Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

You are using software which is blocking our advertisements (adblocker).

As we provide the news for free, we are relying on revenues from our banners. So please disable your adblocker and reload the page to continue using this site.
Thanks!

Click here for a guide on disabling your adblocker.

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

NZ: Quality key to blackcurrant future

Reports have been emerging of a review of operations at GlaxoSmithKline and the possibility that the company might sell.There has also been talk of the possible effects this could have on the New Zealand blackcurrant industry. GSK currently purchase in the region of 40-45% of the national crop per year, for use in their Ribena branded drinks. Talk of a sale is pure speculation at the moment and the company say all options are open.

Dr. Bill Jermyn, Chairman of Blackcurrants New Zealand, says, however, that he is confident, were such a sale to take place, the buyers of the company would continue to seek the kind of quality presented by New Zealand blackcurrants.

"Our quality encompasses stringent regulations on environmentally sustainable production methods, use of approved New Zealand bred varieties only, traceability, grower certification and processing in a modern facility. All of which is in addition to meeting GSK's specifications."

Dr. Jermyn says that what would happen in the event of a sale is only speculative at this stage, "but in my personal view, any new owner of such a long established and powerful brand as Ribena would first have to stump up a big price, then set about strengthening it even further to recoup the investment, probably in emerging markets, This bodes well for the New Zealand industry, as the GSK statement alludes to the growth of the brand in emerging markets goes and the extremely competitive battle in European markets."

Dr. Jermyn explained that the remainder of the crop was purchased by other processors and exporters for sale mainly as juice concentrate and blackcurrant anthocyanin powders, as well as frozen produce, in destinations such as Australia, the US, Japan and other South East Asian markets. Asked whether there is wider market potential in such exports, were the GSK market to shrink or disappear, Dr Jermyn says that this too is purely conjectural, due to the turbulence of global economics.

"It's a very brave New Zealander who comments on or predicts the effects of the exchange rate movements! Our agricultural sector is littered with the bodies of folk who got it wrong. We have come to see exchange rates as a bit like earthquakes, we are powerless to predict or intervene, so must just live with them as best we can."