Managing the Value Chain to Deliver on
Consumer Perceptions of Value
Dr David Tanner, GM – Innovation
Presentation outline
• What are ZESPRI’s motivations to innovate?
• What gives us the strength to innovate?
• What innovation achievements have occurred to date?
• Where we are going in the future?
• How do we know we are going in the right direction?
1
NZ Kiwifruit cannot win the price
war
Cost per tray of Hayward delivered to Spain
3.20€
Euro per tray (wholesale)
2.88€
2.30€
2.27€
2.38
2.61
1.55
Transport cost
2.02
Production cost
0.28
0.27
Italy
France
0.72
0.82
Chile
NZ
Source: Boston Consulting Group, plus ZESPRI July 2010 forecast
2
NZ Kiwifruit cannot win the price
war
Cost per tray of Hayward delivered to Japan
470 ¥
470 ¥
345 ¥
Transport cost
Production cost
Source: Boston Consulting Group, plus ZESPRI July 2010 forecast
3
Global production
2,000
1,800
Nth Hemisphere
1,600
Tonnes (000's)
Sth Hemisphere
1,400
New Zealand
1,200
1,000
800
600
400
200
76
78
80
82
84
86
88
90
92
94
96
98
00
02
04
06
08
Year
Kiwifruit – a niche product
4
The Future
5
$ (million)
Growth through the decade
9.8% compound average growth rate (CAGR)
Source: Statistics NZ, ZESPRI
Integrated relationship
Growers
Customer
ZESPRI ®
Relationships
6
Innovation focus: soil to spoon
Innovation Investment 2011
In millions
Innovation Investment (as a percentage of revenue) (2011)
Innovation Strategy
• Optimise core performance
• Build competitive advantage
• Pursue growth horizons
ZESPRI New Cultivars
Breeding Programme Overview
7
Extended season and improved taste
Taking ZESPRI forward
Sustainability
Taste & Consistency
(Quality)
ZESPRI
Brand
Health
New Cultivars
8
Sustainability supports core brand
values
Future Customer
Requirements
Brand Equity
Brand Value through Leadership
in Sustainability
Efficiency Gains
Future Proofing / Risk
Management
Health science space
Great
Nutrition
Great Taste
HEALTH BENEFITS
From the consumption of fresh kiwifruit
Direct effects on
the body &
metabolism
Interaction with
food & nutrients
9
Reasons for growth
Kiwifruit Export Yield – per hectare
Source: Statistics NZ, NZIER
Kiwifruit Trays – per hectare
Source: ZESPRI
NB. New orchard plantings contribute to productivity increases in the early 1980s and 1990s (GREEN) and 2000s (GOLD)
Product concepts
Focused targets for the breeding programme
10
Convenience
Novel taste and appearance
11
Expansion not fragmentation
The face of Psa in NZ
24
12
Where science meets industry
Staying ahead of the pack
13
Thank You
14