US berry giant Driscoll's completed the acquisition of Berry Gardens Limited (BGL), the sales, packaging and distribution entity of the UK's leading berry cooperative, Berry Gardens Growers Limited (BGG), on November 1. What does this mean for the UK berry sector ?

Russell Allwell : The agreement is beneficial for all. For growers, Driscoll's provides stability; clear access to our varietal programs; increased access to our proprietary technology and techniques; and, since we are a global business, access to global markets. This is a big problem, because UK fruit is fantastic and in demand.

For our [retail] customers, I think we'll continue to provide the strong genetics and varieties we've had to date, but there will also be an accelerated pipeline of new varieties. By having a much clearer path in the conversation with them, we'll be able to better tailor our programs to customers and their needs, and really go into detail about these new varieties and what we can do to stimulate growth in their categories.

There is also continuity for our clients from a varied point of view. When we come out of the local season, we can maintain a level of continuity in terms of quality and the varieties that the local consumer sees; It will be much smoother through Driscoll's.

What does the acquisition mean for Berry Gardens as a company?

As for the structure, initially there will be no massive changes. [CEO of Berry Gardens Ltd] Nick Allen will join the Driscoll's Europe team as UK Managing Director.

As for the name, over time we are going to change Berry Gardens to Driscoll's. Berry Gardens has a great reputation and is a great business, which is why we are proud to be a part of Berry Gardens. But this is Driscoll's, and to avoid any confusion, we will transition to Driscoll's.

For the local team [Berry Gardens Ltd], they are very excited about the opportunity to join a larger and broader international business. That brings a lot of career opportunities, learnings and insights, so they're very optimistic from a personal perspective that the move to Driscoll's will be strong and good for them.

What is Driscoll's strategy to increase domestic berry production in the UK?

Our strategy really focuses on three key elements: strengthening dialogue in the marketplace, being consumer driven, and operational efficiencies.

When we talk about dialogue, it's really about having a strong dialogue with retailers and our growers. By entering [Berry Gardens], we recognize that we have strong partners in growers and customers with a long history and experience in the berry category. So we want to make sure that we listen and learn and understand their views.

But obviously we're also a fifth-generation berry business, and we've been successful in growing our business. So we think there are opportunities for us to offer some insights along the way, and that's where this dialogue thing comes into play. It's really about communication.

As I say, we are a fifth generation company. We are here for the long term. One of the important elements is to be consumer driven. All we do is berries, so we have a lot of experience developing varieties. We have a lot of experience in building categories. Our growth is traditionally based on consumer behavior and insights, so we want to bring that into the category as a way to grow the business.

We also believe that it is very important to have a financially sound producer base. We see two elements in it. One is about creating value through these consumer-driven initiatives. The other has to do with operational efficiency: how to make sure producers have a sustainable path forward.

Is the aim of the acquisition to import more European berries to the UK?

We did not need to buy Berry Gardens to import fruit. We bought your sales desk to sell local berries. That is our approach. That is what it is all about: satisfying local demand with local products. Because it is a really solid and quality product offer. We believe there is still a lot of growth for local fruit in the UK and that is where our energy lies.

Does that mean we won't bring berries from time to time? On occasion we will, but that should be out of the local season. We want to prioritize local fruit first. And our job is to make sure we meet customer demand and consumer demand. Where there is a void of local fruit, we have the means to maintain the quality and continuity of the sale and we must.

What about the development of UK berry exports? Is that part of the plan?

The quality of UK fruit is very high and consistent, and we have customers and consumers across Europe and the Middle East who would love to have UK fruit, so we see no reason why we shouldn't look to continue . to generate growth for UK growers and we need to consider those opportunities.

I emphasize that our number one priority is to satisfy the local market, that is our first job. But if there are customers and consumers who say they would love an English strawberry, why should we deny them.

Does Driscoll's have a strategy to help UK berry growers mitigate production and market challenges for the coming seasons?

There are some challenges in the market right now. I come back to these two key pillars that we are working on with our growers. It's about operational efficiency and it's about creating value. It really comes down to those two elements.

For us, we need to make them operationally efficient; we need to get as much waste out of the system as we can. We know that we can improve in planning, it is an important element. And that is a relationship in which our customers and producers play a role.

Driscoll's has invested heavily in integrated business planning, which is about how to match supply and demand curves, and that is helping to reduce a lot of waste and inefficiency at the farm level, but also through the supply chain. supply that benefits the customer. also.

We have a lot of different new varieties that also have an impact on plant density, harvest speed, and operating costs, so we're looking forward to bringing those kinds of items to growers as well.

But we are also in the business of creating value and demand. For Driscoll's it's very much about trying to create tasty fruit that is a good value, which will build repeat purchases and consumer loyalty. That is what the category needs. Value starts not with price but with great taste.

It's also about how you make the category relevant to shoppers. And there are a lot of consumer needs that we're focusing on. A good example is consumer concerns about single-use plastics on the market. Therefore, in 2023 we will move the Driscoll's brand from plastic to cardboard baskets. That initiative has been going on for a couple of years. We're well along in rolling out that, and hopefully by the end of 2023 we'll have fully gone from plastic to paper. That will stimulate a lot of consumer interest in the Driscoll's brand in Europe.

How can a premium berry brand survive what lies ahead in terms of economic decline and cost of living crises?

I think the [berry] category will need to have stronger value offerings. The lower end of the market will always need lower priced value offerings. But the market will continue to look for ways to align the category with what is relevant to the consumer, so there will definitely be two price tiers. As long as you can stay relevant to consumer needs and deliver consistent, great-tasting fruit, day after day, I still think there's definitely a role [for premium berry brands]. Consumers and the category need repeat purchases, and to gain loyalty from that category they need to have great-tasting fruit. In that we are trusting.

Can you talk a bit about your professional experience and links to the fresh produce sector?

I have been at Driscoll's for about 12 years. I am Australian. I got into Driscoll's Australia, a joint venture between Driscoll's and [Australian produce giant] Costa Australia. They needed someone independent to come in and run this joint venture. It was my first foray into berries and I was hooked from day one. It's an incredibly fun and dynamic environment.

My role was to bring Driscoll's and Costa together and find ways to capture the strengths of both organizations and push them into a stronger position in the market that worked very well.

I build on that experience a little bit with the Berry Gardens deal. It's kind of similar where we have a very strong business at Driscoll's and a very strong business at Berry Gardens. By merging the two, we need to make sure that we don't lose anything that is the foundation of its success.

Similarly, in establishing Driscoll's Australia and developing the categories with Australian retailers, it was a listening, learning and understanding situation. Get a better understanding of the consumer. So I see a lot of parallels in terms of innovation and growth of the UK berry category from the experiences we had 12 years ago. Obviously the UK category is more mature and developed than the Australian category, but the same skills apply.

I then moved to Driscoll's Asia to help develop the Driscoll's market throughout the Asian market. I then moved on to run Driscoll's of Europe.

I really enjoyed my time at Driscoll's of Europe, there are so many different customers, different cultures, different consumers, different behaviors, different producers. It's been fascinating to really test how you navigate through all of that stuff. It's a testament to Driscoll's ability to partner when you look at the complexity that Europe brings.

The foundation of our strength in Europe is the ability to do just that: be good listeners and apply solid innovations. And we also have to bring them to the UK.

Is there anything else you would like to add?

I am super excited for the opportunity. We have a lot to offer and a fantastic base to work from with really strong relationships. As I said at the beginning of this conversation, we see this as a win-win situation, and that's what makes it a great business, and something everyone is very excited about.