Major cherry grower Cherri Global goes into liquidation
Cherri Global collapses under financial pressure, leaving creditors owed millions.
NEW ZEALAND – One of New Zealand’s largest cherry growers, Cherri Global, has gone into liquidation after struggling to raise capital and repay debts.
The company, which operated orchards in Hawke’s Bay and Central Otago, had been facing financial pressure for months.
Creditors now have until April 8 to register their claims with the appointed liquidators, Janet Sprosen and Stephen White of PwC New Zealand. The liquidation was confirmed on March 8 through a special resolution by shareholders.
Cherri Global, along with its subsidiaries Cherri Holdings and Cherri Machinery, has faced mounting financial difficulties. According to the first PwC report, the company owes about $42 million to over 30 unsecured creditors.
Among those affected are the founder Phil Alison and his family, wholesale investors, and various financial lenders connected to the three related businesses.
Alison, who previously founded Rockit Apple in Hawke’s Bay, established Cherri Global in 2017. After selling Rockit Apple, he raised capital to plant cherry orchards, expanding the company’s footprint in the fruit-growing industry.
By 2021, Cherri Global had developed 10 cherry orchards spanning 165 hectares, with ambitions to double its operations. The company had raised US$15 million that year to support its expansion. However, financial strain continued to grow, leading to its eventual collapse.
Industry challenges and competitive market
The cherry business in New Zealand is highly competitive, with most of the fruit grown in the country destined for export.
Around 90% of New Zealand’s cherries are sold internationally, particularly to China, South Korea, and other Asian markets. Demand surges during the Chinese New Year, when cherries are considered a luxury gift.
While cherries can generate high returns, they also require significant upfront investment. Establishing a cherry orchard costs between US$150,000 and US$200,000 per hectare, including infrastructure such as packhouses and cold storage facilities.
The industry also faces challenges related to weather conditions, as cherries thrive only in specific climates, making regions like Central Otago a prime location for production.
Cherri Global’s financial difficulties highlight the risks of expansion in a sector that demands significant capital investment.
The company’s liquidation comes just five months after it sold its main cherry orchards in Otago, a move that signaled ongoing financial distress.
The Companies Register indicates that 70% of Cherri Global was owned by PJAFT Ltd, a company controlled by Alison and his family members.
The list of creditors includes Spark, the Ministry for Business, Innovation and Employment, and agricultural supplier PGG Wrightson.
As the liquidation process moves forward, industry experts say Cherri Global’s collapse is a stark reminder of the financial pressures within the fruit-growing sector. The fate of its remaining assets and obligations to creditors will become clearer in the coming weeks.
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