Freshness in good hands

EUROPE RETAIL PACKING I PROFILE

FRESHNESS

IN GOOD HANDS

It’s highly likely that when you’re considering your fruit and veg on the weekly shop, they may well have been packed and shipped to the supermarket shelf by Dutch-based Europe Retail Packing. Sourcing only the best providers on the planet, the 20-year-old family-run company firmly remains at the cutting edge of packaging solutions, with innovation and sustainability key to all its operations. Profile by Andy Probert.

Europe Retail Packing (ERP) was established in 2000 by Dolf Reijgersberg, who, at the same time, celebrated his 50th birthday. Today the company operates seven facilities in Holland – in Poeldijk, Barendrecht, Den Hoorn and De Meer.

Early on, Dolf’s son, Menno, joined ERP as a warehouse employee to learn the business. Today, he is the company CEO, with Dolf continuing to guide behind the scenes.

The company’s initial core business was providing packaging services and options to fruit and vegetable traders, but after a few years both father and son realised the significant potential in transforming ERP into something bigger.

ERP employee Omer Kamp commented: “ERP has since evolved to include commercial trade for herbs, fruits and vegetables, alongside providing a complete A to Z of packaging services with the product either included or excluded.

“Before the end product reaches a local retailer’s shelves, there are several different processes it needs to go through. So, ERP decided to ease the process by offering its clients diversified services of procurement, packaging, freight forwarding, haulage and labelling.”

Not only has ERP consolidated these tasks into a single location, saving time and cost, it allows the product a more extended shelf-life via proper care and handling.

Going above and beyond

ERP trades nearly the entire range of fresh-cut herbs, exotic fruits, general fruits and vegetables. There are over 400 different lines that include basil, rosemary, edible flowers, sweet potatoes, capsicums, aubergine, citrus, grapes, cucumbers and much more.

Procuring and managing this vast assortment is no easy task, since growing regions are spread worldwide. ERP takes products from countries as diverse as Holland, Germany, Spain, Morocco, Italy, Israel, Kenya, Ethiopia, USA, Colombia, and Uganda.

Intakes are conducted daily, with inventory being carefully managed by highly skilled staff using integrated computer systems. To accommodate a steady flow 364 days a year, ERP includes many growers that meet Europe’s strict requirements and accreditations that ensure product safety, cleanliness, healthiness, and social responsibility for the environment and farm employees.

Mr Kamp spotlighted one supplier, Jordan River, of Ethiopia, a chives farm that has taken actions above and beyond to protect and care for its employees. These include funding a local school, opening a medical centre on the farm’s premises, planting trees for the environment, building a bridge over a local river, allowing a pipe for free-of-charge drinking water, and arranging Covid-19 vaccines to be administered to its employees and their families.

Mr Kamp said: “Packaging at ERP is a major issue that is never taken for granted. Just as the name implies, our core business was and still is – to provide exceptional and extensive packaging services – to best accommodate the needs of the market and provide swift solutions to any changes that may come along.”

These services include customs clearance, transport, warehousing, packing and quality control. In total, ERP has 40,000 sqm of facilities, with 35,000 sqm of space for pallet storage.

ERP utilises over 60 different machines, including those needed for topseal, flow pack, net and citrus washing processes, an Aweta sorting line for avocados and mangos, high-care stores for ginger and an in-house developed packing machine for sweet potatoes. 2021 saw the addition of eight new ripening stores for avocados and mangos.

“To support this massive operation, long term cooperation is essential,” asserted ERP CEO Menno Reijgersberg. “That’s why we have opened five locations with one of our partners so we can aim to serve our clients for many years to come rather than just for the short-term. Personal relationship and customer intimacy are key for ERP.”

Highly flexible

Due to the company’s flat organisational structure, decision making is swift and flexible. This characteristic is essential for running warehouses of this magnitude.

“If that’s not enough, we have included a scanning system for all facilities and lines. So, at any given point, we can trace back and check the status for every kilo found at the warehouse,” disclosed ERP’s Raymond Van Der Burgh.

ERP’s business growth has taken on new dimensions in the past few years: before Covid, the company experienced steady annual growth with routine expansion programs tied to supply and demand.

“The first five years accounted for excellent growth due to more services being included, but later, the growth rate stabilised and reacted accordingly to market’s natural expansion,” he added.

During the second period – in the pandemic – from the end of 2019 onwards, the “rules of the game” changed, remarked Mr Van Der Burgh, and the economy shrunk substantially. “Nevertheless, our sector deals with products which are inelastic. No matter what, consumers still need to buy fruit and veg.

“We had to adjust accordingly and find ways to best meet the market’s sudden changes. Since the gastro-sector endured lockdowns, retailers continued at an even higher pace. Fortunately, we have a solid background in packaging.”

Mr Kamp continued: “Our ability to provide flexible packaging solutions allowed ERP the opportunity to grow despite the challenges. This transformation did not happen overnight. The first year of Covid, we saw an obvious decline, but a swift recovery in 2021 saw growth reach pre-Covid levels.”

Since Covid’s first outbreak, ERP began offering peppers packed individually. “Yes - each pepper was wrapped with nylon,” he affirmed. “It consumes much time and labour, but that’s what

EUROPE RETAIL PACKING I PROFILE

Menno Reijgersberg, CEO

the market wanted – a sterile product with minimal to no human touch. This adaptation was made feasible thanks to our facilities and automation.”

Due to the prevailing challenges, it could be forgiven that ERP’s 20th year of trading has been overlooked.

“We postponed the anniversary party until November 2021, but it was a huge success,” recalled Mr Kamp. “I was flown from Israel to join the party. It turned out to be much more than an anniversary. It was a statement that even amid Covid and economic crisis, we could celebrate our achievements together.”

Planning for the future

ERP’s senior management team is working on a new strategy for the next five years where the most important spearheads are: automation, sustainability, customer intimacy and good employment practices.

“We are looking at the use of 100% recyclable packing materials, reducing waste, and developing new sustainable packing lines along with our partners,” revealed ERP colleague John Duijnisveld. “The goal is to reduce plastic that pollutes the environment.

“Take topseal, for example, which is an alternative way of sealing the shell. Today, we all know the standard packaging of clam shells, but most people fail to realise that by switching to topseal, there is a reduction of 3.3 grams per shell of plastic. Multiply that by the hundreds of thousands sold daily and you’d be surprised at the plastic reduction this move can create.

“Additionally, the topseal shells we plan to use are made of plastic litter from the so-called ‘plastic ocean’. We try to reuse plastic as much as possible via litter from all over the world. The plastic we use is recyclable and can be used multiple times.”

To reduce warehouse waste, ERP sends its shells to growers, and they can have them filled without the topseal. The reason is simple: during transport, the fruit can breathe and move more freely, with less pressing damage of the product.

“Our machines will later topseal the fruit, so once more, there will be no hands touching the product,” underlined Mr Kamp. “As a result, quality is higher, shelf life longer, and the product more sterile.”

Another innovation in the offing is laser imprinting in the product’s skin. Implications for such technology are vast and include better labelling, better tracing, better appearance and a more trusted, branded product.

ERP also plans to expand into the UK and prepare pre-packed mixes for more accessible DIY culinary recipes.

“Being three years into the pandemic, we have come to realise consumers are seeking easy solutions to prepare restaurant-style dishes. The problem is that when you start breaking down the ingredients, the list becomes long and inaccessible.”

He said ERP’s solution is to prepare ingredient mixtures associated with various dishes. “So for a beef stew, trying to get sage, thyme, rosemary, marjoram, tarragon, and oregano is both costly and hard to obtain. But what if you can buy all from any local retailer packed in a 50g bag? Not only that, it would be inexpensive compared to buying 100g of each. It is accessible and with nearly no wastage.”

Same for tea mixes: ERP is looking at enabling a consumer to make a brewed tea from a selection of the world’s finest flavours all fresh from the bag.

Facing up to challenges

When pressed on the trials and tribulations facing the fresh produce industry, Mr Kamp was honest: “The truth is you could write a book about the challenges we currently face.”

On Brexit, he reflected the move had caused additional import charges, document preparation and delayed transportation.

“In the fresh produce industry, there has been a near 15% price increase on goods entering the UK from the EU. This makes trade highly complicated, and with rising inflation, it has now reached the level where consumers can no longer absorb prices.

“The only possibility to tackle this predicament is via direct flights to the UK from non-EU states and consolidated shipments of large volumes from the EU. That being said, we see no alternative other than opening a branch in the UK to accommodate this wealthy market.”

With air freight for the first time being more economical than sea freight, competition for space availability has been driven up. Consequently, on average, there is 50% less space allocation for perishables.

Global warming has made weather patterns more unpredictable and droughts more common. Furthermore, supply chains are

further impacted by strikes, lower production by growers who, (due to limited cash flows), are taking a more precautionary approach, while raw materials shortages, inflation and price increases are further complicating matters.

Mr Kamp said: “Electricity costs have gone up by nearly 60% and raw materials have not only risen dramatically but lead times have gone from two or three weeks to as many as 12 weeks. This is without even mentioning a near 300% increase in sea-freight prices.”

He warned: “Let there be no mistake, aside from prices changing each week that passes, the implications are much worse and could potentially take the industry back 20 years. Not being able to cover the costs would result in compromises on the expense of quality, food safety, shelf-life and availabilities. We know the inconvenience it causes the consumer, but there is nothing in our power to control or manipulate this.

“And all this without mentioning the impact of Covid. ERP accepts the reality and makes the best out of it by continuing to serve its clients.”

He added: “ERP is a family-oriented company and realises that humans are the most essential resource to be a successful company. The entire workforce is exceptionally dedicated, and the overall atmosphere is of teamwork and mutual understanding.

“This is the primary aspect that differentiates us from others. When it comes to plain professionalism, we have an excellent service-based methodology. We not only keep daily replenished stock of all lines to accommodate both immediate same day orders and long term programs, we also provide same-day sorting, packaging and labelling services.

“Imagine a retailer coming short on packed tomatoes on the vine. They can call us and have the shelves packed and filled hours later. This strength, underpinned by having satellite offices globally, such as Israel, makes us different and more able to exceed customer satisfaction.”

Client oriented

ERP’s warehouses are becoming fully automated; the company has spared no expense to prepare each facility for the future.

Detailing the process, Mr Duijnisveld added: “Once a product enters our facilities, it is scanned, allowing complete control and traceability via computer. I can tell you exactly how many kilos of grapes are bigger, smaller in diameter, what time they will be packed and so on. It may sound simple, but when you have over 2,000 lines and formats to deal with, this is nothing less than ingenious.”

Mr Van Der Burgh lauded ERP’s clients and suppliers, who are considered more partners and friends.

“The key to maintaining a positive relationship is listening to them. If a cucumber grower, for instance, is worried about costs, yields and market demand, we explain the situation as we see it and communicate his needs forward. Everyone in the industry needs to realise that for every kilo harvested, there are many families behind them, counting on us for the process to go smoothly.”

For that reason, ERP issues daily newsletters to clients, partners, suppliers, and service providers, giving an honest and objective analysis of the market and trade. Topics include weather, price increments, supply issues, and details of each country’s Covid limitations. .

Assessing today’s industry, Mr Kamp was brutally frank: “The market has changed dramatically since the Covid outbreak. Predicting has become impossible so many distribution centres have reduced stock levels to minimise risks. When restrictions are over, demand is too high compared to the available supply and covering the gap is impossible.

“The industry is currently facing some of its most difficult challenges, including demand instabilities, diminishing farms, logistical crisis, and price increments. The current state is of uncertainty and survival. Any minor change in cost is crucial.

“Unlike local industries, we rely on other countries as well. Since we import from over 20 countries and deliver to another 15, coping with today’s changes is becoming unlikely. ERP has decided to position itself as a market leader. We did not compromise or reduce any of the services offered.”

Market leader of substance

Regardless of the challenges – and the economic uncertainty as a result – ERP runs all the packing machines and continues to consolidate from all sources to ensure stability for immediate supplies and availabilities.

“From a strategic point of view, this capability has become possible as we have expanded our reach to serve nearly every European state,” said Mr Reijgersberg. “We adjusted to the new realities, and thanks to our staff, no obstacles are impossible.

“That being said, while we make inevitable price adjustments, we are also looking to minimise costs and moderate price increments. These actions include automated lightning systems and switch into LED lightning systems that consume far less electricity.”

Given the relative unpredictability and uncertainty in the marketplace, he reflected: “The fresh produce industry is known for its ability to fully utilise the globalisation concept. What we do connects more countries than the UN, 365 days a year, 24 hours a day we import, export, trade, pack, distribute, sort and claim product from every corner of the world.”

Mr Kamp concluded: “If you take a minute to think about it, our actions spread even faster than Covid-19. What we do daily leaves a deeper impact. This we must treasure as a reminder that we will always be stronger and better than any virus or economic crisis.” n