Changing consumer habits drive innovations in food and beverage sector
Message from Catherine Lye, ExportNZ Auckland executive officer
ExportNZ's longtime supporter, Westpac Institutional Bank, invited me to attend an exclusive industry event last week out at The Food Bowl, to hear from New Zealand's leaders in the food and beverage sector.
It was incredibly interesting. In two hours the panel of experts discussed changing consumer habits and market innovations that are driving new food and beverage business sales, changing trade dynamics that could rock your business and new disruptive business models from here and overseas that could transform how you approach 2019.
A few of my take-outs from the panelists are best summarised as follows:
Chris Quin - CEO, Foodstuffs North Island. For Chris, opportunities or things we need to focus on:
- Being customer-driven is number one by a country mile
- Simplification really matters
- People still make a massive difference in this industry. Talent gaps - it's not something that comes up in conversation
- Competition - We have got to be up for acting as if the competition is here now
- Food Revolution – it's about solutions. What's my need? Convenience, inspiration, health, beliefs around animal treatment. So customers are looking to us to engage in the problem and provide a solution
- Challenging our operating model particularly around duplication of costs throughout the organisation. The current model that has been part of the success for the last 97 years won't be for the next 97 years. You are challenging the way people have been brought up in their careers for the last 30 years and been successful. So, it takes conversations and debate
- Sustainability – this is just another customer desire - unnecessary waste and for the environment to be respected. They will buy from you based on their perception of you for delivering on it, but they will not pay extra for it. So, anything done needs to be economically sustainable. We as an industry need to come together to discuss this and arrive at a solution. As chair of the Icehouse, there is some cool tech running around house. I see two or three things right now that with a bit of industry support, we could actually turn them on and make a big difference. The problem needs to be tackled at a proper integrated industry level.
Dominick Stephens - Chief Economist, Westpac. Dominick talked about:
- How naturally aligned New Zealand is to three global food and beverage production trends: 1. urbanising middleclass; 2. Increasing fussiness of affluent consumers; and, 3. New methods of producing food
- His surprise at the response from the business community around capital gains tax
Tim Morris - Director, Coriolis Research. Tim's presentation is best summarised as:
- In terms of retail ecology, the NZ market is what it is – isolated and insulated from the world markets
- Australia is there and relatively easy but also relatively hard
- Asia is a huge opportunity but it is not for everyone.
Stephanie Honey - Associate Director, New Zealand International Business Forum; Stephanie provided an update on progress with FTA's and reminded us of some very good resources, including:
Tony Nowell - Board member, New Zealand Food Innovation Auckland. Tony responded to a few questions from the floor:
- Non-tariff barriers can pose challenges for exporters. Particular markets will impose any number of barriers just to slow trade down. A lot of work is going on within senior officials assisted by APEC Business Advisory Council to break down those barriers. Unfortunately they are not overcome overnight. If you are experiencing any barriers to trade, please refer to the MFAT website and they will respond within 48-hours https://www.mfat.govt.nz/en/trade/how-we-help-exporters/non-tariff-measures-form/.
- You will see more opportunity for NZ suppliers to go through consolidated mechanisms into China. If we look at an Alibaba or a JD.com, if you want to go direct into Alibaba you need to be US$1million in revenue before you can qualify. The same effectively applies to TMall. And, TMall is open to NZ opportunity through NZ Post. You will see some analogues of what Progressive Enterprises have done into China where there will be platforms specifically configured to smaller NZ producers. That may be a situation where you may be handing the sale yourself via eCommerce and ultimately consolidating via that platform for delivery into the China market. Keep your eyes open for that opportunity, because logistics at the end of the day is key.
On a closing note, I would like to acknowledge and thank those businesses who have invested considerable time and effort in preparing an entry for the 2019 Air New Zealand Cargo ExportNZ Awards. Entries are now closed and our team of 23 judges have the privilege of visiting all businesses who entered.
Tickets for the gala dinner event are now on sale with an early bird rate expiring April 13. To get a sense of the scale and production quality, please have a look at the 2018 gala dinner event showreel. Join us for the best gala dinner event on your business calendar – guaranteed! Contact me for more information – email@example.com
Catherine Lye, ExportNZ Auckland executive officer
Mob: 021 636 219
Kathy McCombe, ExportNZ Auckland programme manager
DDI: 09 367 0989
Mob: 021 606 920
Sarah Drinkwater, ExportNZ Auckland marketing co-ordinator
DDI: 09 367 0968
Visit us at: EMA Business Hub, 145 Khyber Pass Rd, Grafton, Auckland
ExportNZ awards http://www.exportexcelerator.co.nz/export-excelerator/
ExportNZ also has a proud relationship with the following business councils:
- New Zealand China Trade Association
- ASEAN NZ Business Council
- Latin American NZ Business Council
- India NZ Business Council
- Korea NZ Business Council
- German NZ Chamber of Commerce
Buy your tickets now for export awards dinner on June 27
With a record number of entries, the Air New Zealand Cargo ExportNZ Awards 2019 will certainly celebrate the best of Northland, Auckland and Waikato exporters.
The judges currently have the privilege of meeting and understanding fantastic companies in our regions that support the growth and prosperity of our regional and national economy. These exporters' vision, passion, courage and sheer hard work are an inspiration to all of us and it's very rewarding to provide a forum such as the ExportNZ Awards where we can share and celebrate their successes.
The Awards dinner provides a fantastic networking platform, attracting a wide range of attendees including finalists, previous winners, government representatives, media plus industry and business leaders.
Each guest will receive a 20-page gala dinner programme which will detail the full guest list by table number. This has proven to be an invaluable tool to facilitate networking throughout the evening.
You will be entertained by White Chapel Jak as the band performs unique versions of popular music.
We anticipate 500+ guests will attend this year. The seating is sold on a first-in-best-seated basis, so I wanted to touch base with you to ensure you are well positioned on the night, as close as possible to the stage, to enjoy the festivities with your guests.
This year we present nine awards for export excellence:
- Best Emerging Business for Goods exports
- Best Emerging Business for Services exports
- Best Medium Business for Goods exports
- Best Medium Business for Services exports
- Best Large Business for Goods exports
- Best Large Business for Services exports
- Excellence in Innovation
- Exporter's Champion (for exemplary services to export)
- Supreme Winner
The Awards celebrate the success of New Zealand businesses on the world stage, recognising professional excellence, innovative practice and leadership through vision, commitment and success. These companies help grow and transform the New Zealand economy with exceptional business success in international markets.
The Awards are organised by ExportNZ, with the support of strategic partner Air New Zealand Cargo.
Details of the Air New Zealand Cargo ExportNZ Awards 2019 gala dinner event:
Date: Thursday, June 27, 2019
Time: 6.30pm – 12.00am
Venue: Shed10, 89 Quay Street, Queens Wharf, Auckland
Dress: Black tie / glam
Entertainment: White Chapel Jak band
|EMA Member pricing
|Early-bird offer (expires 13th April, 2019)
|Early bird offer (expires 13th April, 2019)
|Individual tickets $250.00+gst
|Individual tickets $295.00+gst
|Table of 10 $2,250.00+gst
|Table of 10 $2,500.00+gst
|Standard pricing (14th April onwards)
|Standard pricing (14th April onwards)
|Individual tickets $295.00+gst
|Individual tickets $320.00+gst
|Table of 10 $2,500.00+gst
|Table of 10 $2,750.00+gst
Tips from the top: Export Excelerator Conference, April 12
ExportNZ has gathered a team of exporting's elite (supreme winners, category winners and finalists from 10 years of ExportNZ awards), and tasked them with delivering in four hours more insights and tips than you can shake a stick at!
Come to this gathering of New Zealand's leading exporters sharing how they are applying best and next practice across all elements of their international growth strategy.
For more information and to register to attend, please go to https://www.exportnz.org.nz/training-and-events/auckland/export-excelerator
Date/time: Friday, April 12, 7.15am –11.30am
Venue: EMA business hub, 145 Khyber Pass Road, Grafton, Auckland
Sign up for the NZTE Export Essentials two-day workshop – April 10 + 24
Are you looking at entering a new export market? Join the Export Essentials two-day workshop developed by New Zealand Trade and Enterprise (NZTE), and get to market faster.
The Export Essentials Workshops give you the tools and confidence to select the right export market, channel, and partner - and help you understand the pathway to export success.
Drawing on lessons learned by successful New Zealand exporters in markets around the world, this proven process will help you to:
- identify the best international growth opportunities for your business,
- decrease the risk of market entry,
- identify the right partners to build your business in international markets,
- avoid making costly mistakes and re-inventing the wheel,
- identify where you need to focus your limited resources, and
- embed the learnings into your business.
For more information and to register to attend, please go to www.exportnz.org.nz/training-and-events/auckland
Designerscope shows award-winning form
Our member, Parnell-based product design company Designerscope, has won the coveted Red Dot Award: Product Design 2019 for their innovative kitchen installation system. The Red Dot Award: Product Design is one of the world's largest design competitions. In 2019, designers and manufacturers from 55 countries entered more than 5,500 products in the competition.
The patented kiwi invention is the genius of kitchen designer Wim de Bruin who, as a former cabinetmaker and kitchen manufacturer, decided there had to be an easier, safer and faster way to install cabinetry. Wim applied his design expertise to develop a system to adjust the rear legs of cabinetry while sitting upright, outside the cabinet rather than having to lie down under the cabinet and repeatedly get up and down to read the level and readjust the cabinet legs.
Like many great ideas Wim's design initially languished in a drawer due to the day to day demands of running another mid-size company. An EMA initiative with Auckland University was the catalyst for pulling the plans out of the drawer. The feedback Wim and business partner Robyn de Bruin-Judge received during the Éngineer for the Day' program encouraged them to put fresh energy in to Designerscope, a start-up R&D-oriented, product development company.
ExportNZ linked Designerscope to advisors experienced in off-shore IP licensing before Designerscope went on to successfully licence its AXILO™ Plinth Adjustment System product design to international hardware giant, Häfele. Häfele manufacture the system in Germany and distributes it through their global network of 150 subsidiaries. Congratulations on the win to Win and the Designerscope team.
Here's some Kiwi oomph for your exporting business!
Need some professional and royalty-free images, videos, market insights or infographics to support your export growth? Register on the NZ Story toolkit and make use of its comprehensive resources – free of charge.
NZ Story Group has been set up to equip you with the tools, skills and knowledge to communicate more consistent and compelling stories about New Zealand.
Are you in need for a one-minute video to showcase that New Zealand is far more than just sheep and natural beauty? Download the one-minute edit of the Global Film, now also in English and German. Keep your eyes peeled for the launch of two new Inside Stories film series, tailored to the Japanese and Chinese markets.
You can also come along to one of our free storytelling workshops, and spend time on your own unique NZ story. These three-hour workshops build on insights gleaned from global perception research of New Zealand and New Zealanders, and our energetic coaches will work with you on your unique company story. Please click here to register for one of NZ Story's workshops.
What exporters have to say about industrial relations changes
ExportNZ recently released its 2018 annual survey of exporters. More than 400 exporters responded to the survey and they were a good mix of small and medium as well as larger exporters. When asked what their major barriers to exporting were, the number one concern this year was "domestic regulation, e.g. upcoming changes to the industrial relations laws". In order to understand this better, ExportNZ interviewed some SME exporters and horticulturalists and are these concerns with the government.
Read the full report here:
Caption: Managing director Dr John Chang (left) and production co-ordinator Frand Jung in the lab at Auckland BioSciences, making animal serum for multiple export markets.
Articles on international trade in BusinessPlus, April issue
The top three exporting tips and opportunities are discussed in the international trade pages of your latest monthly membership magazine, BusinessPlus (April 2019 issue).
It contains articles on international trade, employment, running a business, and commentary from the CEO, BusinessNZ and others. Also see photos of people who attended recent events at EMA/ExportNZ.
This month, articles on international trade are headlined as follows:
- Belgium, a gateway for NZ exporters
- Crouching tiger
- Bone Appetit! The power of pet nutrition
For more information about the magazine, please contact the editor, Mary MacKinven, at firstname.lastname@example.org.
Update on Brexit for NZ exporters
The UK was scheduled to leave the EU on March 29, but this has been extended till May 22 - provided the Withdrawal Agreement (already negotiated between the UK and EU) is approved by the UK House of Commons.
If the Agreement is not approved, the EU has agreed an extension until 12 April 2019 to allow the UK time to identify a way forward.
This extension means the UK will for now remain a Member State of the EU with all the rights and obligations set out in the Treaties and under EU law. However, a no-deal exit remains the default outcome on 12 April, unless the UK Parliament can agree a way forward that is acceptable to the EU.
Please read more here
Please click here for a general checklist from New Zealand Trade and Enterprise for exporters on what they should consider in preparing for Brexit.
The brief checklist has guidance under these headings:
For more information and regular updates, please see the websites of the Ministry for Primary Industries, the Ministry of Foreign Affairs and Trade, New Zealand Trade and Enterprise and NZ Customs
- Review your operations
- Talk to your partners
- Consider your people
- Review your contracts
- Packaging and labelling
- Consider regulations
NZ Ambassador to chair WTO dispute settlement body
Ambassador David Walker has been appointed to chair the WTO's Dispute Settlement Body (DSB). He was appointed New Zealand's Permanent Representative to the World Trade Organization (WTO) in Geneva, in 2017.
Dr Walker is a career diplomat and trade specialist, currently posted in Geneva for the third time.
He previously served as Permanent Representative to the WTO from 2009-2011. During that time he was also appointed chair of the Doha Round negotiations on agriculture.
The DSB has overall authority to manage trade disputes between WTO Members, from establishing panels to hear disputes, through to overseeing implementation and compliance with recommendations and rulings.
Trade and Export Growth Minister David Parker says,"Having a New Zealander appointed to this role demonstrates the esteem in which New Zealand and David Walker are held by fellow WTO Members.
"It also reflects our willingness to contribute to the effective functioning of the organisation, especially in the face of current challenges."
Jump in trade indicates promising start to CPTPP
January trade statistics show that the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) is already delivering benefits to New Zealand, says Trade and Export Growth Minister David Parker (pictured).
The CPTPP entered into force on 30 December for New Zealand and three new free trade agreement (FTA) partners, Japan, Canada, and Mexico.
"January data indicate a boost to New Zealand exports to these markets for key products where tariffs were lowered under CPTPP," Mr Parker says.
The quantity of Japanese beef imports from New Zealand increased three-fold in January 2019 from a year earlier.
This comes after CPTPP reduced the tariff on New Zealand beef into Japan from 38.5 per cent to 26.9 per cent giving us parity with Australia, which had enjoyed a competitive advantage under its bilateral trade agreement with Japan.
New Zealand butter exports to Canada jumped from 245 tonnes in January 2018 to 1606 tonnes this January. Almost 11 per cent of New Zealand's total butter exports by value went to Japan, Canada and Mexico in January 2019, up from just over 6 per cent in January 2018.
Cheese exports to Mexico doubled in the month after the agreement entered into force, relative to January 2018.
Japan, Canada and Mexico accounted for over 20 per cent of New Zealand's cheese exports by value in January 2019, up from 16 per cent in January 2018.
New Zealand's total goods exports rose $128 million, or 3 per cent, to $4.4 billion in January compared to a year earlier.
Mr Parker says, "Monthly trade statistics can fluctuate significantly, but this is a very encouraging start. I look forward to our exporters and the many people they employ continuing to realise the opportunities from CPTPP as they form new commercial relationships in these markets."
CPTPP is also in effect for existing FTA partners Australia, Singapore and Viet Nam.
Chile, Brunei, Malaysia and Peru have yet to ratify the agreement.
New Zealand's two-way trade with the combined CPTPP countries was $49.6 billion in the December 2018 year, almost a third of our total two-way trade.
Discounted Certificates of Origin for Members
Any business can approach EMA to apply for a Certificate of Origin (COO) that proves their goods are made in New Zealand, to take advantage of free trade agreements (FTAs), and to use where there are no FTAs.
EMA/ExportNZ has a relationship with IVS (Independent Verification Services) based in Hamilton. IVS is one of three organisations authorised by NZ Customs to issue Certificates Of Origin as required to take advantage of FTAs.
So, the applications will be processed through an agreement with IVS that guarantees the certificates and supplies a range of internationally recognised documents.
Pricing is as follows:
|WO (wholly originate
|WP (wholly produced)
Apply at https://exportnz.certifynz.co.nz. When you click on this link you will be prompted to register your details and will be issued a username and password.
You may initially wish to speak to Jen Ward. She would be very happy to help. Her contact details are:
Quality Technical Coordinator
Mob: 021 441 889
Phone: 07 903 5173
Fax: 0800 738 724
Post: P O Box 9272, Waikato Mail Centre, Hamilton 3240 www.ivsltd.co.nz
The news and views expressed here are not to be construed as business advice. They are for information purposes only.
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Telephone: +64 9 367 0900,
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Facsimile: +64 9 367 0902
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