Since opening offices in North America last year, Zespri has been making some big strides into the U.S. market with its new SunGold variety. The SunGold Kiwifruit is expected to change the category due to its sweeter taste and longer shelf life. Overall, kiwifruit is on trend and growing fast with SunGold driving the growth. Zespri’s first arrivals have been coming in through the ports of California, Vancouver and Toronto over the last two weeks.
Organic sales increasing faster than supply
“The conventional SunGold has been very well received across the market and is driving the kiwi category,” explains Glen Arrowsmith, Zespri’s North America market manager. “There’s an increase in demand for the organic variety. At the moment, it’s increasing faster than we can actually produce, but it’s exciting.”
SunGold good organic commodity
SunGold grows well under organic conditions and Arrowsmith expresses that growers are optimistic about the potential going forward. “More so from a consumer side, there’s no doubt about the growing demand for organic produce in the market. It’s a good opportunity going forward. The demand is increasing faster than supply.” Last year through December, he noted that the whole category grew by 13 percent with much of the growth fueled by people discovering Zespri SunGold and organic SunGold.
Zespri’s goal is to increase consumption through innovative campaigns that highlight the superior taste and enjoyment eating Zespri Kiwifruit brings. "Zespri has very high standards around taste and eating experience,” states Arrowsmith.
Growers outside of New Zealand
Zespri is working with an expanded number of growers outside New Zealand, including Italy and France. The intention is to extend the season as Zespri grows, especially with SunGold in Italy. SunGold is the newest variety of kiwi but a year-round program will take some time.
Organic growers need support
Organics are experiencing an increase in demand. One of the challenges, according to Arrowsmith, is productivity. There can be a 30 to 40 percent difference in production under organic versus conventional. The market premium for growers to be on the same financial footing as conventional growers vary—prices are often 15 to 20 percent higher. “It is important that organic growers are supported technically and make the right decision at the right time. They need the orchard to grow to the best productivity, but, most importantly, they must grow to the right flavor.” He’s confident they will be encouraging more growers to go organic, but it is ultimately the grower’s decision.
For more information:
Glen Arrowsmith
Zespri
Tel: 011 (64) 7 572 7637