Zespri eyes bigger sales in China buoyed by rising kiwifruit output

Zespri, a kiwifruit brand from New Zealand, is hoping to double its sales in China within five years on the back of an estimated surge in supply to the nation this season, according to a senior executive.

Zespri said it expects to ship around 700,000 metric tons of kiwifruit to the global market, a 45 percent increase from last year. The kiwifruit season began in March this year.

Supply to the Chinese market, including Hong Kong, Macao and Taiwan, is expected to reach 193,000 tons this year, a 40 percent increase from last year.

"China represents our main market, accounting for 27 percent of Zespri's global supply," said Jiunn Shih, chief marketing and innovation and sustainability officer at Zespri. "Supply to the Chinese mainland will increase by 42 percent this season, and we are seeing fantastic growth within a few weeks since our season started."

Shih said the Chinese mainland had become the single largest market for Zespri since 2022.

In addition to the favorable climate and expansion of Zespri production hectares, Shih said changes in Chinese consumer preferences have also driven the increase in supply.

"I joined Zespri eight years ago and I remember that China was already a fast-growing market. But in these years, one of the things that has absolutely changed is the expectation of quality in fresh fruit," Shih said. "Chinese consumers are looking for better quality fruits and health has become much more important in people's daily lives now."

Shih said consumers are willing to learn about the nutritional content and detailed health benefits of fruits.

"What we offer at Zespri is a very comprehensive system that ensures that Zespri kiwifruit is of the highest quality," said Shih, adding that they inspect product details such as the dry matter, sugar levels, appearance, and transport packs.

Last month, New Zealand Prime Minister Christopher Luxon said at the China Business Summit 2024 in Auckland that trade and economic relationships with China remain central to the country's prosperity.

Bilateral trade volume reached $23.24 billion in 2023, up more than fourfold since the NZ-China Free Trade Agreement came into force in 2008, Luxon said.

"I think that strengthening our relationship, as Zespri products count as one of the main exports from New Zealand, absolutely helps the relationship between these two great countries. And we are very happy to be a part of this exchange, bringing something really healthy from New Zealand, of high quality and tasty to Chinese," said Shih, adding that good bilateral trade relations help to promote the growth of companies like Zespri in the Chinese market.

Shi said the company plans to double Zespri's business volume in China within the next five years, expanding its footprint to 88 cities.

Zespri's distribution network now spans 72 cities across China, encompassing 57,000 retail outlets.

To enlarge its social influence, the company said it is ready to work closely with agencies such as the China Nutrition Society.

"Brand building is not just marketing, it's actually changing behaviors, helping educate and helping more families in China live a healthy lifestyle," Shih said.

Imported fruits have grown rapidly in China in recent years, with more than 70 fresh fruit varieties — such as Italian blood orange, Panama golden pineapple, and Kenya avocado — approved to enter the domestic market since the first China International Import Expo in 2018.

In the first four months, the value of imported fruits and nuts entering Shanghai Port reached 11.05 billion yuan ($1.5 billion), a year-on-year increase of 20.4 percent, according to Shanghai Customs.

As the largest distribution center for imported consumer goods in China, Shanghai accounts for about a quarter of the total import volume of dried and fresh fruits and nuts in the country.