Chilean cherries: new strategy for China, USA and India between sport and health

The specialist outlines the new strategic focus in China, which includes a connection between cherries and winter sports. This year, a partnership was also launched with distributors and importers to support financing. She also highlights the new way of working in the United States and the progress made in India.

The 2024–2025 season was practically in its final days when the Cherry Committee activated the measures needed to face the coming season, which was about to officially begin. The goal was to prepare for the country’s increasing volumes which, although not doubling this year, would still reach around 131 million boxes.

Claudia Soler, executive director of the Cherry Committee of Fruits of Chile, explains that the first step in designing the strategy for the season was to carry out a detailed diagnosis to understand what had happened. “We wanted to identify which factors had had an influence, and which ones the Committee could act upon to implement preparatory activities for the season,” she says in an exclusive interview with Revista del Campo.

Objectives and communication

—Based on that diagnosis, what strategy did you develop?

—We defined four objectives. The first: rebuild consumer trust in the product. The second: maintain the premium positioning of our cherries, because a sharp price drop can clearly undermine it. Let’s not forget that for Chinese consumers this is a premium product, something they gift to loved ones, bosses and friends for Chinese New Year, and no one wants to give a gift perceived as low-value. The third objective is to attract new consumers and then increase consumption among existing ones, because this is an industry that continues to grow and invest.

—What work have you done to rebuild consumer trust in the brand?

This is part of the brand strategy and communication efforts, which account for around 18% of the budget, with the aim of reinforcing prestige and image. We found that although we already had well-developed relationships with Chinese Customs, this was not the case with the Ministry of Commerce, the authorities, or the Market Authority; having those relationships can help handle possible negative news in the future.

“Another area where we worked extensively is communication, aiming to educate consumers. For example, we produced a video specifically targeted at end consumers to explain the role of modified-atmosphere bags: no chemicals are injected; it is the bag’s own material that ‘puts the cherry to sleep,’ allowing it to arrive in better condition.”

Education and quality

We also carried out educational efforts about quality, product safety and Chile in general, explaining how things are done here.

We will produce a documentary for CCTV, China’s main state-owned and highly influential television network. A Chinese actress with millions of followers will take part: we will produce the documentary and later release clips showing the entire process, from harvest to final consumption.”

Soler highlights that for Chinese consumers, safety and quality are essential. “For the Chinese, the fact that the product, all fruit but especially something expensive like this, is fresh is extremely important. This is why in restaurants you choose fish from aquariums to demonstrate freshness. Cherries cannot be harvested on the spot, which is why they are packed in bags and refrigerated.”

—Another important element for the Chinese is nutrition.

—Yes, this is the second pillar of our strategy. Here we are allocating resources to research to scientifically support the functional benefits of cherries. This is useful both for educational campaigns and to differentiate the product by making its benefits tangible.

Research and promotion

“Chinese Customs is extremely demanding. Any change requires a study. Moreover, if you want to use health claims in promotion, you need Chinese scientific research. A study from another country is not sufficient.

Last year we began this work with a nutritional analysis that identified several components. We will continue, because cherries have characteristics such as a low glycemic index, high potassium content, melatonin and other positive compounds that distinguish them from other fruits and make the benefits of consumption more tangible.

Chinese consumers care a lot about this. In general, they seek healthy products. At breakfast in China, you will always find a plate of fruit on the table: they associate it with health.”

—With ever-growing volume, increasing demand becomes essential.

—A significant part of the promotional budget goes toward stimulating demand. And this year we will do something a bit different.

“The issue is that huge volumes arrive in China in January, a period with no major holidays. It is therefore necessary to promote an everyday, snack-like consumption. We want to strengthen the link between cherry consumption and winter sports. This is why we will participate in activities such as the Ice and Snow Festival in the north. Winter sports are strongly supported by the government, which invests heavily in this sector, and they are practiced nationwide, including indoors. We want to associate this healthy product with a sport that, while premium, is very popular, such as skiing, and strongly connected to our target audience. We want to create this link with daily consumption, promoting nutrition and health in relation to sports. No one had ever linked cherries with winter sports, which coincide with our season, and this is a segment willing to invest.”

Target and emerging segments

—But is this segment large enough to increase consumption and consumers?

—We are talking about a population interested in winter sports that has grown 28% in recent years. Around 520 million people are interested in winter-related activities. It is a well-resourced, premium-leaning segment.

—But cherries sell mainly in the south, while winter activities are more common in the north…

—When we presented the idea, even our partners found it hard to believe, saying: “How can we focus on the north?”

“Today we have 21 retailers or e-commerce platforms willing to participate and invest in the promotion, in addition to our own investment.”

—What kind of activities?

—The idea is to carry out a launch in one of the major ski resorts in the north, and then launch simultaneous initiatives across other cities, as a roadshow.

“There will be two types of activities: some in ski resorts with a main store, and others directly in points of sale, with POS materials. There will be banners, contests, giveaways, all tied to snow sports.”

Partnerships and promotion

—Does this imply an increase in the budget?

—We have a slightly smaller budget than last year. But the difference is that, aside from our own resources, retailers are also investing: there is a shared commitment to develop the category. Wholesale markets are also participating. Ultimately, we are all pushing during this period.

—And for the rest of the season?

—We have three promotional periods under the message “Let’s enjoy the experience of Chilean cherries every day,” with three focuses: the first is January, with the earliest arrivals, aimed at generating interest and educating consumers, especially about nutritional value; then the peak period (weeks 52–54), where we leverage winter sports to create urgency to purchase; and finally Chinese New Year (weeks 5–8), more oriented toward gifting and reinforcing the premium character. Each phase will have dedicated materials. With all this, we expect a better year and season.

—There has long been talk of growth in inland Chinese cities…

—We are focusing heavily on second- and third-tier cities, where most promotional investment will be allocated. We will work in 29 cities. In first-tier cities —where cherries are already known and consumed— we will allocate 23% of the investment, because the potential for new consumers is limited; the goal there is to increase consumption frequency among existing buyers. We then focus on rapidly developing cities, potentially relevant cities and new markets to explore.

Trade and relationships

“In Shanghai and Hong Kong we presented the promotional plan. In Shanghai, many wholesale markets from second- and third-tier cities attended, along with several smaller retailers. We integrated two conferences with two academics: one on last-mile and quality assurance in the final stages of the supply chain; the other on nutrition and the benefits of cherries.”

—All this concerns consumption, but what about importers and distributors?

—As far as trade is concerned, these actions help strengthen relationships with importers, distributors and supermarkets, to be seen as strategic partners. The plan was structured throughout the year; we presented it, met with importers, hotel groups, wholesale markets, exporters’ representatives, and industry stakeholders in Chile… it is a shared plan developed collaboratively. They also suffered last year.

—And producers?

—We participated in several activities with producers, working to convey market requirements. We explained that we need to generate repeat purchases. The consumption experience must be extraordinary. The consumer must buy once, then buy again, and continue doing so.

“This experience must be perfect from day 1 until the end of the season: with such a short season and such significant volume, what happens at the beginning affects everything else.”

Expansion in other markets

Growth in the United States

—And regarding the opening or development of new markets, such as the United States?

—It was somewhat unfair what happened last year. It was said that the Committee was not investing in other markets, but we have been investing for years in alternative markets. The issue is that industry growth over the past ten years has averaged 25%, while non-China market growth has been around 15%. Clearly, diversification is growing more slowly than production, and China absorbs everything.

So people ask: “Why don’t you diversify?” But we cannot simply send 80 million boxes or 10 or 5 million to the United States overnight.

—How do you grow in the United States?

—Americans consume a lot of cherries in summer. We are working to make the North American consumer aware that cherries are also available in winter, and that they can buy them, because this is not a habit. We will continue this work, investing around 1 million dollars (about 930,000 euros). But it must be done gradually, without saturating the market.

—So there will be a campaign?

—This year we made a significant leap in the United States. Until now, we worked with a smaller agency; now we will work with the agency that manages grape promotion. Looking for synergies, of course, but it is also a larger agency that presented campaign concepts evaluated with quantitative and qualitative tests to measure impact on end consumers.

We are doing things more similarly to China, trying to further develop the market. And producers need to understand that the United States can be an attractive market.

Moreover, this year there should be two fast-ship services —Blueberries— before Christmas and New Year, headed to the United States, which will also carry cherries; this could help reduce pressure on China. There are also other consumption occasions in the US, such as Valentine’s Day.

Asia and future prospects

—Korea is interesting.

—It has strong potential. After China and the US, it is the third-largest consumption market. Last year it consumed around 6,620 tonnes. It’s growing and is a market we are heavily focusing on, especially to highlight the health benefits of cherries. The online channel is growing significantly. We held a seminar, met with importers and e-commerce companies, presented the campaign, and it is a market we will continue working on.

—A campaign similar to China?

—Different, because in Korea cherries are not considered a gift. Other products are given as gifts. Moreover, they compete with local strawberries. But it is a market where we are trying to promote cherries as a premium snack, highlighting their health benefits.

—Other countries in Asia?

—In Indonesia, there is an issue related to cold treatment, handled at the association level rather than by the Committee, because Chile is not classified as a fruit fly-free country.

“There is also Thailand, where Chinese investments are being made. A specific cherry-handling facility is being built, and shipping operations are also underway. Thailand could become a development hub for ASEAN, because from there you can reach Vietnam, Cambodia and other countries. I believe a hub could be created there to absorb part of our increasing volume.”

India growing closer

—And India?

—The Indian market is particular. There are still logistical challenges, cold chain issues and infrastructure limitations, but if it develops it could be very attractive.

The issue is that cherries arrive after a 50-day journey. A Cherry Express would be needed, but we cannot launch one until demand is more developed. What we did manage to secure is the arrival of at least one ship this year: a Costco vessel, normally destined for China, which will then continue on to India. It could arrive in 36 days: if the fruit arrives in good condition, the market could begin to consolidate, and there could be two or three ships. Another useful element is the land-air combinations through Argentina.

—So can we look at this season with confidence?

—I believe so. At least from the Committee’s side, there is the confidence of having prepared properly and ahead of time. We carry out many studies, so there is a large amount of supporting data. Every activity is well shared and well coordinated.

Patricia Vildósola Errázuriz
El Mercurio – Revista Rurale

Image source: C&L Fruit

Cherry Times – All rights reserved