Caspespan diversifies to offset loss of market share

Ray Smuts THE CAPESPAN Group, once by far the largest marketer of export fruit, has lost considerable market share in recent years. But not placing all its eggs - or rather fruit - in one basket is standing it in good stead. Group activities now extend beyond fruit, and include a new series of fresh juices to be marketed in the UK and Europe under the Cape, Fyffes and Outspan brands, says MD Neil Oosthuizen. Comprising Outspan 100% Pure Squeezed Orange, Cape Pressed Apple, Red Grape and Raspberry and Fyffes Orange and Banana, the series is being offered on a trial basis at outlets of J Sainsbury. Capespan Foods, the Capespan sales unit responsible for added value products in Europe, is expected to grow turnover by more than 400% to12 million euros this year by taking advantage of the substantial growth in the chilled produce sector. Capespan’s wine partnership Vinfruco continues to experience strong growth exporting 10,3 million litres for a turnover of R245million last year. According to Capespan’s latest annual report the group was responsible for marketing 63,5 million cartons of all fruit last year for total supply market share of 30%. (More than 27% of this total accrued to countries abroad). In early 2000 Capespan logistics ‘guru’ Dr Dawie Ferreira told FTW that the organisation would still be handling 60% of all exports by the end of that year, a view largely endorsed by Oosthuizen’s predecessor John Stanbury, who considered no more than 10% would be lost on the previous year’s tally of 60%. History will however reflect that the year 2000 was one producers and exporters would prefer to forget; what Capespan Group Holdings chairman Dr Paul Cluver described as ‘annus horribilis.’ Even with 30% of the total, Capespan remains the most formidable player in fruit exports which have increased by 46,1% over the past six years to 1,682 million pallets last year.