Interview with the company 2 thousands hectares of cultures for La Linea Verde

IT’S NOW ANDREA BATTAGLIOLA’S TURN, MANAGING DIRECTOR AND SALES GENERAL MANAGER, TO TAKE STOCK OF THE SITUATION WITH PL MAGAZINE.

2 thousands hectares of cultures for

La Linea Verde

by Luca Salomone

One of the leading Italian producers of fresh and ready-to-eat fruit and vegetable products. A point of reference for retailers in different countries, thanks also to seven productive sites located throughout Europe.

La Linea Verde of Manerbio, in the Province of Brescia, is a large food company, with a 2019 turnover of 322 million euros (+10% compared to 2018). The business proposal is based on fresh-cut and includes bagged salads, fresh readymade vegetable dishes, and fresh drinks. The company is also one of the most important national fruit and vegetable producers of fresh and ready-to-eat products. In addition, it is also one of the major growers with more than 2,000 hectares of lands, managed by a single certified and controlled agricultural supply chain system. Talking with PLMagazine, there’s Andrea Battagliola, managing director and sales general manager, to talk with PLMagazine.

The last fiscal year ended with a bang. What about 2020? First of all, fresh-cut, overall, recorded a drop of -7% with segments that reached even -30% (the salad bowl, intended as ‘lunch box’, for example). In this context, also Linea Verde suffered the blow and didn’t achieve the growth targets set before the pandemic. However we were able to end 2020 with a turnover of group similar to the one of the previous year.

Why has Covid impacted products like yours that are practical and even packaged? The whole fresh-cut range has been put to the test due to the health crisis because consumption conditions have changed. Consequently, ready-to-eat products had to take a back seat, and the short shelf-life of ultra-fresh products, which in the past was considered a strength, is now a weakness. However, we’re a well structured company able to promptly adapt to changes, and we are now working on larger formats and new references, which could be more suitable for home and family consumption. For us, to cooperate with our clients means also, and above all, being this receptive and flexible. This crisis was an opportunity to, once again, prove our clients our reliability as partners even in such a difficult moment.

In 2019 you also entered the Netherlands market. Were there any other countries of business interest in your 2020 strategic move? Yes, that’s correct, it’s the Netherlands, the country where we started to work for an important retailer. Another important news is the opening of a production site in the South of France. Despite the pandemic, some of our foreign clients have expanded their product supply with new proposals. So, let me say that our foreign market, with a share of about 40% of the turnover, never stopped being a source of pride and inspiration for us.

How important are private labels for your group? They are, and always have been, essential. We were born as co-packer in the fresh-cut market and we are main partners in the sector of the Italian market, and we aim to become so also in Europe in the near future.

What would you suggest to a potential new client for an effective positioning? Fresh-cut and fresh ready-to-eat meals, in particular, as they generally address a modern, conscious, curious, investigating public. The battle field is of the ‘extra’, extra quality, authenticity, clean label, sustainability of both the supply chain and of the packaging, service, taste. My advice is to rely on a co-packer that can guarantee all of this, in synergy with the brand, which obviously has its own structure, identity, values, projects; all aspects that have to be reflected on its PL.

Going from advice to real life, what are the most frequent requests of your current clients? Given the quality, freshness and taste requirements, there are other two main aspects to consider. The first one is the management of the supply chain, with particular attention towards how farming is managed and controlled, for example in terms of the use of phytochemicals. We respond to all these aspects with a controlled

322

Owned brand: DimmidiSì Sales channels: retail

m euro 2020 TURNOVER

60 More than PL BRAND

SALES OFFICES Italy, Spain, Serbia, Russia and France Produced item per day

2 m

PRODUCTION SITES Italy, Spain, France and Serbia

5 7

and certified supply chain that monitors, tracks, documents all the steps, from farm to store. The second aspect is the packaging sustainability, which has to be 100% recyclable. However, the demand for the use of responsible materials, such as recycled plastic after consumption and FCS (Forest Stewardship Council) certified paper, is higher and higher. These are both important drivers for consumers and distinguish the supply of the private labels.

How can you describe the work done by the large-scale distribution on fresh-cut products? What we appreciate is that the large-scale distribution, in the last few years, has given more space and importance to the fruit and vegetable products. This also because this area is basically the calling card of points of sale. Fresh convenience has now become more relevant, and so do practical fresh products, such as Fresh cut and fresh ready dishes. More attention is paid to the presentation: there’s a better designed layout, thanks to the category management, and the nutritional messages and consumption tips are more emphasized directly in the store. In other words, I think we’re on the right path.l