2,5 kg Vast Nicola 1,20 2,5 kg Kruimig Platina 1,20 1 kg Nieuw Santa 1,29 1 kg Kruimig Platina 1,29 1 kg Kruimig Frieslander 1,29 1 kg vast Marlyn 1,29
1,12 Poiesz 10 kg - Bildstar Landjuweel 0,99 5 kg Kruimig rood Mozart ,, 0,90 5 kg Vast, extra groot Milva ,, 0,80 5 kg Vast Allians ,, 0,80 4 kg - Irene ,, 1,12 4 kg - Borger ,, 1 4 kg - Bildstar ,, 1 2,5 kg Vast Allians ,, 0,92 2,5 kg Vast, extra groot Milva ,, 0,92 2,5 kg Kruimig rood Mozart ,, 1 2 kg - Bildstar ,, 1,15 2 kg - Borger ,, 1 2 kg - Irene ,, 1,15 2 kg Vast bio - ,, 1,30 2 kg Kruimig bio - ,, 1,30 1 kg Vast Allians ,, 1,69
1,06 Boni 10 kg Kruimig Maritiema Schaap 0,25 5 kg Vast Nicola Holland 0,80 5 kg Tafel aardappel Maritiema 0,60 5 kg Kruimig Martiema 0,80 2,5 kg Kruimig Martiema 0,80 2,5 kg Vast Nicola 0,80 2,5 kg Vrij vastkokend Bildstar 1 2,5 kg Zeer kruimig Eigenheimer 1 2 kg Bio Biogold 1,50 0,7 kg Culinair Franceline 0,99 0,7 kg Culinair Nicola 0,99 0,7 kg Bio - 0,99
0,87 GB BE 5 kg Discount - 0,40 5 kg Vrij vast kokend Victoria 0,80 5 kg Zacht Turbo 1 5 kg Friet Victoria 0,90
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5 kg Vast Nicola 1,07 2,5 kg Vrij vastkokend Victoria 1 2,5 kg Zacht Turbo 1,15 2,5 kg Friet Victoria 1,15 2,5 kg Vast Nicola 1,20 2,5 kg Vast rood Franceline 1.31 2,5 kg Vast Char;otte 1,35 2,5 kg Vast Gourmandine 1,40 2,5 kg Vast Amandine 1,40 2,5 kg Vast Allians 1,35 2,5 kg Puree Turbo 1,40 2 kg Vast Bio - 1,50 1 kg Kriel - 1,99 1 kg - Gourmandine 1,99 1 kg - Corne de gatte 2,49 1kg Vast los - 1,29
1,30 Colruyt BE 5 kg Vast Franceline 0,93 5 kg Zacht kokend Challenger 0,69 5 kg Everyday Bintje 0,37 5 kg everyday Nicola 0,38 5 kg zacht Victoria 0,93 5 kg Vast Charlotte 1,14 5 kg Vast Nicola extra 0,87 5 kg Vast Bio Nocola 1,40 5 kg Vast primeur Charlotte 1,35 5 kg Vast Nicola 1,38 5 kg Everyday Nicola 1,23 2 kg Kriel - 1,49 1 kg Kriel bio - 2,49 1 kg Belle de Fontane 1,49 1 kg Los 1,79
1,19
Aldi BE 5 kg - Turbo Muyshondt 0,58 2,5 kg vast Nicola 0,80 2,5 kg Allians 1
0,80 Okay BE 5 kg Everyday Bintje 0,36 5 kg Bio Primeur Nicola 1,40 5 kg Everyday primeur Nicola 1,20 5 kg Zachtkokend friet Melody 0,69 5 kg Vast Nicola 0,80 5 kg Zackt kokend Marabel 0,80 5 kg Primeur Nicola 1,38 2,5 kg vast kokend Charlotte 1,20 2,5 kg Zacht kokend Nicola 1,16 2 kg Kriel Nicola 1,75
1,07 Spar BE 5 kg Friet Challenger 0,92 5 kg Zacht kokend Challenger 0,92 5 kg Vast kokend Nicola 0,92 2,5 kg Zacht kokend Challenger 1,60 2,5 kg Vast kokend Nicola 1,16 2,5 kg - Franceline 1,20 2,5 kg - Nicola 1,20 2,5 kg - Charlotte 1,12
1,13 Lidl BE 5 kg Zacht kokend Victoria Aardappel 0,58 5 kg Zacht kokend Vastkokend Bintje Hoeve 0,80 2,5 kg Rood Nicola 0,56 2,5 kg Kriel Franceline 1,20 1 kg - 1,49
0,93 Champion BE 5 kg Friet Challenger De wulf 0,80 5 kg - Bintje 0,50 2,5 - Bintje 1,08 2,5 Rood Franceline 1,60
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2,5 BBQ Challenger 1,20 2,5 Vast Nicola 1,20 2,5 Bloemig Victoria 1,44 2,5 Vast Charlotte 1,20 1 kg Kriel - 2,39 1 lg - Ratte du Touquet 1,99 1 kg los Anabelle 1,99
1,40 Intermarché BE 10 kg Primeur Frieslander Spriet - 5 kg - Nicola 1,10 5 kg - Charlotte 1,14 5 kg friet Victoria 1,12 5 kg Budget Bintje 0,80 2,5 kg Zacht kokend/ friet Charlotte 1,19 2,5 kg Rood Franceline 1,39 2,5 kg Vast kokend Nicola 1,19 2,5 kg Zacht kokend Melody 1,39 1 kg Kriel - 1,98
1,26
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