The Dutch company Snijpunt was founded 25 years ago to add value to bell peppers innovatively and, in the process, unburden clients, says General Director Mark van der Salm. He notes that these principles are still surprisingly current. "We still have these values. Our function in the chain is to unburden customers by further processing fresh vegetables into good, high-quality semi-finished products," Mark begins.
Bell peppers are still their core business, but, over the years, they added more product groups, he says. "From one production line and one product, we've grown to 12 production lines and 15 product groups, including cauliflower and broccoli florets, cleaned radishes, and butternut squash."
When adding these new product groups, Snijpunt focuses on how much labor that requires from clients; and what adds true value in the production process to have those products delivered semi-finished. "We have to do it better than our customers can do it themselves. They could decide to do just that. We have to excel regarding product shelf life, but also in terms of cost savings through labor, efficiency, and availability," Mark explains.
New initiatives
One of the new products in the pipeline is cleaned cucumbers, with their seeds removed, for use in salads. De-seeding cucumber is a labor-intensive process, Mark remarks. "If we can process that well mechanically, or if research shows we can use a different cucumber variety with fewer seeds, we can make a difference." Here, he also refers to, for example, how removing cucumbers' seeds extends their shelf life.
He further reveals that they are developing a mono, bell pepper-based product, which, too, is innovative, shelf life-wise. "It lasts two to three days longer than currently available in the range. We achieve that through process control and specially selected packaging. Our food service channel clients and we developed this product, and we don't want to market it directly," Van der Salm points out.
Bell peppers was a logical choice for Snijpunt. "We have about 500 hectares of these, and Harvest House and our knowledge lets us control the entire chain well. That means we can realize a high-quality product with which we can relieve our customers of any concerns regarding shelf life. That's something that remains challenging with bell peppers."
Growth opportunities
Mark sees that an added product group's added value is often found in the total unburdening offering a semi-finished product provides. "In the food service sector, restaurant chains increasingly demand speed and convenience. There, labor is a challenge, and there's strong growth thanks to the convenience chefs want," he indicates, adding that around 70% of their sales involve semi-finished products for food service, while the remaining cut vegetables find their way to retail. "There, too, are growth opportunities."
Focus on export
In terms of markets, Snijpunt focuses on those parts of Europe it can reach within half a day - the Netherlands (its largest market), Belgium, the United Kingdom, Germany, Denmark, Sweden, and northern France. "Our growth opportunities lie mainly in exports. The Dutch market's pretty divided, but there are undoubtedly potential buyers we'd like to supply in the UK."
Mark says that there, and in the Netherlands, convenience in the form of sliced vegetables is already well established in stores. Not so in countries like Germany, where he sees organic growth and opportunities for Snijpunt too. "Even if it takes a little longer than expected, I assume that development will reach, certainly, the cities, changing the German sliced vegetables market too."
Challenges in the current season
The current season's limited vegetable availability is quite challenging for Snijpunt since, due to failed crops, suppliers sometimes cannot deliver their agreed volumes. The General Director says the situation means they must buy extra products. Not always easy. "Our basic principle is to honor our contracts. We do what we promise and, thus, keep focused on the long term. That unburdens customers, who can then keep focusing on their end process," he says.
Long term
Mark does not think the current economic dynamics will hinder the company's growth. "For now, there's no reason to reduce our volume. Consumers and food service players still prefer convenience." He does, however, think labor will become an increasingly difficult, expensive factor. "That's why - to save on labor - we're strongly committed to further production process automation," he concludes.
25 years
On June 1, 1998, Snijpunt started processing bell peppers that fell a little short of the retail sector’ standards. The company - founded by bell pepper grower Karel Vromans and associate Marco Romein - joined the Harvest House cooperative in 2018. Its 72 members collectively farm 1,200 hectares. "That gives Snijpunt several chain advantages, such as product availability, adding value to the bell pepper product group, and short logistics chains regarding product freshness. Snijpunt and its team want the growth that started around 2005 to continue unabatedly into the future," says Mark. Snijpunt will celebrate its 25th anniversary with a big party later this year.
For more information:
Mark van der Salm
Snijpunt
Tel: +31 (0)174 637 903
[email protected]
www.snijpunt.nl