Capespan scores supermarket coup in Hong Kong

KongRay Smuts THE CHINESE predilection for food and theatre are key to Capespan's two-pronged citrus campaign to win the hearts and minds of the good folk of Hong Kong. The R5 billion a year fruit marketer is fortunate to have on its side the huge Chinese-owned Park 'n Shop supermarket chain with more than 100 supermarkets in Hong Kong alone, and plans a series of entertaining in-store promotions from mid-June to the end of August. Aided by the first ever Capespan television commercial aired on the island, the campaign aims to sell about 800 000 cartons of Outspan and Goldland citrus and in doing so capitalise on the shortfalls of major California competitor Sunkist. Promotional exclusivity, as Capespan corporate affairs manager Fred Meintjes points out, is prized in the Far East and it certainly helps a great deal when one has an important player like Park 'n Shop, which operates about 75% of Hong Kong's supermarkets, on one's side. Christo Botha, Capespan citrus business unit's general manager for the Middle East, Far East and North America, recently accompanied Meintjes to the Fruit Asia exposition in Hong Kong and believes things are not looking that bad for Far East trade from a South African perspective in the year ahead. "I am optimistic about returns because of the market situation. Last year around March/April the market was flooded with Spanish and Moroccan citrus and it was a real mess for us. This year, however, Spain is down 21%, Morocco 16% and so is California." Welcoming the recent formation of the new producers' co-operative Citrus Southern Africa (CSA) - it already enjoys support of 85% of growers - which he believes will instil a greater degree of 'order' in the industry to the benefit of all, Meintjes is loathe to come up with predictions as to how citrus exports will fare this season. "It looks good but nobody can know the numbers at this early stage. All the pointers are that the market will be stronger than last year (when around 48 million cartons of citrus were exported for a sales value of R2,5 billion) because of the supply situation around the world, but if you make mistakes you can turn the market on its head in a day.Ó Botha reckons citrus exports will be about the same as last year with Capespan handling just under 50% - about 22-23 million cartons.