ZESPRI Awarded Best Logistic Strategy for China

Media Release - 17 June 2009

ZESPRI International Limited was awarded Best Logistics Strategy for China at last night’s New Zealand China Trade Association (NZCTA) award ceremony.

The Best Logistics Strategy for China Award was hotly contested and the calibre of finalists was high.

Accepting the award on behalf of all New Zealand Kiwifruit growers, ZESPRI Director Corporate and Grower Services Carol Ward, acknowledged the important role that China makes to ZESPRI’s current and future growth strategy.

“These awards recognise the value of trade partnerships with China and foster stronger ties between our two countries. It is an honour and a privilege for ZESPRI to be recognised for our work in China.

“China currently accounts for six percent of ZESPRI® Kiwifruit sales and is a key market for growth. Based on current growth rates, it is realistic to anticipate that within a 10-year timeframe, China and Hong Kong could form up to 20 percent of our total business,” said Ms Ward.

A critical component of ensuring success in a market as diverse and complex as China, is ZESPRI’s comprehensive logistics and distribution strategy, recognised by the NZCTA as best in class.

The logistics strategy incorporates numerous partners including local New Zealand Kiwifruit growers, packhouses and coolstores, shipping and transport companies, and a network of wholesale and retail distribution outlets in China.

Coordinating the timely delivery of ZESPRI® Kiwifruit into the China market is particularly critical at the start of the New Zealand Kiwifruit season. Supported by an innovative local marketing strategy, early sales of New Zealand grown kiwifruit provide a strong platform for continued sales growth across the season.

The demonstrated efficiency of the China logistics strategy has already reaped rewards for ZESPRI and New Zealand Kiwifruit growers. Sales volumes in the 2008/09 year were 28 percent up on the 2007/08 year. ZESPRI’s distribution network across China is set to expand even further.

“ZESPRI’s success in China and the recognition of this success by the New Zealand China Trade Association Award, is reflective of both the strength of our current marketing structure and ZESPRI’s strong performance within that structure,” said Mr Peter Ombler, President New Zealand Kiwifruit Growers Incorporated.

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