4 Ewe hogget contest winners Vol 17 No 24, June 18, 2018
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Pure taste sours Neal Wallace neal.wallace@nzx.com
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EAT companies have asked Beef + Lamb New Zealand not to launch the Taste Pure Nature origin brand in North America fearing it will confuse consumers and give competitors a free ride. The Lamb Company, a partnership between the country’s three largest lamb exporters Alliance, Anzco and Silver Fern Farms, has spent 54 years jointly developing the North American market. Its chairman Trevor Burt fears the origin brand will clash with its Spring Lamb brand. He is delaying final judgement until he sees how B+LNZ rolls out the origin brand. The issue will be discussed at this week’s board meeting. “I need to be convinced about how the B+LNZ brand will sit and not detract from the investment our suppliers have made in to the North American market.” SFF chief executive Simon Limmer said the company supports the intent of the origin brand but has questions about its rollout. It should focus on developing markets such as China. The concerns have been raised with B+LNZ, which is listening and discussions are continuing, Limmer said. Anzco said it wants to discuss the issue with Lamb Company shareholders before responding while Alliance did not comment.
B+LNZ chairman Andrew Morrison said it is discussing the rollout with meat companies. “This process is still in its early stages and we are committed to working with, and listening to all processing companies to come up with a plan that meets their needs.” The brand was launched last month to differentiate NZ red meat and to validate consumer trust and confidence by reflecting NZ’s high production standards. China and the United States were identified as two markets where the brand could be launched but Burt fears the origin brand will give Lamb Company competitors “a free ride”. The Lamb Company has since 1964 invested in the US and Canada with annual lamb sales exceeding $500 million a year, potentially reaching $1 billion within five years. “It’s a big entity,” Burt said. “We have got three major players in NZ, hence we are quite protective of our brand and the investment we have put in.” It operates two processing plants and offices in Toronto, Montreal and Vancouver in Canada and Wilton, Connecticut, and Los Angeles in the US. It also sells lamb on behalf of Australian producers under the Australian Opal Valley Lamb brand. Limmer said the US is a mature market and it would be better to focus the NZ origin brand on a developing market such as China where the rollout could be tested. “The focus would be very useful in China. There is so much scope
We want to make sure it is complementary and will not create confusion in the market. Simon Limmer Silver Fern Farms
YES BUT: The Lamb Company supports the intent of the Taste Pure Nature brand but has questions about its rollout, Silver Fern Farms chief executive Simon Limmer says.
to build a market that is quite young.” While the meat industry supports the initiative, Limmer said it is qualified support. “We want to make sure it is complementary and will not create confusion in the market.”
The issue has been regularly raised at SFF roadshow meetings by shareholders concerned it could undermine their brand. Greenlea Premier Meats managing director Tony Egan, a strong supporter of the origin brand, believes its use should not
hinder other brands in the market. Too little has been invested in markets and this initiative addresses that deficit. “It is time personalities were put to one side. There is a greater initiative at stake here.” Egan dismissed concerns companies would freeload off the Lamb Company’s earlier investment saying another player will not force the company out of the North American market. Morrison said B+LNZ spent 18 months working with farmers, meat processing companies, the Government, and government agencies developing the origin brand and story. “In April 2018 members of the Meat Industry Council gave their support for the work completed so far, including the origin brand. “However, the most important part of the process is to reach agreement with companies on the activation plan for how the origin brand will be rolled out. “This process is still in its early stages and we are committed to working with and listening to all processing companies to come up with a plan that meets their needs.”
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