Europe's premium food markets are protected by tariffs and dominated by established brands. Macadamias Direct, based in Byron Bay, New South Wales, has developed a strategy to position Australian macadamias in these markets by partnering with distributors and investing in technology.
"By partnering with a premium food distributor, we can communicate directly with high-paying customers," says Steve Dubber, Commercial Manager, Macadamias Direct. "We know the exact kind of nut they want, the shape they want, and the way they want it roasted. This means we keep Australian nuts at the premium end of the market while other growers sell at a discount."
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Macadamia nuts originated in Australia's rainforests 60 million years ago and remain the only native Australian food crop traded internationally as a commercial product. Macadamias Direct farms, processes, and markets bulk volumes, sourcing nuts from Nambucca Heads in the south to Rockhampton in the north. The company has invested in artificial intelligence and infrared scanning to sort and grade macadamias, with a processing facility aiming to handle up to 10,000 metric tons of nut-in-shell per year.
Dubber notes that African exporters have a tariff advantage in Europe, dominating the snack sector. "To grow, we needed to reinvent macadamias for European customers. We needed to work out a point of difference. So, we asked ourselves the question: 'What is going to make our macadamias the leaders in Europe?' To answer that question, we needed to start a customer conversation. And to do that, we needed a partner who could connect us directly to a new, premium customer segment."
Since 2018, the company has worked with specialty wholesalers and distributors. "Specialty wholesalers can tell us what's selling well and where," says Dubber. "They can tell us which customers care about traceability and authenticity." This approach has allowed Macadamias Direct to gradually increase sales in Europe's premium market.
Austrade has supported the company with market insights, introductions, and brand promotion. Dubber says, "Austrade's Prague-based advisor has been a great facilitator. She helped us understand the market and talked through opportunities. She also helped us forge connections at SIAL Paris, which is a biennial food and drinks show. And she instigated direct conversations with potential customers."
Pavlina Eliasova, Business Development Manager at Austrade, adds that European consumer spending on nuts has risen by 7% year-on-year. "Major retailers such as Lidl, Albert, and Billa are increasingly developing health/free-from/premium food sections in-store. This is where premium Czech consumers can discover new health foods like macadamias."
For more information:
Australian Trade and Investment Commission
Tel: +61 2 9392 2873
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www.austrade.gov.au