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Pink Lady Development Pty Ltd - New Markets Garry Langford Chair, Pink Lady Development Pty Ltd Pink Lady® Apples © Copyright 2012.

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Presentation on theme: "Pink Lady Development Pty Ltd - New Markets Garry Langford Chair, Pink Lady Development Pty Ltd Pink Lady® Apples © Copyright 2012."— Presentation transcript:

1 Pink Lady Development Pty Ltd - New Markets Garry Langford Chair, Pink Lady Development Pty Ltd Pink Lady® Apples © Copyright 2012

2 Pink Lady Development Pty Ltd… Why? To create significant new markets for PINK LADY® apples Pink Lady® Apples © Copyright 2008 How? Using some of the resources earned in existing mature markets

3 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 Pink Lady® Apples © Copyright 2008

4 Funding development of new markets. Pink Lady® Apples © Copyright 2008 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

5 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® Apples © Copyright 2008

6 Pink Lady Development Pty Ltd… Board Pink Lady® Apples © Copyright 2008 Renaud Pierson, Star Fruits Chair: Garry Langford, APAL John Dollisson, APAL Didier Carabos APLE Peter Dall, IPLA

7 Pink Lady Development Pty Ltd… Operations Team Pink Lady® Apples © Copyright 2008 Renaud Pierson, Star Fruits Garry Langford, APAL Thierry Mellenotte, APLE Peter Richardson, Craig Mostyn (Australia)

8 Pink Lady Development Pty Ltd… Operations Team Pink Lady® Apples © Copyright 2008 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

9 Pink Lady Development Pty Ltd… Supporting Team Members Pink Lady® Apples © Copyright 2008 China: Shanghai Leader marketing and Consulting Company (Judie Ju and Jack Luo) Brazil: Cap-Amazon/Sopexa (Caroline Putnoki and Monica Kolonian)

10 PLD Activities: Promoting the PINK LADY® brand – at the major trade fairs Pink Lady® Apples © Copyright 2008

11 PLD Activities: Promoting the PINK LADY® brand – in new markets around the world Pink Lady® Apples © Copyright 2008 Emirates Thailand Malaysia Singapore Guangzhou Shenzhen Sao PauloPorto Alregre Promotion in: China Asia Middle East Brazil Shanghai

12 Pink Lady® Apples © Copyright 2008 A “WOW” brand…

13 Pink Lady® Apples © Copyright 2008

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15 Sales in PLD territories in 2014/15 (Tonnes) MarketTonnage ex SHTonnage ex NHTotal Asia Malaysia1850441894 Thailand57797674 Singapore35359412 China74110184 Hong Kong125- Taiwan-60 Total Asia29793703349 Middle East 345580 (forecast) 580 South America Brazil216- Total35409504490 Pink Lady® Apples © Copyright 2008

16 Sales operations – 2015/16 Pink Lady® Apples © Copyright 2008 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

17 Sales operations – China 2015/16 Pink Lady® Apples © Copyright 2008 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

18 Sales operations – 2015/16 Pink Lady® Apples © Copyright 2008 China Market Development – based on 2 supply chains For imported fruit… Small number of retailers (super- markets) Licensed Importers Consumers Promotion Licensed Exporters – Southern Hemisphere Licensed Exporters – Northern Hemisphere In time the two supply chains will be merged…

19 “Main Focus” Markets for PLD Pink Lady® Apples © Copyright 2008 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.

20 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. Pink Lady® Apples © Copyright 2008 The following slides depict one of the campaigns for Asia…

21 Pink Lady® Apples © Copyright 2008 Asian taxi- cab campaign…

22 Pink Lady® Apples © Copyright 2008

23 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 Pink Lady® Apples © Copyright 2008

24 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® Apples © Copyright 2008

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