NZ-designed Apples Miss Trick By Omitting FernMark Branding In Canada
Canadian consumers have actively boycotted US products, since President Donald Trump launched his trade war, along with ongoing calls to make Canada the 51st state of America.
T&G Global's premium Envy and Jazz apples exported to Canada were packaged in 2.27 kg (5lb) bags, with prominent 'product of USA' labelling, and were not immune to the consumer backlash.
T&G chief operating officer for the apples business Shane Kingston said the brands were grown in more than 11 countries, across both hemispheres.
"This also diversifies our geographical spread, and ensures varieties are grown in the right regions and close to markets," he said, adding that sales met expectations.
"Currently, around 31 percent of T&G's apple supply is sourced from Aotearoa New Zealand, 37 percent from the Americas, 23 percent from Europe and the United Kingdom, and 9 percent from other markets."
Still NZ apples
While Envy and Jazz apples sold in Canada were imported from southern hemisphere locations and Washington State, they were designed in New Zealand and were eligible to carry the New Zealand Inc trademark.
FernMark brand manager David Downs said the lack of New Zealand branding was a missed opportunity, given that it could be applied to any product designed, grown or made in New Zealand.
"That intellectual property was developed here and there is definitely a connection to New Zealand that should be highlighted," said Downs, who was also the chief executive of NZ Story, which - a government agency tasked with helping market New Zealand to the world.
"It's actually a great example of New Zealand innovation."
Demand for FernMark grows
"It's interesting, isn't it, that consumer sentiment can shift pretty quickly," Downs said, referring to the trade dispute in North America. "Someone in Canada suddenly being suspicious of not wanting to buy products from the United States or from another country, because of their perceived activities."
He said the FernMark had been independently valued at more than US$290 billlion (NZ$478b), although the licence to use it cost relatively little for qualifying companies.
"What the FernMark does is basically visibly allow you to connect your brand with the brand of New Zealand, and that visible connection and association allows you to get that value from the hundreds of millions of dollars' worth of brand value that we have as a country."
He said the number of companies using New Zealand's FernMark to promote their products had more than doubled over the past couple of years and featured on products in more than 40 countries.
More than 600 companies used the FernMark on some two billion products, with food products one of the biggest users.
"Some of those companies are very, very big, with tens of thousands of SKU's [stock items]."
Recent research indicated 46 percent of international consumers recognised the FernMark, and 44 percent said they were more likely or a lot more likely to buy a product because it.
"More and more in this disrupted world, reputation is what matters," Downs said. "For us, for a relatively small economy like New Zealand, it's important we protect our reputation.
"That's not the job of just politicians. It's also the job of exporters and all of us."
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