Martin Kneebone attended the annual Fruit Logistica trade show in Berlin in early February. 

Here are some of the important take-outs from what he saw:

• Portion sizes - A common theme of smaller portion sizes including many products in singles, which is a trend that doesn’t limit itself to fresh produce.  This was more apparent at the 2011 show with vegetables rather than fruit, as the larger size fruit remains positioned as the premium product.
• The packaging to support this - A myriad of packaging options are being used to give effect to this portion size trend, and range from plastic in all configurations, cardboard inners and trays to wooden cartons. Smaller cups providing portion and retail ready/processing solutions. The use of packaging introduces an important communication medium for communication to consumers, while smaller portion sizes increases the packaging component per tonne of product and feeds the packaging set-up investment 
• Product form - There was an increasing array of product forms, with some important food service “plate ready” innovations being introduced as retail products.  This includes more part-processed products which introduces scope for investments in mechanisation to reduce labour cost. These play to the advantage of those participants in shorter supply chains.
• Managed variety - Expansion of the “managed variety approach” across fruits and some vegetables, involving full supply chain involvement from variety owners.  While increasing category value, supply chain margin is now being captured by plant owners asserting their influence. It is not clear what this has done for the producer margin, which has typically carried all the risk.
• Expanding the logistics business model - More “supply chain partners” seeking to do much more than move boxes - offers include IT systems, packaging solutions, new product support and inventory management.  This is reflective of the need to expand operations and range of solutions to clients - or be fazed out of a role.
• Sustainability evolving well past being a standalone issues into the fabric of everyday business and earning acknowledgement in the essence of many tier 1 corporate brands. The equipment to process fruit & vegetables has improved further to service and expand the demand for “fresh meal ready & waste free” products.  
• Organics - There were more organic products from organic specialists, rather than as line extensions from suppliers of conventional products. This is potentially reflective of the scale and systems required to support the brands and supply chain to maintain these types of products, as demand reportedly remains soft.

Please contact us if you want to discuss any of these issues in greater depth.