THE CONSUMER AT THE CENTER OF FRUITS AND VEGETABLES
The consumption of fruits and vegetables is going through a complex situation. After the rebound experienced during the pandemic and the following months, the current reality shows a slight stabilization and even fall in consumption year after year, returning in many European countries to pre-2018 levels. There are various perspectives and aspects that can be addressed, but we have considered it necessary to focus on strategies towards the product vs. towards the consumer.
PARTICIPANTS
(From left to right)
IGNACIO BIEDMA, Account Development Manager at NielsenIQ Spain
HANNES TAUBER, VOG Marketing Manager
THIERRY MONTANGE, Marketing Manager Del Monte Europe
PASCAL ORPHAL, Brand Operations & Development
International Markets Manager de SanLucar
JAVIER CARMONA, Marketing Manager at Bollo Natural Fruit
FERNANDO PEREA
WIN BACK THE CONSUMER THROUGH MARKETING
The industry has been talking for years about the properties, quality, availability, shelf life, colour and flavour of fruits and vegetables. Only in recent years has the sector begun to understand that health is no longer the main driver of consumption. The processed food sector, with undoubtedly larger budgets, is years ahead of us in positioning experiences and moments of consumption, putting pleasure at the center of its campaigns.
This roundtable seeks to analyse how the fruit and vegetable sector can evolve to win back the consumer and connect with them from a perspective focused on pleasure, experience and emotions, beyond the health benefits of the product.
In a rich panel discussion, fruit and vegetable industry leaders came together to discuss the strategies they are implementing to put the consumer at the centre of their marketing decisions. Participants included Hannes Tauber of VOG, Thierry Montange of Del Monte Europe, Pascal Orphal of SanLucar, Javier Carmona of Bollo Natural Fruit and, as a key contributor, Ignacio Biedma of NielsenIQ Spain, who gave a comprehensive overview of the current market context and changes in consumer behaviour.
NIELSENIQ CONTEXT: CHANGES IN THE FMCG MARKET
Ignacio Biedma, NielsenIQ consultant, opened the conversation by providing data that has redefined the landscape of the fruit and vegetable market in recent years in Spain. He explained that, in the FMCG sector in Spain, value has grown by 4.9%, although volume has only increased by 2%. This situation, where prices have risen by an average of 3%, directly affects consumer purchasing behaviour. Biedma stated: “Families are buying more frequently, but in smaller quantities each time”. In addition, he highlighted that the volume of sales in fruit and vegetables shows a change in trend, although it grew by 2%, high prices, which increased by 4.5%, limit total spending. According to Biedma, this has an overall impact which can be seen in a lower average household bill and affects the fresh category in general.
On the other hand, Biedma added that the increase in out-of-home consumption over the last two years poses challenges for the fresh produce sector, which has historically relied on domestic consumption. This trend requires fruit and vegetable companies to adapt their strategies to a new reality in which they must compete not only on price, but also on convenience and added value. “It is important for the sector to consider strategies that respond to the increase in out-of-home consumption and that allow fresh fruit to find its place in this changing context”, added Biedma.
In addition to this, at Fruit Attraction Bollo Natural Fruit presented the 1 st Barometer on Fruit Purchase and Consumption Habits in Spain, which highlights that almost half, 48%, declare that they consume a little more or a lot more fruit than five years ago, despite the general context of inflation that the food sector has suffered in recent months. However, there is another part that considers that they eat much less fruit now, 22% of the population. This is the scenario in which the growers come into the table.
STRATEGIES FOR A MORE ATTRACTIVE CATEGORY
Thierry Montange, representative of Del Monte Europe, addressed the challenge of making fruit more accessible and desirable to the consumer, pointing out that, although communication campaigns invite increased consumption of fresh produce, overall
HANNES TAUBER, VOG MARKETING MANAGER
“Good brands make a promise, strong brands keep the promise over time”
“We must keep the promise of quality because if we prioritize price, the chain can sacrifice basic aspects that lead to a loss of said quality”
growth of the fresh category remains limited. “Consumption is not going up in general, and although consumers are very interested in eating fruit, the reality is that the fresh category is not growing”, he commented. Montange underlined that one of the biggest obstacles is the perception of fruit as an expensive or “luxury” product. For him, a key strategy lies in breaking with this perception by offering consumers affordable and accessible alternatives, so that fresh produce is perceived as a daily necessity rather than an occasional expense.
Montange also stressed that the focus should not just be on price, but on ensuring a quality experience and product continuity that builds consumer loyalty. “Consumers need to trust that they will always receive the same quality and freshness, which is crucial to build a long-term loyalty relationship”, he said. This philosophy reflects a vision in which Del Monte seeks to transcend the price barrier and focus on the real value offered by its fresh produce.
Hannes Tauber, Head of Marketing at VOG, following Montange's lead, added that, in order to get closer to consumers, dee -
per communication is needed than simply talking about a product, they have a story to tell behind each one. “We have to listen to the consumer and find our own answers that their needs and wants, something other foods already increasingly do”. Tauber does not believe there will be a sudden sharp decline, but he does warn of the trend that exists, “companies need to be more flexible to adapt to the market and consumer demand”.
Pascal Orphal of SanLucar points out that consumer strategies should not focus on price, “in that context we all lose out”. He recalls that, after the pandemic, the market became more aggressive in terms of price and Orphal points out that this competitiveness must come from quality and differentiation, elements that make the category better. In addition, he not only provides his vision from the fruit and vegetable company, but also his background in the distribution chain, where he was present for more than 15 years and where he describes the great transformation that the fruit and vegetable section has undergone during this time.
THIERRY MONTANGE,
MARKETING MANAGER DEL MONTE EUROPE
“A key strategy lies in offering consumers affordable and accessible alternatives, so that fresh products are perceived as a daily necessity and not an occasional expense”
“We want the consumer to see fruit as something special, as a product that elevates their culinary experiences”
“When they see the SanLucar brand, they know they will receive a quality and trustworthy product”, he stated. Orphal also emphasized the key role of packaging in the shopping experience, noting that an attractive and functional design can make a difference in the perception of the fresh product.
Hannes Tauber, from VOG, delved into the need to communicate the history and origin of the products, not only the place where the product is from, but giving the consumer the possibility to learn more about the production, the people behind the product - thus valorising the product itself. According to him, today's consumers are looking for a complete experience with their food, which goes beyond the simple act of buying fruits and vegetables, and producers and retailers must be aware of the importance of transmitting this message.
RISING OUT-OF-HOME CONSUMPTION POSES CHALLENGES FOR THE FRESH PRODUCE SECTOR, AFTER COVID THE BALANCE
BRAND CONSTRUCTION, ORIGIN AND ALLIANCES WITH RETAIL
Pascal Orphal, from SanLucar, addressed the importance of building a solid brand that transmits trust and quality to the consumer. According to Orphal, the SanLucar brand seeks to offer a high and consistent standard that meets consumer expectations.
He highlighted the importance of making the origin of the product more visible, transmitting the passion and values that fresh food represents. And he links it with Orphal, explaining that “we must keep the promise of quality, if we prioritize price, the chain can sacrifice basic aspects that lead to a loss of said quality”, therefore, it is committed to keeping that promise all year round, making it easy for the consumer and placing them in the center.
Likewise, he highlighted the importance of collaborating closely with retail to not depend exclusively on price as a selling point. From its experience in retail, Orphal highlighted that “cooperation with them is vital to offer the best profitability, but also to build a long-term relationship with the consumer”. In addition, he mentioned that solid brand development allows SanLucar to overcome the challenge of private label products and build an emotional connection with the consumer.
To this, Montange pointed out that there is the need for cooperation between the offer, “currently there is a fragmented offer, isolated by each company from the rest of the sector, we must establish joint strategies and not only act as competitors”. The head of Del Monte Europe emphasizes the importance of strengthening the way in which innovation is transmitted in the sector. “The more we cooperate, the more the category will grow, the way we interact will determine the type of information we obtain from consumers”, he adds.
For his part, Javier Carmona (Bollo Natural Fruit) warned that the sector must seek a balance between retail and the consumer, “we are very focused on distribution and sometimes we lose focus on the customer, we cannot lose that connection with whoever consume our products”, he explained. In its case, the Bollo brand, known worldwide, represents a quality standard that translates into a constant requirement for the development of markets.
CUSTOMER FOCUS AND PORTFOLIO EXPANSION
Javier Carmona, from Bollo Natural Fruit, insisted that the sector should focus more on the consumer and less on the retailer. He explained that, although consumers are aware of the importance of consuming fruits and vegetables, they consume less and less. Despite a decline in fruit consumption, there is a perception that fruit is being consumed more frequently. This stems from the growing use of fruits as ingredients. As a result, consumption occasions increase, but the quantity “consumed per occasion decreases. Compensating for this will depend on adapting our portfolio to new consumption trends and focusing more on increasing value rather than volume”, he indicated.
IT IS NOT JUST ABOUT SELLING, BUT ABOUT OFFERING THE CONSUMER A UNIQUE EXPERIENCE THAT CONNECTS THEM WITH THE PRODUCT
In this regard, he also stated, “if we want to carve out a space in the channel, we need to reach them in a different way to capture their attention. What we need to do is generate demand among end consumers and create campaigns in disruptive environments. This will make us a potential strategic partner for the sales channel”.
Carmona also mentioned that expanding the product portfolio can be an effective way to capture new market segments and meet the expectations of the modern consumer, who seeks quality, freshness and convenience. “Opening the portfolio not only allows us to increase our reach, but also positions us as a retail ally to strengthen the category within stores., he commented.
To approach this approach with the customer at the center, Thierry Montange points out as key the premise of moving away from the perception that a few cents up/down will cause a
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PASCAL ORPHAL, BRAND OPERATIONS & DEVELOPMENT
INTERNATIONAL MARKETS
MANAGER
DE SANLUCAR
“We have been educated about processed foods and we pay a higher price for them, we have to talk to the consumer and explain what we do”
“The key role of packaging in the purchasing experience and an attractive and functional design can make the difference in the perception of the fresh product”
change in the consumer, “this is not the real problem, but ensuring a continuity and the expectations it generates”, Bananas have 97% market penetration, “no one stops buying them because of that slight price variation”. Montange is sure that this can be replicated to other categories to a greater or lesser extent.
Tauber, for his part, complements his colleague by defining “good brands make a promise, strong ones keep the promise over time”. For the person in charge of VOG, the creation or expansion of a portfolio must be part of the strategy of every company, and he exemplifies it as an orchestra, where there is a variety of products and moments that make the consumer/viewer feel attracted. “If we lose the brand, we lose the connection with the consumer”, he emphasizes. He further explains that failing to invest in branding creates a communication gap between producers and consumers, undermining the years-long effort required to innovate and develop new varieties and products. This disconnect ultimately weakens both the companies and the broader industry. If we do not invest in brands, the innovation process of a new variety that can take so many years, we would have a communication gap between the producer and the consumer, and the company and industry would lose there.
brand project, which the consumer recognizes and locates when they buy again, the brand concept is what will launch the product in the long term”, he concludes.
INNOVATION AND CONSUMER EXPERIENCE
FAMILIES ARE BUYING MORE FREQUENTLY, BUT IN SMALLER QUANTITIES EACH TIME, THE VOLUME OF SALES SHOWS A CHANGE IN TREND
The SanLucar portfolio, explains Orphal, is a good example of this with more than 120 references, and exemplifies it with a product that has changed the rules of the game (gamechanger) such as the blueberries. This has allowed the Spanish company to position itself and attract a consumer who will find the same quality product all year round. “But this product must be linked to a
Biedma explained the evolution in moments of consumption and how these have been transformed since the pandemic, “there is a clear tendency to eat outside the home, although during Covid people had no choice but to cook at home and consumption skyrocketed. of frescoes, later the situation is diametrically opposite”. Despite the inflation experienced in the last two years, consumption in the hospitality industry has rebounded, which invites the head of Biedma to interpret the decrease in fruit and vegetable consumption from the point of view that consumption continues, but in another scenario. Pleasure has taken the place of health and care in 2020-2021. In any case, NielsenIQ invites you to closely follow the consumer's consumption habits, which have become so variable and unpredictable in recent years.
The speakers also shared examples of innovation in their companies to respond to current trends. Thierry Montange explained how Del Monte is expanding its range of premium products such
JAVIER CARMONA, MARKETING MANAGER AT BOLLO NATURAL FRUIT
“We need to reach the end consumer through different channels to increase demand for our products. This way, we’ll achieve better positioning and a higher return on our communication investments”
“It’s not just about excelling in aspects like quality or taste; we also need to focus on convenience, consumption formats, and, overall, the lifestyle of our end consumer”
as pineapple, to provide a superior consumer experience and associate the product with moments of pleasure. “We want consumers to see fruit as something special, as a product that elevates their culinary experiences”, Montange said. Pascal Orphal
also highlighted the impact of new genetic varieties, which have revolutionized the berry market by offering a superior flavour and a unique size, managing to differentiate itself in an increasingly competitive market.
IGNACIO BIEDMA, ACCOUNT DEVELOPMENT MANAGER AT NIELSENIQ SPAIN
“It is important that the sector considers strategies that respond to the increase in consumption outside the home and that allow fresh fruits to find their place in this changing context”
“With a solid communication and collaboration strategy, the future for the fruit and vegetable industry will be bright”
For his part, Tauber, from VOG, pointed out that it is essential to understand new consumer expectations. He referred to the “consumption experience” as a priority, commenting that they have implemented initiatives such as promoting varieties of apples with specific characteristics, such as Envy, decontextualizing it as just an apple and equating it to other products due to its colour (lipstick), smell (perfume) or flavour (sweet), or as 'Giga', an ideal apple to share and enjoy with the family. “We are stopping selling only products; “We are creating moments of consumption and experiences”, said Tauber. Along these lines, he described some of VOG's innovative initiatives, such as the VApple Sommelier” campaign. This strategy seeks to elevate the consumption experience and educate the customer in the different ways to enjoy this fruit. “It's not just about selling, but about offering the consumer a unique experience that connects them with the product in an emotional and memorable way”, he explained.
Carmona, who recently presented Bollo's communication campaign, aimed to “keep the good”, the consumer's experience, also recreating those moments of consumption that transcend beyond the product's own characteristics, because the consumer is already part of a recognized quality. On that way, he emphasized the importance of creating a consumption moment and enriching it with complementary elements that elevate the consumer experience beyond simply eating a piece of fruit. “Just as has happened with other products like specialty coffee or healthy breakfasts, we need to surround fruit consumption with its own sense of rituality”.
FINAL THOUGHTS
The round table concluded with reflections on the importance of building an emotional and lasting connection with the consumer. Hannes Tauber expressed: “We are in a wonderful sector, we promote one of the best food categories and, at the same time, one of the most difficult to market. It's not just a matter of price; “Brands are the best investment we can make for the future”. This emotional connection is what differentiates fruit and vegetable brands in the long term and makes them unique in the market, allowing them to compete beyond price. “But we must be proactive, because if we are not, we face competitors from other sectors with even larger budgets who will be happy to take away our consumers”.
Javier Carmona, from Bollo, highlighted the need to communicate the authenticity and freshness of fresh products, avoiding confusing messages and reminding consumers of the natural value of each piece of fruit.
Pascal Orphal reflected on the importance of being actors in an incredible sector, where we feed the world with the best category, “I am grateful to be here with these colleagues sharing ideas, it is very inspiring”. Orphal believes that they must close the circle in communication with the consumer, explaining everything that lies behind the fruit, “we have been educated in processed foods and we pay a higher price for them, we have to dialogue with the consumer and explain what we do”.
Thierry Montange points out the new generations as one of the short-term objectives of the sector, how to incorporate these habits into the consumers of the future. He explains that it must be a joint task, “transmitting closeness, just as we grew up with fruits always around, we must work in that direction”, he concludes.
Ignacio Biedma ends with an optimistic message: “It is encouraging to see that the sector is moving in the right direction. The brands are growing and, with a solid communication and collaboration strategy, the future for the fruit and vegetable industry will be bright”.
For Mercados, once again, it is a pride to be able to sit at the same table with such different and outstanding profiles to expose reality with its defects and virtues, but above all with the intention of collaborating and making the sector grow. This table has shown what is coming and what it suffers from, but above all it shows the industry's willingness to adapt to new consumer demands, as well as the importance of authentic and quality communication, where the consumer truly feels valued.
