Zespri, the global leader in kiwifruit, is collaborating with industry members to innovate and tackle sustainability concerns from the farm to the table. 

The New Zealand-based company has launched ZAG, an innovation fund focusing on four areas: people, communities, the environment, and fruit. 

Jiunn Shih, Zespri's Chief Marketing, Innovation, and Sustainability Officer, spoke with Freshfruitportal.com at this year's Fruit Logistica about the project and the future demand for kiwifruit. 

Shih said the fund, which has received 124 applications since its creation in November 2023, was created to recruit thinkers and innovators to join the company and tackle challenges in the four focus areas. 

Of these applications, 11 pilot projects are already in process from various countries.

"We have a new microwave sensing technology from a company in the Netherlands that allows us to detect the maturity of the fruit without being invasive," Shih said, offering an example. "That allows us to better plan our inventory without generating waste."

He also mentioned an innovation in algorithm models that detect volatile organic compounds to determine the optimal fruit harvest time. This method has never been applied to kiwis. 

"Our vision towards sustainability is greater than our capabilities, so we are asking other innovators to join us, but we are very excited," Shih said. 

Another Dutch company that works with sustainable packaging is turning kiwifruit waste into packaging material, and Zespri is "already looking into this."

Opportunities for growth in the industry

Discussing his view on the industry's future and the growth in production and exports of certain kiwifruit varieties, Shih said there is significant and rising demand for kiwifruit in the market. 

Even though household penetration remains lower than most fruit staples like apples, bananas and citrus, he said it is a trendy choice for health-conscious consumers looking for an easy snack.

"We are on the right side of these trends, and we are seeing that in our core markets, there is still untapped demand, with very big opportunities," Shih indicated. 

He noted that 15 markets represent over 80% of the company's sales, but it has, on average, less than one-third of household penetration in these markets. 

Kiwifruit consumption has grown significantly over the past 15 years, and the company also educates consumers about it to increase demand. 

"It takes time to educate the consumer, especially in some markets where it is new," Shih said. "One of the things that helps us is our brand-building investments, which bring more companies into our sector and grow the entire category."

A commitment to quality

Shih said the company must start by delivering an excellent fruit experience for consumers to penetrate these households and this untapped demand. 

"We must continue to deliver the same quality fruit, and once we do that, we continuously create demand ahead of supply," he said. 

This is the company's strategy for maintaining a balance in production, creating better returns for all partners. 

RubyRed on the rise

With the projected growth in the company's RubyRed variety this year, from 1.5 million trays to over 3 million trays, Zespri is exploring new opportunities. 

Apart from opening new markets, it creates an earlier entry window in export markets as it is harvested before Zespri Green and SunGold.

Even its shorter shelf life is seen as an opportunity to make it a limited-edition product. Additionally, "it is recruiting a demographic that is likely younger, which is a great complement for our portfolio," Shih said. 

Related article: Volumes of Zespri's RubyRed Kiwifruit to double this season