AUSTRALIA is currently in discussions with leading convenience stores in the country, as it makes a push for greater share of the fresh-fruit market in the country.
This developed as the Philippine Amalgamated Supermarket Association (PAGASA) said that, although it has yet to be approached by the Australian government, some of its members would be interested in introducing Australian fresh fruits in their supermarkets.
Australian Trade (AusTrade) Commission Minister Counselor and Senior Trade Commissioner Anthony Weymouth said they are looking at expanding the presence of Australian stonefruits and table grapes beyond Metro Manila supermarkets.
“We are looking to have them available in July in convenience stores,” Weymouth said, while specifically citing both the 7-Eleven and Mini Stop chains.
Now on its third year, Australia’s “Now In Season Australia” is making available fresh fruits in 120 branches of S&R, SM Supermarket, SM Hypermart, Robinsons Supermarket, Rustan’s Fresh, Rustan’s Supermarket, Rustan’s Marketplace and Shopwise.
Weymouth said AusTrade does the negotiations with its retail partners for the availability of fresh fruits in their stores on a yearly basis.
“We discuss with them their retail plans and negotiate the terms. We go through the requirements. We provide them the timeframe, point-of-sales materials and promotional activities,” Weymouth said.
The move to have Australian fresh fruits available in convenience stores is based on the belief that there is a growing market for them among Filipinos.
For the year, Weymouth said they are expecting fresh-fruit exports to the Philippines reaching anywhere between $20 million and $25 million. From 2010 to 2015, exports to the country went from next to nothing to $15 million.
“Our pricing is competitive, and we can assure safety and quality,” Weymouth said.
Meanwhile, PAGASA President Steven Cua said once they are approached, Australian fresh fruits can also be made available in some of their supermarkets.
“There will be members that might be interested. We are very value-conscious,” Cua said, while citing that they cater to the B, C, and D markets.
He said having fresh fruits in their supermarkets will come down to logistics concerns.
“These are perishable items. We have to consider shrinkage, pilferage and wastage. It is a logistics and distributions game. Right now, it is summer and the weather is hot. When it is the rainy season, transportation and traffic becomes a concern,” Cua said.
He believes there is a market for imported fruits in the country, because of the increase in disposable income and rise of the middle class.
PAGASA has 45 members, with 160 supermarkets from small towns to key cities across the country.
AusTrade cited the strong Philippine economy and the signing of the Asean-Australia-New Zealand free-trade agreement as main reasons for the growth in export of Australian fresh fruits into the country.
It also cited the Bureau of Plant and Industry-approved improved cold-treatment protocols, which reduced transit time for Australian fresh fruits.
Image credits: Rodel Alzona