German wholesale markets weathering the COVID-19 pandemic

Dortmund Düsseldorf

With the easing of COVID-related restrictions, the lows caused by the pandemic now seem to be over, for the most part. We look back at the past two years of crisis, highlighting the situation in the German fresh food markets. FreshPlaza spoke to numerous wholesale market companies last year about the situation and the mood at local fresh food centres.

MAY 2021: “WE HAVE ADAPTED TO THE SITUATION”

“We have not had to record any significant sales losses. In food retail, we achieved a 10-20 percent increase in sales last year compared to 2019, and after a difficult phase in March/April 2020, people have now been able to adapt to the situation,” commented Ziya Sizgin of Vienna-based fruit trading company UVA Fruit. He also said that the situation in Turkey, UVA Fruit’s main source country, is now under control. “Despite high incidence levels, I don’t think there will be renewed export stops this year.”

JULY 2021: “WE WERE AT LEAST ABLE TO CUSHION THE DAMAGE IN A SMALL WAY”

“Because of the lockdown, foodservice to-go offerings in particular have become extremely popular. In that respect, stores that were good customers before, now suddenly gave us a little boost, which allowed us to at least soften the blows in a small way.” According to Roland Tolls of Düsseldorf Wholesale Market, this was most evident in the demand for – hyped - avocados. “But the fact that I am now selling avocados by the pallet, during in a pandemic in which I am generating just 20% of my original sales: I would not have dreamt of it.”

NOVEMBER 2021: “RAPID INCREASE IN DEMAND IN TIMES OF LABOUR SHORTAGES”

A drop in the out-of-the-home consumption also made itself felt in the marketing of ready-to-cook fruit, vegetable, and potato products. “We suffered severe sales losses in the pre-cut produce sector as well. Overall, we nevertheless see a rapid increase in demand in recent years, which is clearly related to the labour shortages within the catering, canteen, and commercial kitchen sectors,” says the team at Ludwig Schenk & Co, a specialized processing company at the Karlsruhe wholesale market.

DECEMBER 2021: “MANY CUSTOMERS FROM WITHIN THE GASTRONOMY SECTOR HAVE SURVIVED THE CRISIS WITH RELATIVE EASE”

At Freiburg’s wholesale market, the company is confident about the future, according to Volkan Günes of Sun Früchte. “We have only seen about a 20% drop in sales, so the financial damage is limited. Many of our gastro customers - such as Italian and gourmet restaurants - have come through the crisis with relative ease. However, I no longer dare to make forecasts with reference to COVID, because you can’t predict the situation at all.”

DECEMBER 2021: “I WILL STILL RECEIVE THE MERCHANDISE NEEDED”

“With the 2G regulation, at least isolated sales can still go on,” says Jörn Reimers of Hamburg-based company ARUS. One market dropped from the scene due to the closure of the Christmas markets. However, Reimers’ customers primarily include food retailers and suppliers for the food service industry. “There will be drastically less merchandise. But what I need for our business, I will still get.”

DECEMBER 2021: “PAYMENT PROCESS DRAGGED ON FOR MONTHS”

At the beginning of 2021, things were not looking particularly rosy for Früchte Franz at the Berlin wholesale market. “We should have received COVID subsidies, but the disbursement process dragged on for months, which is why we were afraid that we would have to close our business. If the subsidies had come even later, we would no longer have been able to support our operations,” says Managing Director Thomas Franz. In July/August and Octo-

Karlsruhe München

ber/November, he was able to generate enough revenue to be able to stand on his own two feet again. “But since December, things have been looking bleak again.”

JANUARY 2022: “COMPLETE PORTFOLIO TENDS TO BECOME MORE EXPENSIVE”

The general conditions on the part of goods procurement have become challenging in times of COVID, observed Heinz Karstner, managing director of Dortmund-based wholesale company Gebr. Gottschalk. “The complete portfolio has tended to become more expensive. So, pricewise, the situation could be better. Meanwhile, certain items are also sometimes difficult to get: At the change of season, there was a shortage of peppers and cucumbers, but since then, the supply situation has stabilized again, to some extent.”

FEBRUARY 2022: “AT PRESENT, WE ARE ALREADY NOTICING A LEAP FORWARD”

In 2021, the situation had again put itself into perspective, according to Oertel. “This is also related to the fact that the cost structure of a small specialty vegetable store is not comparable to the calculations of a discounter or a large chain. The customer movement in the previous year therefore tended to be in the direction of discounters or food retailers,” says the Leipzig-based wholesaler. “At present, we are already noticing a leap forward; sales are slightly better than in 2021, at least in the food service sector”

FEBRUARY 2022: “WE ARE SATISFIED WITH WHAT WE HAVE”

“We fruit wholesalers are part of a systemically important industry and have been able to benefit to some extent from the situation, especially at the beginning of the pandemic. However, the continuing uncertainty has driven business down again,” commented the management of Peter Brozulat at the Munich wholesale market. “We are forced to plan our orders early so that we are not left high and dry. Nevertheless, overall, we cannot complain. We are simply satisfied with what we have.”

FEBRUARY 2022: “THE SMOOTH SUPPLY CHAIN NO LONGER EXISTS THESE DAYS”

At the Nuremberg wholesale market, the mood is ‘relatively good’ according to Stefan Ziegler. “In the catering industry, I see a certain ‘last minute mentality’. In the pre-pandemic days, you could have an extra crate of something without problems, but nowadays you buy exactly what you need, when you need it. This is reflected in the quantities purchased: some restaurants in the city centre only open in the evening, which means that about half as many products are needed. This in turn also presents us with major challenges in procurement - the smooth supply chain no longer exists these days.”

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