KENYA –
De Ruiter Innovations B.V. is a gentrificator / developer of roses
and has amply earned its spurs. Due to its 100 years of existence,
The company received the right to call carry the 'Koninklijk Wapen
Hofleverancier' (Royal Weapon of supplier to the Royal crown) last
year. De Ruiter was one of the first enterprises that foresaw Kenya’s
opportunities as producer market for roses. Now, in 2016, this is
still paying off. Oscar Peters, director, talks about the past,
present and future of De Ruiter in Kenya.
Joep
Derksen
With a
market share of around 18%, De Ruiter belongs to the top 3 of largest
developers in Kenya and the rest of Africa. At this continent, De
Ruiter is already active in seven countries. Besides that, the
company also introduced a number of varieties in the hard colours;
especially in the red tints. Peters thoughts go back to the beginning
of the 1990s, when De Ruiter became active in Kenya: 'Our company
wanted to become more active on the international market and we
focussed on upcoming markets. At the time, the flower industry in
Colombia existed for 15 years already, but we set up our activities
in amongst others Kenya. During the initial years, De Ruiter only
worked with agencies and from their network the cooperation with
Oserian Development company arose. Oserian already occupied an
important position within Africa'.
Peters: 'As
a gentrificator you are constantly developing the breed and pass it
under license over to a grower. In the early years business was
booming, because there were mainly four breeders active in Africa.
But over the course of years more and more suppliers entered the
market and the market share of the four largest gentrificators shrunk
to below 50%.'
Since 2004
more gentrification companies have entered the market and competition
is fierce. Newbies penetrated the market with aggressive sales
tactics. However, since a few years ago, the market seems to become
saturated with regard to the varieties. Peters: 'The desire to
experiment with new breeds has gone down and all parties are
searching for more security. Because of this, companies prefer to do
business with a maximum of three to four gentrificators. And these
are the steady companies, with an extensive portfolio in breeds.'
Frankly, Peters thinks it is a shame that there is less room for
renewal of the assortment. 'Each market benefits when it is
innovative. However, it is understandable that the market is more
reluctant and conservative. Mishaps cannot be afforded, since all
margins are under strain.'
De Ruiter
has creatively focused on innovative marketing strategies and
following trends. Peters: 'We are not only here to cash royalties,
but we brainstorm with the market and the clients themselves. We have
a solid long-term policy, based on the building up of relations.'
About ten years ago, De Ruiter entirely took over the agency from
Oserian. 'It was a deliberate choice driven by the market situation.'
The sales of
roses from Africa has also changed dramatically. Up to twelve years
ago, the larger part was sold through various (import) auctions. It
was a highly productive variety of roses that were developed and
bred, especially for this type of trade. But since a few years,
change has come. Nowadays a lot of production takes place in higher
altitude growing areas, amongst them Nakuru and the Mount Kenya
region. With a cooler climate, the flowers have a longer production
cycle. This causes the rise of other types of breeds. Peters: 'For
this purpose Africa created its own market for large-flowered
T-hybrids; up till a few years ago these roses were not yet sold to
this continent.'
The
gentrification programme of De Ruiter is constantly subjected to
change. Since 2007, the enterprise occupies itself consciously with
the selection process of breeds and the interaction between the
gentrification, selecting as well as the players in the market
itself. De Ruiter has developed itself from supply driven
gentrification to demand-focused gentrification. The latest rose
breeds are developed based on information from growers and their
clients. It can be said, that this has been a true revolution.
Peters: 'It was a subtle change to let the market watch and have
influence from an early stage. Thanks to the growers, their clients
and other players in the market, such as unpackers, it is possible to
realise an improved choice of selection. And at the same time make
sure that the speed in the selection process goes up.'
How does
Peters look at the future of De Ruiters' presence in Kenya? 'We are
aware that it is easier to get to the top, rather than to stay on
top. Economies of scale will be ever increasing in the market. We
will focus on larger deals. With its own extensive assortment, De
Ruiter tries to link her sorting policy to an optimal market value of
the breed. By limiting the issuance to a selected group of growers,
who ensure quality, we will realise a better brand building and be
able to steer supply and demand and with it the shaping of prices. De
Ruiter's slogan “Creating Flower Business”stands for
brainstorming with all players interactively, within a chain. Because
of this, the company continues to play a role in creating added value
for all parties within the flower industry.'