Heartland grows apples in Nelson, New Zealand with the majority grown on the stoney soil of the Waimea plains, which ensures a good water and nutrient mix for the varieties of apples grown. The recent completion of the Waimea Dam ensures good water supply for the future.
"We grow around 350ha spread across 10 growers," explains Brendon Osborn, General Manager of Sales and Marketing at Heartland. "Our largest grower and sole shareholder, is Vailima Orchards who have been growing apples for over 100 years and contribute over 50% of our total apple volume. Vailima Orchards are extremely passionate apple growers who have as their constant focus the goal of delivering a great eating apple experience to our customers, and then their customers. This is what is represented in the Luvya brand which is why we are passionate about putting our heart shaped Luvya labels on our apples."
50% of Heartland's apples are exported to Asia, with 20% going to the UK and the remaining 30% split equally between Europe and North America
"We also have a strong business here in New Zealand, where we are selling apples 12 months a year. The majority of our New Zealand sales is to Foodstuffs in the South Island who are one of the two main supermarket chains here in the South Island, and we endeavour to keep them supplied with apples for 12 months a year."
"We have a fully diversified customer base as we don't put all our apples in one market basket."
Increasing volumes to Asia
"We are increasing our shipments to Asia due to the increased growth we have in Ambrosia and Evercrisp™ varieties. These are the most popular varieties we have with our customers in Asia. Both of these apples are extremely sweet, crunchy and juicy with amazing flavour. We are launching Evercrisp™ this year and it is a super sweet apple that has that WOW factor when you eat it."
The three main Asian markets are China, Taiwan and Vietnam with similar volumes over the past 3 years.
"We first entered the Vietnamese market in 2010 with Ambrosia and that had spectacular growth in the first 5 years, however that growth has slowed up in recent years mainly due to the increasing volume and range of apples that have entered this market since the late 2010s. Taiwan and China have both had great growth for us over the past 5 years and we are working on strategies that continue that upward growth curve."
The majority of Heartland's business globally is to retail and this represents over 50% of their global business, but varies within market areas. In all markets both retailers and wholesale are supplied.
Challenges in supplying the Asian markets
"Over the last 10 years the Asian market has become more demanding in terms of quality and service. This is also reflective of the increasing volume of apples sent to the Asian market and thus the increasing choice that the Asian retailers and wholesalers have. At the same time, we have an increasingly difficult economic climate so consumers need to be sure that the apples they are buying are great apples. Being a 12 month business means that we are constantly evaluating the apples that we grow as we see them on the shelf of our local supermarket all year. This also helps us to understand what our global customers are receiving.
Partnerships
"We have really great partnerships with our customers in Asia and the direct communication we have with them is critical in understanding not only the market situation at the time but also the changing demands from their customers. Everyone in the chain has to make some money otherwise the chain will break.
At Asia Fruit Logisitca in Hong Kong Heartland will be sharing a stand with five other companies which they work with globally to test and commercialise new varieties under the IPA banner. These other companies are Montague, VOG, San Clemente, Fruitways and CMI.
"Evercrisp is one of those apples that this partnership is bringing to Asia and we are excited to have it on show at Hong Kong at the stand Hall 5-5D32. Please come to the stand to taste the Evercrisp. There will also be Yello and GIGA available that the other members of the group are producing."
For more information:
Brendon Osborn
Heartland Fruit NZ
New Zealand
Tel: +64 21 544893
[email protected]
www.luvya.co.nz