Alliance Group, a New Zealand-based meat cooperative, has taken a 10.4% stake in QualityNZ, a local business set up to export products from the country to India.
Other shareholders in QualityNZ include former New Zealand cricketers Sir Richard Hadlee, Stephen Fleming, Daniel Vettori and Brendon McCullum. Terms behind the deal have not been disclosed.
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Invercargill-based Alliance Group is owned by more than 4,000 farmer shareholders and exports lamb, beef, venison and co-products to customers in more than 65 countries.
QualityNZ supplies New Zealand red meat, seafood and wine to India.
Alliance Group has been the exclusive supplier of New Zealand red meat to QualityNZ since the company’s inception seven years ago, with the co-operative’s ‘Pure South’ lamb on the menu at more than 340 five-star hotels and restaurants across 25 cities in India.
Its chief executive David Surveyor said: “This investment in QualityNZ is consistent with the co-operative’s strategy of moving up the value chain and having an in-market presence in key regions.
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By GlobalData“India’s fast-growing middle and upper classes have a real appetite for New Zealand lamb and value the Pure South story of grass-fed red meat produced naturally.
“We are targeting the higher socio-economic category, which is represented by more than 200 million people. It is estimated this number is expected to grow strongly within the next decade and India is forecast to soon exceed China’s GDP.”
Surveyor added: “The deal will provide us with deeper connections to this important market and lift Alliance’s visibility and engagement across all steps of the supply chain.
“It will also enable Alliance to effectively get in on the ‘ground floor’ of a country which one day will be the next China. For us, this is an investment for the long-term.”
Geoff Allott, CEO of QualityNZ, said: “Alliance Group and QualityNZ have formed a proven partnership over the past seven years. This investment is a natural next step to drive further growth in India and will improve the returns and add value to both businesses.
“QualityNZ has been focused on introducing Pure South lamb into the five-star hotel market, but is also making strong inroads into the restaurant, catering, organised retail and e-commerce channels.”
