Pink Lady Development Pty Ltd - New...

Pink Lady Development Pty Ltd - New Markets Garry Langford Chair, Pink Lady Development Pty Ltd

Pink Lady® Apples © Copyright 2012

Pink Lady Development Pty Ltd…

Why? To create significant new markets for PINK LADY® apples


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


Funding development of new markets.


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.


Pink Lady Development Pty Ltd… Board


Renaud Pierson, Star Fruits

Chair: Garry Langford, APAL

John Dollisson, APAL

Didier Carabos APLE

Peter Dall, IPLA

Pink Lady Development Pty Ltd… Operations Team


Renaud Pierson, Star Fruits Garry

Langford, APAL

Thierry Mellenotte, APLE

Peter Richardson, Craig Mostyn (Australia)

Pink Lady Development Pty Ltd… Operations Team


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. [email protected] +60 12 216 6426

Pink Lady Development Pty Ltd… Supporting Team Members


•  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


PLD Activities: Promoting the PINK LADY® brand – in new markets around the world


Emirates

Thailand Malaysia

Singapore

Guangzhou Shenzhen

Sao Paulo Porto Alregre Promotion in: •  China •  Asia •  Middle East •  Brazil

Shanghai


A “WOW” brand…

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


Sales operations – 2015/16


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


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


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


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.


The following slides depict one of the campaigns for Asia…


Asian taxi-cab campaign…

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


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.


Pink Lady Development Pty Ltd - New...

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