T&G’s Asian market to be a growing focus
Southeast Asia is becoming a growing focus for fresh produce company Turners & Growers, thanks to a growing middle-class consumer base and developing supply chains.
Asian exports contributed to about a third of T&G’s $870m revenue last year, while Southeast Asia alone yielded almost $100m. In 2015, Southeast Asian exports brought in revenue of about $85m for T&G.
The region has been a major market for T&G since the name ‘kiwifruit’ was coined by founder Jack Turner back in 1959, with the chinese gooseberry being exported to Japan. But in 2002 when T&G purchased the apple marketing company Enza, it became an established player in the apple industry and Asia became a stronger focus.
T&G completed 120 years in the business this year and chief executive Alastair Hulbert, said the key to its longevity was that it adapted to new markets and changing consumer tastes throughout its evolution.
‘‘The real key is giving the consumer what they want. Really understand the individual markets within Asia. This is everything from the profile of fruit and veges people in that market like, through to regulatory influences,’’ Hulbert said.
‘‘Listen to that consumer, know what their tastes are and give them a good, consistent experience,’’ he said.
Listen to that customer, know what their tastes are. Alastair Hulbert.
In the last few years, T&G has also set up offices in China, Japan and Thailand.
T&G created the apple variety called Envy, specifically for Asian and North American consumer tastes, as they preferred sweeter and juicier apples. Earlier this month, it launched a lower carb potato variety for Kiwi customers.
Last year, T&G joined forces with Zespri to market their apple and kiwifruit varieties into Southeast Asia.
‘‘I’m a real advocate for the correct companies getting together and leveraging off each others strengths for their mutual benefit,’’ Hulbert said.
Hulbert said within the continent, Vietnam and Myanmar had also seen rapid growth as the economies of both countries continued to develop at a faster speed than the rest of Asia.
He said Myanmar in particular was a niche market, but had quickly developed its distribution channels in recent years, and in Vietnam there was a growing middle-class that had more disposable income to try imported produce.
Going into the future, Hulbert said innovation and technology would be driving growth for the company as it hoped to achieve its goal of $2b revenue by 2022.