The price increases led to a drastic drop in demand
The brothers Azzarelli -Fratelli Azzarelli- are sourcing almost 100 percent of their goods from Sici…The brothers Azzarelli -Fratelli Azzarelli- are sourcing almost 100 percent of their goods from Sicily, which include both fresh and dry products such as citrus fruits, olive oil, wines, pasta and sauces. "We have a large portfolio of exclusive merchandise from small companies in Sicily," says General Manager Angelo Azzarelli. Azzarelli spoke with us about his tomato sales.
Varied tomato offerings
"We have three different varieties of cherry, Merinda, as well as date tomatoes, all three in different color varieties. We also offer Costoluto and San Marzano tomatoes. Tomatoes are pretty much our main seller. In December, of course, we also carry oranges from Sicily and Tarocco blood oranges from Etna, as well as clementines, tangerines and lemons. Of course, due to the August heat, volumes were reduced. Sicily also experienced an enormous drought," says Azzarelli. In this regard, he cooperates with family members in Sicily, among others, who run a company with 150 employees.
Azzarelli currently sells date tomatoes for 5.00 to 7.00 euros per kg. "The prices increase led to a drastic drop in demand. Compared to previous years, this year's December has been very weak so far." He expressed concern about energy prices, especially since cold storage facilities must continue to operate.
Low profit margins due to high costs
"My cousins tell me that, given the current crisis, the price of the plastic needed for the greenhouses, among other things, has increased threefold. The biggest problem, however, is the fact that it is very difficult to find affordable fertilizers. Because here, too, there has been a threefold increase in prices," says Azzarelli. He also points out that the products in Sicily have to be packaged beforehand and then transported to Germany. The associated price premiums due to the high cost of energy, packaging and diesel are quite overwhelming. "The supermarkets tend to make the big profit anyway, while we - just like the producers - will only see very small margins."
Restaurant customers are pulling out
Some of Azzarelli's regular restaurant customers also told him they may go out of business in the coming year. "On the one hand, they can't find staff anymore, on the other hand, the energy costs are just too high. It can also not be that the energy or electricity price is higher than the rent. You really ask yourself why you are still going on. If one finds then co-workers, these must be recompensed accordingly. People should not be surprised to have to start paying €15 for something like a pizza Margherita," says Azzarelli.
The crisis is also having an impact on the Nuremberg company's product portfolio: "We are the exclusive partner for a lemonade from the Polara company. We offer this throughout Germany, both in retail and wholesale. The product has now developed into a luxury product that we have to take out of our range. We will have to do this with other products as well, because the profitability is simply no longer there."