Post on 12-Dec-2018
Pink Lady Development Pty Ltd - New Markets Garry Langford Chair, Pink Lady Development Pty Ltd
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Pink Lady Development Pty Ltd…
Why? To create significant new markets for PINK LADY® apples
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How? Using some of the resources earned in existing mature markets
The importance of new markets…
• The PINK LADY® business is driven by the price premium that is achieved for PINK LADY® apples compared to other apples
• As global production of PINK LADY® apples increases more fruit is being sent to the mature markets (Europe, United Kingdom) for sale.
• These markets can only sell so much fruit without oversupply and loss of the PINK LADY® Premium.
• As well as continuing to develop the mature markets we also need to develop new markets to take the supply pressure off Europe and the UK
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Funding development of new markets.
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A portion of funds (royalties) raised in developed markets is invested to develop new markets.
Developed Markets: Western Europe, United Kingdom
New Markets: S. E. Asia Middle East (UAE) Brazil China Canada
PLD is the organisation that develops these new markets
Pink Lady Development Pty Ltd… Snapshot
• Formed early 2013 • A Joint Venture between APAL and Star Fruits • 2014-15:
• Estimated Volume: 4500 tonnes • Sourced from:
• 3540 from Southern Hemisphere • 953 from Northern Hemisphere
• If the Southern Hemisphere fruit was not sold in PLD markets (mainly Asia) it would have, most likely, ended up in Europe.
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Pink Lady Development Pty Ltd… Board
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Renaud Pierson, Star Fruits
Chair: Garry Langford, APAL
John Dollisson, APAL
Didier Carabos APLE
Peter Dall, IPLA
Pink Lady Development Pty Ltd… Operations Team
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Renaud Pierson, Star Fruits Garry
Langford, APAL
Thierry Mellenotte, APLE
Peter Richardson, Craig Mostyn (Australia)
Pink Lady Development Pty Ltd… Operations Team
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Ryan Au, SE Asia Brand Development Manager for Pink Lady Development Pty Ltd (PLD).
Based in Kuala Lumpur (KL).
PLD has also opened a branch office in KL that will be the “operating hub” for SE Asia. ryan.au@pinkladyapples.com +60 12 216 6426
Pink Lady Development Pty Ltd… Supporting Team Members
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• China: Shanghai Leader marketing and Consulting Company (Judie Ju and Jack Luo)
• Brazil: Cap-Amazon/Sopexa (Caroline Putnoki and Monica Kolonian)
PLD Activities: Promoting the PINK LADY® brand – at the major trade fairs
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PLD Activities: Promoting the PINK LADY® brand – in new markets around the world
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Emirates
Thailand Malaysia
Singapore
Guangzhou Shenzhen
Sao Paulo Porto Alregre Promotion in: • China • Asia • Middle East • Brazil
Shanghai
Sales in PLD territories in 2014/15 (Tonnes) Market Tonnage ex SH Tonnage ex NH Total
Asia
Malaysia 1850 44 1894
Thailand 577 97 674
Singapore 353 59 412
China 74 110 184
Hong Kong 125 - 125
Taiwan - 60 60
Total Asia 2979 370 3349
Middle East
Middle East 345 580 (forecast)
580
South America
Brazil 216 - 216
Total 3540 950 4490
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Sales operations – 2015/16
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Volumes for 2015: • SH supply will continue - generally similar to 2014/15 levels • Supply from South Africa to PLD territories expected to
increase by 20% in 2015 compared to 2014 • Supply into Thailand from New Zealand budgeted to be 1000t -
nearly double the 2014 volume
Sales operations – China 2015/16
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China Market Development – based on 2 supply chains
Local Production of Cripps Pink – Fuping
County
Local Coolstorage
Local quality control and special packaging
Exclusive distributor for fruit produced in China
Distribution through TV, internet and retail
outlets
Shanghai Leader: Manages territory - Promotion, Quality, Liaison with consumers etc
For locally produced fruit…
Packaging and PLU stickers utilise micro-text to avoid copying
Sales operations – 2015/16
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China Market Development – based on 2 supply chains
For imported fruit…
Small number of retailers (super-markets)
Licensed Importers
Consum
ers
Promotion
Licensed Exporters – Southern Hemisphere
Licensed Exporters – Northern Hemisphere
In time the two supply chains will be merged…
“Main Focus” Markets for PLD
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The main markets that PLD will focus on are: Brazil: Largest population of South American countries. Have a large domestic market (300m people). Produces PINK LADY® apples and imports from other South American countries including Chile.
Middle East: The gulf States are wealthy and are interested in high-end, specialty products. PINK LADY® fills that niche in the apple category.
South East Asia: (Malaysia, Thailand and Singapore) These are large population countries with increasing wealth and an appetite for hi-end, western products.
China: A very large population, rapidly increasing wealth and a desire for luxury goods. Imported apples attract a premium compared to domestic fruit.
Promotion of PINK LADY® apples in new markets – how is it paid for?
• Promotion is a vital, integral part of the positioning of the PINK LADY® brand at the top of the market
• Expenditure on promotion in a market will be based on the volume of fruit committed to that market
• Promotions are funded from royalties – additional support from supply chain partners is certainly welcomed.
• Catalogue of POS materials has been developed.
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The following slides depict one of the campaigns for Asia…
Supply Opportunities for the PLD territories – Brazil, Middle East, Asia, China
• PLD want’s to achieve a year round (52 week) supply program for these territories at much larger volumes than are currently being delivered
• Talk to us about how this might be arranged • As noted above, promotion will be based on the volume
of product committed to a market • We can and will work with suppliers on the promotion
programs developed for a market
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In Summary
• PLD was formed to drive market development in newer territories
• The PLD program in Asia has had a major boost with the appointment of Ryan Au as the regional Brand Manager.
• We see major growth opportunities in Brazil, the Middle East, Asia and China based on year round supply, supported by extensive promotion programs
• We will work collaboratively with new and existing licensed suppliers to make this happen.
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