Harnessing the Opportunity in the SMSP Markets

Presented in Berlin by Jason Morris, APAL

At the Global Licensee Meeting in Berlin, we discussed the integral role the SMSP managed markets play in contributing to the Pink Lady^® growth strategy and our core aim to ‘supply the future.’

While the Pink Lady^® global export supply base relies heavily on Europe and the UK, New Zealand and South Africa have been diversifying supply to the new markets over the past five years, helping drive year-on-year growth.  As the European and UK markets come under increased pressure, we recognise the need to accelerate our new markets further, while maintaining a balance of volume and value.

Thailand provides a good example of the growth potential, where demand in the apple category remains solid year-round, but Pink Lady^® supply focuses on southern hemisphere season months and is a small proportion of the overall category volume.

These are also markets where a well presented three pack of premium apples can retail at US$4, or a festive gift pack of 6 apples can retail for as much as US$20.  While those examples illustrate a super-premium apple price-point, Pink Lady^® can offer a realistic, everyday premium value for consumers in the SMSP markets, and we will work to own that space with our consumers.

SMSP Market Management Initiatives

There is a need for export and import relationships built on a seasonal program, and the ability to ship throughout the whole season will help ensure a consistent volume supply into these markets year-round. APAL is committed to working more closely with licensees throughout the year to support this.

“While there is an increased urgency to continue to grow the SMSP markets, at the same time, maintaining a healthy balance of both volume and value is imperative. We will be taking a more active approach to ensure we maintain that balance with sustainable growth in key markets,” said Jason Morris, General Manager Pink Lady^®.

Moving forward, SMSP Supply Reviews will be implemented for both southern and northern hemisphere exporters. There will be four main touchpoints across Master Licensees and individual exporters as part of these reviews, including:

1. 1. 1. PRE-SEASON SUPPLY MEETING prior to harvest to review export markets and discuss opportunities and barriers.
      2. SEASON KICK OFF around harvest time to review market export plans and align the Pink Lady^® marketing plan.
      3. MID-SEASON CHECK IN approximately four months post-harvest to review market performance and marketing plan and address critical issues.
      4. END OF SEASON REVIEW upon the completion of sales in the market, to review season performance and discuss successes, issues and key learnings.

Supporting this, APAL is developing SMSP market profiles and fact sheets that will help to educate the network on the apple category and opportunities for Pink Lady^® within the SMSP markets.

These profiles and fact sheets will be updated and shared with licensees twice per year – in April and October.