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Macadamia expansion: G&G partners with Camellia in healthy snacking expansion strategy

foodingredientsfirst 2019-03-21
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Green & Gold Macadamias (G&G) and UK-listed agriculture business Camellia Group Plc have revealed a  new marketing partnership. The move extends G&G’s processor and producer partner network in key growing areas such as Australia, South Africa, Kenya, Malawi and Brazil. Responding to the volatile consumer demands, the “principally B2B partnership” aims to promote supply growth. Camellia’s additional produce, which comes at about 3 percent globally, boosts G&G’s total supply to 20 percent of the world’s kernel supply, Annelle Whyte of G&G, tells FoodIngredientsFirst.

“Guaranteed increase in quality supply creates the opportunity to scale vertically into new product markets and horizontally into new geographies,” says Brian Loader, G&G CEO. “We have a mutual interest and belief in the macadamia industry. We are  immensely looking forward to working with Camellia Group – the G&G team can now deliver our long term strategy on the front foot.”

 “The crop is set to grow by about 5 percent this year, slightly below the trend due to heat and unseasonably dry periods in most growing areas,” Whyte says. The company’s supply base is global and ranges from Australia to Brazil but “as time progresses, it is becoming more Africa centric,” she adds.

Starting in the Malawi region in the 1980s, Camellia has continuously invested in orchard growth and processing infrastructure. Its reach extends, in varying stages of maturity, across 1,400 hectares in Malawi, 1,100 hectares in South Africa and currently 1,000 hectares in Kenya, with plans to increase Kenyan orchards to 1,500 hectares over the next ten years, according to the company.

Macadamia’s snacking and plant-based appeal
A unique aspect of this sector is the parallel rise of both supply and product demand. Consumer trends around healthy eating are growing and here to stay, according to the company.  

Snacking is a central focus of innovation across all food and beverage categories, with 10 percent average annual growth of global launches with a snacking claim over the past five years (CAGR, 2013-2017), accoridng to Innova Market Insights data. Three square meals are no longer the mantra either – a fourth, fifth or even sixth meal culture is emerging, as grazers look for that little extra pick-me-up during a hectic day.

“We may have underestimated macadamia’s global appeal. We have seen growth across most regions and the quality of the product will be a prized part of our arsenal for European expansion as well,” Whyte explains. “Snacking is our history, but ingredients are our future. Macadamia’s unique structure means they have a serious role to play in the plant-based foods trend as well,” Whyte says.

G&G Macadamias reported a 60 percent rise in global tree nut consumption last summer, which is a testament to the fact that people are eating more and more of them. As a result of this, the market value for macadamias is up by 72 percent, according to G&G Macadamias, who believe that macadamias will be seen more predominantly in milk, butters, nut-based beverages and vegan cheeses, as well as a host of other new products.

Furthermore, consumers choose products coming from a sustainable, ethical supplier with traceability being an important aspect. Global supply of macadamias has increased over 50 percent in the last five years to 210,000 tons in-shell, G&G says. According to the International Nut Council, the crop is expected to double again by 2023. G&G’s focus is to innovate in how and wher this future supply is absorbed into market, the company says. 

G&G is laying the groundwork for the macadamia nut to spur NPD in a variety of sweet and savory options ranging from dairy applications to biscuits. Unilevers Magnum ice cream brand recently launched a macadamia ice cream in Australia, Indonesia and Thailand, using G&Gs macadamia, the company notes. Macadamia nut oil is also a popular derivative with applications in the food as well as the cosmetics and health industry.

“G&G is a specialist in the macadamia market with a large network of reputable producers and an established, strategic customer base, in a variety of segments around the globe. The organization also has cultivated longstanding direct relationships key customers and leading retailers,” says Graham Mclean, Managing Director of Agriculture, Camellia. “This market diversification, together with our aligned vision for value add and vertical integration, places G&G in a strong marketing position for years to come. This partnership allows us to be well placed to market our growth in product over the next ten years.”

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