New N.Z. fruit company for American market

Press, 28 July 1989, Page 21

New N.Z. fruit company for American market

A combined apple and kiwifruit business in North America, which this year will have a turnover exceeding $l2O million, has led to the formation of the New Zealand Fruit Company. A 50:50 partnership between the Apple and Pear and the Kiwfruit marketing boards will give both organisations more marketing muscle to tackle the huge North American market.

The new company will allow the marketing and support activities of each product to be integrated. "The marketing of both products is similar and complementary and this gives us a logical base for combined marketing activities,” said the com-

pany’s president, Mr Clive Durand.

“Both apples and kiwifruit can be sold with one call to a customer, we can combine merchandising and promotional activities if we wish and we get better exposure and awareness within the trade. The greater volume of the two products also gives us more push with the selling and servicing organisations." Seattle, an important entry port for New Zealand fruit, was a logical base for the new company.

Both boards are expecting a steady growth in exports to North America. They have been able to increase their market presence this season

through the larger business base created by the new company. “Sensible rationalisation had to take place between the two industries in order to lift returns to growers and provide future direction,” said Mr Durand. North America is now second largest market for New Zealand apples and pears and the third largest market for kiwifruit. Both products were first sold in North America in 1959.

The company will organise and manage the apple and kiwifruit business in North America. Some management functions have been contracted to a master agent, David Oppenheimer and

Company, which has had a long involvement with New Zealand apples and kiwifruit and has been an agent for the New Zealand Apple and Pear Board for 30 years.

Mr Durand believes all suppliers of fresh produce should try to lift American consumption levels. In spite of the general trend towards more healthy diets and lifestyles, consumption of fresh fruit and vegetables is still at a comparitively low level in the United States, he said. Apple consumption has remained static over the past 10 years and, although kiwifruit consumption has increased in the past six years, the current level is still only 220 grams per head of population.