HEMA's Logistics Draws American Produce Closer to China

On June 23rd, a promotional event for fresh American products was held in Shanghai. The promotion was themed as an ‘American Food Festival’ and was co-sponsored by HEMA Fresh, Northwest Cherry Growers, Cranberry Marketing Committee, U.S. Highbush Blueberry Council, Alaska Seafood Marketing Institute, and other organizations. Mr. Zhang Guohong, GM of HEMA Fresh, Mr. Lv Zhiming, GM of Shanghai Jinqiao International Commercial Plaza, Mr. Tyler Babcock, Deputy Director of U.S. Agricultural Trade Office at the U.S. Consulate General Shanghai (which is also the field office of the USDA), Mr. Liu Baojun, China Marketing Manager of Northwest Cherry Growers, Steven Fang, GM of Shanghai Eastern Express, and George Liu, CEO of Frutacloud, delivered consecutive speeches onstage. Mr. Tyler Babcock in particular drew special attention to the cherries available at the venue, praising them and claiming that they were almost on par with those freshly picked in Washington State.

In order to make Sonnet cherries available to Chinese consumers, HEMA Fresh joined China Eastern Airlines and Frutacloud this season in using charter flights, emblazoned with HEMA’s logo, for transport. The cherries, in their original consumer packages, are to reach Chinese consumers within 48 hours of being picked. Moreover, HEMA will retain strict standards of cold chain distribution from orchard to consumer and employ fast clearance channels to maintain the cherries’ freshness and taste.

George Liu, CEO of Frutacloud, stated that the upcoming Sonnet cherries are imported by his company and supplied solely to HEMA. In addition to their outstanding taste and visual features, Sonnet also differs from other varieties in its short sales season, which only lasts seven days in total. In a brief interview with Produce Report, Mr. Liu said that Frutacloud will also supply HEMA with Rainier, Regina, and other red Northwest cherries this season.

While cherry lovers are looking forward to Sonnet, very few know the large logistical challenges this short-seasoned variety pose. Thanks to HEMA’s efficient logistical delivery system, which can be summarized as ‘3 kilometers/30 minutes,’ Shanghai consumers will have the chance to taste these fresh cherries. Since its founding in 2016, HEMA Fresh has received widespread acclaim from China’s produce industry for its unique operating model of integrating online platforms with offline physical stores, food services, storage, and logistics. Its logistical team boasts a 30-minute delivery service for customers located within 3 kilometers of its stores, a timeframe which serves to satisfy consumers’ growing demand for rapid delivery.

In addition to Northwest cherries, thanks to support of USDA and the American Agricultural Society, many new fresh products from the United States are available on HEMA, such as Ocean Spray dried cranberries and cranberry juice, Sunkist summer oranges and lemons, Washington apples, and California pluots sold under the celebrated ‘Dinosaur Egg’ label.

As for imported fresh products, HEMA purchases directly from farms and suppliers around the world. The company also utilizes charter flights as an alternative form of distribution in order to guarantee the quality and freshness of the produce. For vegetables, HEMA chose to develop a direct link with large and science-oriented local agricultural bases and vegetables are shipped to consumers within eight hours of being picked. Moreover, not only are HEMA’s vegetables affordable, but its policy of selling vegetables only picked the very same day ensures a high level of food safety, quality, and further promotes healthy eating.

Without doubt, HEMA’s success is inseparable from its 2448 Project, the goal of which is to provide vegetables from the farm to the table in 24 hours, or 48 hours for other fresh products. According to Mr. Hou Yi, the founder of HEMA, the company’s strengths lie in procurement and logistics, and it is through these why the 2448 Project is destined for success.

Image sources: MZMC