Multinationals on China｜Miles Reiter, CEO of Driscoll’s: Hope to be permanent part of Chinese market

南方财经全媒体记者 李依农 实习生王欣桐 云南昆明报道

In 2013, California-headquartered berry business Driscoll’s established its first planting base in China in Yunnan Province, becoming the primary foreign-funded berry enterprise to engage in native planting in China. Over the past 10 years, the global berry giant has parterned with the local government and community to grow berries, thereby effectively contributing to the promotion of rural revitalization.

Miles Reiter, Chief Executive Officer of Driscoll’s, told Southern Finance Omnimedia Corp. that the company has witnessed a broadening of policies designed to forge economic prospects in this decade. “[China] has done an amazing job of elevating the prosperity quite broadly,” Reiter said.

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Referring to the impact of China’s adherence to a high-level opening up, Reiter believed developing practical exchanges across countries and cultures is of utmost importance. “We hope to be a permanent part of the Chinese environment,” he said.

We felt welcomed by China

SFC Markets and Finance: We know that China has a vast land. Why did Yunnan be a choice for growing blueberries?

Miles Reiter: We did look in a few other areas; not too many. We were attracted to Yunnan because of the similarity to areas we produce in Mexico, with latitudes of about 20°, 22°, elevations of 1,500 to 2,000 meters, and a somewhat similar climate. Of course, it’s never the same, but it is similar. It gave us some confidence that we could shorten the learning curve, and we’re very satisfied with the choice. 

SFC Markets and Finance: Could you introduce some cooperation between Yunnan and Driscoll’s?

Miles Reiter: We could not have accomplished nearly as much without the cooperation of the Yunnan government, the prefectures and county governments as well. We were first directed into the Jianshui area, looking for sources of (really clean) water like spring water. A gentleman in Beijing actually suggested we look in this area, and it had the right sort of climate.

For starting-out company, (it) was very helpful that the water availability was right there, and we were able to work with the village. I believe just in a natural form of our business, it’s quite consistent with the policy of the country and of the province to create economic vibrancy in the rural areas. That’s sort of what we do for a living, so we had common goals in that area. 

SFC Markets and Finance: In contrast to strawberries and raspberries, blueberries were relatively not that popular in China. So why did Driscoll’s decide to invest in China in 2013?

Miles Reiter: When we started our first crops, (they) really were strawberries and raspberries. But our strawberries really weren’t quite right for the Chinese consumer, and the environment isn’t quite as good for strawberries. We need to find still in Yunnan, but other areas like Lijiang, where we’re now trying to develop strawberries.

The raspberries just require so much attention to the supply chain, and that took developing the base of business. The blueberries fit more quickly and easily. They’re a little sturdier berries, so we could make a few more mistakes and still deliver a high-quality product. 

And we do have very good genetics; we have what we think are the world’s best genetics from several programs in blueberries. Then blueberries are becoming very popular in China quite rapidly, so it’s an attractive growing market. Maybe not so competitive as the strawberries are right now. Really, the raspberries are wide open, and there’s very limited experience with raspberries in China. 

We expect that will become an important part of the business because we’ve solved some of those problems. We never solve them completely, but we’ve made a lot of progress on the supply chain and relationships with retailers because they need special care.

SFC Markets and Finance: It has been 10 years since Driscoll’s entered China’s market. Is the market share in China increasing?

Miles Reiter: Yes. Although the Blueberry industry is growing rapidly in China, our strength is in the premium market. So, if we look at that subcategory, our market share is very strong, and we have good premiums. In terms of the total volume on the marketplace, we actually don’t have as good numbers as I would like to have. But we’re satisfied with the progress and very pleased with the differentiation we’ve been able to create with the brand.

SFC Markets and Finance: If the production increases, will Yunnan’s blueberries be exported overseas? Will the “in China, for global” strategy become a trend?  

Miles Reiter: I don’t think we’ll see Chinese-grown blueberries going so much on the global market for a couple of reasons. One is the Chinese market is so large, and we believe it will continue to grow. What we will look to do when we’ve started, we started last year is supplying Southeast Asia, primarily Singapore, Thailand, Vietnam, Laos, Cambodia, and perhaps other areas, Philippines and Indonesia, with Chinese berries; less clear if that would go to India as well. But certainly, Southeast Asia will be a focus. 

We do have some brand presence from our California source berries in Singapore and Bangkok already. But now more of that will come from China and very little overtime from North America. 

SFC Markets and Finance: China has been emphasizing promoting high-level opening up. You are the CEO of a multi-national business, so what do you think about this commitment?

Miles Reiter: We’ve certainly been welcomed. There are rules we have to follow, but overall, we’ve felt that we’ve been welcomed openly. We have partner growers, but Driscoll’s is a standalone company without a Chinese partner, and that was not a problem. 

So we’ve been pleased, and I’d like to think that while we’re multi-national, we want to think like a Chinese company and hope to be accepted in that way.

Our intellectual property is well supported in China

SFC Markets and Finance: How will a high-level opening up of China affect the world?

Miles Reiter: I think it’s very important that the engagement across the countries and the cultures is at the ground level. Certainly, we want to be part of that. Our berries can’t move that far. Blueberries can ship by boat; they can be a few weeks old. The other berries have to be very fresh, so we don’t really cross a lot of borders with products that are very distant. We do with technology, so the protection of technology is very important, and that’s been quite good. 

We’ve been supported in China with our intellectual property. We’ve had very good support, so our experience is good. 

SFC Markets and Finance: China will prioritize high-quality development and keep economic development at the core of policies in the next five years. What opportunities will high-quality development bring to foreign enterprises?

Miles Reiter: It’s very clear that this is a quality-oriented culture, and there’s a lot of momentum toward higher quality. My understanding is (there is) more consumer demand within the country. So, we feel very good about our orientation toward quality. We’re normally thought of as a premium brand in every market we’re in. The Chinese public policy and consumer towards higher quality products, cleaner, healthier food safety and advancing technologies fit well. We see it’s very positive, and I’m very impressed with what’s been accomplished in this country in that regard.

China has done an amazing job elevating prosperity

SFC Markets and Finance: From your perspective, how do you think about China’s consumption market? 

Miles Reiter: There are 1.4 billion people. I think we all know the number. The country has done an amazing job of elevating the prosperity quite broadly. We see that in the rural areas where we operate that the policy around creating economic opportunity is broader. 

Our original North American business, which is where we started (and is) still the biggest part of our business, primarily serves about 400 million people. And there are probably already 400 million people as potential consumers of Driscoll’s berries right now, and I would expect that number to grow. So, we feel very optimistic about becoming a household name throughout China.

SFC Markets and Finance: Last but not least, will Driscoll’s continue to expand the business and investment in China?

Miles Reiter: For sure. It’s economically one of the most interesting areas that we’re working in anywhere in the world. I have to say it’s just about the most fun. Even though I haven’t been here for a while, I’m having a great time. Our people are inspiring, and it’s a big market that appreciates quality. The infrastructure improvements are tremendous already, and I would see more, which I think will particularly allow us to grow the raspberry and blackberry business quite a lot because that requires really good infrastructure. 

I think we produce and sell probably 50% of all raspberries and blackberries in commerce in the world. It is a particular strength of Driscoll’s. We see that as a big opportunity for us, but also for the Chinese consumer. We feel like we’re just getting started. 

We know when five, 10 years ahead where we want to go, but I’m really eager to see, not just my own family, but we’ve got great people on our team creating a future beyond. But that’s the job of the younger people. So, we hope to be a permanent part of the Chinese environment.

策划：陈晨星 于晓娜

监制：施诗

责任编辑：和佳

记者：李依农 实习生王欣桐

摄制：实习生焦宇

新媒体统筹：丁青云 曾婷芳 赖禧 黄达迅

海外运营监制: 黄燕淑

海外运营内容统筹: 张然 

海外运营编辑：唐双艳 吴婉婕

海外项目经理：庄欢

海外商务合作: 黄子豪

出品：南方财经全媒体集团

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