Ferrara, Italy - 19 November 2015

Consumption of pears

Daphne van Doorn

Interpera - 19 November 2015

Ferrara, Italy - 19 November 2015

Agenda

1. Trade trends

2. Effects Russian embargo

3. General consumption trends

4. Promotion campaigns

5. Country examples

Ferrara, Italy - 19 November 2015

Intra EU trade • Some facts:

• EU production in 2014 was ± 2,5 million T

• EU intra trade is almost 900.000 T in 2014, which accounts for about 36%. EU exports was about 15%, so half of the pear production is consumed locally.

EU intra trade by supplier 2014

Netherlands 388.214

Belgium 147.319 Italy 123.679

Spain 79.431 Portugal 65.885 Germany 27.640

France 19.406 Latvia 13.163

Poland 8.407 Estonia 4.420

Others 19.855

EU trade by receiver 2014

Germany 153.137

United Kingdom 141.059

France 112.952

Lithuania 101.420

Belgium 53.875

Italy 48.204

Poland 46.288

Spain 34.853

Sweden 33.970

Netherlands 26.465

Others 145.196

Ferrara, Italy - 19 November 2015

Imports into the EU

EU imports by partner 2014

South Africa 98.982

Argentina 86.758

Chile 40.548

China 6.302

Uruguay 1.201

New Zealand 1.131

Turkey 970

United States 919

Others 1.099

Total EU imports from third countries were almost 240.000 T in 2014 of which the majority came from South Africa, Argentina and Chile.

EU imports by destination

Netherlands 105.224

Italy 56.429

United Kingdom 22.576

Germany 13.519

France 11.961

Spain 7.403

Portugal 6.700

Greece 4.054

Others 10.044

Ferrara, Italy - 19 November 2015

Export trade is increasing

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

EU exports by exporting country (2014 in T) incl. re-export

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

500 000

2010 2011 2012 2013 2014

EU exports to third countries

Average 10-13 Average 10-13 /14

374.141 26,1%

Exports are up 26% in 2014 compared to the average 2010-2013

Although only 15% of EU production

goes to international trade

EU Country 2014 exports Av 10-13/ 14

Belgium 133.731 -13,9%

Lithuania 39.690 148,0%

Netherlands 65.004 7,4%

Portugal 37.854 62,9%

Spain 40.922 36,5%

Poland 27.931 18,4%

Italy 16.042 57,7%

France 5.343 -21,0%

Slovenia 2.556 56,7%

Greece 2.290 -4,8%

Ferrara, Italy - 19 November 2015

Effects Russian embargo Pear exports to Russia (volume T)

Years 2010 2011 2012 2013 2014

Total EU exports 343.383 398.522 404.298 350.361 471.732

EU exports to Russia 243.516 254.840 254.397 200.958 154.725

% Russian market 70,9% 63,9% 62,9% 57,4% 32,8%

Russia has been a substantial market for the exported pears. But new market opportunities (i.e. BE access to Canadian market, NL access to Brazil).

Ferrara, Italy - 19 November 2015

Effect of Russian embargoes on EU market prices

Ferrara, Italy - 19 November 2015

Reactions Russian embargo

Ferrara, Italy - 19 November 2015

General consumption trends Gross consumption of pears

Kg / capita Reporter AV 2009-2013

Italy 11,17

Portugal 10,20

Netherlands 7,65

Austria 7,52

Denmark 7,33

Spain 7,19

Greece 6,28

Belgium 5,34

Cyprus 4,20

Luxembourg 4,10

France 4,00

AVERAGE EU-28 3,96

Sweden 3,82

Slovenia 3,45

Estonia 3,40

Romania 3,01

Croatia 2,50

Malta 2,46

United Kingdom 2,43

Ireland 2,26

Germany 2,25

Finland 2,23

Latvia 1,80

Hungary 1,56

Czech Republic 1,35

Slovakia 1,04

Poland 1,00

Lithuania 0,81

Bulgaria 0,40

EU average

4 kg

Large consumption IT, PT, NL, AT

DK, ES 7 - 11 kg

Medium consumption EL, BE, CY, LU,

FR 7 - 4 kg

Small consumption SE, SL, ES, RO,

CR, MT, UK, IR, DE, FI 2 - 4 kg

Negligible consumption: LT, HU, CZ, SK,

PL, LI, BG less than 2 kg

Major discrepancies in the consumption pattern

• Higher producing countries also higher consumption

• Mainly West/ Southern EU countries higher consumption

• Central & Eastern Europe are smaller consumers

• European average stands at 4 kg

• Figures based on supply (not sales)

Ferrara, Italy - 19 November 2015

General consumption trends

Average 03-12 Average 03-12/ 13

4,15 -8,2 %

Average 08-12 Average 08-12/ 13

4,00 -4,8 %

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

Evolution of pear consumption in the EU

2003 – 2008 relatively stable between 4 – 4,5 kg Last five years more fluctuation

• Like fruit and vegetables in general, pears a under some pressure • Over the last 10 years a downward trend of 8,2% for fresh pears. • Over the last 5 years it was a decline of 4,8% • Pears represent in 2013 ca 5,2% of total fresh fruit basket • => Competition also within the category

Ferrara, Italy - 19 November 2015

Pears in the supermarket • A mix of bulk and pre-pack across Europe

• Domestic sourcing prevails in more than 50% of the cases

• Less segmentation than apples as number of varieties are usually around 3 or 4

• Mixed opinion of consumers on taste, texture, price, flavour. Indicating the need to understand the consumer’s expectations and reasons for buying/ not buying

Ferrara, Italy - 19 November 2015

Stimulating consumption of pears

How pears are promoted in Europe: • Promotion on prices

• Consumption tips

• On-site promotion and tasting

• Special display on-site

• Health and nutrition arguments upcoming

Ferrara, Italy - 19 November 2015

Packaging • To take care of the product

• To facilitate ripe and ready-to-eat fruit to be supplied

• To provide recipes, PGI information, organic information, other labelling etc.

Ferrara, Italy - 19 November 2015

Promotion campaigns

• Examples of specific promotion campaigns

• Traditionally pears are conventional & unbranded branding is (not) as important for pears as for apples

• Limited segmentation compared to other fruit (apple, citrus - varieties)

• Some initiatives:

– Club: Sweet Sensation,…

– Organic: Some new developments for niche

– PGI-PDO: Mainly in Southern Europe

Ferrara, Italy - 19 November 2015

Consumption & promotion detail: BE

• After Russian embargo social media campaigns #ShareAPear & #ToffePeer. Active on Radio as well.

• In Aug-Nov 2014 there were 80% more pears sold than the year before

• Based on sales (not supply)

Consumption BE pears kg/capita

Year Kilo pears

2010 3,35

2011 3,12

2012 3,02

2013 2,76

2014 3,56

0,00

0,02

0,04

0,06

0,08

0,10

0,12

W 32

W 33

W 34

W 35

W 36

W 37

W 38

W 39

W 40

W 41

W 42

W 43

W 44

W 45

W 46

W 47

W 48

W 49

W 50

W 51

W 52

BE Consumption pears

Week 32-52 2013 Week 32-48 2014

Ferrara, Italy - 19 November 2015

Consumption detail - NL

• Prices low, clear media attention, especially for Conference

• Period Aug-Dec 2014, more consumers bought pears than the year before (+47%)

Consumption NL pears kg/capita

Year Kilo pears Conference

2010 5,95 3,35

2011 5,69 3,28

2012 4,55 2,90

2013 3,97 2,49

2014 5,40 3,19

1%

1%

-8%

0%

7%

-4%

-2%

-15%

-23%

-9%

-5%

-25% -20% -15% -10% -5% 0% 5% 10%

TOTAL FRESH VEGETABLES

Tomatoes

Onions

Carrots

Cucumbers

Paprika

TOTAL FRESH FRUIT

Apples

Elstar

Pears

Conference

Price/ kilo first half 2015 vs.2014 in % Source GfK/GroentenFruit Huis

Ferrara, Italy - 19 November 2015

Campaign example NL & BE

• Combined promotion campaign for Conference pears to Germany (2012-2015). Continuation project 2015-2016.

• 1.500 tastings at many retailers (i.e. Rewe