In upscale Delhi, New Zealand kiwifruit sells for Singapore prices. Zespri wants in
Trade minister Todd McClay has been bullish about the Indian market for New Zealand's kiwifruit growers.
Zespri has its eyes on 20 million wealthy Indian households willing to pay premium prices for New Zealand fruit.
India's sizeable population of wealthy consumers is whetting the appetite of New Zealand food exporters such as Zespri.
The attraction is evident in the prices some Indian shoppers are prepared to pay. At an upscale supermarket in Delhi, New Zealand kiwifruit is selling for prices comparable to those in Singapore.
The comparison is particularly striking given the vast economic disparity between the two countries. Last year, World Bank pegged India's GDP per capita nearly 37 times lower than Singapore.
At Food Stories, an upmarket supermarket in the New Delhi's Vasant Kunj neighbourhood, Zespri SunGold kiwifruit was selling for approximately NZ$2.63 apiece.
In Singapore, the same variety was advertised for about NZ$2.42 per fruit at Cold Storage and NZ$3.08 for a jumbo-sized fruit at FairPrice. For Zespri, the significance goes well beyond a handful of expensive supermarkets.
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The New Zealand kiwifruit marketer estimates millions of Indian households have the purchasing power to buy its premium fruit, representing a substantial potential customer base despite the country's relatively low average economic output per person.
"We have 20 million households across India that can shop at this level that we could tap into once we can access them," Zespri's head of Asia-Pacific South Himanshu Arora told Farmers Weekly.
"But at present we can only invest in five cities. Soon that will grow to 10, then 20 and beyond."
The expansion plans come as the India–New Zealand free trade agreement improves access for Kiwi kiwifruit exporters. The agreement doubles the annual tariff-free quota from 15,000 to 30,000 tonnes and halves the tariff on imports above that limit to 16.5 per cent.
The improved trading conditions could help Zespri reach more Indian consumers, although the company's ambitions extend beyond the benefits of lower import duties.
Retail prices vary considerably within India itself. Delhi-based premium fruit retailer Frugivore has advertised Zespri SunGold for approximately NZ$1.68 each, while grocery delivery platform Blinkit listed the fruit for around NZ$1.34 apiece.
The prices differ according to retailer, packaging and fruit size, illustrating the range of market segments available to Zespri, from wealthy supermarket customers to more price-conscious consumers.
Beyond luxury supermarkets
Zespri's ambitions are not confined to affluent shoppers browsing premium grocery stores. Traditional street vendors remain central to its India strategy, reflecting how most Indians buy their fresh fruit.
Arora told Farmers Weekly that street retailers account for approximately 85 per cent of fruit sales in India. A standard four-pack of SunGold typically sells for around NZ$5.63 through these outlets, equivalent to NZ$1.41 per fruit.
To reach these customers, Zespri has expanded its network of participating street vendors from 400 to 2,500 across New Delhi, Mumbai, Bengaluru, Hyderabad and Ahmedabad.
The expansion is part of Project Sunrise, an initiative designed to strengthen the company's presence in India's traditional fruit markets. Participating vendors receive regular visits from Zespri representatives during the peak New Zealand kiwifruit season, while selected outlets serve as brand ambassadors, displaying Zespri branding and promotional material.
The strategy is already delivering growth. Arora said Zespri's SunGold sales in India increased 48 per cent last year, followed by a further 18 per cent this year, compared with global growth of 10.2 per cent.
India currently accounts for about 1.5 million trays of Zespri kiwifruit, split roughly equally between SunGold and Green varieties.
For Zespri, the attraction lies in the spending power of millions of Indian households and the prospect of reaching them through an expanding distribution network.
