Ripe returns

It’s not always possible, but being flexible and having the ability to adjust to demand from new customers or markets can really pay off. At Avanza, we learnt this firsthand when an unexpected opportunity came up and we were able to seize it and gain entry into a brand new market with enormous growth potential.

The Avanza brand was created to boost brand recognition of New Zealand avocados, and is owned by three New Zealand companies - Just Avocados, Primor Produce and Southern Produce. Together the companies represent around 90% of the country’s 1400 registered export growers.

Entering Thailand - an exciting opportunity

Over the last decade, our main markets have been Japan, Singapore and (periodically) the US, with a recent expansion into Southeast Asia. While it wasn’t a market we were focusing on, Avanza entered Thailand this year with exports of 48,000 trays (nearly 1.4 million avocados), compared to the 400 trays sent by New Zealand avocado growers in 2013.

This new trading opportunity arose when, following fruit fly issues, Thailand closed its borders to other country-of-origin supplies of avocado, banning fruit imports from Australia, Mexico, Chile and all other producing nations except for New Zealand. This created an instant pathway and an exciting opportunity for Avanza - one we were able to seize with help from New Zealand Trade & Enterprise (NZTE).

NZTE connected us with seven potential customers, all of whom we ended up successfully supplying by air freight. These new customers are very focused on the potential of Avanza avocados and say our product is the best they’ve handled. As a result, some are investing in ripening and sea-freighting infrastructure that will support us to grow the market further.

The work we’ve done with NZTE here and elsewhere has been hugely valuable and has included assistance with grants and promoting our products, as well as practical support like organising events and setting up meetings. In-market NZTE staff really go out of their way and we’re hugely appreciative of what they do. I’d encourage any new export business looking at entering new markets to engage with NZTE.

Growing our market share

Our late entry into Thailand meant we had no promotional schedule, but we’re already planning how we’ll work to grow the category next year in that market. We plan to achieve this through the food-service channel, supplying the higher-end restaurant trade, including sushi bars, hotels and retail. Most of our avocados are consumed by tourists, but there are huge opportunities to promote Avanza avocados to middle-class Thai consumers.

While Japan is our largest market, avocados aren’t traditionally part of the Asian diet, so our exports to Southeast Asia are quite pioneering and it’s been a progressive introduction. Our chosen importers and the retailers see a big future for avocados in Southeast Asia and we’ve been developing suitable usage ideas and recipe concepts for them.

We’ve learnt that you have to be in the market regularly and build strong customer relationships to help get you through any difficult times.

The New Zealand export avocado season runs from September to early March, but our strategy is to supply retailers with a 12-month supply of Avanza-branded avocado to stop our customers looking elsewhere for fruit, and to protect our growers. When the New Zealand season ends we transition our customers to Californian Avanza-branded avocados, grown, picked and packed to our standards.

We’ve learnt that you have to be in the market regularly and build strong customer relationships to help get you through any difficult times. I spend about 160 days a year overseas developing relationships and training retailers in handling, promoting and merchandising Avanza avocados. However, we anticipate that the 12-month supply we’re establishing with the Avanza brand will give us the capabilities to introduce permanent local staff to take care of these markets.

*Carwyn Williams is director of Southern Produce, a joint shareholder in Avanza Ltd, a company established to promote New Zealand avocados to the world. Avanza-branded avocados are exported to Japan, Singapore and Southeast Asia.

www.avanzaavocado.com

Article reproduced with the kind permission of New Zealand Trade & Enterprise (NZTE).