Publication Date: 13 June 2003
Source: Trade New Zealand
COMVITA NZ IS CONSUMER PRODUCTS EXPORTER OF THE YEAR
New Zealand’s Consumer Products Exporter of the Year is Comvita New Zealand, a Bay of Plenty company that started out manufacturing natural health products derived from honeybees in a garage in 1974.
The Trade New Zealand Export Award was presented at a gala dinner in Christchurch on June 12. Comvita New Zealand was one of 10 category winners.
The judges said Comvita was a classic example of how important the natural products industry can be to the growth of the New Zealand economy, by focusing on small, niche markets.
Comvita CEO Graeme Boyd says sales last year were $18.7 million. While about half that figure was direct exports, he says in reality about 75% of Comvita’s products end up offshore – with the balance either exported by other enterprises or taken back home by international tourists.
He says exports have been growing at 50% per annum since the late 1990s, boosted by a major expansion and restructure and following Comvita’s entry into the Australian market.
The Te Puke-based operation manufactures and markets a wide portfolio of natural health products derived from honeybees – honey, propolis, pollen, royal jelly and venom. The products are formulated and packaged into various applications – for example lozenges, elixir, throat spray and tablets – designed to appeal to different audiences, including digestive health, immune functionality and good nutrition.
Mr Boyd says Comvita positions its products at the premium end of the market, with the Comvita brand a key competitive advantage.
“We have developed a strong and well recognised international brand. One of our major points of difference is New Zealand – it provides us with a clean, green image, and the country itself provides us with the highest quality natural products found anywhere in the world.”
Comvita exports to 10 countries, with major markets Australia, the United Kingdom, Hong Kong, Japan, Korea and the US.
Mr Boyd says a key achievement has been the rapid growth in exports to Australia since Comvita entered the market in 1999. With annual sales of about $2 million last year, Australia is now its largest export market.
He says sales throughout Asia are also growing strongly, with people reaching for products such as propolis in an effort to build up immunity against the SARS virus.
Last year Comvita established its first 100% subsidiary offshore in Japan, part of its strategy to become more involved in its offshore markets in order to maximise export opportunities and control its future.
“In essence we are evolving from being an exporter to an international marketer,” says Mr Boyd. “We are moving towards having our own people on the ground in our offshore markets, rather than working through a distributor who handles products from many different companies.”
With demand for Comvita products continuing to increase, Mr Boyd says further expansion is required. In order to finance its growth, the company went onto the Unlisted Securities Market last year, with 130 shareholders investing in the business.