AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Summary
- Zespri announces breakthrough financial result for the 2020-21 season, with revenue surpassing NZ$3 billion.
- It continuously works on innovative varieties such as Zespri Red, which has been recently introduced.
- Efforts are being made to tap the growing market opportunities in China.
Being the largest marketer of kiwifruit across the globe, Zespri International Limited, which was founded in 1997, supplies high-quality Zespri Kiwifruit to retail and wholesale customers.
Source: 18302049 © Gennaro86 | Megapixl.com
Zespri has recently released its 2020-21 financial results with good performance.
Unparalleled financial results by the fruit giant
Total revenue climbed to NZ$3.58 billion, up 14% on the preceding year, while global sales volume rose by 10% to 181.5 million trays sold during the season.
A Quick Read: NZ trade surplus Highest in ~3 decades as Imports Plunge down
Despite COVID-19-related challenges, NZ$2.25 billion was reported as direct returns to the NZ industry.
Bruce Cameron, Zespri’s Chairman, expressed the power-packed performance was a result of the solid international demand, supplemented by the kiwifruit industry’s diligence along with systematic investments to augment its demand and supply curve.
Work on Innovations to launch new varieties
The development of novel and innovative varieties of the crop is vital for the industry.
Recommended Reading: Zespri collaborates with Crown Research to create new types of kiwifruit
The Company continues to work on innovation and aims to maximise the value of its brand; one such step is the introduction of the newest variety of kiwifruit - Zespri Red.
This year too, the Company is hopeful of another breakthrough yield of its Zespri Kiwifruit on the account of the expansion of the production of Zespri SunGold Kiwifruit as well as Zespri Red, though with few disruptions because of shipping delays, and rising costs, etc.
However, Zespri is optimistic about overcoming these obstacles and aims to maximise its stakeholders’ value.
Tapping on the growing China market
From the existing presence across 50 cities, Zespri is aiming to widen its market to 100 cities in China in the coming five years.
Must Read: NZ raise Concerns over growing Dependence on the Chinese market
Right from 2019, the Company's No.1 worldwide market is China. And, with the growing middle class in China and continuous demand for healthy and wholesome food, Zespri is focused on capturing the growing opportunities in the Chinese market.
It has introduced a new strategy centred around China which focuses on increasing brand awareness and launching new varieties like red kiwifruit in the market.
Currently, the household consumption of the Zespri kiwifruits in China is 20%. Zespri aims to uplift this figure in the next five years.
Moreover, it is eyeing the emerging e-commerce trends like social e-commerce and community group buying to boost its sales in China.
Unlicensed plantations of SunGold kiwifruit across China
It is found out that unlicensed plantation crops of SunGold kiwifruits are being grown across China. They are not of the same high quality as grown by the Zespri farmers and are assumed to have been smuggled to China.
Rough estimates suggest that there are at least 5K hectares of unlicensed SunGold plantations in China, which are continuously increasing and would soon compete with New Zealand's star fruit.
Zespri is in talks with few Chinese firms on the above-mentioned issue to work out a deal in this regard.
