GRAPEFRUIT: A BIT OF FLORIDA IN EVERY BITE

Jacob Brennan

Jonathan Draper

Nam Nguyen

Keyana Robertson

PRESENTATION OVERVIEW

• Grapefruit Issues• SWOT• Chinese Demographic Opportunities/ Xiao Kang• Chinese Perception of Foreign Fruit• Consumption Preferences: Health, Gifting, Traditional Medicine• China Penetration Strategy Timeline/ Budget• Closing

ISSUES

Citrus industry struggling with citrus greening disease

Prescription medication interactions

SWOT - INTERNALSTRENGTHS

• Size• Sweeter Taste• Thinner Peel• Fresh from Florida Perception• Shelf Life• Existing Supply Chain

WEAKNESSES

• Declining Appearance• Greening• Limited Supply• Reduced Plantings• Drug Interactions

SWOT - EXTERNALOPPORTUNITIES

• Healthy Perception• Increasing Fruit Consumption• Imported Citrus Preference• Xiao Kang• Trending Fruit

THREATS

• Crowded Market• High Cost• Chinese Tariffs• Counterfeiting• Exchange Rates

COMPETITORS: FRUIT SPACE

GrapefruitCalifornia GrapefruitTexas GrapefruitIsraeli GrapefruitSouth African Grapefruit (Late Season)Pumelo

Other FruitAustralian cherries Mexican avocadoes Taiwanese custard apples US Apples Australian citrus Domestic kiwis Chilean cherries

DEMOGRAPHIC OPPORTUNITIES

XIAO KANG• Xiao Kang: Rising middle class

Chinese family working for joint ventures or wholly-owned foreign companies• owners of private enterprise, • self-employed• top managers of township

enterprises

• Health-Conscious Megatrend

DEMOGRAPHIC OPPORTUNITIES• 55.6% of total population is

considered urban • Major urban areas:

• Shanghai • Beijing• Chongqing • Guangdong• Tianjin• Shenzhen

GEOGRAPHIC OPPORTUNITIES

DEMOGRAPHIC OPPORTUNITIES

2012 2013 2014 $10

$12

$14

$16

$18 China's GDP and Per Captia Income

GDP (Trillions) GDP per Capital (Thousands)

FOCUS GROUP:HEALTH PREFERENCE

• A Baidu Baike search for grapefruit reveals the health-conscious megatrend of Xiao Kang.

• Many health-related terms on the Baidu grapefruit page:• “disease prevention”• “conducive to skin health and beauty”• “strengthen the skin pores function”• “grapefruit diet”

• Our interview with Chinese students demonstrated interest in the "grapefruit diet" aspect of grapefruit health effects.

FOCUS GROUP:GIFTING CULTURE

• Our interviews with Chinese students demonstrate that gifting is a large element of Chinese culture and Chinese love gifting nice fruits

• Imported fruit typical gift during festivals, visits with elderly, and hospital visits

• "Cherries have become a premium gift. But some sellers say even though cherry imports are at their height this year, they’re no longer the hot luxury fruit they were just last year"

• We believe this is a perfect opportunity for Florida grapefruit as the "next hot Chinese fruit"

FOCUS GROUP:TRADITIONAL HEALTH

• Yin and Yang Concept has important role in Chinese culture.

• Yin: Water, Cold, Stillness, and Weakness

• Yang: Fire, Heat, Movement, and Potency

• Grapefruit is cooling fruit representing Yin

• Desirable and Marketable for health perspective

TIMELINE

Year 1 – 3:Focus on E-tailers, Shanghai FTZ, Hong Kong, and Macau

Register groves with China

Develop partnerships with distributors

Year 4 – 5:Launch Fresh From Florida Marketing Campaign

EXPORT VOLUME

2011 2012 2013 20140

100

200

300

400

500

600

700

800

Grapefruit Export Volume to China

Florida South Africa

2011 2012 2013 20140

1000

2000

3000

4000

5000

6000

Grapefruit Export Volume to Japan

Florida South Africa

2011 2012 2013 20140

100

200

300

400

500

600

Grapefruit Export Volume to South Korea

Florida South Africa

2011 2012 2013 20140

50

100

150

200

250

300

350

Grapefruit Export Volume to Hong Kong

Florida South Africa

2011 2012 2013 20140

1000

2000

3000

4000

5000

6000

Grapefruit Export Volume to Japan

Florida South Africa

2011 2012 2013 20140

100

200

300

400

500

600

Grapefruit Export Volume to South Korea

Florida South Africa

2011 2012 2013 20140

50

100

150

200

250

300

350

Grapefruit Export Volume to Hong Kong

Florida South Africa

2011 2012 2013 20140

100

200

300

400

500

600

700

800

Grapefruit Export Volume to China

Florida South Africa

BUDGET

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

MARKETING $40,000 $80,000 $300,000 $400,000 $600,000

VOLUME 34 74 105 220 400

CONCLUSION

• Florida grapefruit in China represents a perfect marketing opportunity for Florida Citrus

• China is a wealthy, urbanized, age-diverse country that is untapped by Florida grapefruit

• Chinese demand for imported fruit is increasing• 5 Year Plan includes multilayered effort including connecting with

CAWA, selling in the Shanghai FTZ, marketing to multiple Chinese age groups