Fruit and vegetable distribution in the on-trade: Cash and carry: focus on assortment

Target

With the aim of becoming the reference supplier of the horeca channel, the national cash&carry sector is reinforcing its traditional assortment of fruits and vegetables with new products that seek to respond to “younger” consumer trends. Meanwhile, the classic references are being renewed with new presentations and formats.

Having overcome its stage as a supplier to the independent retailer, the national cash and carry sector has been moving for several years now towards specialization in both assortment and services, with the aim of becoming the reference partner for the hotel and catering industry. In general terms, this shift is based on three pillars: sales force, delivery and, above all, assortment, with special emphasis on fresh products.

Not surprisingly, as Iván Guillermo, fresh produce director of the Catalan company HD Covalco, comments, this type of food contributes “significantly to the satisfaction and loyalty of our customers, offering an added value that goes beyond simple supply”. In the specific case of greengrocers, this executive assures that for Covalco they are not only “a fundamental pillar”, but also a “key differentiator”, insofar as they are “essential for the preparation of healthy and attractive dishes”.

New references

 In practice, operators are committed to innovation, not only in terms of assortment, but also in terms of packaging. Broadly speaking, in addition to incorporating products related to the “younger” market niches (organic or pre-prepared convenience food solutions, among others), the more traditional products (citrus fruits, apples, pears, onions, garlic, tomatoes, etc.) are renewed with presentations and formats and share space with tropical fruits, local references and other fruit and vegetable-based products (gazpachos, guacamole, smoothies, etc.). As Iván Guillermo said, restaurateurs are not only looking for products that are “essential for their daily menus”, but also “versatile”.

However, and despite the fact that the references that mean savings for the hotelier (especially in time), such as the IV and V range, are among the most requested, the most popular varieties “will always be” basics such as lettuce, tomatoes, onions, garlic, lemons, peppers, orange juice, apples or pears, points out Eva García, responsible for CashDiplo.

The sources consulted also emphasize their commitment to local fruit and vegetables, for which “we work closely with local farmers and trusted suppliers to ensure maximum freshness and quality of our products,” explained from HD Covalco. Makro also declares that it pays special attention to local produce. In fact, this merchandise has its own space within its sections, called 'Local Makro DNA', in which they are committed to 'km. 0' products, grown within a radius of less than 150 km and which are usually in season.

Many reforms

In fact, the growing importance of the fruit and vegetable sections has led some operators to focus their most immediate actions on them.

For example, Musgrave España ('Cash Dialsur'), is immersed in a process of improving its fruit and vegetable universes since, currently, “they are not as relevant as we need”, says Pablo García de Ceca, head of this division; while CashDiplo wants to turn this universe into the “most important” within its wholesale establishments with the aim of expanding its customer base.

Finally, it is worth mentioning the Madrid cooperative Unide, which last May created its wholly-owned subsidiary, Cash G5, to manage this line of establishments. One of its first steps has been the opening of a cash store in Béjar (Salamanca), whose main novelty is, precisely, the incorporation of the fruit and vegetable section, which will allow its customers “to make a more complete and convenient purchase, generating loyalty and more frequent visits”.

This last point of sale has been one of the six that have opened their doors in these first months of 2024, with more than 12,000 m2, while the number of stores that have been closed has risen to three, with some 3,000 m2. Following these changes, as of July 31 there were 647 cash and carry stores operating in our country with a combined surface area of 1,528 Mm2 compared to the 644 and 1,520 Mm2 operating at the end of 2023, based on Alimarket FMCG's own data.