Australian products sold to China could soon come under a “one brand, one logo” labelling strategy as exporting deals ramp up following the recent free trade agreement.
The new campaign — led by Australian mining and agriculture magnate Andrew “Twiggy” Forrest — would see all Australian food products — including beef, vegetables, cheese, wine and high-end condiments — sold to China marketed as “Australian” as opposed to their individual branding.
Along with umbrella marketing, the labels are designed to be counterfeit-proof so that quality-conscious Chinese consumers know where they’re product is sourced from.
According the Sydney Morning Herald, while industry have praised the strategy, there are concerns that if it isn’t implemented within 18 to 24 months, Australia could lose out to competing markets such as Brazil and Uruguay.
Twiggy’s strategy, which he says is “significant breakthrough”, is expected to directly compete with the Kiwi’s “100% Pure New Zealand”.
“Both parties know, and now acknowledge, that an opt-in unified brand – one that sells safe, clean, green Australia and one that is underpinned by the world’s best traceability technology – is indeed worth the risk,” he said at the National Farmers Federation Annual Congress.
“We have got to cut through the confusion … states are fighting territories and other states on branding, governments compete with companies on messaging, and there are a multitude of different logos, and that might work in our local supermarkets, but it doesn’t work overseas.”
This comes after news yesterday that the Bega Cheese and Blackmores’ partnership to sell baby formula to China hasn’t been the instant success the companies had expected it to be.
Chris Pash reported that sales haven’t materialised as forecast when the joint venture started in January and the partnership has also hit strong headwinds in the Australia market.
Yesterday Bega shares were down more than 13% to $5.64. Read more on that here.
The Sydney Morning Herald has more.