Berryfruit blooms in Japan

“Don’t treat it like another country to sell commodities into or you won’t do justice to the opportunity.”

Mr Dobson is the General Manager of Horticulture Marketing, who, together with Just the Berries Ltd, formed joint venture company New Zealand Berryfruit Group in 2004 to achieve a premium price for New Zealand blackcurrants in Japan, targeting the functional food and neutraceutical markets.

The two partners brought their complementary expertise to the venture – Horticulture Marketing had been selling blackcurrants internationally since 1994, while Just the Berries, a powder manufacturer focusing on blackcurrants, had the scientific knowledge and manufacturing know-how to take blackcurrants out of the commodity basket and up the value chain.

Both partners shared a deep understanding of the Japanese market.

Just the Berries’ Director of Product Development Dr Eddie Shiojima is Japanese and is acknowledged as one of the world’s experts on blackcurrants in terms of their health benefits for the human body.

“Dr Shijoma had a huge bearing on our successful entry into Japan,” says Mr Dobson.

“He understood what the Japanese were looking for and had the connections in the right places. He did a lot of early groundwork cultivating relationships and opening the door to some strategic people. When we actually entered the market in 2004 these people were convinced we had a superior blackcurrant product and the market was warmed up for us.”

Mr Dobson says having people involved in your business who understand how the Japanese do business is imperative.

“I’ve also had more than 15 years export experience in Japan. I understand the Japanese attention to detail, their requirement for us to know our product really well and to be able to help them develop it into products for the consumer – which is quite different to selling a commodity.”

To accelerate its success in Japan NZBG opened an office in the New Zealand Business Centre in Tokyo in 2006. The Business Centre is part of New Zealand Trade and Enterprise’s Beachheads programme and Mr Dobson says this association with a government agency has given it valuable credibility and linkages.

NZBG’s work received a massive boost in 2006 when Meiji Seika Kaisha Ltd, a large blue chip food company that has had a long association with Dr Shiojima, decided to promote New Zealand blackcurrant products, developing a range of supplements and a functional drink.

Despite early successes and sales growth, Mr Dobson says gaining and consolidating market penetration will require considerable commitment for some time. In addition the research and development required to support the push into the functional foods and neutraceutical markets is going to require ongoing capability building.

“I think what most New Zealand firms misjudge about Japan is that you need more time and more resources than in other markets to establish your business. But it’s an extremely wealthy market, and as long as you are prepared to stay there and do the hard yards, and if you’ve got the right products and are doing the right things, you will be successful.”

Originally published on the NZTE website in June 2008.

More information

www.blackcurrants.co.jp