25 May 2006
Promoting kiwi food and beverage in Chinese market
New Zealand’s profile as a producer of fine foods gets a major boost in China today with the launch of the first kiwi
branded retail promotion of New Zealand food and beverages, Ministers Phil Goff and Trevor Mallard announced today.
The “New Zealand’s Finest Choice” promotion was launched today (May 25) at two upmarket retail stores in Shanghai, and
is designed to help create new business opportunities for New Zealand food and beverage exporters in China’s booming
retail market.
The promotion is a key element of the government's China Retail Channel Development Project, which aims to assist New
Zealand companies enter the Chinese market and trial their products in a retail environment before committing to a major
export drive.
“China is a priority for our food and beverage exporters. It's already our fourth largest trading partner, and our food
and beverage exports to China make up a third of our total exports there. The sector is expected to benefit
significantly from a potential Free Trade Agreement,” Trade Minister Phil Goff said.
Economic Development Minister Trevor Mallard said getting New Zealand food and beverage exporters established in China
was crucial, given the forecast growth in the Chinese grocery market.
“The Chinese marketplace is large and dynamic so a collective and cooperative approach is vital so our industries have
the critical mass to make an impact.
“This project is an excellent example of NZ Inc in action. More than 30 companies from around New Zealand are involved
so far, representing more than 20 different product categories.
“By having products displayed in a branded New Zealand ‘shop within a shop’ format in two high profile stores, this
promotion gives kiwi food and beverage exporters the opportunity to test the Chinese market before making a longer-term
commitment,” Trevor Mallard said.
China Retail Channel Development Project
The project is a collaboration between New Zealand Trade and Enterprise (NZTE), New Zealand food and beverage companies,
Heng Tai - a China-based logistics service provider and distributor, and Parkson – an upmarket retail chain in China. It
provides a low cost format and allows companies to keep control of costs, volumes, prices and distribution choices until
they are ready to make a greater, long-term commitment to the market. The in-store branded booths are supported by a
targeted marketing campaign including public relations, advertising and a text-messaging (SMS) competition.
Other information
• Research shows that the growing Chinese middle class, typically located in the major cities on the Eastern
seaboard of China, and in particular, Beijing, Shanghai, Shenzhen and Guangzhou, are seeking convenience and value, and
are increasingly looking for the healthiest, freshest quality foods, with food safety being an important purchasing
trigger. New Zealand’s unblemished record as a safe, trusted provider of food and beverage products means its produce
has an edge. The country’s reputation for producing world-firsts means it is well placed to respond to consumer trends,
such as increased interest in health and wellness.
• “New Zealand’s Finest Choice” highlights smart kiwi technology with an interactive mobile (SMS) competition
being run to encourage Shanghai consumers to purchase products featured in the promotion. China has one of the highest
rates of mobile phone ownership in the world and the SMS competition opens a direct line of communication with Chinese
buyers for the first time. Run by Auckland-based interactive mobile marketers, The Hyperfactory, who recently opened an
office in Shanghai, the competition gives consumers the chance to win an instant prize every time they buy showcased
products valued at RMB50 or more. Prizes include food and beverage products, books and souvenirs and participants can
also go in the draw to win two main prizes of return airline tickets to New Zealand.
• “New Zealand’s Finest Choice” is being held at Parkson stores in the Hongqiao and Huaihai districts of Shanghai
and products on show include New Zealand wines and alcoholic beverages, dairy products such as milk, cheese and yoghurt,
a wide variety of fruits, chocolates, honey, bottled water, speciality food products and natural health foods.
• Parkson is owned by the Lion Group of Malaysia. One of the first foreign retailers to enter the China market,
the chain is recognised throughout the country as catering to the discerning high-end Chinese and expatriate consumers.
• For more information about the China Retail Channel Development Project see:
www.marketnewzealand.com/chinaretail
Ends