growing hawke’s bay
success - new zealand | issue one
WineWorks
Industry legend
Going against
the grain
Firstlight Foods has
all the ingredients to
stamp its mark
Global fit
World class designer
Luxurious
to a tee
BAY MOVE
BEST FOR
BUSINESS
Region blessed
with amazing places
to stay and play
Big Save makes
Napier home
A MERGER OF THE
RIGHT GENETICS
A leader in the field
Enjoying a slice
of horticulture’s
success
Business Parks
Gain the advantage
contents
RUSH HOUR
…in Hawke’s Bay!
Relocating to Hawke’s Bay has obvious benefits – excellent
infrastructure, stunning scenery, friendly people and a rush
hour that is, well, less rushed.
“The entire operation
is just a heck of a lot more
stress-free here in Napier...”
14
Here at Gifford Devine, we know all this because we live and
work here... and we’d love you to join us here in the Bay.
Ray Mc Kimm - Big Save Furniture
We are a full service legal practice already providing advice to
Hawke’s Bay businesses small and large. We have the knowledge
and expertise to guide you through all aspects of corporate,
commercial and personal legal issues ensuring a successful
transition for your business and your people.
Contact us to discuss our solutions to your relocation challenges,
securing the successful future of your business in Hawke’s Bay.
08
24
issue one
206 Queen Street East, Hastings · 1 Havelock Road, Havelock North
Tel: 06 873 0420 · www.giffdev.co.nz
06 Gain the advantage
14 Going against the grain
24 Wine industry legend
Exciting new opportunities offer wet and
dry industries the chance to gain the
advantage in Hawke’s Bay.
Firstlight Foods has all the ingredients to
stamp its mark as producer of the world’s
best grass-fed meat.
Tim Nowell-Usticke from WineWorks has turned
a10 acre bare block of land into a state of the
art facility for the region’s wineries.
08 Bay move best for business
17 A global fit
Big Save Furniture’s Ray McKimm
moved his iconic furniture business
to Hawke’s Bay in 2008.
How FPG became the first choice for retail
giants including McDonalds and BP.
28 Software at
heart of horticulture
11 Building “The Cloud”
20 Research benefits
public and private sector
Q and A with Bob Hawley on building
“The Cloud” and why Hawke’s Bay is the
right place for Red Steel.
The Eastern Institute of Technology, based in
Taradale, boasts one of the most rapidly
developing research facilities in New Zealand.
12 Aviation
22 Web agency
Hawke’s Bay is blessed with controlled
and uncontrolled airspace that other
regions simply don’t have.
Web agency boss Wendy Schollum from Xplore
has created an enviable work, life balance.
chooses Hawke’s Bay
businesshawkesbay.co.nz
Sharing a slice of horticulture’s success is
Napier-based software company ABC.
30 Merger of the right genetics
Focus Genetics is growing the country’s largest
red meat genetics company.
32 Luxurious to a tee
Owned by American philanthropist Julian
Robertson ‘The Farm’ is set atop 6000 acres,
on a working sheep and beef farm.
businesshawkesbay.co.nz
03
contents
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12
10
17
28
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Editor: Kate de Lautour e. [email protected] p. +64 6 876 5938 Photography: Tim Whittaker
Contributing writers: Kate de Lautour, Chris Ormond, Kylie Stafford Publisher: Business Hawke’s Bay
Design: no 9 marketing + design + online Printer: Reprographic - Eastern Institute of Technology, Hawke’s Bay
Our world
Seaside location,
gourmet food, world-class
wineries and a diverse range
of thriving businesses.
Welcome to our world!
The creative team at no 9 works behind the
scenes to support the savvy people who choose to
base their businesses in Hawke’s Bay.
Brand development, marketing strategy, PR and print
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Check out our online portfolio for a glimpse
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9 waghorne street, ahuriri, napier, new zealand
Welcome to
Business Hawke’s Bay
Hawke’s Bay is the home
of many successful businesses,
both domestic and global.
The key to their success lies in the supportive
juxtaposition of a great location, an excellent
workforce and innovative flair. And of course,
an enviable climate and community.
We want to share these inspiring business
stories and in doing so, encourage other
firms to come into the Bay and join our
growing region.
Hawke’s Bay is built solidly on its rural heart.
Names such as Heinz Wattie’s, McCain’s,
Enza Foods, Lowe Corporation, Silverfern
Farms and Affco, are all part of our rural
heritage along with the more recent winery
operations- and all have international
recognition. However beside these products
of the land, Hawke’s Bay hosts a myriad of
businesses from other industry sectors that
have national and international reputations
for quality, innovation and a can-do attitude.
Supporting the rural and manufacturing
entities are new tech companies such as;
Focus Genetics – the largest in the red meat
sector in New Zealand, WineWorks who
bottle the majority of New Zealand’s wine,
Sirtrack who provide tracking devices for
animals worldwide (remember Happy Feet?)
and many many more.
Hawke’s Bay is also fortunate to have further
opportunities to grow with large scale,
serviced business parks, a rapidly growing
Port, a recently lengthened runway at Napier
Airport, along with great road and rail
access to anywhere in New Zealand. Indeed
we can demonstrate that distributing from
Hawke’s Bay, given our cheaper land and
building costs, for a nationwide business,
adds to the bottom line. Ask Big Save and
Number One Shoes who recently moved
their New Zealand distribution hubs here.
Have a look at our stories and call us to
see how we can productively add to your
bottom line.
Thanks to the following for their
support of this publication:
Murray Douglas
CEO Business Hawke’s Bay
[email protected]
businesshawkesbay.co.nz
05
Business parks
provide exciting
attraction for
Hawke’s Bay
Attracting new compatible
businesses to Hawke’s Bay is one of
the key aims of Business Hawke’s Bay.
So why come here? Why not?
Land Values
Warehouse Rents
Auckland - average of $343/sqm
$90 - $110/sqm
Wellington - $225-$275/sqm
$75 - $95/sqm
Christchurch - $250-$300/sqm
$80 - $100/sqm
Tauranga - $300-$350/sqm
$90 - $100/sqm
Hawke’s Bay - $70-$120/sqm
$60 - $80/sqm
Source: Colliers International Research - Industrial Market Report Q4 2011
When comparing Hawke’s Bay to the
main centres, companies relocating
here have the chance to improve their
bottom line, by reducing expenditure
on fixed and variable costs, and
releasing capital through reduced land
and building costs.
The list of benefits starts with the range
of quality, inexpensive commercial land
offerings and office space, together with
reduced delivery times from the Port to a
distribution centre. A stable workforce with
world class training facilities complements
the region’s large production and processing
industry base. Top this off with the extensive
logistics, distribution and storage capability
and the case for business attraction becomes
an extremely viable proposition.
Hawke’s Bay offers massive competitive
advantages, for both wet and dry industry.
Take Whakatu as an example. The area is
06
growing hawke’s bay business success
one of five sub-regions to be earmarked as
a Hawke’s Bay business park and has the
potential to be a key food processing and
distribution centre for the North Island, with
connections to the rail network and Port.
Other proposed parks include Irongate,
south of Hastings and Prebensen Drive in
Napier. The Airport Business Park is well
underway and the privately owned Ahuriri
Business Park is humming with activity.
Wet industries such as food processors have
a clear advantage at Whakatu, with some
of the cheapest waste water charges, and
cleanest water, anywhere in the country.
The large capacity, purpose built
wastewater system provides services that
are hard to find elsewhere says Business
Hawke’s Bay business development
manager Michaela Vodanovich.
Owned and managed by the McKimm
family, the Ahuriri Park is close to services
and amenities, and tenancy is high.
“We have large industry already tapping
into the services in Whakatu but the scope
is huge for more industry to move in – it’s
exciting stuff.
“Businesses generating large amounts of
wastewater in other regions would struggle
to find services of the calibre that are
available in Whakatu.”
Marketing these regional business parks to
companies outside of Hawke’s Bay is the next
step of a progressive and sustainable plan to
increase uptake across the areas.
A Hawke’s Bay Business Parks website
provides information on location and
services, together with up to date real
estate offerings.
“We’re competing with the big centres for
new business so it’s vital we are marketing
the parks in an articulate and attractive
way,” Vodanovich says.
Both Napier City Council and Hastings
District Council are helping to drive the
projects forward.
Hastings District Council economic
development manager Steve Breen says
the long term vision for the parks includes
attracting a balanced mix of industries that
provide a range of employment opportunities.
“We’re aiming to take advantage of our
natural resources to produce more value
added food and manufactured goods for
export and to broaden our industry base
to develop new industries in logistics,
high end engineering, knowledge-based
digital enterprises and research based
centres of excellence.”
As development progresses, the opportunities
for services in and around the parks are
tipped to boom.
“We’re likely to see demand for services
like coffee and food outlets, childcare and
banking all increase,” Vodanovich says.
Proposed Tomoana food hub
A Private Plan Change seeks to rezone some
16 hectares (in one ownership) immediately
adjacent to the Wattie’s National Distribution
Centre in Tomoana, Hastings. Central to
this proposed Plan Change is a new food
related industrial activity definition. The site
is intended to be established as an integrated
business park.
This Proposed Plan Change is not only
premised on the expansion of the existing
supply chain options around the Tomoana
food hub, but also recognises the potential
food processing requirements derived
from the Hawke’s Bay Regional Council’s
Ruataniwha Plains Water Storage Project
which will more than double the area of land
currently irrigated in Central Hawke’s Bay.
is now recognised that there is a potential
opportunity to double the area of land
irrigated to 20,000 plus hectares. If this
project proves feasible, there will inevitably
be significant increased demand for
processing facilities in the region, in the short
to medium term, with associated flow-on
demand for new wet industry infrastructure,
transportation (including linkages to the Port
of Napier), scientific research and education,
and other support businesses.
Story: Kate de Lautour Photos: Tim Whittaker
The Ruataniwha Plains Water Storage
Project has progressed significantly and it
businesshawkesbay.co.nz
07
“First and foremost, we have reduced our internal freight
costs by around 18 percent. Coupled with that is the fact the
Port of Napier is an incredibly efficient business, both from
a personnel point of view and a costing point of view.”
Big Save store, Palmerston North
BAY MOVE
BEST FOR BUSINESS
Hawke’s Bay has only been home to Big Save Furniture
since 2008 but its shift has already saved the 38-year-old
business 18 percent in freight costs and director Ray McKimm
reckons “it’s a heck of a lot less stressful here.”
08
growing hawke’s bay business success
Originally based in Paraparaumu, Ray McKimm
says the reason for the iconic family business’
move to the Napier seaside village of Ahuriri
was relatively simple.
“We had a very large distribution centre in
Auckland, we bring in a large number of
high cube 40ft containers, and in Auckland
it’s a nightmare to operate those on the road
during daylight.”
They were forced to operate the Auckland
warehouse facility at night which created
security issues.
“It was very costly and created immense
delays with containers coming off the port,
particularly in the very busy time which was
from October through to the end of January.”
Big Save Furniture needed to find somewhere
in New Zealand to establish a facility that
wouldn’t disrupt its freight costs.
McKimm says they had a solid relationship
with Conroy Removals Ltd, who were Napierbased, and that carried significant weight in
the decision for choosing the Bay.
“We’re approximately 60% of their business,
and were prior to us coming to Napier.“
As Big Save was considering relocation,
Ahuriri’s British American Tobacco site came
on the market. McKimm saw the potential for
a new business park covering 4.6 hectares and
about 90,000 square metres of building space.
The site had a purpose-built dispatch
warehousing and decontainerisation area
which made logistical sense to the McKimms.
“So we bought the site in 2007. Out of that
purchase we realised there was a very large
pool of labour in Hawke’s Bay. It made sense
for us to move our entire head office from
Paraparaumu to Napier.”
The move took place in February 2008
and the business, originally set up by
McKimm in 1973, continues to thrive
in its new location.
It’s now run by his son Tom who is the
managing director, while daughter Lily is the
marketing director and “the face” of the Big
Save television commercials.
Lily’s husband, Craig Salter, the purchase
director, does the buying for Big Save
Furniture offshore and within New Zealand.
businesshawkesbay.co.nz
09
Red Steel
Hawke’s Bay company Red Steel built the steel structure
for the spectacular Rugby World Cup party central spot
“The Cloud” on Queen’s Wharf in Auckland. Kate de Lautour
chatted to Red Steel managing director Bob Hawley
“It made sense for us to
move our entire head office
from Paraparaumu to Napier.”
“We are still 40 percent New Zealand
sourced. So Craig is responsible for, not only
the New Zealand manufacturers, but the
overseas manufacturers as well,”
says McKimm.
Like most businesses, Big Save Furniture has
not escaped the recession.
“In 2007 our turnover dropped about 18
percent but, in 2008, 2009 and 2010 it’s
gone up about seven percent a year.”
McKimm is proud of that, saying savings in
costs and efficiencies, developed in recent
years, were behind the growth.
“First and foremost, we have reduced our
internal freight costs by around 18 percent.
McKimm says Conroy’s trucks were once
loading in Auckland and distributing
through the North Island. Now they go from
Napier to Auckland full, and then load back
through the North Island.
“Those trucks are now showing value
whereas previously they were just dead
weight, we weren’t getting any revenue
off them.”
Big Save Furniture lands a container
approximately every two hours, either in
Napier or in Wellington.
“Predominantly the largest number of
them come to our 10,000 square metre
distribution centre in Napier or they go to
Porirua, near Wellington,” said McKimm.
Of course the Hawke’s Bay weather and
seaside village feel of the area were
draw-cards for him and his family too.
“The entire operation is just a heck of a lot
more stress-free here in Napier than ever it
was previously.”
He puts it down to the “can do” attitude of
the people of the region.
Big Save is proud to be a New Zealand
family owned and operated business
currently employing approximately 350
people, “we’re proud to be based here, and
to call Napier home.”
Story: Kylie Stafford Photos: Tim Whittaker
Coupled with that is the fact the Port of
Napier is an incredibly efficient business.
Big Save Furniture is moving containers
Big Save Furniture – At a glance:
quicker, he says.
• New Zealand’s largest importer of furniture
“We can give the Port a list of containers
• 21 retail furniture stores nationwide
we want prior to Christmas so that we get
customer orders quicker than we get stock.
We would never have been able to do that
in Auckland and Wellington.” Prior to the
move to Hawke’s Bay there was a lot of
wasted time and money with empty trucks
on the road.
10
growing hawke’s bay business success
• Lands a 40ft container in NZ approximately every two hours.
• Has a large commercial property portfolio with 55 tenants
• Proudly sources 40% of its furniture within New Zealand
• Has two 10,000 square metre distribution centres in Napier and Porirua
You built the steel structure for
“The Cloud” – what gave Red Steel
the advantage over others pitching
for the business?
Our previous experience with the Auckland
based client. We have been involved with
many similar projects so when it came time
to put forward a proposal for “The Cloud”
we were contacted at a very early stage. They
appreciate our ability to build projects in the
computer before fabrication of the structure
starts – sorting out all the issues and offering
solutions. We are familiar with the additional
requirements of this type of project and have a
proven track record. the majority of Hawke’s Bay engineering
companies – in fact ATNZ (Apprentice Training
New Zealand) originates from here. The EIT
runs an excellent pre-apprenticeship course
which our new recruits attend, and this gives
them the basic skills to start off in our industry.
How do you manage to access business
outside HB so successfully?
Reputation and the relationships from
previous work. Companies outside Hawke’s
Bay enjoy our relaxed but professional
attitude – perhaps a result of not spending
hours in traffic each day!
What level of technical expertise
was required?
What are your future plans for Red Steel
and how do you see your location in HB as
supporting your development plans?
A few years ago we invested heavily in the
world’s best 3D modelling software for
steelwork and together with skilled operators,
produce shop drawings that when followed
by our skilled team of fabricators, produce a
series of components that we know will bolt
together successfully on site. Red Steel will always be a Hawke’s Bay
company. Our finished product is big and
bulky and to transport it 5km down the road
or 300km to another region does not affect
overall pricing that much, so we will continue
to enjoy the benefits of Hawke’s Bay life while
carrying out specific projects in other regions.
How have you managed to source
that skill base?
Why is Hawke’s Bay the best place
for Red Steel?
While apprenticeships in our industry have
been hard to come by for young school
leavers, we have maintained a training
programme in the traditional way as have
The majority of our staff have no reason
to leave the area so we have a very steady
workforce which is a big contributor to
our success. Land and rent prices are very
competitive compared to similar areas. We
have strong “provincial” relationships with
clients, designers and suppliers that benefit
the projects we work on and I believe
produce a better product at a better price
without the “agro” often encountered in the
larger centres. And how did you come to be here?
In 1994, after four years as a quantity
surveyor for a national building company,
I moved to Hawke’s Bay to join Woolaway
Steel Structures – the company we would
later buy. My wife Anna is a Hawke’s Bay girl
which had an influence on our decision to
relocate here. We moved to Tauranga in 1999
but soon after relocating we started making
plans to get back!
Bob Hawley
Managing director, Red Steel
businesshawkesbay.co.nz
11
Bay business
flying high
When Kevin England looks at the skies
above Hawke’s Bay, the chief executive of
Air Hawke’s Bay sees a wealth of opportunity.
The aviation industry in New Zealand
is forecast to be worth around $15
billion by 2015 and if Kevin England
has his way, Hawke’s Bay will be in line
for a chunk of that figure.
Together with Hawke’s Bay Airport, Air
Hawke’s Bay is creating a centre for aviation
excellence. The new “aviation cluster”,
formed as part of Business Hawke’s Bay will
provide a unified bid for more industry to
be based here, making use of the numerous
high-end aviation services on offer.
The initiative has brought about
collaboration, not previously seen in
the region.
“We’re stronger as two operations working
together,” says England.
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growing hawke’s bay business success
Air Hawke’s Bay may be the smaller
operation, structurally, of the partnership,
however the privately owned company
brings its fair share to the table.
“We’re controlling our own destiny here and
we have an important role to play, in the bid
for more of the national aviation dollar.”
Air Hawke’s Bay is the commercial wing of
the Hawke’s Bay and East Coast Aero Club
and is the training ground for our future
commercial airline pilots.
Twelve months ago the school was selected
by Air New Zealand as an official training
provider, allowing end to end training and a
prime marketing tool to attract students.
“There’s a pending global shortage of
commercial pilots and the demand for pilots
long-term is significant.”
Pilot Gerald Grocott and Kevin England
with the Mustang Cessna Citation jet
Currently 30 students, both international and
domestic, are training at the Bridge Pa based
aerodrome. There are 15-18 instructors
employed and this is tipped to grow as the
school expands.
England says the long term vision is to grow
numbers to 50 students with the school
already being touted as “the best place to
train.” Achieving this goal will, in turn, bring
more maintenance work for the on-site
commercial engineers and economic
spin-offs for the region.
“We’re blessed with uncontrolled and
controlled airspace that other regions simply
don’t have.”
England is well placed to comment on the
industry as a whole, being actively involved
with a number of national bodies and
“We’re blessed with uncontrolled and controlled
airspace that other regions simply don’t have.”
industry initiatives, including as chairman
of flight training division of the Aviation
Industry Association (AIA) and as a director
of the Aviation Travel and Travel Training
Organisation which is principally involved
in promoting and developing workplace
training programmes.
While the flight school provides the main
thrust for the business, the 50 hectares
owned by the Club is home to 22 private
hangars and numerous commercial operators
including; 0800 SKYDIVE, the Gliding Club,
Avionics Hawke’s Bay, Air Training Corps,
Helicopters Hawke’s Bay, Hawke’s Bay
Aviation, Aerial Mapping Ltd, the Dragon
Rapide Group and the Mustang Cessna
Citation jet.
The jet provides a charter service primarily
aimed at corporates, although the price is
designed to attract a broader client base.
“You might want to take a trip to the South
Island with a group of friends for the day and
the charges would principally only include the
actual flying time.”
$3,600 return, and in just 50 minutes, each
way – head-wind or tail-winds depending.
It may not be as quick as the jet, however
the recently restored 1942 Dragon Rapide
brings a touch of art deco to Hawke’s Bay
and a glimpse into the glamour of aviation
in the 40’s.
The Rapide was the first passenger aircraft
for a number of airlines including KLM, and
Swissair. NAC also flew the Dragon Rapide,
although there are only a handful still
flying in New Zealand, and not many more
throughout the world.
Story: Kate de Lautour Photos: Hawke’s Bay Today
Take Blenheim as an example. The IFR
(Instrumental Flight Rules) jet could have you,
and a group of four others, on the ground for
businesshawkesbay.co.nz
13
GOING
AGAINST
THE GRAIN
With an inclusive supply chain
model, lush pastures and unique
growing concept, Firstlight Foods
has all the ingredients to stamp its
mark as producer of the world’s
best grass-fed meat.
14
growing hawke’s bay business success
businesshawkesbay.co.nz
15
“We’ve got the skills and expertise here to create
the customised products, from the designers
to the joiners to the engineers. And we’ve got the
Kiwi can-do attitude.”
The Hawke’s Bay-based company is 50
percent owned by the farmers who produce
the venison and Wagyu beef that ends up
on the tables of consumers in Europe, Japan
and the United States.
“We are about keeping the animal growing
for longer, and for that you need really good,
well planned farmers.” He says the more
marbling there is in the meat, the more the
farmers get paid.
The latter country is a big focus considering
the grain-fed meat offerings which dominate
its food retailers are sitting less and less
comfortably with its discerning consumers.
With the Firstlight venison, the animals are
only grown for a maximum of 22 months and
bred for tenderness and a delicate flavour.
Firstlight Foods co-owner and marketing
director Jason Ross says grass-fed beef used
to be the norm, but has become more of a
niche product as the global population skyrockets and crops encroach on pasture.
“The US is where we see the future of the
beef, simply because they are re-discovering
grass-fed beef,” he says. “After all, it’s what
their grand-parents used to eat.”
While grain-fed cattle develop marbled beef
with good taste and tenderness attributes,
it’s the diet of the animals, including
supplements and antibiotics, that has people
seeking healthier and more natural options.
Ross says getting desirable fat marbling
properties into the meat of the Japanese
Wagyu breed of cattle was a challenging
task on grass.
“It’s a pioneering concept as it hasn’t been
done before on a commercial scale,” he says.
Bones develop first in growing cattle,
followed by the meat, then marbling.
“Grass-fed animals are generally processed
at the meat stage. That comes down to
economics and the fact that grass will
eventually run out.
16
growing hawke’s bay business success
Ross says the animals are raised to
strict animal welfare protocols set out by topend British stockists Waitrose and
Marks and Spencer.
Premium products can command premium
prices, and the niche aspect of Firstlight
meat means it is sold directly to markets it
has forged itself, rather than going through
a wholesaler.
company’s Hastings office, with help
from a marketing, logistics, livestock and
administration team.
The bulk of the Firstlight livestock is grown
with the help of Hawke’s Bay’s sun and
fertility, and the fact that it’s a region with
a fast growing reputation for top-quality
produce, sits well with the company.
“I feel passionately about the fact that
Hawke’s Bay is New Zealand’s food bowl,”
Ross says. “We’re here for a number of
reasons, but see it as the premier place to be
growing high quality food.”
Add a good rural banking infrastructure,
accessibility in terms of the port and airport,
and a favourable cost of living, and the
potential is enormous, he says.
“The US is where we see the future
of the beef, simply because they are
re-discovering grass-fed beef.”
“Our strategy has been ‘one mouthful at a
time’. We’ve got an army of people going
around getting people to taste it and telling
our story.”
Ross works on business development, keeps
the supply chain enthused and knows a lot
about airports and passenger planes.
The other two co-owners, Gerard Hickey
and Greg Evans, work with the farmer
shareholders and steer the ship from the
“We would love to see Hawke’s Bay known
as an international food destination like
Tuscany is to Italy and Provence is to France.
It has the soil, the climate, the people and
the infrastructure to allow those who aspire
to be premier food producers to create a
very nice business.”
Story: Chris Ormond Photos: Firstlight Foods
A global fit
While a large proportion of the country’s
manufacturers have moved offshore
to compete in the global marketplace,
Future Products Group remain firmly
based in Napier – and for good reason.
Future Products Group (FPG) is one of the
world’s leading designers and manufacturers
of fittings and displays for the hospitality
and food service industries. Clients include
McDonalds and BP, Coles Meyer, Ikea and
Novotel – not to mention joint venture
business with China’s largest state-owned
enterprises, Sinopec and PetroChina.
The company has offices in Munich,
Shanghai, Melbourne, Sydney with head
office in Napier’s industrial hub, Onekawa.
The company has grown fast with turnover
in 2002 at $15 million – today, it’s around
$35 million.
So, with this high level of global success, why
not move the business closer to the markets?
“We’ve got the skills and expertise here to
create the customized products, from the
designers to the joiners to the engineers.
And we’ve got the Kiwi can-do attitude,”
says FPG founder and managing director
Robert Darroch.
For Darroch, the convenience of doing business
in Hawke’s Bay is quite simply “fantastic”.
“We are so close to the Port and our
supply chain.”
businesshawkesbay.co.nz
17
The Fusion cabinet is now
installed in Vietnam’s Ho Chi Min
Airport and in supermarkets and
convenience stores in Australia
and New Zealand.
A joiner by trade, Darroch worked in the
building industry and later as a property
manager for a supermarket.
He saw gaps in the market for good quality
supermarket fixtures and fittings and in 1985
FPG was up and running. From supermarkets,
the company moved into store franchise fit
outs for the likes of BB’s and Muffin Break
and soon after, the global giants McDonalds
and BP came knocking.
Giving FPG an advantage over its competitors
was the customized affordable design that
would ultimately increase sales for the client.
Maintaining a global competitive advantage
has come from clever use of the supply chain.
18
growing hawke’s bay business success
Raw materials and sub assembly are imported
from China and then the value is added,
in the Napier factory, before being shipped
around the world.
“We’re not expensive in the UK, even with
the pound at 50p to the dollar, we are still
competitive, because our competitors in
Europe are buying their raw materials locally.”
in place and innovation unique to FPG,
the company is well positioned to secure
the contract.
Coping with demanding 24 hour service
requirements from the likes of McDonalds,
are made possible via the formation of firm
partnerships with local companies.
While Australia continues to be a strong
market, particularly in the mining states, it is
China where growth is forecast to boom.
With a multitude of possible languages,
countries and technicians involved in the oncall service requirements, trying to manage
this from New Zealand would be impossible.
McDonalds are tipped to be building 7000
stores across China, over the next four years.
As one of only a handful of globally approved
suppliers, and with all the compliance
In Europe for example, McDonalds requires
a two hour response time, should store
equipment fail.
This willingness to find solutions to client’s
needs is all part of FPG’s unique selling
point. However the attention to detail
doesn’t equate to extra delivery time, in fact,
it’s the very opposite.
Take BP for example. FPG has fitted out
Connect and 2go stores in three to four
days, where the worldwide benchmark is
three to four weeks.
Groundbreaking new design is another key
feature of the FPG business.
The Fusion cabinet, designed for
convenience stores, offers dual temperature
capability, so is able to handle both hot and
cold food in the one unit.
“We’ve got the skills and expertise here
to create the customised products, from
the designers to the joiners to the engineers.
And we’ve got the Kiwi can-do attitude.”
The Fusion is now installed in Vietnam’s
Ho Chi Min Airport and in supermarkets
and convenience stores in Australia and
New Zealand.
Units are currently on demonstration in four
countries and uptake is looking promising
with organisations including Spar UK,
BP UK, Coca Cola (Australia NZ), 7/11
Indonesia and National Pie Maker UK all
showing an interest.
Story: Kate de Lautour Photos: Tim Whittaker
businesshawkesbay.co.nz
19
Hawke’s Bay wine industry
There are over 4,700 producing hectares planted,
with 71 wineries and 172 independent grape growers.
Hawke’s Bay is New Zealand’s oldest wine region, and
the second largest, with beginnings in 1851 pioneering
innovation and leadership.
The region’s varied topography and settled climate
allows for a wide range of award winning varieties.
Red wine grapes include Syrah, Merlot, Cabernet
Sauvignon with parcels of Pinot Noir often grown at
higher altitudes. White varieties include Chardonnay,
Sauvignon Blanc, Pinot Gris, Riesling and Viognier.
Dr Mark Krasnow
Research
benefits public
and private sector
The Eastern Institute of Technology, based
in Taradale, boasts one of the most rapidly
developing research facilities in New Zealand.
The projects are assisting both the public and
private sector, in fields ranging from viticulture
to supply chain management.
Professor Bob Marshall, EIT’s Director of
Research, says one project EIT is particularly
proud of, is the “early leaf defoliation”
research by Dr’s Krasnow and King. The
research has attracted over $300,000 in
support from national and Hawke’s Bay
winegrower bodies, EIT, and participating
wineries. It will, in addition to producing
vital information for winegrowers, enhance
collaborative research with other international
experts as well as raising EIT’s research profile.
Almost every vineyard in New Zealand carries
out some form of leaf removal at some point
in the season to open up the fruit to sunlight
and to promote air movement and drying of
grapes to prevent rot, which can render the
grapes unusable for premium winemaking. The timing of this defoliation is the subject
of an EIT research project headed by Dr Mark
Krasnow and Dr Petra King. The team are
investigating the different timings of leaf
removal on cluster compactness, incidence of
bunch rot and analysis of indicator compounds
of ripening in grapes and finished wine.
While the research findings could make a
significant contribution to the profitability
20
growing hawke’s bay business success
of Hawke’s Bay vineyards, other potential
advantages include eliminating the need for
some sprays.
Research is focussed on mechanised leaf
removal, rather than the costly hand
defoliation method. “The looser bunches produced by early
defoliation both reduce yield and make
bunches more resistant to rot,”
Dr Krasnow says.
“It costs the same to run a leaf plucking
machine through your vineyards regardless
of the timing. “If we can work out the best time to do this
then we can save a pass through the vineyard,
in turn saving the business, potentially,
thousands of dollars every year.”
Working with the EIT’s School of Business
will allow a detailed cost benefit analysis
assessment for the potential savings of the
techniques gleaned from the project.
“We simply wanted to see if there was an
additional benefit that could be gained
by doing the leaf plucking earlier than is
commonly practiced. “If benefit can be gained by doing the
defoliation earlier either in terms of grape
health, quality, the reduced need for
fungicides, or removing the need to do later
fruit thinning, these all represent economic
advantages to the grower.”
“A large group of people working
together forces us to look at this from a
global perspective and to be more
receptive to other ideas, rather than getting
lost in our own ideas and hypotheses.”
Collaborations with sites in the Northern
Hemisphere provide data from two vintages a
year, allowing the speed at which data can be
gathered to be doubled.
“Repeating trials in different areas with
different climates allows us to see whether this
technique provides similar benefits wherever
it is done, or whether these benefits are only
realised in certain regions.
The benefits of EIT’s collaboration with an
extensive group of industry and scientists
include ideas to be cross-pollinated as well as
speeding the rate of research findings.
Krasnow says a single researcher working in a
single location can often become so immersed
in the work that the big picture is lost. “A large group of people working together
forces us to look at this from a global
perspective and to be more receptive to other
ideas, rather than getting lost in our own ideas
and hypotheses.”
Story: Kate de Lautour Photos: Supplied
businesshawkesbay.co.nz
21
In 2005 Wendy Schollum and husband Shane
Simons were living in Auckland, trying to
figure out how they could buy their own
house and have a family, without working 50
hours a week apiece, just to pay the bills.
“We couldn’t see a way to have a family
and a house – it was a case of, one or the
other,” Schollum says.
Web agency
chooses
Hawke’s Bay
Making the move from Auckland
to Hawke’s Bay has not only made
commercial sense for web industry expert
Wendy Schollum from Xplore – it has also
allowed an enviable work, life balance.
craved, and the ideal balance between work
and family time.
Their large home and garden is a welcoming
space for the dog they “always wanted” and
more recently for three year old son Josh.
“The house overlooks an orchard and has a
great backyard – it’s the perfect home for us.”
“The future of web marketing is an
ever-changing canvas but one thing’s for
sure, if you’re not online, you are missing
out on a huge part of your market.”
“We looked at relocating to Hawke’s Bay and
realised that the property prices meant we
could have it all.”
The couple had been smart enough to get a
foothold in the Auckland property market,
buying a house together with a family
member. They sold the property well and,
despite having to split the return on their
investment, they were still able to afford a
large property in Hawke’s Bay.
Schollum worked for an established web
development company, Xplore, in central
Napier before going on to purchase the
business in 2006. With the rent on the office
building being “ridiculously cheap” at just
$8,000 per annum, she had the confidence
to take Xplore to new levels of growth.
Starting out with three and a half staff, the
new full service web agency grew rapidly and
now supports 13 employees, with the first
floor 300 sq/m work area roughly trebling the
space of the initial office. Clients are based
locally, around New Zealand and offshore.
“Distance isn’t an issue,” she says.
“If we need to have face time with a client,
we jump on the plane – the airport is only ten
minutes from the office.”
Schollum hosts web marketing seminars with
a focus on web integration, e-commerce and
the importance of the website as part of a
company’s overall marketing plan.
“The future of web marketing is an everchanging canvas but one thing’s for sure, if
you’re not online, you are missing out on a
huge part of your market.”
For Wendy and Shane, living in Hawke’s Bay
has allowed them to create the lifestyle they
22
growing hawke’s bay business success
Matt Dwen is the senior developer
at Xplore and moved, with his wife
Kelly, to Hawke’s Bay from Auckland
to manage the department. He also
runs his own business called Group 6
Technologies who have developed the
DIVA Distributed Media Management
system. This is a high-end, shared editing
platform for post-production video, using
a mix of web and desktop technologies
across a range of platforms. Group 6
have also developed a range of custom
software solutions for NZ television and
production facilities.
“One of my primary goals of moving
to Hawke’s Bay was to remove the
distractions in my daily life which
were preventing me from focusing
on developing our platform further.
In Auckland, I would often lose half a
day just driving between clients, and
troubleshooting on the ground. Now, I
can concentrate on my day job at Xplore
in one big block, yet still be remotely
connected to my business partners and
support sites in Auckland as required,
and get on with the job of writing good
code in the evenings.”
Story: Kate de Lautour Photos: Tim Whittaker
businesshawkesbay.co.nz
23
WineWorks
helping to grow
“Wine Hawke’s Bay”
What began as a warehousing and bottling service for
a handful of wineries in 1996, has grown to a state of
the art facility, covering 55,000 sq./m, and catering
to the needs of 120 Hawke’s Bay wineries.
24
growing hawke’s bay business success
businesshawkesbay.co.nz
25
WineWorks has five
screw cap machines,
each costing over $120,000
and screw caps are now
accepted globally, as a
premium offering.
Tim Nowell-Usticke is passionate about
Hawke’s Bay’s position as one of the
world’s up and coming premium wine,
food and beverage export hubs and
it’s a niche he has been helping to
facilitate, since relocating here from
Australia 20 years ago.
Working as a food processing engineer in
Sydney, Tim and his wife Jules made the
decision to return to Hawke’s Bay for lifestyle
reasons. Their young family could capitalise on
the space and freedom here, meanwhile Tim
had plans to use the 10 remaining acres of
his family farm, west of Hastings, to provide a
service to the burgeoning wine industry.
“At the time, the wine industry was existing
with little infrastructure, so I went to the
leaders of the industry and asked them, what
they needed to grow.”
Expecting them to reply with requests for a
glassworks, or a cork factory, Nowell-Usticke
26
growing hawke’s bay business success
discovered, what they actually needed, was a
temperature controlled, bonded warehouse.
And so he built the first storage facility and
WineWorks was born.
Then the winemakers asked if he could buy,
and install, a bottling line. And so he did.
These days, WineWorks collects thousands of
litres of wine, bottling, labelling and storing
it, before despatching to sales agencies. There
are now five warehouses, with additional
facilities in Marlborough and head office
in Hawke’s Bay.
While the wine industry has boomed,
WineWorks’ ethos has stayed the same.
“We have continued to build, develop and
put systems in place to cater for the needs
of the wineries.”
This large scale growth has been assisted by
easy access to a pool of expert contractors and
engineers, based in Hawke’s Bay.
“Hawke’s Bay is a gem amongst regions, and
it’s very easy and cheap to do business here,
with excellent communication links.
“It’s large enough to have all the technical
expertise you need, including excellent legal
services, but it’s small enough to avoid the
disadvantages of a major city centre.”
Logistical efficiency is made possible by the
Port of Napier – without which, the freight
costs passed on to Hawke’s Bay’s wineries
would be very different.
“The fact that we can get to the ship in one
short trip is a real plus, and puts Hawke’s Bay
ahead of any other wine region in the country.
“When WineWorks first started, we were
focused on domestic logistics, but now with
Hawke’s Bay wine exported around the world,
the importance of the Port cannot
be underestimated.”
The key to WineWorks’ success is allowing
wineries the chance to concentrate on their
“We see WineWorks as the back shed clipped
onto the wineries, freeing up the winery
owners to concentrate on growing their
grapes, making and marketing their wines.”
vineyard, winemaking and marketing while
offering industrial expertise and economies
of scale to finish the wine to the exacting
standards demanded by the country’s highend export markets.
“Every time the wineries have wanted
something new, we have developed the
systems to make it happen, cost effectively.”
Conversations with winemakers over the years
have gone something like this: “Tim, these
corks are unreliable for our customers, we
need screw caps – how about a screw
cap machine?”
That dialogue took place in 2002, and now
between WineWorks Hawke’s Bay and
WineWorks Blenheim, the company has
five screw cap machines, each costing over
$120,000 and screw caps are now accepted
globally, as a premium offering.
Nowell-Usticke’s ability to innovate has played
a key role in allowing the industry to diversify.
The recent installation of an industrially
efficient sparkling wine process, costing more
than $5 million, has allowed wineries to fulfil
demand, at a competitive price.
of local engineering contractors, combined
with WineWorks’ in-house expertise, Hawke’s
Bay now has the most advanced sparkling
production process in the country.
Hawke’s Bay’s wineries continue to excel, with
older vines and fine-tuned winemaking seeing
the region’s wines compete with the world’s
best. Helping to maintain and grow this profile
is all part of a day’s work for Tim and his team
at WineWorks.
“We see WineWorks as the back shed clipped
onto the wineries, freeing up the winery
owners to concentrate on growing their
grapes, making and marketing their wines.”
Story: Kate de Lautour Photos: Tim Whittaker
Various components of the Charmat line
were imported from Italy and, with the help
businesshawkesbay.co.nz
27
Technology has changed significantly since ABC
Software founder Sharon Chapman began
her career as a software developer in the early
80’s. What hasn’t changed however is the need
to understand business and develop software
solutions that can deliver to their needs.
In 2003 New Zealand’s largest apple
grower, packer and exporter, Mr Apple New
Zealand Ltd approached ABC Software to
help with their logistics and packhouse
software challenges.
and is totally scalable. We are very pleased
with the outcome made possible by the
very close working relationship between
the two companies.”
The solutions provided for Mr Apple have
created opportunities into other horticultural
sectors, including avocadoes in Western
Australia, table grapes in Victoria and
mangoes in Brisbane.
“These businesses have all recognised that
software is a major asset in their goal to work
smarter,” ABC co-owner Julie Gillies says.
The systems are designed to ensure data
is entered only once and all parts of the
system are fully integrated, giving Mr Apple
a real-time view of the business.
The initial system build was for the packing
operation. This led to further developments
the following season for orchard spray diaries
and lab and quality applications for the
pack house. Since then, ABC has continued
to build integrated solutions for Mr Apple
that support the entire business operation,
including cool store, logistics, customer
invoicing and grower payments.
The systems are designed to ensure data is
entered only once and all parts of the system
are fully integrated, giving Mr Apple a realtime view of the business.
“The Mr Apple systems allow a carton
created in the packhouse to be traced back
to an orchard and on to the customer, at the
press of a button,” Chapman says.
“Because traceability and compliance are
inherent in the system design, fruit can
be targeted to the most suitable market
and customer.”
Software at
heart of
horticulture
Hawke’s Bay and Australia share a number of common
denominators, one being thriving horticultural
industries. Sharing a slice of this success is a
Napier-based software company, ABC Software Ltd.
28
growing hawke’s bay business success
For Mr Apple CEO Andrew van Workum,
the “world-class” software has provided a
competitive edge for the business.
“It has become integral in the business
processes and disciplines within the group
ABC’s track record with Mr Apple was key
for both Advance Packing and Management
Services Ltd and Oolloo Farm Management,
part of the Brisbane-based OneHarvest group
of companies, to commission software
development for their respective avocado and
mango packing operations. Both companies
visited Hawke’s Bay and, being hosted by
Mr Apple, were able to see the software
solutions firsthand.
“Whilst their fruit and business operations
were different to Mr Apple and in fact each
other, they quickly appreciated that we
understood their specific needs and we could
deliver a top class solution”, Gillies says.
“Being from Hawke’s Bay has its advantages”,
Chapman says.
“We are from a farming province and we are
equally at home working with people in a suit
or work boots.
“At the end of the day it is all about meeting
and exceeding our client’s expectations and
giving them a software solution that truly
makes a positive and lasting difference in
their business.”
Story: Kate de Lautour Photos: Tim Whittaker
HB Horticulture Export Values 2010
Pipfruit $194.3m Other fruit $130.6m
Onions /squash / other fresh and processed vegetables $199.2m
Data supplied by Economic Solutions Ltd
ABC Software’s Julie Gillies and
Sharon Chapman with Mr Apple
CEO Andrew van Workum
Training
The Eastern Institute of Technology offers a Bachelor of Computing Systems, four
Diplomas with specialisations in IT and a Graduate Diploma in Information Technology.
businesshawkesbay.co.nz
29
“Our presence in Napier is largely about needing
to be provincially-based and connecting with our
customers, and it works for us because of the
strong air links to the South Island.”
A MERGER OF THE RIGHT GENETICS
When Landcorp Farming’s genetics
wing merged with Hawke’s Bay’s
Rissington Breedline last year, Napier
was an obvious place from which to
grow the country’s largest red meat
genetics company.
A leader in the field of breeding and
improvement, Focus Genetics has farmer
customers from the deep south to Northland
and out to the Chatham Islands, with a
presence in the United Kingdom, South
America and Australia.
Chief executive Graham Leech says
combining the breeding programmes of the
state-owned farming giant and the privatelyowned Breedline operation provides extra
scale and scope for genetic selection.
Genetics technology and expertise in science
doesn’t come cheap, and scale allows the
30
growing hawke’s bay business success
breeding are welcomed at that end of
the production line.
company to invest more heavily in developing
rams, bulls and stags, he says.
customers who are the important part of the
equation, Leech says.
It equates to value for the end consumer
in terms of a product with better taste and
colour, more tenderness and a longer shelf life.
“The greater mass also allows us to have a
high number of animals to select from and
increase genetic improvement.”
“The stock has to be acceptable on sale to
the farmer, therefore we have to stay very
connected to them.”
“The better we can market our beef, lamb
and venison, the better it is for New Zealand
Inc. at the end of the day.”
“The better we can market our beef,
lamb and venison, the better it is for New
Zealand Inc. at the end of the day.”
That includes better breeding ability, faster
growth, more meat to bone ratio and more
desirable qualities in the meat itself.
Farmers are well aware of the benefits of
science, but they don’t want anything less than
good quality, structurally sound stock, he says.
It all equates to better productivity and
reduced costs for the farmer customers
who buy the stock to breed from, and
beyond the science of it all, it is the farmer
Meat processing plants are another
obvious player in the farming industry,
and incremental improvements in finished
carcasses through intensively selective
The Focus Genetics team is about 20 strong,
including breeding specialists and a mobile
sales and marketing team.
While the Landcorp part of the collaboration
had previously operated out of Wellington,
a provincial base was preferred for the
new company.
“Our presence in Napier is largely about
needing to be provincially-based and
connecting with our customers, and it works
for us because of the strong air links to the
South Island.”
“A lot of that is about the Napier to
Christchurch flight – we can get to Christchurch
and Dunedin very efficiently from here.
“It’s also a part of the country that employees
want to work in. Probably the biggest
challenge in the business is to get the right
human resource – it’s sales and marketing
people who are able to support what is a very
technical sale, and the other thing is getting
the science team on board.”
In its drive for genetic improvement, Focus
Genetics, along with Silver Fern Farms,
AgResearch and Farm IQ, has recently
become involved in what is the world’s largest
red meat testing programme.
It involves carrying out about 20 different
tests on 5000 lambs during processing.
Assisted by a government research and
development grant, it’s a seven year
programme that will provide valuable DNA
data, enabling the team to pin-point the
breeding stock which passes on the best
meat production attributes.
The programme is set to benefit the industry,
and will give Focus Genetics another platform
from which to grow its market presence.
“The better we can market our beef,
lamb and venison, the better it is for
New Zealand Inc. at the end of the day.”
Graham Leech
CEO, Focus Genetics
Story: Chris Ormond Photos: Supplied
businesshawkesbay.co.nz
31
Luxurious
to a tee
Hawke’s Bay is blessed with an array of amazing
places to stay but few come with a world famous golf
course (ranked sixth best in the world by Golf Digest)
and a luxury lodge, listed on Condé Nast’s top 100
places to stay in the world.
Behind the black gates at Clifton is
the driveway (an impressive feat of
engineering in itself) that leads to one
of New Zealand’s most luxurious places
to stay – The Farm at Cape Kidnappers. Owned by American philanthropist
Julian Robertson ‘The Farm’ is set atop
6000 rolling acres, on a working sheep
and beef farm.
Most visitors get their first taste of this
idyllic spot via the golf course. The par 71
golf course was designed by legendary
golf architect Tom Doak and measures
6,510 metres.
32
growing hawke’s bay business success
The course is spectacular which is probably
why it is regularly ranked in the top 50
courses of the world.
Doak says standing up on the cliffs of
the course, 140 metres above sea level
looking out at the waves crashing below
is, “overwhelming”.
The scenery is unrivalled and you’d be
hard pushed to get a better photo
opportunity than on the back nine holes.
The clubhouse is equipped with lockers
and showers and offers a full lunch menu
in the dining room or visitors can arrange
to have a packed lunch.
There is also a pro-shop where you can rent
men’s and ladies clubs.
The correct thing to do after a morning
round of golf is to head to The Lodge for a
three course lunch in The Loggia Room
(or conservatory ) which offers views straight
out to the Pacific Ocean. There are more
formal dining options available but the
Loggia is relaxed and understated. The Snug
is another popular dining option and worth a
visit if travelling with your better half!
What is truly impressive about The Lodge
is the design and the no expense spared,
approach taken by the interior designer
and architect.
Behind the black gates at Clifton is the driveway
that leads to one of New Zealand’s most luxurious
places to stay – The Farm at Cape Kidnappers
The Lodge is incredibly homely and
comfortable with special attention to detail
- the updated international newspaper print
outs during the day are just one of the extra
little touches.
The Spa is open seven days a week and offers
all the usual facials and massages you would
expect at a spa of this level, with the added
bonus of beautiful scenery, birdsong and
down to earth friendly service.
For guests needing some serious pampering,
Cape Kidnappers Spa is ideal. Designed in
relaxing neutral colours and seaside blues it is
the perfect place for relaxing and unwinding.
In all, The Lodge has 22 suites, a library,
gymnasium, office and underground wine
cellar. Activities onsite include quad biking,
tours to the Cape to see the Gannets (the
world’s only mainland Gannet colony),
cycling and the option to take a Kiwi walk
with the Cape Sanctuary project. The Lodge also runs special food and wine
events throughout the year and recently
hosted an evening with celebrity super chef
Heston Blumenthal.
Story and photos: Hawke’s Bay Tourism
businesshawkesbay.co.nz
33
The
Hawke’s Bay
equation
+
Cost savings supply chain efficiency
engaging Business Hawke’s Bay
improved profitability.
+
=
Do you aspire to lead your team to produce the most profitable year ever?
Considering expansion?
Need to lower costs to be competitive?
Do you import or export?
Do you need a more cost effective nationwide delivery solution?
Is achieving your bottom line target keeping you up at night?
Whether you answered yes to one or all of these questions relocation to, or distribution from Hawke’s Bay could be the answer. Let us do
the maths for you. Engage Business Hawke’s Bay to provide a confidential, tailored solution, specific to your business requirements.
Contact: Michaela Vodanovich at Business Hawke’s Bay - [email protected]
Compare these costs…
Hawke’s Bay Costs
Industrial Land prices
Construction Prices
Warehouse Lease
Compare to Wellington
55% lower
10% lower
25% lower
Compare to Auckland
65% lower
17% lower
35% lower
Compare to Tauranga
65% lower
7% lower
30% lower
Add to the equation…
Hawke’s Bay’s excellent logistics, infrastructure and business support.
Comprehensive tertiary training facilities and pro-active local business support network.
Port of Napier is the leading international port in central New Zealand.
Fabulous lifestyle, low average house prices and quality educational facilities.
Cost effective, national logistics network.
Stable workforce and lower salary expectations.
Efficient pathways to market via road, rail and coast.