Worldwide markets open for Dunedin honey

The Dunedin-based New Zealand Honey company continues to go from strength to strength, picking up another award and securing a large contract with a South Korean retailer and distributor.

Last year's winner of the Deloitte Fast 50 award for being New Zealand's fastest growing export company, the specialist honey producer and marketer won the export marketing award at the recent TVNZ-NZ Marketing Awards.

New Zealand Honey Company (NZHC) general manager Jason Walker said the award recognised its export focus in the three years, and also the label design and promotion of its branded honey products, especially in the United Kingdom market. The company sells products to health-food shops and three of the UK's largest supermarkets, Waitrose, Asda and Morrisons.

In-market designers created the labels because they knew the retail sector and what was required, and they were refined back in New Zealand. The labels included New Zealand imagery and flora.

The other key to its success was scientific evidence of health attributes, being high in antioxidants. Manuka honey has long been promoted as having health benefits, but NZHC has done that with honey sourced from clover, beech forest, thyme, kamahi and rata.

Mr Walker said the company had enjoyed rapid growth in the three years since it was founded by a group of South Island beekeepers trying to add value and grow returns and no longer be at the mercy of commodity prices.

Last year, the NZHC won the Deloitte Fast 50 competition with revenue and sales growth of 995% for the previous 12 months.

Mr Walker said that growth was coming off a base of domestic sales and a presence in 880 supermarkets and 650 health-food stores in the UK as well as 300 supermarkets in Hong Kong. Exports accounted for 90% of company sales.

Mr Walker said the company shareholders backed the export strategy. It had also secured a contract for an initial shipment of 13 tonnes of pre-packed honey products to South Korea.

Honey exports normally attracted a 230% import tariff, but the South Korean Government auctioned off low tariff quota which the successful bidder has asked the NZHC to fill.

"It's a new market and a very significant order for a first order in to a new market."

He had high hopes for the future of the market.

Even though the bee-killing varroa mite was now in Otago, Mr Walker said beekeepers had had time to adapt and while the treatment costs could push up the cost of honey, beekeepers had learnt to live with it.

The company recently moved its factory and offices from Kaikorai Valley to the former Fortex North Taieri meat works.