The Pink Lady® ‘Russia Strategy’ is showing early promise with sales in the Russian Federation expected to rise from 350T this year, to more than 1000T predicted for 2020.
Sales have been fuelled by marketing investments in Facebook, flyers, instore promotions, posters, magazine advertising and merchandise
The Southern Hemisphere season was not without issue for Russia: Sufficient volume and security of supply were both challenging at times.
To address this, Star Fruits, with APAL’s support, has authorised direct shipments between approved exporters and Russian importers with a view to establishing a robust network of licensed importers in 2020.
To incentivise trade and increase Southern Hemisphere exporters appetite for risk, Star Fruits decreased import royalties by 35% on imports into the Russian Federation this year. Royalties will be reviewed for 2020 season.
It was disappointing, however, to see C1 apples being sold in Russia as “Cripps Pink” outside the Pink Lady® program. Russia has at times been used as a dumping market for trading high colour Cripps Pink, that haven’t found room in Pink Lady® programs internationally.
These dumping practices undermine our Russian strategy and risk devaluing the investments made in re-establishing the brand in this market. We ask Master Licensees to refrain from these practices – by working together, we are confident of creating a more profitable Russian market for all.
This September, Star Fruits will visit Moscow to meet with our lawyers to set up market controls for next season, and to meet with local importers and retailers.
Star Fruits will also participate in the WorldFood Fair in Moscow during September. All approved exporters, together with their clients in Russia who might be interested in Pink Lady® development, are invited to meet with Star Fruits during the fair.