Capespan gets involved in category management

Retailer appoints single supplier for specific fruit Ray Smuts IT'S CALLED category management - the supply of fruit year-round to international retailers - and Capespan, the giant South African marketer, is already involved in this fairly new practice, m.d. Neil Oosthuizen disclosed last week. He believes the group, by virtue of offering a reasonably large fruit basket, is well positioned for greater participation in category management as developed by some of the large retailers abroad, to the extent that "serious" talks are underway with large retailers, the Sainsbury's and Tescos of this world. "What it entails is a retailer appointing a supplier to source and supply a certain fruit, say oranges, year-round which means we would use our own production as core volumes and source elsewhere during those months we are not producing." Looking back at the year that almost was, Oosthuizen says that despite world oversupply and price deflation - some European supermarkets are offering fruit at the lowest prices in ten years - there has been a consistent improvement in quality and standards which includes traceability of the product and food safety requirements. As to prospects for next year, he says Capespan is "positive" and will follow a simple formula of being in the best markets with the best customers, thereby endeavouring to negotiate the best prices. "For us it is extremely important to continuously improve the management of costs in the cold chain while also strengthening our service and communication to our suppliers."