Sweet reds cater to Chinese tastes
Scales Corporation is building its online reputation with Chinese consumers keen to buy its Hawke’s Bay apples.
Christchurch-based Scales Corp has just posted another healthy annual profit, and managing director Andy Borland said online retail marketing by its Mr Apple subsidiary was a major focus for the company in China, providing higher returns.
‘‘We sell to companies like Alibaba and Fruit Day and they connect with consumers online and deliver the fruit to their front door from their own storage networks.’’
Borland said apple picking for the 2018 harvest had begun about two weeks earlier.
The fruit had benefited from hot spells in November and December followed by the damper conditions, which was good for fruit size.
Last year’s harvest had been more difficult with cloudier conditions from ex-cyclone Cook, but export-grade volumes were only down 5 per cent compared with the industry average of 10 per cent, Borland said.
‘‘We had a really strong performance the previous year but the 2017 profit was at the top of our expectations.’’
The Mr Apple division produced 12 different apple varieties, with the sweet reds most favoured by Chinese eaters. The company accounts for about one-quarter of all New Zealand apple exports.
One of the most recent varieties produced by Mr Apple orchards, and two other companies, is Diva, a shiny red apple that can be stored for longer.
While Scales is best known for its apple exporting and freight business, one of its strongest growing divisions is Meteor, which sold
20 per cent – or 28,000 tonnes – more pet food than previously.
The pet-food warehousing and exporting also provides income for Scales’ other main division – storage, logistics and shipping.
The logistics operation’s financial results were 18 per cent ahead of 2016, partly due to the acquisition of OceanAir.
The final after-tax profit for 2017 was $31.3 million, down on the bumper 2016 result of $37.7m.
Turnover was $399m, up on the
$373m of 2016. A decision on a dividend payment to shareholders will be made in May.