Progressive Grocer

2017 Category Management Handbook

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Progressive Grocer: As the world's largest marketer of kiwifruit, Zespri International Limited knows all about produce trends. What role does kiwifruit play in produce aisles today? Susan Noritake: Kiwifruit has often been merchandised in the tropical section, but as kiwifruit gains popularity in America, we have seen success bringing it to the front of the produce department, displaying it next to stonefruit in the summer and apples and pears in the winter. It's also useful to have multiple displays within the department as well. PG: What qualities does Zespri Kiwifruit have that make it a good choice for produce managers? SN: Zespri Kiwifruit is very versatile and can be crossed promoted with various items both in and out of the produce section. Examples of this include cross merchandising ingredients for a kiwi salsa or a sweet SunGold Kiwifruit dessert, or pairing SunGold with holiday favorites such as cranberries for a Cranberry SunGold Jalapeño Relish, and displaying the ingredients in the produce aisle with recipe cards. Another example: placing SunGold with spirits and showcasing popular cocktail recipes, like Margaritas or Kiwitinis. PG: How does Zespri help retailers merchandise and market kiwifruit in ways that will help them boost sales and basket ring? SN: Zespri offers fixed weight packages to retailers to help boost sales. Packaging also allows space for more important messages that encourage consumers to buy Zespri and learn more about Kiwifruit. Zespri offers POS materials that help bring more attention to Zespri Kiwifruit and help consumers learn more about Kiwifruit. PG: What are some ways Zespri is ensuring that the company delivers top quality kiwifruit in the most efficient and sustainable way possible? SN: Zespri's comprehensive quality system ensures Zespri consistently delivers great-tasting fruit and is why the eating experience of Zespri Kiwifruit is superior to other brands. Here's more on the Zespri system: • Zespri measures taste via dry matter. A higher dry matter— quantified by a measure called brix—means better quality fruit and optimal taste. • Zespri sets guardrails for the brix for all varietals of their kiwifruit, which growers achieve by complying with Zespri's comprehensive quality system. • Fruit below the high minimum standards set for the Zespri brand is not shipped, and all Zespri growers are held to the same quality standards with their payments tied to the taste profile of the fruit. • In 2016, 33% of grower payments for Zespri Green Kiwifruit and 53% of their payments for Zespri SunGold variety were tied to the taste profile of the fruit. S P O N S O R E D C O N T E N T Speaking with... Susan Noritake Market Development Manager ZESPRI NORTH AMERICA This is a substantial financial incentive for growers to grow the best-tasting fruit and with a consistently better eating experience for consumers. • Part of the Zespri system is enlisting third party auditors to assess the optimal time for the fruit to be picked, so consumers can trust that each piece of Zespri Kiwifruit tastes the best it possibly can. Additionally, Zespri has a strong focus on sustainability and there are a number of examples of the progress we have made in our industry. • Recycling. All Zespri Kiwifruit packaging materials are recyclable. • In a world first, Zespri introduced compostable fruit labels across all Zespri Organic Kiwifruit in 2013 and continues to work on further packaging enhancement. • Kiwifruit vines actively build soil carbon over time at a rate of 3 tonnes of CO² equivalents per hectare per year, while the soil carbon levels in many other crops are reducing. As well as reducing atmospheric CO² levels, this also improves soil quality and fertility. • 100 percent of Zespri Kiwifruit water use in New Zealand is from naturally replenished sources, including rainfall and underground aquifers. Water used for irrigation and frost protection accounts for only 5 percent of the total water footprint. • Efficient direct shipping. Across our global supply chain, 65 percent of our shipping is on chartered bulk reefer vessels traveling direct to market with the remainder carried in containers. Specialized reefer vessels are around 27 percent more energy efficient than container shipping. To increase the efficiency of each voyage we use deck space on the vessel to stow containers—shipping more fruit with fewer ships. Chartered reefer vessels are also instructed to steam at the most efficient speed and Zespri's container shipping partners use slow steaming. A 10 percent reduction in vessel speed can lower fuel consumption by 17 percent. • Almost half of all the fruit and vegetables produced is wasted. Reducing fruit wastage is an integral aspect of Zespri's production system—for both environmental and cost reasons. Our industry has invested in information systems to improve inventory management, introduced lean manufacturing concepts, and improved fruit temperature monitoring— all helping to cut down on the amount of fruit that is wasted. Our fruit loss rates are typically less than 4 percent. Q A &

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