The vision for PINK LADY ® apples: Best practice technical symposium Pink Lady® Apples © Copyright 2008 The issues we need to address Tuesday 2 nd of June.

The vision for PINK LADY® apples:

Best practice technical symposium

Pink Lady® Apples © Copyright 2008

The issues we need to addressTuesday 2nd of June

Renaud Pierson

General ManagerSTAR FRUITS Diffusion - Europe

THE ISSUES WE NEED TO ADDRESS

PINK LADY® apple position in Europe:A significant business

A high recognition by consumers

What the market expects:The right quality

For the right quantity

With the right product

At the correct moment

With the correct branding

Conclusion

THE ISSUES WE NEED TO ADDRESS

PINK LADY® apple position in Europe:A significant business

A high recognition by consumers

PINK LADY®, a very significant value in the European apple supply

A constant growing business for European and Southern

Hemisphere suppliers

While importation of apples in the EU decline,

One apple every 5 apples imported into the

EU was a PINK LADY® apple in 2014.

PINK LADY®, a very significant value in the European apple supply

A serious value of more than M€ 350 in 2014/2015,

… but, a very high responsibility for all program participants in the supply chain,

from individual Growers to authorized Distributors

PINK LADY®, THE MOST POPULAR BRAND

GERMANY

DENMARK

With just 15 years of presence in the market and less than 5% market share

Which means a high quality expectation from the consumers...

2013

results

THE ISSUES WE NEED TO ADDRESS

What the market expects:The right quality

For the right quantity

With the right product

At the correct moment

With the correct branding

What the market expects:

The right quality product

• PINK LADY® apples must comply with brand specifications and, before all, effectively meet final customers expectations

• The high difference in retail prices with other apples and stone fruits, makes compulsory the irreproachable quality of PINK LADY®: Example:

3,69 -4,00 €/kg in France

2,49-2,99 € - 6 fruits foodtainers in Germany

1/3

Management of the shelf• Self service distribution at

retailers level• High competition of fruits• Slow turnover of products• Deterioration of product with

summer temperatures

9Pink Lady® Apples © Copyright 2008

What the market expects:

The right quality product2/3

Consequences•Consumers choose the best looking fruits. •Concentration of fruits with defects and low colour

Why opting for R4 blush ?

Why not waxing for some markets (Europe & UK notably)?

10Pink Lady® Apples © Copyright 2008

What the market expects:

The right quality product

Result from a consumer survey:• Location: Denmark, France, Germany and Thailand• R4 looks to be the best compromise to achieve a threshold of 50 %

satisfaction of the consumers interviewed, without increasing the minimum coloration. Wax creates rejection in Europe

France Germany Denmark Thailand

Intensity R4 R4 R4 R7 (R6 if waxed)

Surface 60% 40% 40% 60%

Lustring / Wax = / - - / - - / - = / +

3/3

A market caped at 3.000 / 3.500 tons per weeks

What the market expects:

For the right quantity

The market looks to have “natural limits” (competition with summer fruits, retail price, longer presence in May/June in the future of European PINK LADY®, …)

But opportunities to grow still exist:

1- With high quality fruits in the shops => better selection & supply management2- At the end of the SH season from mid of August => long storage practices

What the market expects:

With the right product

« Ideal » average size per market

Fruit size (number of fruits per 18 kg boxes)

Market importance(% of sales)

Tree management and shipping strategies according to fruit size must consider the markets targeted and… markets capacities.

Important time lag between shipping by exporters and market needs and capacities

What the market expects:

At the right moment

1- Fruits must be shipped according to sales programs

2- Storage at source is always better than in “logistic” cool store at the arrival

3- First pick is always better for long storage(VS “First picked / first shipped” or “Pick, pack and ship” policies)

4- Fruits sold after August 1st must come from CA storage

What the market expects:

With the correct branding

The packaging is the support of the brand and the best vehicle to promote the product and to facilitate buyers and

consumers instant recognition.

Conclusion:

Hope those two days will help you to better design your strategies from planting the correct trees, to shipping the right quality product.

Wish you a fruitful symposium.

Pink Lady® Apples © Copyright

Thank you for your attention

Pink Lady® Apples © Copyright 2008