Farmers prepare counter-proposal to Dawn Meats deal
With the Alliance board starting a series of roadshows next week to sell the Dawn Meats deal to shareholders, a group of farmers is working on a counter proposal.
Shipments from later this month will be supported by a promotional campaign to boost demand among consumers, retail outlets and chefs. It will also raise awareness about New Zealand red meat and showcase the best ways to prepare the product.
Alliance will market the product as super-premium in high-end supermarkets, online through its in-market partner Wessel, top-end restaurants and five star hotels. It will also be focusing on top-end franchise operations.
Murray Brown, general manager, marketing, says the promotional campaign will include in-market presentations to the retail sector, chefs and media, taste testing, sales-force education and advertising.
"A major focus will be required to raise awareness and help educate Brazilian consumers about the benefits of eating New Zealand lamb," says Brown. "Our in market partner Istvan Wessel will also help us connect with decision makers through his influential daily food radio show.
"Brazil is the sixth largest economy in the world and the hub for South American business. Lamb is seen as niche in the top end retail/food service and the product range is high value and rack-driven.
"In the next few years, the Brazilian Government is investing heavily in the country's infrastructure to cater for the influx of visitors for the 2014 Football World Cup and the 2016 Olympics so naturally Alliance Group wants to leverage this opportunity."
The company's commercial trial in top-end retail and the food service sector in Sao Paulo last November had been successful, he says. "There was a demand for top end cuts, particularly racks, boneless middles, legs and fores. We were also satisfied with how our in market partner's business philosophy in branding and top end positioning complements our marketing philosophy. Both companies are committed to the development of New Zealand lamb into Brazil."
Brown says: "As is the case with emerging markets, the trial provided many insights and the learning curve was steep. We have also developed increased knowledge and additional in market contacts."
Although the development of the Brazilian market will take time, the South American country offered significant opportunities. "We recognise this market will require perseverance, patience and understanding, however this represents an investment in the future. Brazil has emerged as a major economic player and the country's growing middle class is eager to consume products such as Pure South lamb.
"With the economic shift from the West to the East, Alliance Group has identified the need to position itself for the future and is investing considerable time and resource in growing our presence in the BRIC economies, Brazil, Russia, India and China."
