As we head into the second half of the Northern Hemisphere season, we see encouraging growth into our new markets from our Northern Hemisphere supply base.
This is partly driven by a larger crop from both USA and Europe. This is a crucial step towards providing all year-round supply of quality Pink Lady® product to our key development and investment markets and ensures each hemisphere supply base can continue the momentum established.
The need for Northern Hemisphere supply into emerging markets provides a great channel for diversification. Despite stronger northern hemisphere exports so for this season, a slow commitment from the northern hemisphere engagement and exports in the Gulf this year limited the growth and sales potential in that market.
This example demonstrates the great opportunity available to Northern Hemisphere exporters to tap into the SMSP and emerging markets and capitalise on the first-move advantage by establishing relationships and expanding their customer base early in the season.
At the same time, we are seeing a return in consumption trends in our key mature markets, with EU sales up 14% from prior year to date. With a larger European crop this year a similar opportunity for Southern Hemisphere supply to support local sales as last year is expected through a balanced and managed approach.
Despite challenges to realise the brand’s total growth potential in the last southern hemisphere season, Pink Lady® has notably outperformed the general apple category globally. In 2024, we expect to see a return to growth for Southern Hemisphere volumes to most markets given the diversity achieved in the prior year. A detailed outlook into the upcoming SH season will be reviewed in June.
2023 global Pink Lady® performance compared to category per IHS
The Pink Lady® Volume Flow table below illustrates that Northern Hemisphere volume is concentrated in Europe and the UK, prioritising domestic supply. (Note, USA figures exclude USA domestic volume).
However, diversification becomes crucial as production scales up to mitigate risks associated with market fluctuations.
2023 Pink Lady® Volume Flow – Northern Hemisphere
In contrast, the Southern Hemisphere’s Pink Lady® Volume Flow displays a wider distribution across Asia, the Middle East, Africa, and South America, indicating successful market penetration and risk reduction through diversification.
This dynamic volume flow plays an integral role in contributing to the global growth targets while simultaneously building positive momentum for the brand by broadening customer portfolios across new markets.
2023 Pink Lady® Volume Flow – Southern Hemisphere
Leveraging the Pink Lady® global network and brand investment favours first movers in the Northern Hemisphere. The combined resources of APAL and Pink Lady® Development continue to bolster network shipments and enhance the brand’s visibility through trade promotional activities during this window.
This dual strategy acts as a hedge against market volatility, guarding against consumption changes and mitigating risks associated with product aging, ensuring multiple distribution channels for Pink Lady® apples. This market opportunity benefits the global network, facilitating increased Pink Lady® apple deliveries worldwide while maintaining consistent bottom-line support, despite varying market values.
For those interested in exploring new market opportunities and promotional campaigns, reach out to us at [email protected].
