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Sourcing Fresh Produce from Egypt

Sourcing Fresh Produce from Egypt. Steve Rudge - Category Manager. 19 th January 2011. Business model. International Growth Third largest retailer behind Wal-Mart and Carrefour Now operate in 14 different countries No longer just operating supermarkets; Now operate multi formats

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Sourcing Fresh Produce from Egypt

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  1. Sourcing Fresh Produce from Egypt Steve Rudge - Category Manager 19th January 2011

  2. Business model • International Growth • Third largest retailer behind Wal-Mart and Carrefour • Now operate in 14 different countries • No longer just operating supermarkets; Now operate multi formats • More than 50% of selling space is outside of the UK • Tesco has a turnover worth over £62 Billion ( £19.4 Billion outside UK) • UK Fresh Produce is worth over £3.6Billion • Sourcing plan is having to evolve so that it can be a truly International business • Relationship with Egypt: • Egypt supplies UK with £31.7Million worth of Fresh produce • Still supply many traditional lines like Potatoes, Beans and Citrus • However is increasingly driving strong growth in Grapes, Onions and Strawberry

  3. Next Three Year Plan - Product from Egypt £26m 2010/11 (Year 1 ) – Improving supply chain structure • Getting closer to Grower base – More streamlined supply chain • 30% Direct Sourced • Innovation new products – Not relying on traditional areas 20011/12 (Year 2) – Extending Performance • Driving growth in the areas where Egypt has advantage over Europe • Deliver Tesco sourcing Hub in Egypt to help co-ordinate growth • 40% Direct Sourced 2012/13 (Year 3 ) - Maturity and consolidation • Extend ranges beyond good, better: Identify Finest products • Drive margin improvement through improved logistics costs • 50% Direct Sourced £31.7m £35m £40m

  4. Tesco Technical Hubs • Italy • Matteo Benatti • Emanuella Sardella • Spain • David de Callejon • - Pablo Brocal • Greece & Turkey • Georgios Bitsakos Egypt - Lumat Ahmed Thailand - John Sutton • Chile • Penny Gurley • Brice Lamarque • South Africa • Sandy Norman • Jonny Loubser

  5. Strong Competition

  6. Tesco Branding – International challenge Tesco Brand is very strong : Our ambition is to drive this on an International basis Good - Tesco Value prepack Better - Tesco standard loose/Tesco Standard prepack Best - A clear gap in pillar branding- looking to drive “Finest” Brand

  7. Opportunities for growth • We now have a presence in Egypt • We also have an International sourcing team based in UK • Don’t just rely on traditional Fresh produce lines, innovation will lead to growth • Jointly we need to strip out cost; still too much lost in the middle • Don’t just see Tesco as a UK operator , Now service 14 countries. • Is there an opportunity for planned Trade activity as per Morocco?

  8. Morocco Promotion • €150,000 investment from Moroccan Fruit Board; • Driven LFL (at around 5%) without impacting on margin. Waste relatively low; • Plans to consider the roll out Pan-European Country sponsorship. • EGYPT: February – Potatoes & Citrus • SPAIN: September – Stone Fruit, Citrus & Melons • Potentially by region

  9. Egypt Sourcing HubProject Egypt Sourcing Hub Project We deliver the right product, at the right cost, on time

  10. Shipment Plan In 13-14, Egypt will represent 10% of Tesco IS Clothing shipment & half of the volume in the region close to Europe. Egypt Sourcing Hub Project

  11. What we will ship from Egypt... Egypt Sourcing Hub Project

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