Pink Lady avoided many of the problems with weather conditions and frosts faced by other apples in Europe because of its late harvest window. The strength of the brand and exceptionally strong European demand meant the value was high and suppliers kept a lot of product locally.
"Pink Lady’s supply situation this year resulted in the brand being available when many other brands and varieties were struggling to supply," APAL Head of Commercial and Brand Development Craig Chester said. "Market conditions for the brand were really strong across Europe which meant markets across Asia, the Middle East and South America recently struggled to find volumes to meet growing demand for the brand. We have some customers wanting to buy, but product has been difficult to get hold of."
While acknowledging a level of speculation, some organisations are predicting the Northern Hemisphere supply season to wind up earlier than in previous years, and, allowing for the shipping time required for Southern Hemisphere supplies to reach certain markets, it will be a challenge to avoid a supply gap in new markets during this seasonal switchover period.
Mr Chester is focused on ensuring continuity of supply and importantly, that shelf space in new markets is maintained for the brand.
"Pink Lady is the number one apple brand in the world," he said. "In one of our largest single markets the UK, our volume share is over 15 per cent, so that’s considerable shelf space for the major retailers to maintain. Those retailers rightfully expect to run full year programs, by complementing Northern Hemisphere with Southern Hemisphere supply, and best practice storage. Our role in new markets is to create positive trading conditions and brand support, to help new markets compete with this demand from traditional markets like the UK."
Cripps Pink, Rosy Glow and Lady in Red are the three approved varieties which can be sold under the Pink Lady trademark. The brand first appeared on commercial markets in the 1990s. The original Cripps Pink variety is owned and licensed by the Western Australian Government, which has plant breeders' rights in multiple countries. APAL owns and manages the intellectual property for the Pink Lady trademark in over 90 countries.
South Africa and Chile are expected to be the first of the Southern Hemisphere regions to ship product to Europe, in early May. Mr Chester said it was important for the supply chain to remain disciplined through times like this when there is strong early demand for new season Southern Hemisphere fruit.
"The challenge for us as a brand of produce is to stay disciplined and maintain our strict adherence to global quality standards," Mr Chester said. "Those standards and disciplines across our whole network have delivered the consistent quality and promotion that has underpinned the brand’s great success, and while we expect that to continue, we have to be diligent in years like 2018 when early season demand will be strong."
He adds that the competition for early Southern Hemisphere season supply has created an opportunity for those exporters who are looking to diversify their customer base away from the brand’s traditional European stronghold. APAL and their partners are enthusiastic about the new markets in Asia, Middle East and South America, and will be there to add support and service for those willing to make the effort.
For more information:
Craig Chester
APAL
Email: cchester@apal.org.au