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Pink Lady® Royalty and License Updates for 2019

As another southern hemisphere season gets underway, a number of important changes have been made to the Pink Lady® royalty system and licenses for the upcoming season aimed at developing new and emerging markets.

Royalty rates:

To drive the development of new markets for Pink Lady® (referred to Selective Market Supply Program) increased rates for shipments into the ‘mature’ markets, and a decreased rate on shipments into the ‘developing’ markets have been implemented.

Those additional funds raised through these changes will be invested into creating growth in the developing markets.

Exporters will only be required to remit royalties to NZPLGA, TopFruit or APAL where the royalties have not been remitted at destination.  This would generally include any shipments made to countries that are not covered by a master license agreement with either StarFruits or Coregeo (e.g. Shipments to Asia, Middle East, USA, Canada, China).

For the avoidance of doubt, exporters wishing to ship Pink Lady® to the United States or Mexico must declare the volume to APAL and will be required to pay the at source royalty to APAL.

Shipments to unlicensed importers

In order to protect the effectiveness of the peer-to-peer licensing system, it is important that all exports are shipped to licensed importers.  APAL (or NZPLGA or TopFruit as its representative) may in its sole discretion authorise a shipment (by way of a written authorisation letter) to an unlicensed importer in very limited circumstances and only where NZPLGA, TopFruit, or Viveros Requinoa has been approached for authorisation of the shipment prior to shipping.

If you are currently contemplating, or have already locked in your 2019 shipping programme and believe you have shipments planned to unlicensed importers please get in touch now to discuss the options.  The full list of licensed importers can be found on the Pink Lady website here – https://pinklady.secure.force.com/Licensee/

Any shipments to an unlicensed importer that have not been pre-authorised by APAL (or NZPLGA or TopFruit as its representative) will attract a penalty rate applied per tonne, in addition to the at-source royalty rate that will also be payable.

Exporters should be aware that as part of Project Indigo there will be a limited number of countries which will be closed to general access by the broader Pink Lady® exporter network.  The specifics of these countries will be advised prior to commencement of the season.

Shipments to unlicensed retailers

APAL has become aware that some volumes of Pink Lady® are being shipped directly to retailers who do not hold, or do not wish to agree to, a Pink Lady® import license.

APAL understands the commercial difficulty in licensing some retailers directly, however there is a responsibility to maintain the integrity of the peer-to-peer licensing system.  Accordingly, effective from the 2019 season, APAL will charge an exporter who chooses to ship directly to an unlicensed retailer (not via a licensed importer) an at-source royalty rate.

Any exporters with potential shipments to customers who might fall into this category should contact their master licensee and request that the retailer become licensed if they wish to avoid the additional at-source royalty.

Shipment of non-branded in spec product

Exporters are reminded that all Cripps Pink/Rosy Glow/Lady-In-Red fruit shipped within APAL territories, that are within the Pink Lady® specifications, must be branded and sold as Pink Lady®.

Any shipment of Pink Lady® quality non-branded product to APAL territories will attract a penalty of three times the royalty that would have been charged had the product been shipped as branded product.

Reporting

We thank all exporters for the efforts made in ensuring timely and accurate export data was provided for entry into the new Pink Lady® database last season.

A reporting framework has been developed documenting details and frequency of reports due to Frutec S.R.L, Los Alamos De Rosauer SA, NZPLGA, TopFruit, Viveros Requinoa or APAL.

To ensure timely and accurate volume information can be provided to stakeholders across the Pink Lady® network, APAL will be applying the penalty fees for late and/or missing volume reporting.

Audit program

We thank those exporters who participated in the random audit process for the 2018 season and confirm that APAL will again be conducting random audits in export territories for 2019.  Further details of the selected exporters to be audited, and information required to be provided will be communicated towards the end of the 2019 export season.

For more information

For any queries, or specific rate increases, penalty fees, and/or reporting frameworks, please contact your master licensors or Alvin Kee at APAL via akee@apal.org.au

Pink Lady® apples

About the Author:

Pink Lady® is recognised as #1 apple brand in the world and is owned by Apple and Pear Australia Limited (APAL).

pinkladyglobal@pinkladyapples.com