New Zealand-based kiwifruit marketer Zespri has signed MoUs with distributors and retailers in China. This strategic move aims to double its sales in the burgeoning market over the next decade.
In a recent statement, Zespri confirmed that the agreements were forged with its two largest distributors in China: Joy Wing Mau and Goodfarmer, alongside fruit retailers Pagoda and Xianfeng Fruit.
Notably, these four companies account for approximately 80% of Zespri’s business in China, highlighting their importance in the company’s expansion strategy.
Zespri CEO Jason Te Brake revealed that annual sales from Greater China exceed NZ$1.4bn (approximately $840m).
“We expect China to remain a strong market for us,” Te Brake stated. He further explained that these agreements “will help increase both sales and the number of cities where Zespri Kiwifruit is available.”
The MoUs set an ambitious joint goal: expanding Zespri’s market reach from 60 to 120 cities by the 2033/34 season.
Last season, Zespri exported over 1.5 billion pieces of fruit to China, cementing its position in the market.
Te Brake, who assumed the CEO role last May, added, “This season we are on track to grow our volume in China by more than 8%. With sales set to double over the next ten years, we are pleased to support New Zealand’s ambition to double the value of the country’s exports.”
He emphasized that Zespri, which is primarily owned by its fruit growers, is “committed to continuing to invest and grow in China,” aiming to “deliver strong value back to our growers.”
In 2024, a remarkable 91% of Zespri’s growers voted in favor of expanding the company’s operations beyond New Zealand.
These agreements coincided with Zespri’s forecast for another record crop year. During the 2024/25 season, the company sold a record 220.9 million trays, a significant increase from 164.2 million trays in 2023/24.
For the 2025/26 season, Zespri forecasts a total crop exceeding 205 million trays, equivalent to 738,000t.
Earlier this week, the group forecasted yet another record crop year but selectively narrowed the price guidance for the 2025/26 season.
To date, Zespri has already shipped over 110 million trays of kiwifruit this season, constituting more than half of the total crop.
Additionally, the company’s corporate net profit after tax, including license revenue, is projected to range between NZ$248m and NZ$258m, reflecting an increase from NZ$155.2m last year.
In 2024, Zespri reported global operating revenue of NZ$5.14bn, showcasing its substantial growth trajectory.