Europe's premium food markets are hard to break into. The continent is home to some of the finest food brands in the world - and it's protected by hefty tariffs.
One company that's carved a new niche in Europe is Macadamias Direct. With the aid of high-tech horticulture and a partnering strategy, the company has gained a quality edge. It has also redefined Australian macadamias in Europe.
'By partnering with a premium food distributer, 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.'
Australia's native food for 60 million years
Macadamia nuts are indigenous to Australia. They originated 60 million years ago in rainforests on the eastern seaboard of Australia. Today macadamias are the only Australian native food crop to have been developed and traded internationally as a commercial food product.
Macadamias Direct is a farming, processing and bulk-marketing company, based in Byron Bay, New South Wales. The business is growing fast - and it invests heavily in advanced technologies.
According to Dubber, this helps the company maximise quality, reduce costs, and ensure Australian growers are competitive in global markets.
'Our new processing facility aims to process up to 10,000 metric tonnes of nut-in-shell per year,' he says. 'We've spent 2 years introducing artificial intelligence and infra-red scanning into sorting and grading macadamia nuts. This is how we stay ahead in terms of quality control.
'It's important to note we are a regional business,' he adds. 'We process nuts from selected Australian growers, from Nambucca Heads in the south to Rockhampton in the north.'
Tapping into local expertise
Macadamias Direct has always been an export-oriented enterprise. Europe is particularly hard, however. African exporters enjoy a tariff advantage and dominate the snack market.
'To grow, we needed to re-invent macadamias for European customers,' says Dubber. '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.'
A partnership strategy is helping Macadamias Direct to market Australia's indigenous nut to premium markets in Europe.
A partner for premium foodstuffs
Macadamias Direct began working with specialty wholesalers and distributors in 2018 to understand how to differentiate the company's offering.
'Speciality wholesalers can tell us what's selling well and where,' says Dubber. 'They can tell us which customers care about traceability and authenticity.'
Since then, the company has gradually built sales into Europe's premium quality market.
'Working with a partner gives us a direct route to our target market,' says Dubber. 'They are able to connect to customers and educate chefs on how to use macadamias. Through them, we know exactly what our customers want.'
How Austrade helped
Austrade advisors have helped Macadamias Direct at multiple points on the company's journey into premium European food markets.
'I can't spend as much time in Europe as I would like - and that's where Austrade comes in,' says Dubber. '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.'
Dubber also appreciates the branding that Austrade promotes in Europe. The 'clean, green' messaging built into Austrade agrifood marketing helps differentiate Australian goods.
'As a healthy, native Australian product, Austrade's brand promotion plays to our strength,' he says.
Steady growth in premium markets
The partnering strategy has knock-on benefits back home. Premium customers mean high prices and sustainable exports for macadamia nut growers in Australia.
'It might be 5 years before we see huge volumes, but we are getting there,' says Dubber. 'Export volumes are increasing all the time.'
As a trusted supporter, Austrade helps day-to-day with subtle re-positioning and building brand awareness.
'We included Australian macadamias as part of our last wine-tasting event - and it went down very well,' says Pavlina Eliasova, Business Development Manager, Austrade.
'Macadamias Direct demonstrates that Australian producers can break into Europe's premium food markets,' she adds. 'We see growing demand for healthy snacks, with an 7% increase in consumer spending on nuts 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.
'Though still an emerging and lesser-known type of nut, macadamias are starting to gain attention. They appear in recipes on social media emphasising the unique taste, structure and health benefits.'
Seek Austrade assistance
Eliasova says Australian food exporters should look at Europe as a market with challenges and opportunities.
'Austrade is well positioned to assist with market insights and business matching,' she says. 'We can refer Australian exporters to logistics and regulatory service providers as well as consultants.
'Our goal is to help ease entry to this diverse region.'
