Transcript: A video case study on Della Rosa Fresh Foods
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>>David Jamieson: Australia’s diverse agrifood industry currently exports some $35 billion worth of food and beverage items to the world. It’s the next biggest industry export to mining.
Now a huge growth opportunity is currently unfolding in Asia. We have a growing middle class armed with a growing discretionary income and they’re looking to buy more quality imported goods. Projected demand far exceeding what Australia’s agrifood industry could ever hope to supply now or in the future.
Now the downside of this story is that the majority of our agrifood exports are so called ‘bulk commodity products’. They’re typically simply transformed foods that compete largely on price. But of real concern is the fact that Australia is losing marketshare in Asia from competing low cost producers out of places like South America, Africa and China.
So whilst the food and beverage opportunity in Asia has grown by $100 billion in the last seven years, Australia’s share of the pie has pretty much remained the same. So Della Rosa is a great example of a family based Australian company that is quite new to export but having great success on the local Australian market have now, because of the quality of their products, turned a lot of heads in markets like China, Taiwan and now Japan.
>>Emilio De Lorso: We are a company who have a lot of potential to develop a product in the region. So we are the first company in the region to provide pizzas to China.
>>Luca De Lorso: We really care about our product. We think that gourmet premium product is the only way, but we agree that there is, you know, very much a challenge in developing our brand overseas and we very much like working with our customers, especially metro China. We have sat down and developed strategies going forward.
>>David Jamieson: So three of the biggest challenges that face our agrifood export is targeting the premium end of the market include things like offering your products tailored to local consumers’ tastes and buying behaviours, investing in innovation practices and R&D to create a real unique selling position or point of difference that sets you apart from the competition and, finally, supporting your customers and building a brand with real investment in marketing and promotion.
>>Luca De Lorso: We will be doing many sort of in store demonstrations. We’re training up a team there in how to cook our product, how to market our product.
>>Piero Sgarioto: In terms of our research and development it’s all done in house, especially with the Chinese products. I mean in collaboration with Orlando who pretty much invested most of his time into the Chinese product.
>>Orlando Xie: Everyone sees there is a huge growth in China but nobody actually sees there’s also a huge opportunity for pizza manufacturers to export to China.
>>Piero Sgarioto: Being able to provide that restaurant quality at a retail level, we need those extra sets of hands on the line to create that point of difference.
>>David Jamieson: As Della Rosa have found, it’s not just a case of transferring what you sell in Australia to offshore markets, you actually have to tailor your products to suit local tastes and buying behaviours.
>>Emilio De Lorso: One of the challenges that we had in China was a change of formulation, change the content of salt. Our product has become in China more sweet. Also we find that our product has become more spicy.
>>David Jamieson: Australia’s agrifood industry needs to adjust its focus towards the higher value end of the market, the so-called premium slice of the opportunity.
>>Emilio De Lorso: So today you have to say “Oh is your pizza like the Italian?” Well I have to say that our pizzas, they could be better than the Italian.
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