1. The vision for PINK LADY ® apples: Best practice technical symposium Pink Lady® Apples © Copyright 2008 The issues we need to address Tuesday 2 nd of June Renaud Pierson General Manager STAR FRUITS Diffusion - Europe

2. THE ISSUES WE NEED TO ADDRESS PINK LADY ® apple position in Europe: A significant business A high recognition by consumers What the market expects: The right quality For the right quantity With the right product At the correct moment With the correct branding Conclusion

3. THE ISSUES WE NEED TO ADDRESS PINK LADY ® apple position in Europe: A significant business A high recognition by consumers

4. PINK LADY ®, a very significant value in the European apple supply A constant growing business for European and Southern Hemisphere suppliers While importation of apples in the EU decline, One apple every 5 apples imported into the EU was a PINK LADY ® apple in 2014.

5. PINK LADY ®, a very significant value in the European apple supply A serious value of more than M€ 350 in 2014/2015, … but, a very high responsibility for all program participants in the supply chain, from individual Growers to authorized Distributors

6. PINK LADY ®, THE MOST POPULAR BRAND GERMANY DENMARK With just 15 years of presence in the market and less than 5% market share Which means a high quality expectation from the consumers... 2013 results

7. THE ISSUES WE NEED TO ADDRESS What the market expects: The right quality For the right quantity With the right product At the correct moment With the correct branding

8. What the market expects: The right quality product PINK LADY ® apples must comply with brand specifications and, before all, effectively meet final customers expectations The high difference in retail prices with other apples and stone fruits, makes compulsory the irreproachable quality of PINK LADY ® : Example: 3,69 -4,00 €/kg in France 2,49-2,99 € - 6 fruits foodtainers in Germany 1/3

9. Management of the shelf Self service distribution at retailers level High competition of fruits Slow turnover of products Deterioration of product with summer temperatures 9 Pink Lady® Apples © Copyright 2008 What the market expects: The right quality product 2/3 Consequences Consumers choose the best looking fruits. Concentration of fruits with defects and low colour

10.  Why opting for R4 blush ?  Why not waxing for some markets (Europe & UK notably) ? 10 Pink Lady® Apples © Copyright 2008 What the market expects: The right quality product Result from a consumer survey: Location: Denmark, France, Germany and Thailand R4 looks to be the best compromise to achieve a threshold of 50 % satisfaction of the consumers interviewed, without increasing the minimum coloration. Wax creates rejection in Europe FranceGermanyDenmarkThailand IntensityR4 R7 (R6 if waxed) Surface60%40% 60% Lustring / Wax = / -- / - = / + 3/3

11. A market caped at 3.000 / 3.500 tons per weeks What the market expects: For the right quantity The market looks to have “natural limits” (competition with summer fruits, retail price, longer presence in May/June in the future of European PINK LADY ®, …) But opportunities to grow still exist: 1- With high quality fruits in the shops => better selection & supply management 2- At the end of the SH season from mid of August => long storage practices

12. What the market expects: With the right product « Ideal » average size per market Fruit size (number of fruits per 18 kg boxes) Market importance (% of sales) Tree management and shipping strategies according to fruit size must consider the markets targeted and… markets capacities.

13. Important time lag between shipping by exporters and market needs and capacities What the market expects: At the right moment 1- Fruits must be shipped according to sales programs 2- Storage at source is always better than in “logistic” cool store at the arrival 3- First pick is always better for long storage (VS “First picked / first shipped” or “Pick, pack and ship” policies) 4- Fruits sold after August 1 st must come from CA storage

14. What the market expects: With the correct branding The packaging is the support of the brand and the best vehicle to promote the product and to facilitate buyers and consumers instant recognition.

15. Conclusion: Hope those two days will help you to better design your strategies from planting the correct trees, to shipping the right quality product. Wish you a fruitful symposium.

16. Pink Lady® Apples © Copyright Thank you for your attention

17. Pink Lady® Apples © Copyright 2008