New wrap boosting vege sales

By LIBBY MIDDLEBROOK

Plastic-wrapped vegetables are often the kind found festering on a supermarket bargain shelf several days past their peak condition.

But Leader Brand's lettuces are rolling out the door at premium prices thanks to a special plastic wrap and the Gisborne company's new marketing and sales strategy.

One of the first commercial vegetable growers to brand its fresh vegetables and advertise direct to supermarkets, Leader introduced Iceberg plastic-wrapped lettuces to the retail scene just over two years ago.

Today the 25-year-old business promotes Iceberg lettuces through retail magazines and sells direct to most major supermarkets, chopping out the wholesale link of the supply chain.

"Consumers today are driven by convenience and food safety. We wanted to pick up on that and market our products around those issues to add value," said Marcus Griffin, Leader's sales and marketing manager.

"Rather than selling through wholesalers, it is more cost effective for us to go direct to retail outlets. We target them [supermarkets] with advertising, too, rather than going to consumers."

One of the country's largest private growing operations, Leader is owned by Murray McPhail. It plants more than 3400ha in vegetables each year, including squash, peas, tomatoes and peppers. The majority of Leader's squash and onion crop is exported to Japan while a small amount of Iceberg lettuces is sold through the Pacific Islands.

Mr Griffin said the company saw an opportunity to add value and boost returns after a trip to Europe, where vegetables were frequently wrapped in plastic before being sold in supermarkets.

After investing more than $1 million in its Iceberg operation, Mr Griffin said Leader was slowly carving a niche out of the retail market for its plastic-wrapped lettuces, which usually sold at a 20 per cent premium to the average lettuce.

Iceberg lettuces were only handled once when they were picked and wrapped before arriving on the supermarket shelf. Mr Griffin said they were less prone to shrinkage because of the wrap and Leader aimed to produce lettuces of consistent quality to keep customers coming back for more.

"Our competitive edge is driven by the fact that no one else is really doing this on this scale. From a supermarket perspective, we make it easier for them because there's no labour involved and they can generate a better return."

Mr Griffin said there were growth opportunities in the Australian market as well as expanding sales through other plastic-wrapped vegetable products.