Session
Session Five
Five
Competing
Competing in
in aa global
global world:
world: aa
series
series of
of presentations
presentations by
by
AMAPWG
AMAPWG member
member delegates
delegates
New
New Zealand
Zealand and
and Australia
Australia Avocado
Avocado
Grower
’s Conference
’05
Grower’s
Conference’05
20
-22 September
20-22
September 2005
2005
Tauranga
Tauranga,, New
New Zealand
Zealand
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
Presentation to the Avocado
Conference September 2005
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
¾
Volume growthNNin
10
yearsateeassociated with
Exports
by Market
ZZDD/past
Exports
by Market ee RRat
/UUSD
SD Exchang
Exchang
new plantings Export Trays
1,200,000
20,.57050 , 0 0 0
1,600,000
0.75
¾
Australia
provided backbone
toExport
export
99/00 Export has
Allocation
00/01
Allocation
0
.
7
0
1,400,000
0.70
1,000,000
marketing
2,000,000
USA
0 .06.56 5
1,200,000
48%
Other
2%
¾800,000
Market development
0 .06.06 0
USA
54%
Other
1%
1,000,000
1, 5 0 0 , 0 0 0
0 .05.55 5
600,000
800,000
¾
North America
0 .05.05 0
1, 0 0 0 , 0 0 0
600,000
400,000
0 .04.54 5
¾Weak NZ dollar
400,000
0 .04.04 0
200,000
500,000
200,000
0.35
¾Improved
shipping
Australia
Australia
45%
50%
¾Timing before Chilean fruit
0.35
--
99/00
99/00
96/ 97
00/01
00/01
01/02
¾2000
NZ99/01/02
dollar
97/ 98 98/ 99
00 00/ 01
02/03
02/03
01/ 02
Japan
USA Japan
Australia USA
¾ChileanAustralia
volumes
02/ 03
Other
Other
03/04
03/04
03/ 04
04/ 05
04/05
05/ 06
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
¾ UK & Europe
¾ Longer voyage time
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
The Market
¾ Consumption more than doubled to
400gm
¾ 5 million consumers to be introduced
over next 5 years
¾ Hass perceived as having better
flavour
¾ France consumption 1kg per person
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
UK AVOCADO IMPORTS
100%
90%
80%
70%
2
1
5
4
13
1
3
6
8
3
2
5
9
Netherlands
10
13
Kenya
16
13
16
60%
United States
Rest of World
50%
21
19
14
40%
Israel
Mexico
30%
40
France
38
38
20%
10%
Spain
South Africa
0%
1999
2000
2001
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
Market Requirements
¾ Green hard fruit
¾ No chilling injury
¾ Sound internal condition
¾ Little external defects
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
Why New Zealand Fruit
¾ Product sampling favourable
¾ Colour, texture & flavour selling
points
¾ Opportunity to attract a premium
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
Preparation
¾
Mid Sept harvest for Oct/Nov arrivals
¾
26% dry matter to eliminate chilling injury
¾
Harvest as close as possible to shipping
¾
30 day transit time
¾
Weather
¾
Container loading within 24 hours
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
Arrival into the Market
¾ Outturn inspection
¾ Strong sales and distribution
network important
¾ Optimum selling period 1 week
after arrival
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
UK M a rk e t - C us t o m e r A na lys is
The Marketplace
Wa i t r o se
8.4%
Ot h e r
12 . 3 %
T e sc o
Co- op
25.9%
¾ Positive reaction to NZ fruit
1. 5 %
M & S
¾ Selling Points
3.0%
S ome r f i e l d
¾ Customer selection important
1. 9 %
S a i n sb u r y
27.0%
M ' so n s & S ' wa y
10 . 9 %
A sd a
9 . 1%
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
U K M ar ket - B y V o l ume
U K M ar ket A nal ysi s
Market Introduction Timing
10 , 0 0 0
9, 088
9,000
3,000,000
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
8,000
South
Africa
2,500,000
7,000
Spain
2,000,000
6,000
Kenya
1,55, 00 00 0, 0 0 0
Mexico
3, 617
4,000
1, 0 0 0 , 0 0 0
3, 148
3, 183
Israel
3,000
2, 149
500,000
Peru
2,000
1, 0 0 0
Chile
1, 187
0
540
780
Ken ya
Net her a
l n ds
176
0
St h Af r ci a
Spain
Fr an ce
M exico
I sr ael
Rest of Wor d
l
U. S. A.
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
The Future
¾ Global marketing strategy
¾ Size / market profile to achieve
best grower returns
¾ NZ brand
¾ Selling points
MARKET DEVELOPMENT
BY TONY SINKOVICH // MARKETING MANAGER // GLOBAL FRESH NEW ZEALAND
Presentation to the Avocado
Conference September 2005
DEVELOPING THE JAPANESE MARKET
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
DEVELOPING THE JAPANESE MARKET
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
Japan
NZ’s biggest export market for
horticultural produce….
Export Markets by Value
M illion $
(FOB)
$500
$416
$400
$328
$299
$273
$300
$243
$200
$100
$Japan
European
Union
Australia
UK
USA
DEVELOPING THE JAPANESE MARKET
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
Avocados are a high value item
FOB returns/kg from Japan in 2004…
Kiwifruit
Avocado
Squash
$3.85/kg FOB
$3.45/kg FOB
$0.51/kg FOB
DEVELOPING THE JAPANESE MARKET
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
Export Trays
5. 5 Kg T r ays
2,500,000
Planting Trends
4000
3500
2,000,000
TOTAL HECTARES
3000
2500
1, 5 0 0 , 0 0 0
2000
1500
1, 0 0 0 , 0 0 0
1000
500
500,000
0
1996/1997
1997/1998
1998/1999
1999/2000
2000/2001
2001/2002
2002/2003
YEAR
96/ 97
97/ 98
98/ 99
99/ 00
00/ 01
01/ 02
02/ 03
03/ 04
04/ 05
05/ 06
DEVELOPING THE JAPANESE MARKET
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
Export forecast by market:
2004-2005 Season
5%
2005-2006 Season
5%
11%
3%
5%
1%
87%
Australia
USA
Japan
1.1 million trays
87%
Australia
USA
Japan
2.3 million trays
DEVELOPING THE JAPANESE MARKET
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
The Japanese Market
Avocado Consumption increasing over the past 6
years
30,000
MEX
USA
CHL
Japanese diet
isNZLchanging
25,000
Consumers are increasingly health and price
conscious
20,000
15,000
10,000
5,000
Food safety and traceability
Quality… quality… quality!
-
Ton
1998
1999
2000
2001
2002
2003
2004
DEVELOPING THE JAPANESE MARKET
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
What is the opportunity?
Mexican Hass dominates the Japanese market.
CHILE
AVOCADO IMPORT VOLUME
2001 - Current
By Country
NZ
USA
MX
NZ has an opportunity from Sept-March
Japan is a quick transit market (12 x days)
4,000,000
Kg
3,500,000
Brand NZ has appeal
3,000,000
NZ can deliver on taste and quality
2,500,000
2,000,000
NZ exporters working collaboratively
1,500,000
1,000,000
500,000
2005/3
2005/1
2004/11
2004/9
2004/7
2004/5
2004/3
2004/1
2003/11
2003/9
2003/7
2003/5
2003/3
2003/1
2002/11
2002/9
2002/7
2002/5
2002/3
2002/1
2001/11
2001/9
2001/7
2001/5
2001/3
2001/1
0
DEVELOPING THE JAPANESE MARKET
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
Avocados and the Japanese Consumer
Key Selling Features:
1. Health / Nutrition /Versatility
2. Food Safety /Traceability
3. Maturity & Grade stds.
4. Ripe- Ready to Eat
Key Benefits:
1. Consumer Health
2. Consumer Assurance
3. Consistent Taste & quality
4. Versatile & Convenient
Delivers:
An Attractive Sales Proposition
For Consumers = repeat purchase
For Customers = more sales &
category growth
DEVELOPING THE JAPANESE MARKET
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
Key Challenges….
Demand Highest Quality
Size specific market (24/30 count)
Food Safety & Traceability
Price conscious (¥99 price point)
Ripening and retail display
Driving continued consumption growth
The weak Japanese ¥en
DEVELOPING THE JAPANESE MARKET
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
Focus Group Findings
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
Do you like the taste of
Avocados?
How do you eat Avocados?
56%
IN SALAD
NOT AT ALL
4%
SOY SAUCE WITH
WASABI
VERY MUCH
29%
MAYBE NOT
32%
53%
SUSHI ROLL
21%
WITHOUT NO
ADDITIVES
18%
IN YOGURT OR WITH
LEMONS
15%
11%
OTHER
MIXED INTO JUICE
MAYBE YES
35%
4%
IN SANDWITCHES
3%
0%
10%
20%
30%
40%
50%
60%
Focus Group Findings
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
A Few Times
A Month
14%
Never
33%
Once A
Month
17%
How often do you buy
Avocados?
Less Than
Once A Year A Couple of
Times A Year
12%
14%
Once A Few
Month
10%
69%
HIGH NUTRITION
37%
HIGH OIL
34%
DELICIOUS
What is your image of
Avocados?
32%
DON'T KNOW HOW TO EAT
31%
UNFAMILIAR
27%
GOOD W ITH MANY RECIPES
15%
NOT DELICIOUS
11%
FAMILIAR
5%
OTHER
0%
10%
20%
30%
40%
50%
60%
70%
80%
Focus Group Findings
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
GOOD FOR YOUR
HEALTH
69%
48%
TASTY
REASONABLE
PRICE
Why do you buy Avocados?
26%
22%
EASY TO COOK
14%
OTHER
7%
GOOD VALUE
5%
TRADITION
0%
20%
40%
60%
80%
39%
DON'T KNOW HOW TO EAT
30%
EXPENSIVE
25%
DON'T LIKE TASTE
HIGH CALORIES
18%
NOT FAMILIAR
18%
Why don’t you buy Avocados?
17%
NOT EASY TO PREPARE
14%
OTHER
7%
NOT IN NEIGHBOR STORES
7%
DOUBT IN FOOD SAFETY
0%
10%
20%
30%
40%
50%
Focus Group Findings
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
73%
PRICE
FRESHNESS
69%
52%
COLOR
What are important points when
you buy Avocados?
24%
SOFTNESS
19%
SIZE
17%
TASTE
NUTRITION FACTS
10%
8%
USED CHEMICALS
5%
OTHER
2%
BRAND
0%
20%
40%
60%
68%
RE C IPE INFO
D EMONSTRA TION
SA LES
46%
44%
NUTRITION FA C TS
What will attract you when you
buy Avocados?
80%
READ Y TO E AT
(P EELE D OR C UT)
24%
C ONSUMER
C AMPA IGN
22%
D ON'T C ARE
7%
C OUP ONS
A TTAC HED
7%
LARGE R PIE C ES
7%
B AG SA LES
7%
4%
OTHER
3%
SMALLE R PIE C ES
0%
20%
40%
60%
80%
Focus Group Findings
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
What kind of information do you
want?
87%
RECIPE INFO
58%
WHEN TO EAT
48%
NUTRITION FACTS
HOW IT'S GROWN
27%
WHERE IT'S GROWN
27%
17%
TRANSPORTATION
4%
OTHER
0%
How do you want to get
information?
20%
40%
60%
80%
100%
72%
AT STORE
48%
INTERNET
47%
TV/RADIO
41%
MAGAZINE
26%
NEW SPAPER
9%
FROM FRIENDS
2%
CULTURE SCHOOL
OTHER
1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Focus Group Findings
WADE GILLOOLY // PRODUCT MANAGER // FRESHCO
Can you tell the maturity of
Avocados?
NEVER
TRIED
7%
YES
10%
SOMEHOW
27%
NOT AT ALL
33%
ALMOST
NOT
23%