The premium apple brand’s growers have struggled lately to secure good enough margins as supply chain costs have risen
Premium apple brand Rockit finds itself under pressure to secure better margins for its growers, after one of its producer licensees in New Zealand went into voluntary administration.
As reported locally, Rākete Orchards appointed administrators from accounting firm BDO Auckland on Monday. The firm’s chairman, former Eastpack CEO Tony Hawken, said poor orchard returns had prompted the decision.
“When selling a specialised product at a high price point, a business needs to invest in the market to drive demand ahead of supply,” he said in a statement.
“For the past two seasons, demand hasn’t grown sufficiently. This fact, coupled with high supply chain costs, has meant orchard gate returns have been insufficient to support investment in next year’s crop.”
Rockit published its own statement in response to the news. Its CEO Grant McBeath commented: “We recognise the past few seasons have placed pressure on many Rockit growers, and we remain committed to supporting the grower community as we work to deliver our turnaround strategy.”
He added: “Rockit has taken proactive steps to improve orchard gate returns and restore long-term value for all stakeholders. Rockit’s focus is getting demand ahead of supply and improving OGR by delivering the season, improving our supply chain and simplifying the business.”
