Tru-Cape to employ Closer-to-Market strategy

Wholly owned by the growers of Two-a-Day in Elgin and Ceres Fruit Growers, Tru-Cape has further reduced operating costs through joint venture partnerships with key customers as well as a multimillion investment in infrastructure.

MD Roelf Pienaar says that based on trees already in the ground, the group will have 18 million cartons of fruit to move within the next five years. "In support of this, Tru-Cape has purchased a 5,000 m2 erf with planned improvements of 2,700 m2, which will also include space for 1,300 pallets of fruit.

"Our new City Deep, Johannesburg facility will provide us with administration and meetings spaces but also act as a mini distribution centre capable of cold storage and cold sterilisation, when necessary. We are eying our cross-border African clients that ship from Johannesburg directly," he says. The new facility will also have temporary office space so that cross-border clients can meet, contract and collect in one step. "We have decided to make a sizeable investment in this new facility which will be ready for business early 2015," he says, adding that it also enhances the way Tru-Cape replenishes its local retail customers.

Greater management of the value chain

Pienaar says that Tru-Cape will also work closer with key customers, focusing specifically on Africa and the Middle East, which will ultimately lead to greater management of the value chain. "We are constantly looking at inventive ways to work with non-competing business and agri-partners. This includes possible transport saving initiatives, not only with local retailers but also with like-minded agri producers. As Tru-Cape takes control of more links in the supply chain, we transfer these savings directly to our grower shareholders. Consumers benefit too as we have direct control of our product from the soil in which it is grown until it is received by supermarkets and grocers," he says.

Pienaar also announced the latest consumer research findings conducted on behalf of Tru-Cape. "Apples, bananas, pears and grapes are the top four fruits in demand while two out of three respondents favoured Tru-Cape's 1.5kg branded bag over loose fruit. 41% said that traceability was important. "What's interesting", Pienaar says, "is that the majority of respondents are purchasing fresh fruit more than once a week which is a significant increase since 2012 yet 70% of the respondents purchase fruit at the same place as they do their monthly shop. 85% of respondents wash the fruit and eat it plain and prefer eating fruit between meals as a snack.

Respondents are more aware of apple varietals than of Pear varietals and usage is closely linked to awareness. Golden Delicious and Granny Smith continue to dominate the top two spots, although Granny Smith is losing favour. Top Red and Cripps Pink (marketed as Pink Lady) are moving up while Starking and Royal Gala down.

"We have also increased our operational efficiencies so that we are extracting the maximum value and this will maintain our leadership position and continue to make us relevant for this decade and next.

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