Agribusiness and Trade: PM Christopher Luxon dubbed NZ’s ‘salesman in chief’

Zespri chair Nathan Flowerday and Prime Minister Christopher Luxon perform the ancient Japanese tradition of Dharma eye drawing at the launch of a campaign to improve global health.

Christopher Luxon has chomped down noodles with an influencer at a Singapore food court, snacked on world-famous Japanese sushi — using New Zealand salmon — with two Japanese ambassadors for Tourism New Zealand but taking part in the ancient Japanese tradition of Dharma eye drawing at a Zespri launch in Tokyo was a big step up in his marketing prowess.

Business people accompanying the Prime Minister on his three-day mission to Tokyo last month dubbed him the country’s “chief marketing officer” — (he prefers “salesman in chief”).

Zespri’s Global Health campaign was launched with the support of the Japan Dietetic Association, Tokyo Seika — Japan’s largest fruit and vegetable wholesaler, alongside Luxon and Zespri chairman Nathan Flowerday.

The campaign is focused on improving global health outcomes by encouraging people to swap out one unhealthy food for a serving of fresh fruit or vegetables every day. It has been launched in Japan, which has some of the lowest consumption of fresh fruit globally, and will be rolled out across major Zespri markets.

Said Luxon: “New Zealand has some of the world’s greatest producers, providing healthy products which are in demand around the world. Our companies are also focused on helping to support communities in New Zealand and around the world. It’s great to see Zespri making such a positive contribution here in Japan, building strong partnerships with growers, retailers and consumers and helping to strengthen the relationship between New Zealand and Japan.”

This is a message the Prime Minister reinforced at a Kiwi food and beverage expo and at a visit to Costco in Tokyo, where the mission talked to key buyers.

Zespri explains that in Japan, one of its largest markets, one in three adults suffer from malnutrition. They hope to start a movement to reform nutrition so no one is left behind.

Zespri is headed in Japan by its Asia-Pacific president Ichiro Anzai. The company enjoys a 98% market share and is the beneficiary of zero tariffs for kiwifruit.

In its 2023/24 annual report, Zespri said while the company has faced a more challenging environment, in the 2023 season it sold over 43 million trays in the Asia-Pacific market, securing more than $1 billion in net sales. This included 26.3 million trays sold in Japan, 10.3 million in Korea, and 6.5 million trays across Asia-Pacific South, expanded to include India, Malaysia and Indonesia, in addition to Singapore, Vietnam and Australia.

Zespri has created a very strong consumer brand in Japan using the instantly recognisable “Kiwi Brothers” and by working with influencers.

The report said, “Teams were focused on maximising value in market and secured strong pricing during the season, with substantial increases across our varieties, particularly for Green Kiwifruit in Japan which is a market where we already see some of our highest green returns. Japan was also the first market to open the RubyRed season, with consumers sharing very positive feedback on this variety during the year.”

Exporters like Tatua, a Waikato-based, highly specialised producer of dairy products, are also proving successful in the B2B market and related lessons from its own experience to members of the PM’s mission.

Market opportunities for NZ F&B exporters

Japan is sometimes dismissed as a “mature” market for New Zealand. It is New Zealand’s fourth-largest export market and fourth-largest source of foreign investment.

But there is plenty of opportunity to grow exports — particularly for food and beverage (F&B). The F&B market was estimated at US$327 billion ($547b) in 2022. Supermarkets hold the bulk of sales with 35%.

What’s driving consumer choice?

• More people choosing to live alone: 39% of households had only one member in 2022 (up from 35.8% in 2017). This is shaping trends towards convenience and smaller portion sizes.
• Convenience and health: Rising demand for nutritious and convenient food is creating export opportunities for non-perishable products such as nuts and dried fruit that can be sold at drug stores.
• Premiumisation: Japanese consumers have high standards, and seniors who hold a significant proportion of the country’s personal wealth have a strong impact on trends; 43% choose products with superior taste and 32% of baby boomers say they are willing to pay more for such products.

Japanese travellers are also demanding food quality, with 30% prioritising it when it comes to choosing destinations.

• Functional foods and drinks - the huge popularity of bottled nutritive drinks and functional foods mean Japanese consumers rarely feel the need to take additional supplements. Just 36 % compared to a global average of 50% take health supplements or vitamins at least weekly.
• Reducing food waste - Japanese shoppers want fresh food, which leads to a high amount of food waste. Some 60% of Japanese say they are trying to reduce food waste.

Japan is one of the biggest producers of plastic waste, driven by the need for convenience.

The environmental downside is now driving demand for more sustainable packaging.