Kiwifruit marketer Zespri International has warned that growing uncertainty in a number of Asian markets may have a negative impact on the number of trays it sells in the region during the second half of the year.
In east Asia, the company reported it had sold a total of 4.3m trays of Zespri Green kiwifruit to week 27, 10 per cent above last year. Zespri Gold sales for the same period were up 8 per cent to 4.6m trays, it said.
In south-east Asia, meanwhile, Zespri Green kiwifruit sales to week 27 were reportedly up 37 per cent year-on-year to 280,000 trays, while Zespri Gold volumes reached 300,000 trays, 80 per cent higher than in the same period of 2007. Sales of Zespri Green Organic kiwifruit, which has only a small presence in the region, rose by 200 per cent to 10,000 trays.
According to Zespri, however, sales growth in several Asian countries could come under pressure during the next few months. 'Sales and customer deliveries are up in our east Asian markets,' the company confirmed. 'However, signs are pointing towards a weakening of sales as tough economic conditions start impacting on the profitability of our customers.'
The outlook is particularly bad in South Korea, where rapidly rising fuel costs have been exacerbated by a weakening of the country's currency, the won, as well as the onset of the rainy season and a recent strike by truck companies.
'This has led to an overall gloomy market outlook,' said a spokesman. 'The pessimistic environment is impacting on the wholesale market, with sluggish sales.'
In Taiwan, however, a reduction in domestic fruit volumes has provided a window of opportunity for imported fruits such as Zespri kiwifruit. An event to promote Zespri kiwifruit as the main prayer offering during the this month's Ghost Festival is one of a number of marketing events expected to boost sales further.
Television coverage and in-store promotions are also taking place in China, including a ten-week cookery programme filmed in New Zealand set to air in Hong Kong from this month.
In south-east Asia, several promotions have taken place at retail outlets in Malaysia and Singapore.
In Thailand, Zespri has appointed a new public relations agency to increase awareness of the brand. A launch event will be held in late July.
Zespri has also begun selling its branded kiwifruit in India for thefirst time, backed by leading retailer Reliance. The chain's in-housepublication Reliance Fresh recently published an advertisementhighlighting Zespri Green and Gold kiwifruit. It read: 'First Time inIndia. Zespri kiwifruit are all natural, grown without any geneticmodification, using natural weed and pest control while minimisingartificial inputs.'
Volumes of Zespri-branded kiwifruit sold worldwide to 6 July 2008 were 21 per cent, or 7m trays, higher than at the same time last year.
The company added that maintaining shelf space and pricing would be the key priority as Northern Hemisphere markets run into their summer holiday period and the peak of the summer fruit season.
No comments yet