The country’s biggest lamb exporter is on target over the next few months to double the number of London restaurants involved from the 60 or so it had at the start of the year, sales general manager Shane Kingston said.
“We’re slightly ahead of our ambitions and now looking two years ahead. Our confidence is greater.”
The business is commercially attractive for the group and its partners and the food service focus is also moving beyond the high-end restaurants and hotels into other parts of the leisure/business economy.
There is no sign yet that higher lamb prices are causing consumer resistance but there is a tipping point so the industry has to work to maintain relative pricing with other meat proteins. A 30% rise in pork prices in recent months is helping lamb and beef comparisons.
NZ lamb is also more expensive than British lamb with local supply in good quantities and imports lower. But that is not having a significant impact on sales though it will need to be watched.
Britain is still a very important higher-price market for NZ while China has become the major customer.
So far this year, NZ has filled only 31% of its European Union sheep meat quota, compared to 39% at this time last calendar year, GlobalHQ analyst Mel Croad said.
Kingston said some traditional products, notably frozen carcases, are proving uncompetitive and some ready-meal products are in a similar position.
Alliance is concentrating on adding value to the traditional business and expects further growth.
On Brexit the market is no clearer on the outcome of the new October 31 deadline than it was going into the previous March 31 deadline. As it did then, Alliance is working with its partners to put safeguards in place. The timing this time might be more challenging with Christmas product on the water at the end of October. The Easter supply had mostly landed by the end of March.
The NZ trade will be helped by having Folkestone as its major destination port. It is a non-EU port so less likely to face disruption.
The main concern in Britain is the fresh food arriving daily from Europe into other ports.
Just back from a marketing tour to China, Kingston said Alliance is pleased with its progress there.
He and Alliance Asia leader Alan Kent and group chief executive David Surveyor met Xibin Chen, president of its in-market partner Grand Farm, to discuss projects in the next phase of the partnership and adding value to products.
He and Kent also toured Grand Farm’s recently expanded processing plant in Inner Mongolia to learn more about the economics, supply chain, processing and products, which will help it add more value.
The key China trends are continuing to build, Kingston said.
Increasing wealth means more people have more money to spend on dining and the increasing Western influence is pushing consumers from traditional Chinese food items to Western dishes such as racks and loins.
In Shanghai Alliance’s Pure South brand is a significant part of the Swiss Butchery retail chain offering to a growing mix of expatriate residents and more wealthy Chinese. Swiss Butchery makes in-house delicacies based on Swiss recipes. Its newest store includes an experience centre, combining butchery, grill corner, take-out meals and a cooking academy.
