Zespri has been implementing a strategy focused on enhancing demand prior to increasing supply, aiming to elevate the value for New Zealand kiwifruit growers. This approach involves substantial investment in innovation, the supply chain, and branding, enabling year-on-year growth in value. The company prioritizes understanding consumer preferences, particularly emphasizing the health benefits and quality of its kiwifruit in key markets such as China, the European Union, and Japan.
Despite selling approximately 20% less kiwifruit in the 2023/24 season, Zespri managed to increase its revenue from $3.92 billion to $3.99 billion. This was achieved through a market-led approach and effective storytelling, ensuring consumers recognize the value of Zespri Kiwifruit. A notable success story is the SunGold-led relaunch in the United States in 2015, which not only enhanced the value across all kiwifruit varieties but also significantly increased grower returns, especially for the Green variety.
However, Zespri faces challenges from competitors aiming to fill the supply gap, with new consortiums and brands entering the market. To counter this, Zespri focuses on supplying branded kiwifruit year-round to maintain its market position and partnerships. The company's strategy includes growing kiwifruit in the northern hemisphere through Zespri Global Supply (ZGS), collaborating with growers in Italy, France, Greece, Japan, and South Korea to ensure continuous supply and uphold brand values.
Yet, the expansion of Zespri SunGold hectares is restricted to 5000 in the northern hemisphere, pending a Producer Vote by New Zealand kiwifruit producers. This cap poses a limitation on Zespri's ability to fulfill increasing market demand. The company is engaging with growers to discuss the potential for expansion, addressing both opportunities and risks to ensure the future prosperity of New Zealand kiwifruit growers. Zespri remains committed to its strategy, aiming to sustain its leadership in the competitive kiwifruit market.
Source: FarmersWeekly