GDO NEWS – Article from 15/10/22
Quality pays off even in times of great difficulty, like the ones we are experiencing. Agrisicilia, a leading Catania-based company in the production of premium jams made from Sicilian PGI and PDO citrus fruits, as well as other specialties using local raw materials such as fruit jams, spreadable creams with pistachio, hazelnut, almond, mandarin, and lemon, or organic honey, has demonstrated in an interview with GDONews how it has navigated the past year and is preparing for the future, always committed to maintaining the highest product quality.
Carmelo Cristaldi, Sales and Marketing Manager, explains how within the category, the complex general context of the past year has posed commercial challenges across the board, from entry-level to premium products. “The company has managed to cope with this situation,” he continues, “thanks to its ability to offer the market products with high added value, which therefore manage to ensure greater resilience, although,” he points out, “increases in sales are not always achievable. Distribution struggles to grant them, or at least only does so partially.” “The procurement of raw materials has been particularly challenging,” he specifies, “especially concerning packaging, caps, labels, and cartons. As a copacker for many modern distribution chains, we have to accommodate numerous format variations, and in many cases, these items are either unavailable or come at significantly inflated prices. This is compounded by the fact that many glass jar production areas are located in Russia or Ukraine.”
How did 2021 go, specifically?
Very good. We recorded a significant revenue growth, amounting to +29%, which allowed us to increase from €7,900,000 in 2020 to €10,200,000 in the following year. An increase mainly driven by the growing attention of distribution groups to our products, spurred by consumers who effectively reward them. Our references indeed enjoy high shelf turnover.
Certainly, the evolution of consumer preferences towards premium products driven by the pandemic has also had an impact. The resurgence of home consumption and homemade product preparation has led to increased demand and usage of high-quality raw materials. And it shows in the fact that our growth started right in the midst of the pandemic period. To better respond to the increased demand and offer consumers our wide range of products, we also launched e-commerce. This channel has provided us with valuable feedback and reviews, allowing us to better understand our consumers. Analyzing their purchasing behavior, for example, we have noticed that expectations are quite high and there is a willingness to spend more for higher quality and service.
Did the new product lines launched during the year contribute to the growth?
Yes, because we have increasingly focused on the specialty segment and high quality, and the more attentive distribution groups have supported us in this direction by creating shelf space for Sicilian territory marmalades and Jam such as Sicilian PGI Blood Orange Marmalade, Ribera POD Orange Marmalade, Syracuse PGI Lemon Marmalade, as well as Extra Jam of White Figs or Bivona PGI Peach Jam – at the expense of more industrial productions. From Esselunga, one of the retailers most attentive to specialties and assortments, where we are included with our exclusive Biosicilia brand, to Coop, Carrefour, Aspiag, Bennet, Agorà, or Fratelli Arena, Conad Sicilia, Megamark, and Apulia, to name a few in the South, there are several entities capable of interpreting and enhancing our philosophy and our added value to the fullest. We are constantly striving to improve and create new products that can attract and captivate consumers, revitalizing the category.
Also for this reason, we are seeing significant attention from marketing headquarters with whom we have activated premium private label collaborations. For example, with Coop’s FiorFiore, Unes’ Viaggiator Goloso, Selex’s Saper di Sapori, Crai’s Piaceri Italiani, Bennet’s Selezione Gourmet. Alongside these, there are synergies with discount store groups such as Lidl through Italiamo and Aldi with Regione che Vai.
What about 2022? Is there further enrichment of the product range planned after last year’s significant implementation?
The segment has not yet fully expressed itself, so there is still plenty of room for improvement, both in terms of market penetration within existing collaborations and in terms of introducing new products on the shelves, such as the Sicilian Cedro Marmalade, currently available only online.
Novelties that we aim to promote through investments in communication, especially at the local and online levels, with the intention not only to introduce our product to consumers but also to facilitate the work of stakeholders and category managers.
But the growth potential also extends to international markets. On the export front, which currently accounts for about 20% of our turnover, we have high expectations, particularly in the American market, both in the United States and Canada.
