Zespri targets increased sales in the UK’s kiwifruit market

How important was the court victory to Zespri last month and what does it mean for the single-desk system in the long term?

It was a fantastic outcome for the industry, given that more than 90 per cent of New Zealand’s kiwifruit growers support the current marketing arrangements. What the court determined was that the Kiwifruit Export Regulations were validly established 11 years ago and with the New Zealand government stating that the future of the industry will be determined by growers, the single-desk system will remain. We look forward to continued business growth that delivers sustainable returns to our growers.

How do returns look for growers this season - have there been any ups and downs in the different markets and across the different Zespri lines: green, Gold and organic?

It’s been a mixed crop for us this year, with some patchy pollination and the resulting lower yields, but the dry summer conditions have also produced some great tasting fruit.

These seasonal factors are creating variability in grower returns and we’ve still got 25 per cent of the crop to sell, but we’re hopeful of a positive season end and a modest increase in returns for growers.

How important a market will the UK be going forward, as markets that are geographically closer to New Zealand -such as the burgeoning Asian markets - gain in importance for Zespri?

We’re forecasting continued growth in volumes for the UK market and have long-term objectives for improving recognition of the Zespri brand among our target consumers and educating consumers about the health benefits of Zespri kiwifruit.

Which new kiwifruit varieties show the most potential for the UK market?

This year, Zespri commercialised three new varieties of kiwifruit - an early Gold, a potentially long-storing Gold and a new sweet green line. In addition, we advanced two red varieties into our pre-commercial grower block trial stage.

We’re continuing in-market trials on all of these products to understand consumer perceptions and how they perform from a quality perspective, and we’ll then develop our market plans based on that knowledge. It’s a little early to say how and where these varieties will be marketed.

Forays into growing in other countries such as Chile and Italy have had mixed success for Zespri - what is the way ahead for you in terms of 12 month supply of your brand?

Our 12-month supply strategy is critical to strengthen the Zespri brand presence and to build on our existing partnerships with distributors and retail customers by providing premium-quality Zespri kiwifruit year-round. Yes, we’ve faced some challenges but we’re still very committed to continuing to grow the 12-month supply business in specific markets where it strengthens our brand and supports the sale of Zespri kiwifruit.

The food miles and carbon footprint debates have run their course - the next big concern is water footprints. How are you addressing this at Zespri?

Zespri has a significant amount of work underway in the area of sustainability to build knowledge and capability to prepare for change, and drive tangible enhancements across our supply chain. As part of this work, we are in the process of quantifying our water footprint and developing best practice strategies to manage our industry’s water use. We are well placed in New Zealand with plentiful natural water supply, and we anticipate that our water footprint will be minimal.

With consumers clutching their purse-strings as tightly as ever around the globe, where does this leave premium products such as Zespri Gold and Zespri Organic?

Zespri is a premium product but offers value to consumers, with high quality and great taste. People are getting increasingly concerned about health as the average age increases. So by offering a premium fruit product with exceptional health benefits, we’re well positioned to build on our loyal consumer base by educating people about the great taste and health attributes of Zespri kiwifruit.

Organic kiwifruit is an important part of our portfolio of products and we’re anticipating growth for this category also.

Zespri recently came out in support of bigger ships at New Zealand ports. How vital will this be to your future in global markets?

We’re supportive of the recommendation to invest in our ports to ensure they have the ability to handle the bigger ships of the future. In particular, it’s important that New Zealand has the shipping and transport infrastructure in place to support our industry’s growth plans and the growth of the New Zealand economy as a whole.

UK retailers are increasingly sourcing directly from producers. What do you think of this trend?

Yes, customers are increasingly wanting a closer relationship with producers, which we see as a real opportunity for Zespri given that we’re a grower-owned organisation and a high proportion of our returns go back to our growers. We will continue to work with our in-market retail and distribution partners to make sure we can continue full service delivery of high quality kiwifruit that meets our customers’ needs, as efficiently as possible.