"We are investing due to the success of the SunGold kiwifruit here in the US," explains CEO Lain Jager. "The green is also doing well but the SunGold is really taking off. We are finding now that leading retailers are listing us and SunGold is working very well. It is an opportunity to be represented in the mainstream retail. We also have our own office in LA, it is very exiting for us."
Zespri has new packaging formats for the US market. The SunGold kiwifruit is sold ready to eat, cut in half and with a spoon, as people in the US think they have to peel the fruit.
"We know from our research here that people don't know about gold kiwis, which is very different to the European market for example. We are also working with the retailers to bring the kiwifruit out of the exotic section."
He goes on to say that there is also a lot of work to do in marketing the fruit, as well as the Zespri brand."One of the things we are seeing in the States is that branded produce is very strong, it is growing 12% per year, which suits our model. But what is really exciting is the growth here in the US, 26% up on last year with 78% increase in SunGold.
"From a global perspective we have a 50% growth in gold, that is 30 million trays last year out of NZ. We will do 45 million this year and expect to see similar growth next year, perhaps another 15 million trays, to take us to 60 million in total, but we have to wait and see."
This is Zespri's third year of good volumes of SunGold. When Psa hit New Zealand it almost devastated the gold varieties at the time, it has also hit Italy, France and Chile. The Hort 16a variety, which Zespri started in 2000 and developed into a 30 million tray business, was suddenly gone, but the gold volumes have been rebuilt with SunGold, which is not only working well from a consumer perspective but is also a pretty tolerant variety and volumes have fully recovered in New Zealand, exceeding pre Psa volumes.
"We have 1600 Ha of SunGold planted in Italy and a further 200 Ha planted in France. At the moment we are harvesting in Italy and the fruit is fantastic, so hopefully we can supply it year round in Europe. Here in the US we will go through Spring this year, with Italian kiwifruit being imported to enable us to extend our season."
"We have been working to bring our plant material into the US and are right on the cusp of doing so, but at the moment we don't grow in the US. We are very optimistic that it can work here."
Zespri has 27% market share in North America, but the exciting thing according to Lain is the growth: "We expect to see our market share grow quite strongly over the next 2-3 years. We respect the fact that Chile has a good presence here, and are geographically quite close, and especially for retailers who are looking for a cost effective kiwi that is attractive for them. Retailers who are looking to lead with quality, find the Zespri offer more attractive."
"The superior taste of Zespri Kiwifruit is driven by its comprehensive quality system, which ensures Zespri consistently delivers great-tasting fruit. Growers are incentivized to grow the best tasting fruit, and fruit below the high minimum standards set for the Zespri brand is not shipped."
The kiwifruit category is growing at 8%, which makes it the fastest growing fruit category, and SunGold kiwifruit is a big part of what is driving that growth, according to Lain.
For more information:
Sarah Deaton
Zespri International
Email: sarah.deaton@zespri.com
www.ZespriKiwi.com