It took Chris McElroy four visits and some creative persuasion before the United Kingdom supermarket giant Waitrose agreed to stock his New Zealand Honey Company products.
As any food producer can attest, trying to win supermarket shelf space in the world's most contested food market was no easy task, but Mr McElroy, the chief executive of specialty honey producer the New Zealand Honey Company, finally won them over by providing a point of difference and building on the New Zealand brand.
And that is their strategy - having a product scientifically proven to contain antioxidants or antibacterial properties, leverage from New Zealand's premium reputation as a food producing nation, and targetting the world's affluent and health conscious consumers.
"What we have done is validated what people have known for some time with substantial science," he said.
Along the way, and perhaps most importantly, they hope to improve the economic viability and long-term sustainability of the southern New Zealand honey industry by doing what many in the primary sector are trying to emulate - producers owning more of the value chain by adding value to products and no longer being held captive to commodity price cycles.
The New Zealand Honey Company was formed in 2006 by Hawea beekeeper Peter Ward and three private shareholders.
Since then, in the United Kingdom and Hong Kong, they have tested consumer demand and reaction to the validated health properties of nine specialty honey products made from South Island kamahi, rata, white clover and manuka pollen.
With two in every three product launches failing, Mr McElroy said they needed to first test the water and prove that consumers were prepared to pay a premium for its honey and its attributes.
"The retail price is twice as high as normal honey. We've tried to get into the nutriceutical area and what we have to do is convince consumers they should pay more for these honeys."
It has proved successful, with annual sales growing from $300,000 in the year from August 2006 to $5 million this year with volumes of honey expected to reach 500 tonnes.
They plan to grow that to 2000 tonnes a year as they roll out the business model in the next two years throughout Europe, Asia, the Pacific and the West Coast of the United States.
It was growth that required new capital, and Mr McElroy said early next year the company would look for private investors and honey suppliers to buy shares to provide the unspecified amount of cash.
"What we see is having a strong supply-chain married to a strong marketing company as the future for the southern honey industry."
The company sold its products in 1300 outlets, including the 55-store UK health food retailer Holland Barrett, supermarkets Asda, Morrisons and Waitrose, 110 supermarkets in Hong Kong and, most recently, 40 retailers in China.
UK sales of specialty honey were increasing by 8% to 10% a year.
Mr McElroy said exposure in UK and Hong Kong retailers and packaging the products in Belgium, had the company credibility with retailers, so much so that some were approaching them for supplies.
The honey was validated and shipped in bulk from New Zealand to Belgium, where it was packed in jars bought from Portugal and distributed to the UK and Europe.
Mr McElroy said shipping costs and public concern about food miles and carbon footprints meant it did not make sense to ship the jars to New Zealand, pack the honey and then send the product back to Europe.
Product for Asia and the Pacific was packed in Dunedin.
But, the industry faced some challenges.
In the past few years, between 30,000 and 50,000 South Island hives a year have been sold to North Island beekeepers for manuka honey production, as beekeepers retire or replacement hives are sought to replace those decimated by the varroa mite.
The country's annual honey production has stalled at about 12,000 tonnes, of which half came from the South Island.
Of that 12,000 tonnes, about 7000 tonnes was exported with 60% of that sold as a commodity, usually to international honey traders.
Mr McElroy said it was this commodity trade that he hoped to target, to add value, give the industry a surer footing and allow it to grow and attract young people.
"We see having a healthy [beekeeping] industry as central to our business."
Mr McElroy has a vision of a southern honey industry which, in five years' time, owned a substantial global health food business built around the health qualities of honey.
"It's selling honey for non-honey prices, getting value add, and [moving ]away from treating honey as a commodity.
"It's the same strategy for all New Zealand primary industry," he said.
While the business had grown rapidly and success come relatively quickly, Mr McElroy said the big challenge of growing its market lay ahead of it.
"The clever bit is now."
New Zealand Honey Co
- Winner 2009 Deloitte Fast 50.
- Sales growth August 2006 to August 2009 995%Expected sales this financial year $5 million.
- Will process and sell 500 tonnes of specialty honey this financial year.
- Staff: Management team of three, three factory staff and one Europe-based sales manager.
- Plans next year to target Europe, Asia, Pacific and West Coast of US.
