Freshmax has announced that it is purchasing its joint venture partner (JV), Southern Produce, to take full ownership of BerryCo.

Since 2015, Freshmax Group has been in a 50:50 partnership with the Bay of Plenty company. The couple have jointly operated the New Zealand blueberry business, marketing themselves as BerryCo.

The purchase of Southern Produce's 50 percent stake in the business takes effect on October 1, 2021.

As the New Zealand blueberry industry will grow by NZ $ 100 million over the next five years, Freshmax's decision has made clear its commitment to the industry.

“Berryfruit is a core category for our New Zealand business,” said Murray McCallum, chief executive of Freshmax Group. “The joint venture has grown from a start-up to a company with a strong forecast for volume growth.

“Taking full ownership is an exciting step in expanding our presence in this category for New Zealand premium berry growers and supplying our Asian and New Zealand customer base.”

Following the sale of its New Zealand domestic divisions in 2019, Freshmax Group indicated long-term plans to increase its international operations and scale. A considerable volume of BerryCo fruit is already exported to Asia.

Freshmax NZ CEO Andrew Common said the acquisition provides an opportunity to further invest in the soft fruit category and play a bigger role in fostering New Zealand's exceptional soft fruit production.

“Throughout this JV we have led the commercial process, establishing a fantastic following of consumers in New Zealand and Asia. We look forward to expanding this in the coming years.”

Southern Produce Director and CEO Tony Ponder highlighted BerryCo's growth in New Zealand and its performance in export markets as something to be proud of. 

"The business has evolved considerably in recent years and quickly established a track record of delivering value to its customers and growers," Ponder noted.

“Having contributed to its initial growth and market positioning, we are pleased that BerryCo has the ingredients to realize its export potential in Asia, where consumers value premium New Zealand fruit. We look forward to seeing what he achieves next."

Variety development at the fore

BerryCo has played an influential role in New Zealand's berry intellectual property space. In 2017, it acquired exclusive New Zealand rights to the Mountain Blue Orchards (MBO) blueberry varieties of Australia, including the flagship variety Eureka (pictured).

It is a berry that has been well received in Asian markets and will be marketed under a new 'Blue Royal' brand later this season.

MBO's suite of Southern Highbush varieties and others have provided opportunities for New Zealand growers to reinvest in their operations as new varieties are released.

Bred to suit the Australasian climate and for specific food characteristics and flavor, the fruit is adapted to early, mid and late growing harvest windows.

"Intellectual property in all its forms is a very important part of delivering value for both the supply chain and the end consumer," added Common. “BerryCo plays a vital role in delivering value and opportunities for New Zealand growers to share their premium berries on a global stage. We will maintain and expand the work already done in this space ”. 

In addition to having property rights to premium varieties, BerryCo supports local growers with other blueberry varieties, exporting their fruit to the Australian retail market.

It typically exports fruit from New Zealand to Asia between October and March, complementing the northern hemisphere season.

The Freshmax acquisition coincides with the appointment of BerryCo's new CEO, Alice Moore, which begins the business on October 4.

"Alice has extensive experience in the primary sector, from working alongside farmers and producers to achieve sustainable results, to marketing her products globally," Common explained.

Moore has spent the past five years managing Zespri's organic kiwi portfolio. Prior to that, he spent several years in various marketing and commercial positions in the primary sector, including work for Ballance Agri, National Foods, and Summit Quinphos.