Working with Shanghai-based Primary Collaboration NZ (PCNZ) would allow Anzco to more quickly achieve its goals of higher-value, branded meat product distribution in the market, chief executive Peter Conley said.
Anzco became the second major meat exporter to join PCNZ, after Silver Fern Farms, one of the founding partners two years ago.
Anzco was already trialling chilled beef in China, after the market was opened up on a test basis for both beef and lamb from NZ.
Though it had become easier for foreign companies to set up offices in China, it was still a reasonably lengthy and challenging process, Conley said. Being part of PCNZ would provide quick and proven access.
PCNZ was in the process of finding a market manager to handle the Anzco business and expected to have someone in place by October, PCNZ general manager Kevin Parish said. That involved marketing, promotion, education and training food service people and diners and consumers.
PCNZ members had reported several market successes over the last two years.
# One company reduced a refund claim because of product quality issues after PCNZ became involved and could assess the issue and physically see the products. Before that, the importer involved had made little consultation with the NZ exporter.
# A client developing a new food product for high-end hotels and restaurants. PCNZ engaged an experienced food service channel representative to develop the market. Over 18 months sales went from zero to $12 million, with margins about 30% higher than traditional service lines.
# A switch for one partner/client from selling into wholesale markets (where there was no contact with end-customers or even the retailers) to a direct service to the retailers and e-commerce partners, thus getting much closer to the consumer.
PCNZ had also run programmes for the partner/client companies, providing a hands-on look at the Chinese market and it consumers, Parish said. Nine market managers had been recruited to represent clients, with three more appointments under way.
PCNZ had also worked on major hotel and retail promotions.
Parish said the group’s constitution always allowed for more than one major company in any sector being part of the group.
Companies could veto a direct competitor but Silver Fern had supported Anzco joining, highlighting that the market was big enough for everyone.
Silver Fern was developing its business with new Chinese part-owner Shanghai Maling and at some point would transition to setting up a separate entity and PCNZ would help with that. However, he expected the group to remain in the PCNZ tent.
Anzco was joining because it believed in working with like-minded NZ brands and collaborating with them would put it in a stronger position than working on its own.
There had been competitors operating together in the PCNZ partnership right from the start, Parish said.
Apple exporters Mr Apple, Bostock NZ, and Freshmax had formed Pacific Pace as a single entity for their joint-shareholding. Andy Borland, the managing director of Mr Apple owner Scales Corporation, was the PCNZ chairman.
