The nomination of Tier One markets and the formal appointment of Tier One Export Licensees to these markets signals the accomplishment of the next major milestone in the Selective Market Supply Program (SMSP).
Designed by Pink Lady Development (PLD), the APAL/Starfruits joint venture tasked with building new and sustainable global markets for Pink Lady® branded apples, the recent SMSP Expression of Interest (EOI) has appointed its first round of Tier One suppliers with commitments of volume to these markets.
In return, PLD has committed to a significant increase in funding to those markets, and greater and more intense market management.
“Focused effort, guaranteed supply and market funding will be at the cornerstone of growing the Pink Lady® business outside our mature markets of Europe and the UK,” explains Andrew Hooke, Director Global Development.
Strong EOI responses confirmed five Tier One markets:
- United Arab Emirates
- The Kingdom of Saudi Arabia
Speaking on the EOI evaluation criteria, Andrew says: “We looked at a multitude of factors, including: complexity of export protocols, level of exporter interest and access, existence of a premium and branded retail market, and overall demand for fresh fruit.”
The process went on to validate six Tier Two markets: Taiwan, India, Japan, Hong Kong, Singapore, Malaysia.
While ticking many of the boxes for Tier One, Japan’s tough phytosanitary restrictions placed it on the cusp of Tier One, along with Taiwan.
“There was also a great deal of interest in India but we are still developing our knowledge of that market and so we approaching it with cautious optimism. Ultimately, our aim is to develop Tier Two markets to become Tier One,” says Andrew.
Only those Tier One Licensees appointed through the EOI can export into Tier One markets. Tier Two markets on the other hand are open to anyone who are APAL Licensed for the season.
“Applications for marketing support in Tier Two markets will be made on a case by case basis,” explains Andrew, “We have developed a simple template through which funding can be applied. This kind of structured approach should help businesses formulate a plan and articulate the benefits in developing a given market.”
Application templates for suppliers interested in applying for Tier Two markets are available from APAL.
The next milestone for PLD is to set up Tier One Roundtables which include all appointed Export Licensees for that market, plus key PLD staff who will set the brand and promotional plans; ensure quality inspections are set up and appoint local marketing agencies to execute the plans.
For more information on the SMSP, click here.