“Two years ago we started to contact retailers. We received the official Pink Lady brand license last year. We are mainly growing and selling within China. A grower from Chile has recently contacted us, however, and we are contemplating to launch an import programme. We can supply domestic Pink Lady apples from Shaanxi province from November until May/June the following year. To cover the months that there is no domestic supply, we would like to import the variety. It is important to be able to supply the market all year round.”
Domestic production: benefits and challenges
“We collaborate with many smaller growers. In addition, we work together with one larger grower, who is also our agent. They help us collect the crop from the smaller growers and store it in one central place near Fuping, Shaanxi province. 90% of total domestic Cripps Pink production is coming from areas around Fuping. We work with three different partners within China that are responsible for distribution: wholesale, high-end supermarkets like Ole and Vanguard, and fruit chain stores.”
“The quality of China’s domestic PINK LADY is similar to other production areas in the world. In some aspects, the quality is even superior. Every apple on the tree is wrapped in small paper bags to protect it. As a result the fruit turns pinker, is cleaner and the skin is generally less damaged. The Chinese PINK LADY is also a little bit sweeter and, on the domestic market, the apple is fresher as transport time is almost neglectful.”
“Big orchards do not exist in China. Most growers grow on a small scale. It is a huge challenge to standardise production, and to deliver premium, stable supply. At centralised packing houses we conduct strict sorting and packing procedures. We deliver premium quality to our clients. If farmers can deliver premium quality, they will be able to earn more. This is how we manage to grow our production base. The price for PINK LADY apples has been rising. Growers are realising this and they are willing to invest more in producing our apples. Our crop is very safe. We conduct regular tests in cooperation with international testing agencies and so far our crop has passed all tests. Apple prices have been generally weak this season. PINK LADY hovers around 170 to 200 Yuan (approximately 25 Euro) per 17 kilogram box. In some supermarkets, the apples are sold at 220 Yuan per box.
Building a premium brand in China
“It takes a while in order to build a brand name. PINK LADY apples are a little sour in the experience of Chinese consumers. The apples, however, are gaining popularity in countries like Singapore, Malaysia and Thailand. Usually, these consumers appreciate food that is even sweeter. The main reason why the brand is not yet big in China is its relative late entry onto the Chinese market. Countries that can access the Chinese market are France, New Zealand and Chile. France Chile and New Zealand only started to export to China under license from APAL five years ago.
“I believe the brand needs another two to three years to grow in China. What is important is that the quality, of both imported and domestically produced apples, remains high and that availability can become stable.”
