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July 2021 - Bay of Plenty Business News

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JULY <strong>2021</strong> VOLUME 5: ISSUE 7<br />

WWW.BOPBUSINESSNEWS.CO.NZ<br />

FACEBOOK.COM/BAYOFPLENTYBUSINESSNEWS<br />

PMG POSITIONED TO ACQUIRE<br />

BETHLEHEM TOWN CENTRE<br />

See page 13<br />

intellectual property<br />

Know what you are<br />

registering, says Ben Cain<br />

P7<br />

commissioners<br />

Rare and challenging issue<br />

for Tauranga.<br />

P11<br />

wellbeing<br />

Mental health key for agri,<br />

says Craig Hudson<br />

P12<br />

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2 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong><br />

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FOR KIWI BUSINESS


<strong>July</strong> <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 3<br />

Tauranga private equity firm Oriens<br />

Capital successfully raises second fund<br />

Private equity investor Oriens Capital has raised its<br />

second fund after reaching the targeted $80 million.<br />

The fund is now accepting over subscriptions and is<br />

on target to raise $100m at close.<br />

By DAVID PORTER<br />

Following the successful capital<br />

raise for the new fund, Oriens<br />

will be increasing the size <strong>of</strong><br />

its Tauranga-based investment team<br />

from four to six.<br />

Oriens was formed in 2016 with<br />

the support <strong>of</strong> Quayside Holdings,<br />

and has successfully established itself<br />

as a leading private equity investor<br />

in mid-sized businesses. This is a<br />

section <strong>of</strong> the economy not served<br />

by most other New Zealand private<br />

equity funds.<br />

The Fund has become a key player<br />

Capital deployed in<br />

our space can make<br />

a real difference and<br />

it is very satisfying<br />

to be helping<br />

these companies<br />

achieve their growth<br />

ambitions.”<br />

– James Beale<br />

in New Zealand’s entrepreneurial<br />

infrastructure.<br />

Oriens raised $50.6 million for<br />

its first fund and has successfully<br />

deployed capital into six investments<br />

including miniature apple<br />

business Rockit Global, ag-tech<br />

business Bluelab, and market-leading<br />

manufacturing business Rhino<br />

Manufacturing<br />

Earlier this year, NZX listed company<br />

Just Life Group completed the<br />

purchase <strong>of</strong> About Health Supplements<br />

from Oriens Fund 1.<br />

Oriens Fund 2 will invest equity<br />

capital into private New Zealand<br />

businesses <strong>of</strong> between $10 million<br />

and $50 million, drawing on the<br />

networks and investment pipeline<br />

the team has built over the last five<br />

years, said Peter Tinholt, a partner <strong>of</strong><br />

Oriens.<br />

“It will aim to build a portfolio <strong>of</strong><br />

six to nine investments,” said Tinholt.<br />

The fund is likely to remain open<br />

to eligible and wholesale investors<br />

until early <strong>July</strong>, <strong>2021</strong>.<br />

Excellent investment<br />

opportunities<br />

“The section <strong>of</strong> the economy on which<br />

we focus <strong>of</strong>fers excellent opportunities<br />

to invest in and support high quality<br />

ambitious businesses with strong<br />

Oriens team members: Peter Tinholt, David Bell,<br />

and James Beale, partners. Photo/Supplied.<br />

domestic market positions and <strong>of</strong>ten<br />

untapped export opportunities,” said<br />

Tinholt.<br />

Oriens <strong>of</strong>fers capital, networks and<br />

expertise and partners with business<br />

founders and owners in both expansion<br />

capital and succession capital<br />

transactions to help these companies<br />

achieve their potential.<br />

Oriens partner James Beale said he<br />

was proud <strong>of</strong> Oriens record <strong>of</strong> success<br />

and the contribution it is making to<br />

the New Zealand economy.<br />

“Through Oriens Fund 1 in partnership<br />

with other shareholders, we<br />

have assisted in the creation <strong>of</strong> more<br />

than 120 jobs across our portfolio <strong>of</strong><br />

companies and assisted in a more than<br />

tripling <strong>of</strong> export revenue and earnings,”<br />

said Beale.<br />

“Capital deployed in our space can<br />

make a real difference and it is very<br />

satisfying to be helping these companies<br />

achieve their growth ambitions.”<br />

Oriens Capital has reported positive<br />

Fund 1 investment performance<br />

on the back <strong>of</strong> the underlying portfolio<br />

company growth.<br />

Investors in Fund 2 include specialist<br />

private equity investor Continuity<br />

Capital from Australia, community<br />

entities, charitable organisations<br />

iwi investment entities and individuals<br />

joining existing Fund 1 investors<br />

– most <strong>of</strong> which have also invested<br />

into Fund 2.<br />

26 Fourth Ave<br />

Tauranga<br />

0800 225 999<br />

LINKBUSINESS.CO.NZ<br />

Essential & Protable $995,000<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

· Established over 40 years<br />

· Large client base & market share<br />

· Average annual prot $350K<br />

· Reliable long-term staff<br />

· Generous hand over period<br />

linkbusiness.co.nz/BOP00294<br />

Mike Fraser 021 932 633<br />

mike.fraser@linkbusiness.co.nz<br />

Quality Online <strong>Business</strong> $160,000<br />

North Island<br />

· Largest online reseller <strong>of</strong> personal grooming<br />

products<br />

· Average order value <strong>of</strong> $110<br />

· Ideal for digital marketer<br />

· Outsources distribution & fullment<br />

· 4.9 star rating from 650+ reviews<br />

linkbusiness.co.nz/BOP00308<br />

Izaac Kershaw 021 0230 2377<br />

izaac.kershaw@linkbusiness.co.nz<br />

Successful Bakery $335,000<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

· Prime, high growth location<br />

· Very protable, $200K Cash Surplus<br />

· Great staff, regular customers<br />

· Often queues out the door<br />

· Superb store t-out & equipment<br />

·<br />

linkbusiness.co.nz/BOP00313<br />

Peter Redward 027 492 0453<br />

peter.redward@linkbusiness.co.nz<br />

Calling Animal Lovers $75,000<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

· High demand pet grooming salon<br />

· Easy to manage, online booking<br />

· Quality equipment & salon<br />

· Prot $40K+ for 20hrs per week<br />

· Growth potential<br />

linkbusiness.co.nz/BOP00309<br />

Lynda Smyth 021 270 4271<br />

lynda.smyth@linkbusiness.co.nz<br />

Specialty Roong<br />

Tauranga<br />

· Unique specialty<br />

· Annual turnover $500k+<br />

· Minimal overheads, cash surplus $160k+<br />

· Forward orders, domestic & commercial clients<br />

· Working owner, team <strong>of</strong> 3<br />

· Growth potential<br />

linkbusiness.co.nz/BOP00319<br />

Theresa Eagle 0221 289 0949<br />

theresa.eagle@linkbusiness.co.nz<br />

$290,000 Motorbike Franchise<br />

$786,129<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

· Established brand for 21 years<br />

· Full sales, workshop & parts operation<br />

· High prole site on a busy main road<br />

· Large database <strong>of</strong> customers<br />

· Includes stock <strong>of</strong> $421,315<br />

· High prole freehold site, also available to buy<br />

linkbusiness.co.nz/BOP00283<br />

Grant Jacobson 027 454 0432<br />

grant.jacobson@linkbusiness.co.nz<br />

Laundry $172k Prot<br />

$280,000<br />

Tauranga<br />

· Drop-<strong>of</strong>f & pick-up laundry service<br />

· Loyal commercial & residential clients<br />

· Operating 20+ yrs, streamlined processes<br />

· $172k prot - two working owners<br />

· No experience / special skills needed<br />

linkbusiness.co.nz/BOP00311<br />

Izaac Kershaw 021 0230 2377<br />

izaac.kershaw@linkbusiness.co.nz<br />

Aged Care <strong>Business</strong> FHGC $1,350,000<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

· Great reputation, waiting list to attend<br />

· Contracts with the Ministry <strong>of</strong> Health<br />

· Established 20+ yrs, fabulous staff<br />

· Tangible assets include four vehicles<br />

· Full training & support from retiring owner<br />

linkbusiness.co.nz/BOP00304<br />

Lisa Lloyd 027 685 4556<br />

lisa.lloyd@linkbusiness.co.nz<br />

5 Day Lunchbar $280,000<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

· Premium position, busy street<br />

· Average turnover $8K per week<br />

· Own the building & business making a cheap<br />

rent <strong>of</strong> only $9K per year<br />

· Baker happy to stay with new owner<br />

linkbusiness.co.nz/BOP00313<br />

Peter Redward 027 492 0453<br />

peter.redward@linkbusiness.co.nz<br />

288k Prots! Security Company $705,000<br />

Tauranga<br />

· Well established security company, fully<br />

managed<br />

· Sales & servicing <strong>of</strong> alams systems + CCTV<br />

· 24/7 monitoring station & guard patrol<br />

· Residential & commercial clients, room to<br />

expand<br />

linkbusiness.co.nz/BOP00311<br />

Izaac Kershaw 021 0230 2377<br />

izaac.kershaw@linkbusiness.co.nz<br />

Established Manufacturing $4,700,000<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

· Large database <strong>of</strong> loyal customers<br />

· 28 skilful and reliable staff<br />

· Average $10M+ turnover per year<br />

· Prots on average $1.3M+ per year to 2<br />

working owners<br />

· Extended “handover” period<br />

linkbusiness.co.nz/BOP00292<br />

Grant Jacobson 027 454 0432<br />

grant.jacobson@linkbusiness.co.nz<br />

Outstanding Event Hire $1,200,000<br />

North Island<br />

· Clients from Wellington to Northland<br />

· ·Can be relocated to anywhere within NZ<br />

· ·Includes extensive assets valued $750k+<br />

· ·Preferred supplier for large annual events<br />

linkbusiness.co.nz/BOP00314<br />

Lisa Lloyd 027 685 4556<br />

lisa.lloyd@linkbusiness.co.nz<br />

All LINK NZ <strong>of</strong>ces are licensed REAA08


4 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong><br />

www.bopbusinessnews.co.nz<br />

CONTACT INFORMATION<br />

PUBLISHER<br />

Alan Neben<br />

Ph: 021 733 536<br />

Email: alan@bopbusinessnews.co.nz<br />

EDITOR<br />

David Porter<br />

Mob: 021 884 858<br />

Email: david@bopbusinessnews.co.nz<br />

From the editor<br />

Tauranga is going through some strange times as the city adjusts<br />

to life under the new leadership <strong>of</strong> its four commissioners, led by<br />

Anne Tolley (see page 11 for more details <strong>of</strong> the new lineup).<br />

While many resented<br />

the new lineup, there<br />

seems little affection<br />

for the ousted councillors,<br />

who are generally seen<br />

to have failed to live up to<br />

expectations.<br />

The commissioners have<br />

now announced that they have<br />

received over 1000 submissions<br />

online, by email and in<br />

hard copy.<br />

These were initially compiled<br />

in preparation for the<br />

hearings in April and the commissioners<br />

made decisions in<br />

order to adopt the new Long<br />

Term Plan.<br />

The key comment by commissioners<br />

has been that in<br />

their view previous councillors<br />

had failed to invest sufficiently<br />

in previous long term plans,<br />

being basically more keen on<br />

getting re-elected and thus not<br />

alienating locals with large<br />

rates rises.<br />

But despite grumbling from<br />

some sectors <strong>of</strong> the community,<br />

there seems – perhaps surprisingly<br />

– widespread acceptance<br />

that we need to spend more<br />

money in Tauranga to restore<br />

key services.<br />

Tauranga’s population is<br />

growing and we need to grow<br />

in order to accommodate the<br />

rising demand.<br />

We are pleased to bring you<br />

our <strong>July</strong> issue, and to note the<br />

surge <strong>of</strong> business activity we<br />

are already seeing in Tauranga.<br />

David Porter<br />

PRODUCTION<br />

Copy/Pro<strong>of</strong>s/Graphic Design<br />

Times Media – Clare McGillivray<br />

Ph: (09) 271 8067<br />

Email: clare@times.co.nz<br />

ADVERTISING INQUIRIES<br />

BUSINESS DIRECTOR<br />

Pete Wales<br />

Mob: 022 495 9248<br />

Email: pete@bopbusinessnews.co.nz<br />

ELECTRONIC FORWARDING<br />

EDITORIAL:<br />

<strong>News</strong> releases/Photos/Letters:<br />

david@bopbusinessnews.co.nz<br />

GENERAL INQUIRIES:<br />

info@bopbusinessnews.co.nz<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> <strong>News</strong> has a circulation<br />

<strong>of</strong> 8000, distributed throughout <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

between Waihi and Opotiki including Rotorua<br />

and Taupo, and to a subscription base.<br />

www.bopbusinessnews.co.nz<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> Publications<br />

309/424 Maunganui Road,<br />

Mount Maunganui, 3116<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> Publications specialises<br />

in business publishing, advertising, design and<br />

print media services.<br />

Capital deployed in our space<br />

can make a real difference and<br />

it is very satisfying to be helping<br />

these companies achieve their<br />

growth ambitions.” – James Beale<br />

Oriens Capital raises second fund p3<br />

New Zealanders love land, bricks and mortar,<br />

but growing headwinds in residential property<br />

investment are now making commercial property<br />

a more sought-after investment<br />

option.” – Scott McKenzie<br />

PMG to acquire<br />

Bethlehem Town<br />

Centre p13<br />

In the next few years demand for Gold kiwifruit<br />

worldwide will continue to rise and<br />

so DMS wants to grow its share<br />

<strong>of</strong> that anticipated industry<br />

growth.” – Derek Masters<br />

$40 kiwifruit packhouse<br />

and coolstore p14<br />

NEWSBRIEF<br />

FMM appoints<br />

new CEO<br />

First Mortgage Managers (FMM),<br />

manager <strong>of</strong> First Mortgage Trust<br />

(FMT), has announced Paul Bendall<br />

as the new chief executive <strong>of</strong>ficer.<br />

Paul joined First Mortgage Trust in<br />

August 2020 as general manager and has<br />

more than 20 years’ experience in the<br />

property, banking and finance industries.<br />

Michael Smith, chair <strong>of</strong> FMT says,<br />

“We are delighted to announce we have<br />

appointed Paul Bendall as our new CEO.<br />

Paul has spent the past 12 months working<br />

closely with the current CEO, Tony<br />

Kinzett, and the Board, and has a thorough<br />

understanding <strong>of</strong> the business and<br />

shares our vision and goals for the future<br />

<strong>of</strong> FMT.”<br />

Paul Bendall says, “It’s a great honour<br />

and responsibility to take over the reins <strong>of</strong><br />

the company, First Mortgage Trust is going<br />

from strength to strength. We have over $1<br />

billion funds under management and we<br />

have recently surpassed $1 billion in loans<br />

for the first time. I’m truly excited to lead<br />

the business into the future.”<br />

Paul will take over from long time<br />

CEO Tony Kinzett on<br />

the 3 September. “The<br />

Board members and I<br />

have enormous confidence<br />

in Paul, and<br />

I will be continuing<br />

to work closely with<br />

him over the next<br />

couple <strong>of</strong> months as<br />

I transition out <strong>of</strong><br />

the company,” says<br />

Tony.<br />

Tony has been<br />

CEO for 15 years<br />

Paul Bendall<br />

and is retiring.<br />

FROM CREATING A SUCCESSFUL BUSINESS<br />

TO CREATING MORE FAMILY TIME,<br />

everyone’s investment story is different.<br />

We can help you with yours.<br />

07 577 6049 | craigsip.com<br />

Craigs Investment Partners Limited is a NZX Participant firm. Adviser Disclosure Statements are available<br />

on request and free <strong>of</strong> charge. The Craigs Investment Partners Limited Financial Advice Provider Disclosure<br />

Statement can be viewed at craigsip.com/terms-and-conditions. Please visit craigsip.com


<strong>July</strong> <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 5<br />

Trustpower sells retail<br />

sector to Mercury for $441m<br />

Power generator and retailer Mercury NZ plans to buy the retail business <strong>of</strong> Tauranga stalwart<br />

Trustpower once it gets various permissions sorted, including Commerce Commission approval.<br />

The businesses have entered into a binding agreement conditional on the restructure <strong>of</strong> Tauranga<br />

Energy Consumer Trust (TECT) and Trustpower shareholder approval.<br />

By DAVID PORTER<br />

Trustpower’s retail business<br />

sells electricity, gas, fixed<br />

and wireless broadband and<br />

mobile phone services to about<br />

231,000 customers nationwide.<br />

Combined, the businesses would<br />

have about 780,000 connections<br />

across both energy and telco<br />

services.<br />

Mercury chief executive Vince<br />

Hawksworth – formerly a longtime<br />

ceo <strong>of</strong> Trustpower – said the<br />

acquisition would accelerate Mercury’s<br />

retail strategy, which is centred<br />

on delivering the right product<br />

mix and value for customers.<br />

“Mercury and Trustpower are<br />

two highly complementary organisations,<br />

and this agreement would<br />

see the best <strong>of</strong> both being brought<br />

together for our customers,” he<br />

said.<br />

“We know customers value<br />

the convenience and ease <strong>of</strong> bundled<br />

services in their home and<br />

Trustpower has deep expertise in<br />

bundling products in a way that<br />

people clearly appreciate. We see<br />

this adding material value to our<br />

customers and Mercury.<br />

“Bringing together the retail<br />

businesses <strong>of</strong> Mercury and Trustpower<br />

will also give us the scale<br />

to make meaningful investment<br />

in the underlying IT systems,<br />

driving greater innovation for our<br />

customers.”<br />

Skilled and motivated staff<br />

Hawksworth said the strength <strong>of</strong><br />

Trustpower’s retail <strong>of</strong>fering was<br />

underpinned by a skilled and<br />

motivated team, with about 500<br />

staff focused on retail, based in<br />

Tauranga and Ōamaru.<br />

“We see a huge amount <strong>of</strong><br />

talent and capability across both<br />

organisations, each with a strong<br />

focus on delivering the best possible<br />

outcomes for customers. We’re<br />

excited for how we can continue to<br />

build on this<br />

“Customers will continue to<br />

enjoy all the great services and<br />

support they have today with<br />

Trustpower and with Mercury and<br />

we’re looking forward to unlocking<br />

even more benefits and products<br />

for them over time.”<br />

Trustpower is 51 percent<br />

owned by infrastructure investor<br />

Infratil, which has said it is in supportive<br />

<strong>of</strong> the sale and will vote<br />

in favour <strong>of</strong> the deal at the Trustpower<br />

annual shareholder meeting<br />

in September.<br />

The two businesses won’t be<br />

fully integrated until their IT systems<br />

allow for an improved customer<br />

experience.<br />

New banking facility<br />

Mercury has secured a commitment<br />

for a new bank facility sufficient<br />

to finance the acquisition.<br />

The transaction is conditional<br />

on Mercury obtaining Commerce<br />

Commission clearance for the purchase<br />

<strong>of</strong> Trustpower’s retail business<br />

and Mercury will be working<br />

with the Commerce Commission<br />

to progress the<br />

application.<br />

The transaction<br />

is<br />

also conditional<br />

on the<br />

proposed<br />

T E C T<br />

restructure<br />

being completed<br />

and<br />

Vince Hawksworth<br />

shareholder approval. Local retail<br />

customers will remain beneficiaries<br />

<strong>of</strong> the trust following any sale.<br />

The timing for regulatory<br />

approvals depends on several factors,<br />

including the current workload<br />

<strong>of</strong> the regulator. Mercury<br />

anticipates these conditions will<br />

be fulfilled and the transaction<br />

will be complete by the end <strong>of</strong> the<br />

year.<br />

Need for TECT changes<br />

Chairman <strong>of</strong> TECT, which has a<br />

significant share in Trustpower,<br />

Bill Holland said the confirmation<br />

<strong>of</strong> the sale underscored the<br />

need for the changes to TECT and<br />

the importance <strong>of</strong> trustees acting<br />

when they did.<br />

“The confirmation <strong>of</strong> a<br />

conditional sale <strong>of</strong> Trustpower’s<br />

retail business<br />

reaffirms how crucial<br />

it was for Trustees to<br />

act when we did to<br />

ensure that the rebate<br />

was protected for our<br />

existing beneficiaries<br />

under a change<br />

<strong>of</strong> ownership.<br />

The proposed<br />

acquisition comes<br />

after the company<br />

announced earlier<br />

this year that it<br />

was undertaking a<br />

strategic review to<br />

test market interest<br />

in its retail business<br />

while exploring the<br />

merits and business<br />

case to establish a<br />

standalone generation<br />

business.<br />

Trustpower<br />

Chairman<br />

Paul Ridley-Smith says there<br />

were several interested parties in<br />

the acquisition <strong>of</strong> the retail business,<br />

validating the opportunity<br />

that exists to continue to grow the<br />

successful <strong>of</strong>fering <strong>of</strong> electricity,<br />

gas, broadband, mobile and wireless<br />

connection services.<br />

“We are pleased that our business<br />

will stay in local hands,<br />

with a future owner committed to<br />

The confirmation <strong>of</strong> a conditional sale <strong>of</strong><br />

Trustpower’s retail business reaffirms how<br />

crucial it was for Trustees to act when we did<br />

to ensure that the rebate was protected for<br />

our existing beneficiaries under a change <strong>of</strong><br />

ownership.” – Bill Holland<br />

retaining Trustpower’s Tauranga<br />

and Oamaru <strong>of</strong>fices for the foreseeable<br />

future.<br />

“Mercury clearly understands<br />

the business and the strategic value<br />

<strong>of</strong> a proven multi product <strong>of</strong>fering,<br />

quality customer base and opportunities<br />

for future growth,” said<br />

Ridley-Smith.<br />

“Until the sale goes unconditional<br />

and then completes, it is<br />

business as usual for Trustpower.<br />

We will continue to do our best for<br />

our customers until the business<br />

joins with Mercury.”<br />

Trustpower Chief Executive<br />

David Prentice said the opportunities<br />

for employees has been an<br />

important consideration in this<br />

process.<br />

“The capability and performance<br />

<strong>of</strong> our people is what makes<br />

the difference for our customers,<br />

communities, and shareholders,”<br />

said Prentice.<br />

“The majority <strong>of</strong> employees<br />

will get the opportunity to transfer<br />

to Mercury and <strong>of</strong> the rest <strong>of</strong> the<br />

employees most will remain with<br />

the generation business.”<br />

Equally, Trustpower is confident<br />

once Mercury completes<br />

the purchase it will maintain and<br />

enhance the value and quality <strong>of</strong><br />

Trustpower’s customer service.<br />

NEWSBRIEF<br />

The Urban Task<br />

Force questions<br />

Commissioners<br />

The Urban Task Force for Tauranga<br />

was formed earlier this year specifically<br />

to represent the local property<br />

sector in order to provide strong, informed<br />

leadership to our local authorities.<br />

“Overall, our membership <strong>of</strong> property<br />

developers, investors, managers and<br />

pr<strong>of</strong>essionals agree that this Long-Term<br />

Plan is one <strong>of</strong> the most important in our<br />

city’s history and we need to get it right,”<br />

said UTF Chairman Scott Adams in a<br />

statement.<br />

“The capital spend <strong>of</strong> $4.6 billion in<br />

the next 10 years is significant, and our<br />

members have one voice that we need to<br />

improve the city’s infrastructure and our<br />

quality <strong>of</strong> living, but we do require very<br />

clear transparency and accountability on<br />

spending.”<br />

Council proposed to increase the Citywide<br />

development contributions for new<br />

housing by more than $16,000 per house<br />

from 1 August <strong>2021</strong>. This short notice and<br />

significant structural change to development<br />

costs, will immediately affect over<br />

200 new homes and homeowners who<br />

have signed sale and purchase agreements,<br />

but will not have Council consent by 1<br />

August <strong>2021</strong>.<br />

“This is a significant increase in cost<br />

which in some cases passed directly onto<br />

homeowners, and in some cases will<br />

pass to a home builder that is contractually<br />

bound to deliver a home for a fixed<br />

price. This is just not right and the scale<br />

<strong>of</strong> these cost increases simply ripple onto<br />

our already stressed housing market,” says<br />

Adams.<br />

The Urban Task Force for Tauranga has<br />

also voiced concern over where the costs<br />

are coming from, with Council identifying<br />

the costs from the yet to be built Waiari<br />

Water Treatment Plant near Te Puke. The<br />

Waiari Water Treatment Plant was funded<br />

in 2017 by the Housing Infrastructure<br />

Fund, under a 10-year interest free loan, to<br />

support infrastructure providing additional<br />

water and wastewater for an additional<br />

35,000 homes. Of the $230m announced<br />

by the government at the<br />

time, <strong>of</strong> which $114<br />

million was for the<br />

Waiari Water Treatment<br />

Plant, it is<br />

uncertain what, if<br />

anything, has been<br />

spent. Adams said<br />

he had concerns<br />

around the transparency<br />

<strong>of</strong> funding.<br />

Scott Adams<br />

BEWARE OF FOREIGN IMITATIONS.<br />

There’s no shortage <strong>of</strong> great ideas in New Zealand.<br />

But for an innovative bunch, we’re not the best at<br />

realising the full potential <strong>of</strong> our innovations, particularly<br />

when exporting them.<br />

At James & Wells, we can identify your competitive<br />

edge, <strong>of</strong>fer business strategies for specific markets and<br />

help you own and leverage your intellectual property to<br />

ensure no one steals the fruit <strong>of</strong> your labour.<br />

www.jaws.co.nz | +64 7 928 4470


6 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong><br />

Shine strike Gold at PRINZ Awards<br />

Award winning <strong>Bay</strong><br />

<strong>of</strong> <strong>Plenty</strong> strategic<br />

communications<br />

consultancy, The Shine<br />

Collective, struck gold<br />

again recently at the<br />

Public Relations Institute<br />

<strong>of</strong> New Zealand (PRINZ)<br />

Awards for its work with<br />

Te Arawa Covid Response<br />

Hub, supporting the trial<br />

<strong>of</strong> a Covid contact tracing<br />

card.<br />

Shine’s winning entry, “’Stamping<br />

out Covid with a digital<br />

handshake”, took out the top<br />

spot in the Community Relations and<br />

Engagement category.<br />

The Shine Collective (with <strong>of</strong>fices<br />

in Tauranga and Rotorua), undertook<br />

the entire project management and<br />

responsibility for developing and<br />

implementing the communications<br />

strategy in partnership with Eruera<br />

Keepa from Hīkina Consultants.<br />

In August 2020, the New Zealand<br />

Government partnered with Te<br />

Arawa to trial a wearable contact<br />

tracing card that could potentially<br />

support the country’s contact tracing<br />

efforts.<br />

The card used Bluetooth technology<br />

to exchange ‘digital handshakes’<br />

and recorded participants<br />

close contacts – a potential addition<br />

to using the NZ Covid tracing app.<br />

Award winners: Left to right: Ally Armstrong, Eruera Keepa (Hīkina Consultants), Stacey Main, Shae<br />

Skellern, Meg Jones, Monty Morrison (Te Arawa representative), Julie McGlashen, Jacky James.<br />

Community-led strategy<br />

Shine’s managing director, Jacky<br />

James, said a key success factor for<br />

the kaupapa was that it was community-led,<br />

and that its communications<br />

strategy reflected the local<br />

community.<br />

“The philosophy behind our communications<br />

strategy was simple and<br />

based on authentic two-way engagement,<br />

with the principles <strong>of</strong> tikanga<br />

Māori at its heart – for both Māori<br />

and non-Māori,” she said.<br />

“Anyone over the age <strong>of</strong> 19 who<br />

lived and/or worked in the small<br />

community <strong>of</strong> Ngongotahā were<br />

encouraged to participate in the trial.<br />

“The trial’s kaupapa was to understand<br />

how well the contact tracing<br />

cards performed in a real-world<br />

scenario, whether they would work<br />

with the contact tracing systems, and<br />

if people will accept and use them.<br />

“The trial itself actually exceeded<br />

all expectations with over 1,200 people<br />

signing up to participate.”<br />

Te Arawa Covid-19 Response<br />

Hub spokesperson, Monty Morrison<br />

says the Hub is honoured to be recognised<br />

for the hard mahi involved<br />

with the Covid contact tracing card<br />

trial.<br />

“The team set out to design and<br />

deliver a successful community<br />

engagement strategy and that is<br />

exactly what they achieved, coupled<br />

with incredible community support,<br />

we feel we have significantly<br />

contributed to Aotearoa’s efforts to<br />

stamp out Covid-19.”<br />

The Shine Collective is a pr<strong>of</strong>essional<br />

strategic communications<br />

consultancy that provides an extensive<br />

range <strong>of</strong> communications, marketing<br />

and public relations services<br />

throughout the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, New<br />

Zealand and Australia.<br />

The PRINZ Awards recognises<br />

and celebrates the cream <strong>of</strong> public<br />

relations and communications management<br />

pr<strong>of</strong>essionals in Aotearoa<br />

and their outstanding and <strong>of</strong>ten<br />

life-changing work.<br />

Road Science<br />

wins NZ<br />

Workplace<br />

Safety Award<br />

By DAVID PORTER<br />

Working on New Zealand<br />

roads is now a whole lot<br />

safer thanks to Tauranga<br />

firm Road Science, which has devised<br />

a way to substantially reduce the time<br />

their staff spend standing in the road<br />

corridor.<br />

The innovation saw Mount Maunganui-based<br />

Road Science’s Mobile<br />

Data Capture Unit recently win a<br />

major category at the <strong>2021</strong> New<br />

Zealand Workplace Health & Safety<br />

Awards for the “best initiative to<br />

address a work-related safety risk”.<br />

Road Science staff <strong>of</strong>ten need to<br />

take measurements required for road<br />

maintenance programmes. They typically<br />

used to survey 1km per day,<br />

but a combination <strong>of</strong> new technology<br />

– one item <strong>of</strong> which is a high-tech<br />

mobile mapper (the only one <strong>of</strong> its<br />

kind in New Zealand) – means 50km<br />

a day can now be surveyed from the<br />

safety <strong>of</strong> a vehicle instead <strong>of</strong> standing<br />

in the road corridor surrounded by<br />

traffic.<br />

“I’m incredibly proud <strong>of</strong> the dedication<br />

and pr<strong>of</strong>essionalism our team<br />

display on daily basis and this award<br />

is great recognition <strong>of</strong> the work that’s<br />

gone into improving both safety and<br />

productivity outcomes,” said Road<br />

Science spokesman Richard Carter.<br />

Road Science wanted to be proactive,<br />

rather than just compliant,<br />

in their health and safety approach,<br />

so the company invested in a Leica<br />

Pegasus Two Ultimate (P2U) Mobile<br />

Laser Scanner from Switzerland<br />

which is a precise geospatial tool.<br />

“The beauty <strong>of</strong> this machine is<br />

that it does a million scans a second<br />

while traveling at speed. We’ve got it<br />

installed in the back <strong>of</strong> a ute. We drive<br />

down the road at 80km/hr and for the<br />

bulk <strong>of</strong> the tasks we do in transport<br />

Road Science’s Mobile Data Capture Unit. Photo/Supplied.<br />

and road construction, it picks up this<br />

same information, to the same – if not<br />

greater – accuracy than a surveyor.<br />

“We can substantially reduce<br />

people’s time spent standing in, and<br />

around, the road corridor and therefore<br />

people’s exposure to traffic hazards<br />

is greatly reduced.”<br />

Carter says by replacing outdated<br />

methods and work practices, the<br />

Mobile Data Capture Unit has revolutionised<br />

Road Science’s business.<br />

In addition to speeding up the surveying<br />

process and reducing health and<br />

safety risks, the technology captures<br />

comprehensive information that can<br />

be re-used over and over again.<br />

“You can go get all the roading<br />

information you need, but you also<br />

get all the signposts, all the safety<br />

crash barriers, all the line marking,<br />

all the trees, all the power line clearances…<br />

it saves having to send a surveyor<br />

out repeatedly to do different<br />

tasks.”<br />

Doug Carrasco, General Manager<br />

Transport Technology for Road Science,<br />

said while this technology was<br />

now available in New Zealand, its<br />

benefits will only be realised through<br />

increase in its usage. “Road Science<br />

urges road, rail and port authorities to<br />

embrace this technology to achieve<br />

higher quality outcomes whilst eliminating<br />

risk to personnel.”<br />

The P2U laser scanner can be used<br />

to scan sections <strong>of</strong> railway lines to<br />

help plan upgrades and to check tunnel<br />

clearances to ensure construction<br />

equipment will fit. It can also be used<br />

to build 3D model <strong>of</strong> any yards or port<br />

facilities.


<strong>July</strong> <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 7<br />

FLAT AS …<br />

Jet Charge denied<br />

.nz domain name<br />

Domain name complaints involving .nz domains have become<br />

something <strong>of</strong> a rare beast. In 2011, 11 decisions were issued under<br />

the .nz Dispute Resolution Service Policy (DRSP). So far this year,<br />

only one has been issued.<br />

The decision is an interesting<br />

one, however,<br />

and serves as a timely<br />

reminder to businesses to<br />

future-pro<strong>of</strong> their domain<br />

name rights.<br />

The subject domain name<br />

was jetcharge.co.nz. The parties<br />

to the complaint were Jet<br />

Charge Pty Ltd and a Mr Russell<br />

Shepherd, an Australian<br />

resident. More about them<br />

shortly.<br />

Under the .nz DRSP, a complainant<br />

has to establish two<br />

things: first, that it has rights<br />

in respect <strong>of</strong> a name or mark<br />

which is identical or similar<br />

to the subject domain name;<br />

and, second, that the subject<br />

domain name, in the hands<br />

<strong>of</strong> the registrant, is an “unfair<br />

registration”.<br />

When is a registration<br />

unfair?<br />

A complainant can demonstrate<br />

‘rights’ in a name or<br />

mark by presenting sufficient<br />

evidence <strong>of</strong> use <strong>of</strong> a name or<br />

mark or evidence <strong>of</strong> a registered<br />

trade mark.<br />

An “unfair registration”<br />

means a registration which<br />

“was registered or otherwise<br />

acquired in a manner which, at<br />

the time when the registration<br />

or acquisition took place, took<br />

unfair advantage <strong>of</strong> or was<br />

unfairly detrimental to [a complainant’s<br />

rights]”, or “a registration<br />

which has been, or is<br />

likely to be, used in a manner<br />

which took unfair advantage <strong>of</strong><br />

or was unfairly detrimental to<br />

[a complainant’s rights]”.<br />

The DRSP contains examples<br />

<strong>of</strong> what might constitute<br />

an unfair registration: two<br />

examples are registering a<br />

domain name to stop a rights<br />

holder from registering it (i.e.<br />

a “blocking” registration), and<br />

registering a domain name<br />

primarily for the purpose <strong>of</strong><br />

unfairly disrupting the business<br />

<strong>of</strong> a rights holder. These<br />

two examples featured in the<br />

jetcharge.co.nz decision.<br />

Back to the story: the complainant,<br />

Jet Charge Pty Ltd,<br />

was/is an Australian company<br />

incorporated in June 2014<br />

providing installation, servicing<br />

and delivery services for<br />

electric car charging stations<br />

in Australia under and by reference<br />

to the trade mark JET<br />

CHARGE.<br />

Jet Charge also provides<br />

charging stations and accessories,<br />

and associated firmware<br />

and s<strong>of</strong>tware for charging<br />

electric cars using the JET<br />

CHARGE mark. Its website is<br />

at www.jetcharge.com.au.<br />

Jet Charge owns New Zealand<br />

trade mark registration<br />

no. 1131753, which covers the<br />

trade mark JET CHARGE in<br />

classes 9, 37 and 42.<br />

The application for the<br />

mark was filed with IPONZ on<br />

7 October 2019 and claimed<br />

priority back to 27 May 2019.<br />

The goods and services <strong>of</strong> the<br />

registration reflect Jet Charge’s<br />

business as described.<br />

The respondent was Russell<br />

Shepherd, an Australian<br />

resident associated with a<br />

direct competitor to Jet Charge<br />

in Australia called EVolution<br />

Australia.<br />

Mr Shepherd registered<br />

jetcharge.co.nz on 16 <strong>July</strong><br />

2017 – approximately two<br />

years before the priority date<br />

<strong>of</strong> Jet Charge’s New Zealand<br />

trade mark registration.<br />

Mr Shepherd claimed he<br />

had “interests, business operations<br />

and premises” in New<br />

Zealand and intended “to make<br />

use <strong>of</strong> the Domain Name for<br />

the purposes <strong>of</strong> further extending<br />

his business interests in<br />

New Zealand”.<br />

Unsuccessful attempts<br />

by Jet Charge<br />

if the future expansion <strong>of</strong> your business<br />

potentially requires you to register a<br />

domain name in another country, take<br />

whatever steps are necessary as soon as<br />

possible to register that domain name.”<br />

Between June 2019 and May<br />

2020, Jet Charge tried unsuccessfully<br />

to persuade Mr Shepherd<br />

to transfer the registration<br />

to it. Having failed, Jet<br />

Charge filed the domain name<br />

complaint.<br />

Before the Expert, Jet<br />

Charge contended that it had<br />

registered and unregistered<br />

rights in the jetcharge.co.nz<br />

domain name, and that Mr<br />

Shepherd’s registration was<br />

“unfair” because he did not<br />

have any “legitimate interest<br />

in, or use for, the registration<br />

or use <strong>of</strong> the words “Jet<br />

Charge” either as a trade mark<br />

or a domain name”, because<br />

he registered the domain name<br />

to disrupt Jet Charge’s business,<br />

and because his retention<br />

<strong>of</strong> the domain name, despite<br />

requests to cancel or transfer<br />

it to Jet Charge, meant<br />

he was using it as a blocking<br />

registration. (Jet Charge also<br />

contended that a temporary<br />

re-direction <strong>of</strong> jetcharge.co.nz<br />

to evolutionaustralia.com.au<br />

was “very likely to confuse,<br />

mislead or deceive people” but<br />

this argument is not relevant to<br />

the point <strong>of</strong> this article.)<br />

In reply, Mr Shepherd<br />

pointed out the two years<br />

between registration <strong>of</strong> the<br />

domain name and Jet Charge’s<br />

trade mark in New Zealand,<br />

and asserted, among other<br />

things, that:<br />

• The complaint was “an<br />

opportunistic attempt [by<br />

Jet Charge] to obtain the<br />

domain name by force<br />

which demonstrates poor<br />

planning and a sense<br />

<strong>of</strong> entitlement by [Jet<br />

Charge]”; and<br />

• That having “…“a (belated)<br />

trade mark” and desires to<br />

extend its business operation<br />

into New Zealand<br />

should not give [Jet Charge]<br />

a right to the JET CHARGE<br />

name in [New Zealand].<br />

Applying the DRSP to the<br />

evidence, the Expert found<br />

that Jet Charge had rights in<br />

INTELLECTUAL PROPERTY ISSUES<br />

> BY BEN CAIN<br />

Ben Cain is a Senior Associate at James & Wells and a Resolution<br />

Institute-accredited mediator. He can be contacted at 07 928 4470<br />

(Tauranga), 07 957 5660 (Hamilton), and benc@jaws.co.nz.<br />

JET CHARGE New Zealand<br />

by virtue <strong>of</strong> its trade mark registration;<br />

however, the Expert<br />

did not find that Jet Charge<br />

had unregistered rights – i.e. it<br />

had reputation and goodwill –<br />

in JET CHARGE in New Zealand<br />

before or after the domain<br />

name was registered because it<br />

had failed to file “any meaningful<br />

evidence” supporting its<br />

assertion <strong>of</strong> rights.<br />

Registration not unfair<br />

Even though it had rights in<br />

JET CHARGE, the Expert<br />

found that Mr Shepherd’s registration<br />

– and continued registration<br />

– <strong>of</strong> jetcharge.co.nz<br />

was not ‘unfair’.<br />

The reasons why again<br />

came down to evidence –<br />

or rather the lack <strong>of</strong> it. Jet<br />

Charge failed to prove that<br />

when Mr Shepherd registered<br />

the domain name, Jet Charge<br />

had any rights in the JET<br />

CHARGE trade mark in New<br />

Zealand.<br />

It also failed to prove that,<br />

when he registered the domain<br />

name, Mr Shepherd had any<br />

knowledge <strong>of</strong> Jet Charge’s<br />

future plans for expansion into<br />

New Zealand. Jet Charge also<br />

failed to prove it had an interest<br />

in using the JET CHARGE<br />

mark in New Zealand.<br />

The domain name is not<br />

currently being used by<br />

Mr Shepherd or EVolution<br />

Australia.<br />

If Mr Shepherd decides<br />

to use it in the future, however,<br />

Jet Charge could lodge<br />

another complaint in an effort<br />

to retrieve it. For now, though,<br />

Jet Charge must find another<br />

domain to use.<br />

The crucial lesson for businesses<br />

to take home from this<br />

article is that – as Mr Shepherd’s<br />

comments highlighted –<br />

if the future expansion <strong>of</strong> your<br />

business potentially requires<br />

you to register a domain name<br />

in another country, take whatever<br />

steps are necessary as<br />

soon as possible to register that<br />

domain name.<br />

Such steps might include<br />

obtaining a trade mark registration<br />

in a country <strong>of</strong> interest,<br />

even if it is unlikely you will<br />

use that trade mark in that<br />

country for a few years.<br />

(The other lesson is that if<br />

you are going to make a complaint<br />

under the DRSP, make<br />

sure you file enough <strong>of</strong> the<br />

right evidence…)


8 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong><br />

Our digital dilemma – Does technology<br />

have an effect on our mental health?<br />

A quick search on Google and you will find the verdict is still out.<br />

The contrasting views on whether technology or social platforms<br />

truly effect our mental health are endless. Academic studies vouching<br />

for each side making it relatively tricky to navigate what is accurate<br />

and what is based on theory.<br />

TECH TALK<br />

> BY MARIETTE TOLMAY<br />

Mariette Tolmay is the marketing lead at Stratus Blue.<br />

She can be contacted at mariette@stratusblue.co.nz.<br />

Digging deeper into the<br />

research does however<br />

paint a picture that technology<br />

and social platforms,<br />

when combined with what is<br />

required in life to keep a mind<br />

and body healthy, does leave a<br />

fine line to walk.<br />

When we think <strong>of</strong> “health”<br />

for our body and mind, we<br />

know the basics, eat well, exercise,<br />

get enough sleep, be productive,<br />

spend time with loved<br />

ones and take some time out to<br />

relax. We also know there are<br />

only 24 hours in a day.<br />

In most cases, eight hours<br />

<strong>of</strong> that are spent working, most<br />

likely behind a screen. And,<br />

according to a study done by<br />

RescueTime across 11,000<br />

users, an average <strong>of</strong> 3.15 hours<br />

a day was spent on smartphones<br />

(that’s 47 days a year).<br />

The study also concluded<br />

that over 60% <strong>of</strong> those users<br />

checked their smartphones<br />

over 50 times a day generating<br />

a behaviour <strong>of</strong> “Multitasking”<br />

with the remote distractions<br />

aided by technology.<br />

Based on cognitive science<br />

and more recent studies on<br />

multitasking by Paul Atchley,<br />

Ph.D. a pr<strong>of</strong>essor <strong>of</strong> Cognitive<br />

Psychology at the University<br />

<strong>of</strong> Kansas, multitasking as we<br />

think <strong>of</strong> it scientifically does<br />

not exist.<br />

It has been found to increase<br />

the production <strong>of</strong> the stress<br />

hormone cortisol as well as the<br />

fight-or-flight hormone adrenaline,<br />

which can overstimulate<br />

your brain and cause mental<br />

fog or scrambled thinking.<br />

Multitasking creates a<br />

dopamine-addiction feedback<br />

loop, effectively rewarding the<br />

brain for losing focus and for<br />

constantly searching for external<br />

stimulation.”<br />

Being present and<br />

productive<br />

In Layman’s terms, we have<br />

conditioned ourselves to<br />

believe we are being present,<br />

and productive when our<br />

brains are constantly functioning<br />

from a place <strong>of</strong> urgency,<br />

distraction, stress and information<br />

overload. And we are<br />

doing so for hours on end.<br />

When we add in the hustle<br />

and bustle <strong>of</strong> life, traffic,<br />

dinner times, Netflix and the<br />

recommended sleep time <strong>of</strong><br />

six hours, how much time<br />

are we left with to spread<br />

across our weekday for selfcare<br />

and quality connections<br />

with those we love without<br />

interruption?<br />

Although the research on<br />

the effects technology and<br />

social media has on our mental<br />

health is inconclusive, the<br />

neuroscience behind our brains<br />

function and the lack <strong>of</strong> more<br />

hours in a day does beg to<br />

question whether we are using<br />

the time we have, to be productive<br />

and present?<br />

And are we prioritising<br />

what benefits our mental<br />

health in the long term?<br />

If you’re like me, and fall<br />

into those statistics, <strong>of</strong> over<br />

three hours <strong>of</strong> screen time and<br />

constantly picking your phone<br />

up. It might be thought-provoking<br />

how frequently we are<br />

“too busy” to do the things we<br />

love or to spend more quality<br />

time with our kids.<br />

How do we get that time<br />

back? (22 hours a week).<br />

With cold turkey <strong>of</strong>f the<br />

menu for us working folk,<br />

using monitoring apps such as<br />

RescueTime, Apple’s Screen<br />

Time and Google Digital Wellbeing<br />

can seem like a canny<br />

way to cut down on phone use.<br />

Although my research<br />

didn’t give me definitive<br />

answers to the effects <strong>of</strong> technology<br />

use on mental health,<br />

the numbers had me looking<br />

for tips for a healthy relationship<br />

with technology:<br />

• Setting a schedule and a<br />

time limit for social media<br />

and news platforms.<br />

• Switching <strong>of</strong>f notifications<br />

for apps that are not<br />

required for work.<br />

• Reducing screen time<br />

before bed – sleep mode on<br />

smartphones.<br />

• Implementing more technology<br />

free time.<br />

• Set limits around response<br />

times to messages.<br />

• Delete apps that don’t benefit<br />

me.<br />

The only trouble is, as<br />

Audre Lorde said, “the master’s<br />

tools will never dismantle<br />

the master’s house”.<br />

So, mediating our technology<br />

habits are going to<br />

depend mainly on our own<br />

self-awareness, common<br />

sense and willpower – with<br />

other tactics being useful but<br />

supplementary.<br />

Goodman Fielder launches<br />

new sustainability campaign<br />

Goodman Fielder has launched ‘Better Together’, an<br />

ambitious new sustainability strategy designed to help<br />

embed sustainability across the company’s business,<br />

culture, brands and products.<br />

Developed to support global<br />

efforts to deliver the UN 2030<br />

Sustainable Development<br />

Goals (SDGs), the ‘Better Together’<br />

strategy highlights nine progressive<br />

new sustainability goals, including<br />

net zero emissions by 2040, 100%<br />

recyclable packaging by 2025, and to<br />

halve food waste by 2030.<br />

The leading food manufacturer,<br />

which has a factory in the region, has<br />

outlined a number <strong>of</strong> goals, according<br />

to a company statement. These<br />

include:<br />

1. Net zero emissions by 2040.<br />

2. 100% recyclable packaging by<br />

2025.<br />

3. Meaningfully improve the nutritional<br />

value <strong>of</strong> its product by 2025.<br />

4. 100% sustainable packaging materials<br />

by 2030.<br />

5. 100% renewable electricity by<br />

2025.<br />

6. Reach 40m with its sustainability<br />

message by 2030.<br />

7. Halve food waste by 2030.<br />

8. 100% sustainably sourced ingredients<br />

by 2030.<br />

9. Develop a diversity, inclusion,<br />

and Indigenous recognition plan<br />

in <strong>2021</strong>.<br />

Products touch millions<br />

Bernard Duignan, Goodman Fielder<br />

NZ CEO, said: “Our products touch<br />

millions <strong>of</strong> people every day and we<br />

are committed to using that reach as<br />

a force for good. We are thrilled to<br />

launch ‘Better Together’, an important<br />

milestone for the Goodman<br />

Fielder family.<br />

“By driving progress against our<br />

four key focus areas <strong>of</strong> better products,<br />

better planet, better business and<br />

better communities, this strategy will<br />

provide us with a pathway to living<br />

our purpose and ensuring food is a<br />

force for good.”<br />

Duignan said the company was<br />

By driving progress against our four key focus<br />

areas <strong>of</strong> better products, better planet, better<br />

business and better communities, this strategy<br />

will provide us with a pathway to living our<br />

purpose and ensuring food is a force for good.”<br />

– Bernard Duignan<br />

excited to deliver local solutions to<br />

global challenges and continue to<br />

make a difference.<br />

“We know that by working<br />

together, we can make everyday food<br />

better for everyone.”<br />

In <strong>2021</strong> the food company will:<br />

• Move to 100% renewable electricity<br />

in New Zealand and Australia.<br />

This will more than halve the<br />

greenhouse gas emissions from its<br />

operations in these countries and<br />

provide a pathway for net zero<br />

emissions. This initiative is the<br />

equivalent <strong>of</strong> taking 17,000 cars<br />

<strong>of</strong>f the road, the company said.<br />

• Complete year three <strong>of</strong> a four year<br />

Network Transformation programme<br />

that will see a reduction<br />

<strong>of</strong> 1,745 tonnes CO2 emissions<br />

annually<br />

• Switch its fleet <strong>of</strong> 110 Sales company<br />

vehicles to Hybrid models by<br />

end 2022, which will reduce fuel<br />

consumption <strong>of</strong> the fleet by 41%<br />

• Eliminate 40 tonnes <strong>of</strong> PVC packaging<br />

in NZ (switching to PET<br />

with 30% recycled content), and<br />

will remove all PVC from retail<br />

packaging across New Zealand<br />

and Australia by end <strong>2021</strong><br />

• Replace 100 tonnes <strong>of</strong> virgin plastic<br />

with recycled content across<br />

New Zealand and Australia Four<br />

NZ manufacturing sites are participating<br />

in EECA’s Energy<br />

Transition Accelerator Program to<br />

develop road maps to zero emissions<br />

at each site<br />

• Provide logistics support to<br />

expand the NZ S<strong>of</strong>t Plastic Recycling<br />

Scheme to the South Island<br />

and, by the end <strong>of</strong> 2023, aim<br />

to achieve 1500% increase in<br />

Nature’s Fresh bread bags being<br />

recycled annually<br />

The ‘Better Together’ strategy also<br />

showcases some <strong>of</strong> Goodman Fielders’<br />

recent sustainability achievements.<br />

Since 2010 Goodman Fielder<br />

NZ has donated over two million<br />

loaves <strong>of</strong> fresh bread to foodbanks<br />

in New Zealand, and launched the<br />

Goodman Fielder Cares Trust, which<br />

has donated over $300,000 to initiatives<br />

helping to fight poverty.<br />

2020 saw the brand deliver a<br />

lighting replacement program and<br />

generate its first 1000MWh <strong>of</strong> solar<br />

electricity.<br />

Meanwhile in the sustainable<br />

packaging space, across the group<br />

Goodman Fielder has replaced 100<br />

tonnes <strong>of</strong> problematic PVC with PET<br />

(including 30% recycled content)<br />

and removed 185 tonnes <strong>of</strong> plastic<br />

and 100 tonnes <strong>of</strong> cardboard from its<br />

packaging.


<strong>July</strong> <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 9<br />

Inflation is here …<br />

Investment market update (for the quarter ended 31 May, <strong>2021</strong>)<br />

There is no doubt we will<br />

see higher reported inflation<br />

this year. In fact<br />

we’ve already seen it – grabbing<br />

headlines last month (at<br />

least in market circles) were<br />

the various US’ April inflation<br />

reads.<br />

The Personal Consumption<br />

Expenditures (PCE) index (the<br />

Federal Reserve’s preferred<br />

measure <strong>of</strong> inflation) was up<br />

3.6 percent, the highest level<br />

in over 12 years.<br />

Excluding volatile food and<br />

energy, core PCE was still up<br />

3.1 percent, the first time it has<br />

started with a “3” since 1992.<br />

… but is inflation<br />

temporary, or will it be<br />

sustained?<br />

In our view, we generally<br />

agree with central banks that<br />

many <strong>of</strong> the current inflationary<br />

pressures are short-term<br />

factors.<br />

The long-term forces that<br />

kept inflation low pre-Covid<br />

– ageing populations, high<br />

debt levels, fast pace <strong>of</strong> new<br />

technology development – are<br />

unchanged.<br />

That said: (1) the extent <strong>of</strong><br />

monetary (low interest rates,<br />

quantitative easing, aka money<br />

printing) and fiscal (government<br />

deficits) stimulus has<br />

been unprecedented and the<br />

longer-term effects remain<br />

uncertain, and (2) justifying<br />

the current extreme policy settings<br />

will only become harder<br />

if economies continue on their<br />

current healthy trajectory.<br />

Jump in bond yields<br />

Year-to-date, longer-term<br />

interest rates have firmed<br />

reflecting the improved economic<br />

outlook and higher<br />

inflation risks.<br />

For investors who plan to<br />

own bonds to maturity, these<br />

“losses” on bonds aren’t permanent<br />

– holders will still<br />

receive the same interest on<br />

their investment and be repaid<br />

in full when the bond matures<br />

(unless, <strong>of</strong> course, the borrower<br />

defaults).<br />

Equities continue to<br />

perform well<br />

Despite the jump in longer-term<br />

interest rates, it has<br />

still paid to remain invested in<br />

equities.<br />

Global equity markets have<br />

continued to push higher with<br />

WHAT TO DO WITH YOUR MONEY<br />

> BY BRETT BELL-BOOTH<br />

Investment Adviser with Forsyth Barr Limited in Tauranga, and<br />

an Authorised Financial Adviser. Phone (07) 577 5725 or<br />

email brett.bell-booth@forsythbarr.co.nz.<br />

companies generally delivering<br />

better-than-expected<br />

results benefiting from a combination<br />

<strong>of</strong> improving economic<br />

activity and significant<br />

cost savings.<br />

New Zealand has<br />

remained a laggard<br />

For over a decade the New<br />

Zealand equities market has<br />

been amongst the strongest in<br />

the world. Year-to-date, the<br />

position has reversed.<br />

The New Zealand market<br />

is dominated by defensive dividend-paying<br />

stocks, which<br />

many investors look at as an<br />

alternative to fixed interest<br />

investments such as bonds or<br />

term deposits. The rise in longterm<br />

interest rates has generally<br />

been a headwind for these<br />

stocks.<br />

Furthermore, the NZX50<br />

market index is concentrated<br />

in a relatively small number <strong>of</strong><br />

companies — the largest eight<br />

companies account for around<br />

half the index. What that<br />

means is any price changes (up<br />

or down) in these larger stocks<br />

has a significant impact on the<br />

overall index.<br />

Keep expectations in<br />

check<br />

We still advise investors to<br />

stick to healthy weightings <strong>of</strong><br />

risk assets (shares, property) in<br />

portfolios, particularly given<br />

the low interest rates available<br />

on cash and bonds.<br />

We do acknowledge<br />

though, there is every chance<br />

we could see volatility across<br />

the market or within specific<br />

sectors or asset classes,<br />

impacting portfolio values.<br />

With uncertainties ahead,<br />

ensuring you have adequate<br />

portfolio diversification<br />

(always a mainstay <strong>of</strong> any<br />

investment plan) may prove<br />

even more important than<br />

usual.<br />

Your Forsyth Barr Investment<br />

Adviser is always available<br />

to discuss your investment<br />

plans at any time.<br />

The Personal Consumption<br />

Expenditures (PCE) index (the<br />

Federal Reserve’s preferred<br />

measure <strong>of</strong> inflation) was up 3.6<br />

percent, the highest level in over<br />

12 years.”<br />

This column is general in<br />

nature and does not take any <strong>of</strong><br />

your personal circumstances<br />

into account.<br />

For personalised financial<br />

advice, contact Forsyth Barr<br />

for an overview <strong>of</strong> the services<br />

we can provide.<br />

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10 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong><br />

Brendon McCullum<br />

Camo & Krooked<br />

Come to Trustpower <strong>Bay</strong>park this winter<br />

As the temperatures start to plummet around the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>,<br />

rug up and head down to Trustpower <strong>Bay</strong>park where there<br />

are plenty <strong>of</strong> events coming up to keep the whole family<br />

entertained.<br />

The Tauranga Gala Dinner<br />

Trustpower <strong>Bay</strong>park is delighted to<br />

be hosting The Tauranga Gala Dinner<br />

once again in <strong>2021</strong>.<br />

International cricket icon, Brendon<br />

McCullum, is gearing up for a<br />

smashing night out at the ninth annual<br />

Tauranga Gala Dinner on 16 <strong>July</strong>.<br />

Captaining a stunning evening<br />

<strong>of</strong> entertainment, McCullum<br />

will be joined by renowned sports<br />

broadcaster, Scotty Stevenson, with<br />

national treasures Jackie Clarke,<br />

Tina Cross and Taisha Tari supplying<br />

incredible live performances with<br />

their sensational group, The Lady<br />

Killers.<br />

This year’s event will be a spectacular<br />

night <strong>of</strong> wining and dining,<br />

insight and entertainment, and locals<br />

and legends.<br />

Each year The Tauranga Gala<br />

Dinner invites a local charity along<br />

to raise funds and awareness via a<br />

charity auction at the event. The <strong>2021</strong><br />

charity recipient is Tauranga Te Papa<br />

Rotary, who will be raising funds<br />

for Cure Kids and the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

Youth Development Trust.<br />

​The charity auction is run separately<br />

from the commercial arm <strong>of</strong> the<br />

event, with all charitable funds and<br />

donations going to the charity.<br />

Get up close and personal with one<br />

<strong>of</strong> New Zealand’s most celebrated<br />

cricketers, be enthralled by some <strong>of</strong><br />

our most heralded singers, and revel<br />

in style with your clients, staff and<br />

friends for a much-deserved night out<br />

(www.taurangagaladinner.co.nz).<br />

Canvas Tauranga Careers<br />

Expo <strong>2021</strong><br />

Which University is best?<br />

How do I get into the trades?<br />

Am I doing the right courses?<br />

Should I leave school now?<br />

Can I retrain? How can I<br />

make an impact in my job?<br />

The Tauranga Careers<br />

Expo 2019 brings it all<br />

together in one huge arena,<br />

helping you find direction for<br />

your next career move. This<br />

expo brings together leading businesses<br />

from across the Western <strong>Bay</strong><br />

<strong>of</strong> <strong>Plenty</strong>’s diverse industry sectors,<br />

alongside the best Universities, trade<br />

and tertiary training providers from<br />

across New Zealand.<br />

Don’t miss this free expo on 30<br />

and 31 <strong>July</strong> from 10am – 3pm.<br />

Battle in the <strong>Bay</strong> <strong>2021</strong><br />

Based in the heart <strong>of</strong> Tauranga,<br />

the <strong>Bay</strong> Twisters is the only not for<br />

pr<strong>of</strong>it cheerleading club with USASF<br />

Coaches in New Zealand.<br />

In 2016 <strong>Bay</strong> Twisters hosted the<br />

first cheer competition in the <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong>, the event proved extremely<br />

popular. There were local and international<br />

celebrities, TV appearances<br />

and a Guinness World Record attempt<br />

to name some <strong>of</strong> the excitement.<br />

Now in its 5th year and a twoday<br />

event, the Battle in the <strong>Bay</strong> <strong>2021</strong><br />

promises to be a memorable one. 7<br />

August – Teams Compete and 8<br />

August – Specialities Compete.<br />

Audiology<br />

present Camo &<br />

Krooked<br />

Austrian duo Reinhard Rietsch and<br />

Markus Wagner, otherwise known<br />

as Camo & Krooked have quickly<br />

become one <strong>of</strong> the hottest production<br />

outfits in Europe.<br />

Working together since 2007, the<br />

Viennese pair have created a whirl <strong>of</strong><br />

dancefloor anthems and a fearsome<br />

reputation for their untouchable production<br />

skills.<br />

Producing soulful, sultry tracks<br />

like massive hit single “Turn Up<br />

the Music” alongside raw power <strong>of</strong><br />

smashers like “Climax”, proving that<br />

they are not only super-talented, but<br />

they are also incredibly versatile.<br />

On the release <strong>of</strong><br />

their latest album ‘Zeitgeist’<br />

Camo & Krooked toured extensively,<br />

playing to full capacity clubs across<br />

Europe, Australia and America. This<br />

included a sold out tour <strong>of</strong> Austria<br />

with their brand new Zeitgeist production<br />

show; an audio-visual spectacular,<br />

that is now set for a full tour<br />

<strong>of</strong> major festivals in summer 2014.<br />

Camo & Krooked will be performing<br />

in Mount Maunganui on<br />

13 August. Tickets will be available<br />

online soon. (www.ticketfairy.com)<br />

Benee<br />

Benee<br />

Formidable indie-pop sensation<br />

and rising global superstar BENEE<br />

announced a nationwide regional tour<br />

for August. BENEE will visit every<br />

corner <strong>of</strong> the country, hitting eight<br />

different towns and cities throughout<br />

the month.<br />

The ‘Supalonely’ singer has had<br />

an incredible 18 months, from<br />

releasing her debut album ‘Hey<br />

U X’, to sharing the album with<br />

Kiwi crowds on a sold-out<br />

eight-date tour in late 2020<br />

and being named on Forbes<br />

30 under 30 Asia <strong>2021</strong> list.<br />

Worldwide streams in the<br />

billions have made her one <strong>of</strong><br />

the most exciting new acts to<br />

have emerged anywhere.<br />

Following the success <strong>of</strong><br />

her October tour, BENEE recognised<br />

that fans outside the<br />

main centres don’t <strong>of</strong>ten get the<br />

opportunity to experience fullscale<br />

pop concerts in their own<br />

backyards. Throughout August, she<br />

will bring her trademark infectious<br />

energy to crowds across Aotearoa<br />

to get people up on their feet for a<br />

groove-worthy night.<br />

BENEE will perform eight headline<br />

shows across the country, visiting<br />

New Plymouth, Palmerston North,<br />

Porirua, Invercargill, Nelson, Tauranga,<br />

Napier and Hamilton.<br />

For complete tour, ticket and VIP<br />

information go to www.livenation.<br />

co.nz.<br />

Premier Venue<br />

Trustpower <strong>Bay</strong>park is Tauranga’s<br />

Premier Venue for conferences, meetings,<br />

entertainment and exhibitions.<br />

Offering a complete package in one<br />

convenient location that features state<br />

<strong>of</strong> the art meeting rooms, in-house<br />

catering, audio visual services, pr<strong>of</strong>essional<br />

conference organiser (PCO)<br />

and marketing/promotional services.<br />

For more information on any events, enquiries for Trustpower <strong>Bay</strong>park venues, <strong>Bay</strong>Station activities or service on/<strong>of</strong>f site from <strong>Bay</strong>Catering, <strong>Bay</strong>AudioVisual<br />

visit www.trustpowerbaypark.co.nz or email events@bayvenues.co.nz.


<strong>July</strong> <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 11<br />

Much to do to get<br />

Tauranga back on-track<br />

Sacking an elected council and appointing commissioners to run a council’s<br />

governance functions is quite a rare event. Essentially, that situation only arises<br />

if there are significant issues within a group <strong>of</strong> elected members, and they are<br />

unwilling or unable to resolve those issues for themselves, in which case, the<br />

Minister <strong>of</strong> Local Government will step-in.<br />

The former Tauranga City Council<br />

elected members exemplified<br />

dysfunctionality, their<br />

conduct marked by infighting; a lack<br />

<strong>of</strong> ‘collective responsibility’; and in<br />

some cases, no insight at all into their<br />

personal contributions to the council’s<br />

problems.<br />

That was the background to<br />

the appointment <strong>of</strong> four Tauranga<br />

City Council commissioners in<br />

early-February.<br />

Anne Tolley (Chair); Stephen<br />

Selwood, Bill Wasley and Shadrach<br />

Rolleston (see below for brief pr<strong>of</strong>iles<br />

on each commissioner) ‘hit the<br />

ground running’, and they needed to.<br />

One <strong>of</strong> the key tasks they were<br />

charged with was delivering a <strong>2021</strong>-<br />

31 long-term plan (LTP) which would<br />

take the city forward and address its<br />

obvious infrastructure and community<br />

facility deficits.<br />

“The draft LTP was an enormous<br />

piece <strong>of</strong> work,” Anne Tolley says. “We<br />

needed to have a good understanding<br />

<strong>of</strong> the Council business before we<br />

could start, and <strong>of</strong> course, we needed<br />

to have the widest possible feedback<br />

from the Tauranga community to help<br />

us make the final decisions.<br />

“If our efforts are going to have a<br />

lasting benefit for the city, we have<br />

to take the community with us and<br />

that means having the widest possible<br />

buy-in to all key aspects <strong>of</strong> the LTP.”<br />

She says the commissioners are<br />

very happy with the feedback they<br />

have received via dozens <strong>of</strong> community<br />

engagement opportunities and<br />

face-to-face contact with hundreds<br />

<strong>of</strong> individual residents. “There are<br />

some people who are not happy with<br />

the priorities set-out in the draft LTP,<br />

but overall, most people have realistic<br />

expectations – they know something<br />

has to be done and are pleased that<br />

the city now has decisive governance,<br />

which is committed to getting things<br />

back on-track.”<br />

Commissioner Stephen Selwood<br />

says the inclusion <strong>of</strong> $4.6 billion <strong>of</strong><br />

infrastructure development over the<br />

next decade is a ‘game-changer’ for<br />

Tauranga.<br />

Legacy <strong>of</strong> underinvestment<br />

“The Council has a legacy <strong>of</strong> underinvestment<br />

in community facilities<br />

(like swimming pools, playing<br />

fields, libraries and a museum) and<br />

key infrastructure (roads, water and<br />

wastewater pipes and treatment<br />

plants, etc) because successive councils<br />

decided it was better to keep rates<br />

down than to invest in the things the<br />

city needs,” he says.<br />

“That’s fine for a while, but in the<br />

end, it costs everyone, because our<br />

infrastructure no longer meets our<br />

existing needs, let alone keeping up<br />

with the needs <strong>of</strong> a growing city.<br />

Bill Wasley and Shad Rolleston<br />

are the ‘locals’ on the commission.<br />

They both come from planning backgrounds<br />

and are acutely aware <strong>of</strong> the<br />

issues which have led to a shortage <strong>of</strong><br />

land available for housing and commercial<br />

development.<br />

“We’ve looked at the things we<br />

can do to help open-up land for development,<br />

because as it stands, houses<br />

in Tauranga have become so costly<br />

that new home-buyers have been virtually<br />

priced out <strong>of</strong> the market.<br />

“That means prioritising projects<br />

like the Papamoa East Interchange<br />

and the infrastructure needed for<br />

There’s a clear need<br />

for the availability<br />

<strong>of</strong> more affordable<br />

housing.” – Shad<br />

Rolleston<br />

housing and commercial developments<br />

at Tauriko and accelerating the<br />

work required so that we can encourage<br />

some positive changes in the market,<br />

although there is no one ‘silver<br />

bullet’ to address the current housing<br />

challenges we face,” Bill says.<br />

“In addition, the commitment to<br />

facilitating intensification is exemplified<br />

by initiatives such as Plan<br />

Change 26, which is about providing<br />

opportunities for housing in areas<br />

such as the Te Papa peninsula,” Bill<br />

says.<br />

Shad also points to changes in<br />

the development contributions area<br />

which are designed to make it easier<br />

for people developing community<br />

housing and papakainga.<br />

“There’s a clear need for the availability<br />

<strong>of</strong> more affordable housing<br />

and while that’s not something the<br />

Council is directly involved in, there<br />

are some levers we can use to facilitate<br />

developments that will make a<br />

difference.”<br />

COMMISSIONER PROFILES<br />

Bill Wasley:<br />

Bill comes from a pr<strong>of</strong>essional planning background<br />

has more than 40 years’ experience in<br />

resource management and senior management<br />

positions in local government and the private<br />

sector, the latter including serving as Company<br />

Secretary for the Port <strong>of</strong> Tauranga Ltd, and a<br />

director <strong>of</strong> its subsidiary companies. Amongst<br />

his many current and past governance roles,<br />

Bill was the Independent Chair <strong>of</strong> the western<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>’s SmartGrowth partnership from<br />

2001 until his appointment as a Tauranga City<br />

Council Commissioner. He has a strong interest<br />

in governance and collaborative approaches<br />

which achieve integration between spatial<br />

planning, economic development, social community<br />

outcomes and the necessary funding<br />

arrangements.<br />

Shad Rolleston:<br />

Shad is a consultant planner and policy advisor<br />

with expertise in resource management and<br />

Māori relationship management and engagement.<br />

He has tribal connections to Ngāti<br />

Ranginui, Ngāi Te Rangi and Ngāti Pukenga,<br />

as well as affiliations to Te Arawa. Shad’s public<br />

service career spans more than 20 years and<br />

includes working as a policy advisor and planner<br />

for central and local government, specialising<br />

in transport and environmental reforms.<br />

He has served as a board member on the Ngāti<br />

Ranginui Post Settlement Governance Entity;<br />

is a former SmartGrowth Tū Pakari Advisor<br />

and co-chair <strong>of</strong> the Combined Tāngata Whenua<br />

Forum; and is the current Chair <strong>of</strong> Arā Rau<br />

Tāngata.<br />

Anne Tolley –<br />

COMMISSION CHAIR:<br />

Anne brings a wide experience in local and<br />

national politics to her role. Elected to the<br />

Napier City Council in 1986, she served as a<br />

Standing Committee Chair, and then Deputy<br />

Mayor for six years. She was also elected to<br />

the inaugural Hawkes <strong>Bay</strong> Regional Council.<br />

In 1999, she was elected to Parliament as<br />

a National Party List MP and after moving<br />

to Gisborne, was elected as the MP for East<br />

Coast in 2005. She held that seat until her in<br />

2020, moving to Ōhope as the growing electorate’s<br />

boundary reached the edge <strong>of</strong> Te Puke.<br />

Anne served for nine years as a Government<br />

minister, holding the portfolios <strong>of</strong> Education,<br />

Police, Corrections, MSD, Children and Local<br />

Government.<br />

Stephen Selwood:<br />

Stephen is a pr<strong>of</strong>essional director and an expert<br />

in infrastructure vision, strategy and policy.<br />

The founding Chief Executive <strong>of</strong> Infrastructure<br />

New Zealand, Stephen continues to serve<br />

as a board member <strong>of</strong> the New Zealand Infrastructure<br />

Commission – Te Waihanga; and provides<br />

public policy advice to the infrastructure<br />

sector, as a director <strong>of</strong> Selwood Infrastructure<br />

Advisory. In 2019, he received the Infrastructure<br />

New Zealand leadership award for his<br />

contribution to the industry in New Zealand.<br />

Stephen describes himself as a thought-leader<br />

who brings a deep understanding <strong>of</strong> integrated<br />

urban development and infrastructure planning,<br />

funding and delivery to his commission<br />

role.


12 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong><br />

Wellbeing top-<strong>of</strong>-mind<br />

for the agri industry<br />

By CRAIG HUDSON,<br />

Xero Managing Director for New<br />

Zealand and the Pacific Islands<br />

A<br />

couple <strong>of</strong> weeks ago, I had the<br />

pleasure <strong>of</strong> attending Fieldays.<br />

It was the first one since 2019<br />

before the pandemic. When Covid-<br />

19 hit our shores, hundreds <strong>of</strong> events<br />

were cancelled, and thousands <strong>of</strong><br />

social engagements put on ice.<br />

When I looked around to see<br />

reunited friends, family and business<br />

partners, what struck me was<br />

the atmosphere <strong>of</strong> relief and revelry.<br />

It reminded me <strong>of</strong> the age old adage:<br />

You don’t know what you’ve got until<br />

it’s gone.<br />

For an industry as expansive as<br />

New Zealand agriculture, the connections<br />

we missed from not having Fieldays<br />

last year was obvious.<br />

Bringing everyone back together<br />

for a few days was a powerful<br />

moment, especially as we continue to<br />

tackle the stigma <strong>of</strong> wellbeing in the<br />

sector.<br />

Welcome emphasis on mental<br />

health<br />

Craig Hudson<br />

Although the agricultural<br />

industry as a whole didn’t<br />

change much outside <strong>of</strong><br />

a few clear exceptions, it<br />

certainly impacted how<br />

we interacted with people<br />

and stayed connected.”<br />

We’ve been present at Fieldays since<br />

2014 and this increased emphasis on<br />

mental health and wellbeing has been<br />

extremely encouraging to see, especially<br />

after the last 12 months.<br />

A lot <strong>of</strong> the conversations we had<br />

were about how Covid-19 impacted<br />

workers. Although the agricultural<br />

industry as a whole didn’t change<br />

much outside <strong>of</strong> a few clear exceptions,<br />

it certainly impacted how we<br />

interacted with people and stayed<br />

connected.<br />

These pressures, among others,<br />

were triggers that saw a dialogue<br />

open up on wellbeing – stories that<br />

were shared with us at the Fieldays –<br />

and I was blown away by the mana <strong>of</strong><br />

those I spoke to.<br />

It’s becoming increasingly clear<br />

that Kiwis are getting more comfortable<br />

with their own wellbeing, and<br />

with being okay to ask for help. And,<br />

crucially, you don’t have to be struggling<br />

in crisis to do so.<br />

With this in mind, we’ve been<br />

working hard alongside Farmstrong<br />

to give farmers some simple steps to<br />

support positive wellbeing for themselves<br />

and their teams.<br />

These steps include the importance<br />

<strong>of</strong> taking time out; managing<br />

stress and avoiding burnout; and practicing<br />

healthy thinking.<br />

That last one can be tricky, but<br />

there’s a simple trick to catching it.<br />

Healthy thinking teaches you to<br />

ask three key questions when you’ve<br />

caught a negative thought. Is the<br />

thought true? Is it worth it? Does<br />

it help me achieve my goals? If it’s<br />

unhelpful, come up with alternative<br />

ways <strong>of</strong> thinking about the situation.<br />

Prioritising wellbeing doesn’t<br />

have to be complicated or expensive.<br />

It can be as simple as practising<br />

mindfulness, breaking things down<br />

into small, manageable steps such as<br />

focusing on one job at a time and delegating<br />

tasks.<br />

And if you do need to talk to<br />

Wellbeing wall at the Xero Fieldays stand asked visitors<br />

how they were feeling using weather-based moods.<br />

someone, there are options available<br />

like the Xero Assistance Programme<br />

(XAP), which <strong>of</strong>fers free confidential<br />

counselling to Xero customers.<br />

For many the workplace is a<br />

central role<br />

For many people, their workplace<br />

can play a central role in building<br />

their resilience and positive mental<br />

wellbeing. I understand first-hand the<br />

impact work can have on your mental<br />

health, particularly when you are<br />

in crisis.<br />

We also know that investing in<br />

wellbeing makes business sense. Economic<br />

research from NZIER revealed<br />

that wellbeing investment can<br />

return up to 12:1 through increased<br />

productivity.<br />

A focus on wellbeing will improve<br />

the workplace for everyone, and small<br />

changes can be immensely beneficial<br />

for your team and for your business.<br />

The pandemic brought to light a<br />

lot <strong>of</strong> learnings, and these lessons<br />

should remain front and centre for all<br />

Kiwis as we continue to recover from<br />

the impacts <strong>of</strong> 2020.<br />

Gala spectacular<br />

set to hit Tauranga<br />

for six<br />

ADVERTORIAL<br />

“A star-studded, entertainment spectacular” is how this year’s<br />

Tauranga Gala Dinner is being described. Back for its ninth year,<br />

the <strong>2021</strong> edition will be held on Friday 16 <strong>July</strong> at Trustpower Arena<br />

to an audience <strong>of</strong> several hundred locals and visitors.<br />

Featuring cricketing legend,<br />

Brendon McCullum,<br />

and renowned<br />

sports broadcaster, Scotty<br />

Stevenson, the Tauranga Gala<br />

Dinner will not only be a<br />

chance to hear from the star<br />

former Black Cap, but will<br />

also be an evening <strong>of</strong> revelry<br />

and celebration, with national<br />

treasures, The Lady Killers,<br />

taking the stage.<br />

The group is made up <strong>of</strong><br />

a trio <strong>of</strong> New Zealand’s most<br />

acclaimed performers, including<br />

Jackie Clarke, Tina Cross<br />

and Taisha Tari, who will provide<br />

a stunning showcase <strong>of</strong><br />

hits to ensure this year’s event<br />

is an unmissable gala night<br />

out for Tauranga.<br />

Organisers, Events Innovated,<br />

say that is what this<br />

year’s event is all about;<br />

giving Tauranga a big-city<br />

event to socialise and enjoy<br />

together.<br />

“It’s about creating a special<br />

occasion where people<br />

and businesses in our community<br />

can come together<br />

with good banter, great music,<br />

sumptuous food and a chance<br />

to dress to the nines and celebrate<br />

the night away.”<br />

This year’s event is partnering<br />

with local Rotary club,<br />

Tauranga Te Papa Rotary, who<br />

will lead the charity auction.<br />

Each year The Tauranga<br />

Gala Dinner provides a platform<br />

for local charities to<br />

raise money, run separate to<br />

the commercial operations <strong>of</strong><br />

the event.<br />

Tauranga Te Papa Rotary<br />

will be fundraising to support<br />

two incredible charities; Cure<br />

Kids and the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong><br />

Youth Development Trust.<br />

They have some amazing<br />

items up for grabs, including<br />

e-bikes, luxury experiences,<br />

sports memorabilia and more.<br />

The Tauranga Gala Dinner<br />

is supported by <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong> <strong>Business</strong> <strong>News</strong>, The<br />

Weekend Sun, Media Works,<br />

Kale Print, Trinity Wharf,<br />

Black Barn Vineyards, Lion<br />

and Tauranga City Council.<br />

It is produced by local events<br />

company, Events Innovated.<br />

In addition to the worldclass<br />

entertainment and guest<br />

speakers, The Tauranga Gala<br />

Dinner includes 3-course<br />

meals, fine beverages, charity<br />

auction, VIP options<br />

and plenty <strong>of</strong> after-function<br />

revelry.<br />

Many local businesses<br />

use it as a way to host staff<br />

and clients, while groups <strong>of</strong><br />

friends book tables to shout<br />

themselves a much-deserved<br />

night out.<br />

BOOK NOW<br />

Only a few tables are left and<br />

bookings close on Monday 12<br />

<strong>July</strong>.<br />

Information and last-chance<br />

reservations are available at<br />

www.taurangagaladinner.<br />

co.nz<br />

Brendon McCullum, with wife Ellissa, at the Halberg Awards.


<strong>July</strong> <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 13<br />

Overview Bethlehem Town Centre. Photo/Supplied.<br />

PMG to acquire Bethlehem Town<br />

Centre and property in Wellington<br />

PMG Property Funds Management Limited (PMG),<br />

with conservative bank borrowings, is acquiring an<br />

industrial property at 11-13 Gough Street in Seaview,<br />

Wellington, and the high-pr<strong>of</strong>ile Bethlehem Town<br />

Centre in Bethlehem, Tauranga for an estimated total<br />

<strong>of</strong> around $107.6 million.<br />

PMG chief executive <strong>of</strong>ficer and<br />

director Scott McKenzie told<br />

investors in Tauranga in June<br />

that the two properties have a very<br />

high occupancy rate with recognised<br />

national and multi-national tenants<br />

including Kmart, Countdown, BP,<br />

Chemist Warehouse and Smiths City<br />

(at Bethlehem Town Centre), and HJ<br />

Asmuss & Co (in Gough Street).<br />

The latter is a privately owned<br />

supplier and distributor <strong>of</strong> steel in<br />

New Zealand with previous clients<br />

and projects including Fonterra and<br />

the Forsyth Barr Stadium.<br />

According to PMG the acquisitions<br />

opened another exciting opportunity<br />

to invest in PMG Generation<br />

Fund, which <strong>of</strong>fers a mix <strong>of</strong> industrial,<br />

retail and <strong>of</strong>fice properties.<br />

Open to all New Zealanders, PMG<br />

was <strong>of</strong>fering investors between 63<br />

and 69 million units ($68.67m to<br />

$75.21m) at $1.09 per unit in PMG<br />

Generation Fund in the <strong>of</strong>fer.<br />

It comes with an accessible minimum<br />

investment threshold <strong>of</strong> 1,000<br />

units ($1,090) and parcels <strong>of</strong> 1,000<br />

units thereafter, from now until 5pm<br />

29 <strong>July</strong> <strong>2021</strong> (or earlier if the <strong>of</strong>fer is<br />

fully subscribed).<br />

High performing asset<br />

The acquisition <strong>of</strong> Bethlehem Town<br />

Centre means this popular and<br />

high-performing large format retail<br />

centre will now be owned by New<br />

Zealand investors, said PMG.<br />

“We are particularly excited to be<br />

providing New Zealanders, including<br />

our hometown <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> residents,<br />

the opportunity to invest in their<br />

own backyard and in a high-quality<br />

and well-known property at the heart<br />

<strong>of</strong> one <strong>of</strong> Tauranga’s fastest-growing<br />

suburbs,” said McKenzie.<br />

The purchase <strong>of</strong> 11-13 Gough<br />

Street in Wellington will also provide<br />

additional rigour and diversity to<br />

PMG Generation Fund’s portfolio, he<br />

added.<br />

“The property is close to main<br />

arterial networks and is fully leased to<br />

Asmuss, a business that was founded<br />

in 1920 and has occupied this property<br />

for over 20 years, making it an<br />

excellent prospect for our investors.”<br />

Getting Kiwis into commercial<br />

property<br />

PMG launched PMG Generation<br />

Fund in 2020 with the aim <strong>of</strong> helping<br />

more New Zealanders gain access<br />

to the benefits <strong>of</strong> investing in commercial<br />

property, providing regular<br />

income and the opportunity for good<br />

capital growth on their investment.<br />

Additionally, investors have the<br />

choice <strong>of</strong> reinvesting the monthly<br />

income the Fund provides into PMG’s<br />

Reinvestment Plan, so they can enjoy<br />

the benefits <strong>of</strong> compounding returns.<br />

Following this <strong>of</strong>fer and acquisition<br />

<strong>of</strong> the two properties, the total<br />

estimated portfolio value <strong>of</strong> the Fund<br />

will be $166 million, comprising <strong>of</strong><br />

five quality commercial properties.<br />

With each property located within<br />

main metropolitan centres across<br />

New Zealand, the Fund is further<br />

underpinned by notable tenants,<br />

including some that are classed as<br />

essential services, providing further<br />

confidence around the Fund’s income<br />

New Zealanders love land, bricks and mortar,<br />

but growing headwinds in residential property<br />

investment is now making commercial property<br />

a more sought-after investment option.”<br />

– Scott McKenzie<br />

Matt McHardy, head <strong>of</strong> investor relationships – Central and Lower North Island<br />

with PMG’s Scott McKenzie at Bethlehem Town Centre. Photo/Supplied.<br />

resilience for investors.<br />

Denis McMahon, founding director<br />

and chairman <strong>of</strong> PMG, said the<br />

quality and scale <strong>of</strong> the two intended<br />

acquisition properties located in Tauranga<br />

and Wellington align with the<br />

Fund’s strategy – to grow a portfolio<br />

<strong>of</strong> strategically selected assets that<br />

provide building, tenant, sector and<br />

geographic diversification.<br />

Since its inception, PMG Generation<br />

Fund has delivered a gross<br />

cash distribution return <strong>of</strong> 5.80 cents<br />

per unit to its original investors and<br />

has seen a significant increase in<br />

the value <strong>of</strong> its underlying property<br />

assets.<br />

With a forecast gross cash return<br />

<strong>of</strong> 5.5% p.a, paid monthly, this <strong>of</strong>fer<br />

delivers an attractive passive income<br />

so investors can enjoy the lifestyle<br />

they love, well into the future.<br />

“New Zealanders love land, bricks<br />

and mortar, but growing headwinds<br />

in residential property investment<br />

are now making commercial property<br />

a more sought-after investment<br />

option,” McKenzie said.<br />

“Historically low interest and<br />

term deposit rates mean investors<br />

are looking elsewhere for compelling<br />

returns.”<br />

According to McKenzie, local<br />

investors see New Zealand commercial<br />

property as a good place to invest<br />

their capital for the long term as a<br />

natural hedge against inflation and for<br />

regular returns.<br />

“Our last two investment <strong>of</strong>fers in<br />

two <strong>of</strong> our unlisted commercial property<br />

funds were fully subscribed well<br />

before the <strong>of</strong>fer close dates. Not only<br />

are we seeing more demand from<br />

investors in our funds, it is coming<br />

faster and in larger parcels.”<br />

The <strong>of</strong>fer opened Thursday, 10<br />

June <strong>2021</strong>. Applications to acquire<br />

shares must be received no later than<br />

5.00pm 29 <strong>July</strong> <strong>2021</strong> (or earlier if the<br />

<strong>of</strong>fer is fully subscribed). This <strong>of</strong>fer is<br />

not available to investors outside <strong>of</strong><br />

New Zealand.<br />

The funds PMG <strong>of</strong>fers and manages<br />

on behalf <strong>of</strong> investors include<br />

PMG Generation Fund, a fund<br />

designed to make commercial property<br />

investment possible for all New<br />

Zealanders; Pacific Property Fund<br />

Limited, a fund which invests in<br />

geographically and category diverse<br />

properties; and funds which invest<br />

in category specific assets, including<br />

PMG Direct Office Fund, PMG<br />

Direct Childcare Fund, and PMG<br />

Capital Fund Limited.


14 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong><br />

Aerial view <strong>of</strong> the new development. Photo/Supplied.<br />

$40m Kiwifruit Packhouse & Coolstore<br />

boost planned For Te Puke<br />

Te Puke’s economy is heading for a $40 million cash<br />

injection as DMS Progrowers Ltd has unveiled plans<br />

to double the size <strong>of</strong> its existing local operation – the<br />

biggest single investment the company has ever<br />

made.<br />

DMS currently packs 14 million<br />

trays <strong>of</strong> kiwifruit between<br />

its two sites at Te Puna and<br />

Te Puke. Once the new packhouse<br />

is completed, the company will have<br />

doubled its packing capacity at Te<br />

Puke to around 12 million trays per<br />

year, increasing overall packing<br />

capacity to 20m trays company-wide.<br />

Construction is now underway on<br />

a brand new 5400m sq metre packhouse<br />

and four new coolstores at the<br />

company’s Te Matai Rd site. DMS<br />

chief executive <strong>of</strong>ficer Derek Masters<br />

confirmed Te Puke businesses<br />

and contractors will be used for the<br />

majority <strong>of</strong> the expansion project.<br />

However, it is understood this does<br />

not preclude the use <strong>of</strong> some outside<br />

contractors when required.<br />

“It’s important to look after your<br />

own,“ said Masters.<br />

“Te Puke builders, plumbers,<br />

electricians, refrigeration specialists,<br />

earthmovers, lighting, fire systems,<br />

concrete and paneling supplies, along<br />

with utility and services’ installation<br />

and other pr<strong>of</strong>essionals and trades,<br />

will be used in all cases. We strongly<br />

believe in keeping things local and<br />

supporting the businesses that are<br />

based right here in Te Puke.”<br />

First company since 2018 to<br />

build<br />

DMS is the first post-harvest company<br />

since 2018 to build a completely<br />

new packhouse in the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>,<br />

as the region continues to produce<br />

record-breaking kiwifruit crops.<br />

“The industry is growing a significant<br />

amount <strong>of</strong> fruit – estimated at<br />

178 million trays this year,” he said.<br />

“And that is only going to increase<br />

Next year, when we<br />

have this additional<br />

packhouse, we’ll<br />

certainly be able to<br />

provide more packing<br />

slots and help a lot<br />

more growers.” –<br />

Derek Masters<br />

as more greenfield developments and<br />

Gold conversions come on stream. In<br />

the next few years demand for Gold<br />

kiwifruit worldwide will continue<br />

to rise and so DMS wants to grow<br />

its share <strong>of</strong> that anticipated industry<br />

growth.”<br />

Masters said packhouses around<br />

the <strong>Bay</strong> are already working 24 hours<br />

a day, seven days a week, during the<br />

limited Gold harvest window. Investing<br />

in more automation is important<br />

but eventually, he said, “you just need<br />

more physical space.”<br />

After a year <strong>of</strong> planning and<br />

design, Master said the company was<br />

now excited to start building the second<br />

packhouse at our Te Matai Rd site<br />

in Te Puke.<br />

Temp and humidity controlled<br />

“This is a big thing for us, and a big<br />

thing for the town.”<br />

Dave Pharo, DMS Pukepack’s site<br />

manager, says the new development<br />

DMS CEO Derek Masters left and DMS Pukepacks site manager<br />

Dave Pharo on the site <strong>of</strong> the new development. Photo/Supplied.<br />

will have a temperature and humidity<br />

controlled bin store which will jointly<br />

feed both the old packhouse and the<br />

new one.<br />

“The four additional coolstores,<br />

with a static capacity <strong>of</strong> 1.5m trays,<br />

will be automated with shuttle racking<br />

technology which we use in our<br />

other coolstores on site.”<br />

State-<strong>of</strong>-the-art MAF Roda camera<br />

grading equipment will be installed,<br />

with technicians due to fly out from<br />

France early next year to commission<br />

the new packing line.<br />

“The second packhouse shed will<br />

naturally require additional staff to<br />

operate – so that’s a lot <strong>of</strong> new jobs<br />

for local residents as well. The new<br />

facilities will all be operational prior<br />

to the start <strong>of</strong> next season in March<br />

2022,” Pharo says.<br />

DMS purchased a 7.5ha site<br />

from an immediate neighbour early<br />

last year and re-zoned the land for<br />

post-harvest activities. Over the past<br />

few months, Te Puke company JMC<br />

Earthworks has excavated 35,000m³<br />

<strong>of</strong> dirt to help construct a flat building<br />

platform for the new packhouse.<br />

Tenders for the lead packhouse/<br />

binstore building contract are now<br />

open. Te Puke businesses whose<br />

involvement is already confirmed<br />

include Shawn Williamson Builders<br />

(for construction <strong>of</strong> the four new<br />

coolstores), Orr Refrigeration (for the<br />

bin store refrigeration plant and cool<br />

store refrigeration plant), and Dexion<br />

for the shuttle racking.<br />

Meeting frustration <strong>of</strong> growers<br />

Masters said that as this season has<br />

progressed, DMS has noticed a lot <strong>of</strong><br />

frustration amongst kiwifruit growers<br />

about whether their fruit was going to<br />

be picked and packed in optimal time<br />

because every single post-harvest<br />

operator was flat out.<br />

“Next year, when we have this<br />

additional packhouse, we’ll certainly<br />

be able to provide more packing slots<br />

and help a lot more growers. This<br />

$40m development will also give confidence<br />

to our existing DMS growers<br />

that we will have capacity to look<br />

after their future growth as well.”<br />

Based in Tauranga, DMS is a kiwifruit<br />

and avocado orchard management<br />

and post-harvest operator.<br />

Established in 1989 by Craig<br />

Greenlees and Paul Jones, DMS manages<br />

over 100 orchards and has 150<br />

full-time staff, employing another<br />

600+ seasonal contractors and workers<br />

in Te Puna and Te Puke.<br />

DMS is a member <strong>of</strong> the G4<br />

Kiwifruit Group, which provides<br />

32% <strong>of</strong> Zespri’s Class One crop.<br />

Locally owned and operated, DMS’<br />

brand promise is “Increasing Grower<br />

Pr<strong>of</strong>it.”


<strong>July</strong> <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 15


16 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong><br />

NEW APPOINTMENTS<br />

BBN’S GUIDE TO NEW PEOPLE AND NEW ROLES ACROSS BUSINESS IN THE BAY<br />

To feature in New Appointments email us at new.appointments@bopbusinessnews.co.nz<br />

New executives appointed across the <strong>Bay</strong><br />

As organisations in the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> bounce back from the effects <strong>of</strong> Covid-19 some <strong>of</strong> the region’s largest and most important groups are<br />

gearing up with new executive appointments. Please contact us if your organisation has personnel changes you would like to share.<br />

Alan<br />

Woodger<br />

BCD Group is<br />

excited to announce<br />

the appointment <strong>of</strong><br />

Alan Woodger as an<br />

Environmental Scientist.<br />

Alan brings<br />

over 14 years <strong>of</strong><br />

industry experience<br />

and valuable<br />

knowledge.<br />

Alans’s experience<br />

is based in<br />

large scale infrastructure<br />

projects,<br />

the petrochemical<br />

industry and<br />

contaminated<br />

land remediation<br />

projects.<br />

More recently Alan has been working on land development<br />

projects in the Waikato and the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, broadening<br />

his skill set to include regional consenting onsite wastewater<br />

discharges.<br />

With Alan’s experience and knowledge, we now <strong>of</strong>fer<br />

his expertise in Contaminated Land Management, including<br />

Preliminary and Detailed Site Investigations, Remedial<br />

Action Plans, Site Management, and Consent Monitoring.<br />

Toni<br />

Owen<br />

Toni Owen has<br />

been appointed to<br />

the <strong>Bay</strong> <strong>of</strong> Connections<br />

Leadership<br />

Group. Toni is<br />

a familiar face in<br />

the Eastern <strong>Bay</strong> <strong>of</strong><br />

<strong>Plenty</strong>, being a longtime<br />

Whakatāne resident<br />

and a director<br />

<strong>of</strong> Focus Chartered<br />

Accountants.<br />

Toni has more<br />

than 30 years <strong>of</strong><br />

business and governance<br />

experience<br />

with particular<br />

expertise in strategic,<br />

business and<br />

succession planning. She is a Fellow <strong>of</strong> Chartered Accountants<br />

ANZ, Pr<strong>of</strong>essional Trustee and Member <strong>of</strong> the Institute<br />

<strong>of</strong> Directors. She has worked with a wide range <strong>of</strong> rural, commercial<br />

and pr<strong>of</strong>essional clients and is actively involved in<br />

a variety <strong>of</strong> community and charitable organisations. She’s<br />

also held governance positions with EBOP Chamber <strong>of</strong> Commerce,<br />

NZCA, Eastern <strong>Bay</strong> Energy Trust, Energy Options<br />

Limited, EECA and Kawerau Enterprise Agency.<br />

Kylie Boyd<br />

First Mortgage Managers<br />

(FMM), manager <strong>of</strong> First<br />

Mortgage Trust (FMT),<br />

New Zealand’s largest first<br />

mortgage trust lender has<br />

announced Kylie Boyd as<br />

a director. Michael Smith,<br />

Chair <strong>of</strong> First Mortgage<br />

Managers says, “We are<br />

really pleased to have Kylie<br />

join our Board <strong>of</strong> Directors.<br />

Kylie has over 16 years’<br />

commercial law experience<br />

and over 10 years’ governance<br />

experience, and has<br />

very strong commercial,<br />

analytical and risk management<br />

skills.” Kylie is based<br />

in Tauranga and is a former<br />

Partner <strong>of</strong> Sharp Tudhope<br />

Lawyers. Kylie has worked with a range <strong>of</strong> commercial enterprises,<br />

both large and small, spanning various industries, including manufacturing,<br />

exporting, horticulture, s<strong>of</strong>tware development and financial<br />

services. Kylie is an experienced director and is currently a<br />

director for Craigs Investment Partners Superannuation Management<br />

Limited, Priority One, Custodial Services Limited, and Bluelab Corporation<br />

Limited. Kylie has a BA, LLB (Hons) from the University<br />

<strong>of</strong> Auckland. Kylie will join the Board on 15 June <strong>2021</strong>.<br />

At <strong>Bay</strong>leys, we believe relationships are what businesses are built on and how they<br />

succeed. We understand that to maximise the return on your property you need:<br />

Pr<strong>of</strong>essional property management<br />

A business partner that understands your views and goals<br />

Contact the <strong>Bay</strong>leys Tauranga Commercial Property Management team today.<br />

<strong>Bay</strong>leys Tauranga<br />

Commercial Property Management<br />

07 579 0609<br />

jan.cooney@bayleystauranga.co.nz<br />

SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008<br />

ALTOGETHER BETTER<br />

Residential / Commercial / Rural / Property Services


<strong>July</strong> <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 17<br />

Why should you consider converting?<br />

What do many successful businesses ranging from those is the<br />

trades – electricians, plumbers and builders – through to white-collar<br />

pr<strong>of</strong>essions ranging from real estate agencies to optometrists and<br />

even veterinarian practices have in common? They operate under<br />

a franchise business model having converted from an independent<br />

business model.<br />

FRANCHISING<br />

> BY NATHAN BONNEY<br />

Nathan Bonney is a director <strong>of</strong> Iridium Partners. He can be<br />

reached at nathan@iridium.net.nz or 0275-393-022<br />

Some <strong>of</strong> the most successful<br />

franchise brands<br />

have been built on the<br />

back <strong>of</strong> a conversion strategy,<br />

but you may ask why an<br />

existing independent business<br />

would convert to a franchise<br />

business model?<br />

Brand recognition<br />

Perhaps the biggest driver<br />

is brand recognition, which<br />

translates into marketing<br />

power, position and ultimately<br />

a larger share <strong>of</strong> the market<br />

and greater revenue.<br />

As you’re reading this I can<br />

suggest some real estate jingles<br />

that come to mind as well<br />

as a number <strong>of</strong> trade-related<br />

services that start with 0800<br />

name <strong>of</strong> brand.<br />

All <strong>of</strong> these businesses are<br />

franchises, owner-operated<br />

and, in many cases, started as<br />

independent businesses.<br />

Systems<br />

You can query any skill-specific<br />

pr<strong>of</strong>essional: “You may<br />

know your trade, but how good<br />

are you at the business?”<br />

The answers can vary significantly.<br />

Think about the<br />

If you’re running an<br />

independent business<br />

– think about your<br />

experience <strong>of</strong> doing<br />

those invoices at<br />

11pm on a Friday<br />

evening.”<br />

plumber’s invoice that came a<br />

few months after the work, or<br />

if you’re running an independent<br />

business – think about<br />

your experience <strong>of</strong> doing those<br />

invoices at 11pm on a Friday<br />

evening.<br />

Franchises provide systems<br />

and processes which will assist<br />

the business owner in running<br />

the business versus doing the<br />

doing.<br />

Additionally, a franchise<br />

has the collective resources<br />

and focus to innovate and<br />

re-invest in the actual doing as<br />

well. Often creating commercially<br />

beneficial differentiation<br />

for their franchisees.<br />

Purchasing<br />

Increasing recognition and<br />

revenue in themselves are<br />

good things for a business, but<br />

reducing costs leads to greater<br />

pr<strong>of</strong>itability.<br />

Franchise systems are able<br />

to collate the purchasing power<br />

<strong>of</strong> their franchisees and provide<br />

pricing that an independent<br />

could not achieve. These<br />

cost savings can be significant<br />

and can by themselves change<br />

the performance <strong>of</strong> a business.<br />

Two-way benefits<br />

A common resistance from<br />

potential converters is the<br />

perception that they will be<br />

giving away revenue to the<br />

franchisor in the form <strong>of</strong> royalties<br />

or fees.<br />

Not all franchise models<br />

include a percentage or flat fee<br />

structure, some systems generate<br />

their revenue from rebates<br />

from suppliers.<br />

In these circumstances the<br />

franchisee is benefitting from<br />

the purchasing power and<br />

lower prices, so there can be a<br />

double benefit.<br />

I would suggest that even<br />

in circumstances where a percentage<br />

or a flat fee is paid to<br />

the franchisor the accumulated<br />

benefits <strong>of</strong> a good franchise<br />

system will far outweigh the<br />

fees.<br />

It is worth any independent<br />

business owners’ time to<br />

review and consider.<br />

Resale and exit<br />

Many independent business<br />

owners never think about their<br />

exit strategy, will they be able<br />

to sell their business, to whom,<br />

what are the unique selling<br />

propositions for the business?<br />

A franchise may assist an<br />

independent business owner<br />

in marketing, attracting and<br />

securing a resale. And it will<br />

most definitely be able to support<br />

and develop the incoming<br />

purchaser, freeing the seller<br />

to exit and not be incumbered<br />

with potentially long or drawnout<br />

buyer assistance periods<br />

and the like.<br />

Doing the wrong thing for the ‘right’<br />

reason doesn’t make it right<br />

In my work I <strong>of</strong>ten hear people attempt to justify sometimes<br />

horrendous acts or very poor decisions due to it being something<br />

that they had to do to serve a greater “good” or they were<br />

contractually obliged to do so.<br />

CREDIT CONTROL<br />

> BY NICK KERR<br />

Nick Kerr is a <strong>Business</strong> Advisor at NJK Advisory Ltd.<br />

He is also director <strong>of</strong> International Private Investigations Ltd.<br />

Nick can be reached at nick@nzipi.com<br />

There comes a time when<br />

the excuses that you give<br />

yourself no longer work<br />

and you must face the fact<br />

that doing something that you<br />

know is wrong for the “right”<br />

reason is simply doing something<br />

wrong.<br />

There was a bit <strong>of</strong> a case in<br />

the early 20th century where<br />

certain members <strong>of</strong> a particular<br />

European country’s military<br />

regime committed unbelievable<br />

atrocities against entire<br />

people groups that would<br />

go against the moral fibre <strong>of</strong><br />

all but the most depraved<br />

humans.<br />

I bet if you asked any <strong>of</strong><br />

them if what they were doing<br />

was “right” they would say<br />

that they were doing it for the<br />

greater good, but looking back<br />

I would doubt that this sentiment<br />

would be maintained<br />

today.<br />

To a far lesser extent I have<br />

seen this attitude in the world<br />

<strong>of</strong> pr<strong>of</strong>essional B2B selling<br />

where a salesperson has a target<br />

or a goal that they have to<br />

achieve and it seems the closer<br />

to the time limit <strong>of</strong> this target<br />

the more likely it is for doing<br />

the wrong thing (in my opinion)<br />

to seem ok.<br />

One real life example is a<br />

salesperson that sold a company<br />

an employment and<br />

insurance solution that totaled<br />

almost $50,000 (over a payment<br />

plan).<br />

According to the business<br />

owner the salesperson told him<br />

Attempting to serve two masters with<br />

convergent goals and requirements will<br />

always create conflict and an inability to<br />

ever fully satisfy either.”<br />

that if he didn’t do it he was<br />

risking bankruptcy and possible<br />

jail.<br />

The business owner, obviously<br />

wanting to be compliant<br />

with the law and operate at best<br />

practice level, signed up and<br />

paid the monthly instalments.<br />

Check the paperwork<br />

He called me and asked me to<br />

look over the paperwork to see<br />

if he was doing the right thing.<br />

After reviewing the paperwork<br />

and interviewing him<br />

about his business I discovered<br />

that not only did he not have<br />

any staff at all (he only used<br />

limited liability subcontractors<br />

therefore did not need to have<br />

employment agreements), but<br />

if he did have staff he could<br />

have got the entire solution<br />

from a top local employment<br />

lawyer for under $10,000 and<br />

have a relationship formed that<br />

could provide support as and<br />

when needed.<br />

I myself have faced a similar<br />

conundrum, whilst contracting<br />

for a large company.<br />

We, as contractors, were asked<br />

to encourage clients to load<br />

files for action at the same<br />

time as setting up systems and<br />

processes that would make the<br />

need for actioning the files rare<br />

if not redundant.<br />

In in this situation we had<br />

to choose between giving ultimate<br />

and lasting value to the<br />

client or giving value to the<br />

company and satisfying the<br />

stakeholders.<br />

As we became more and<br />

more well known for the systems<br />

and processes, this issue<br />

became more and more evident,<br />

resulting in frequent<br />

marketing action out to clients<br />

encouraging files to be loaded (<br />

to the point where client would<br />

block all communication) until<br />

the conflict between these two<br />

activities became untenable.<br />

The moral <strong>of</strong> this story is<br />

that attempting to serve two<br />

masters with convergent goals<br />

and requirements will always<br />

create conflict and an inability<br />

to ever fully satisfy either.<br />

Just a thought.


18 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong><br />

NEWSBRIEF<br />

Leading kiwifruit<br />

companies to amalgamate<br />

Seeka Limited and Opotiki<br />

Packing and Cool Storage<br />

Limited are to join via<br />

amalgamation, the companies<br />

said in a statement.<br />

This transaction will see<br />

Seeka expand further to be operational<br />

in all <strong>of</strong> New Zealand’s<br />

major kiwifruit growing regions<br />

in a deal that continues to consolidate<br />

the New Zealand kiwifruit<br />

industry.<br />

The OPAC shareholders will<br />

receive new shares in Seeka at<br />

the ratio <strong>of</strong> 1.4833 Seeka shares<br />

for every 1 OPAC share held,<br />

valuing the net assets <strong>of</strong> OPAC at<br />

$33.94m provided OPAC shareholders<br />

approve the transaction<br />

with a 75% approval required.<br />

Seeka will assume approximately<br />

$25.06m <strong>of</strong> debt as part <strong>of</strong><br />

the acquisition bringing the total<br />

deal to $59.00m.<br />

Long relationship<br />

OPAC’s Chairman, Tony de<br />

Farias, in announcing the deal,<br />

said: “The amalgamation brings<br />

together two companies with<br />

a long relationship and similar<br />

ownership structures.<br />

“Many OPAC shareholders<br />

and growers are also shareholders<br />

in Seeka. The Board <strong>of</strong> OPAC recommends<br />

the deal to shareholders<br />

believing the enterprise value <strong>of</strong><br />

$59m to be fair, with good opportunities<br />

for growth and synergies.<br />

Seeka expects the<br />

bigger business to<br />

generate material<br />

efficiencies,<br />

synergy benefits<br />

and cost savings<br />

for the benefit <strong>of</strong> all<br />

stakeholders.”<br />

The combined group will deliver<br />

efficiencies, new technology and<br />

grower support.”<br />

Seeka Chairman, Fred Hutchings<br />

said: “The purchase <strong>of</strong><br />

OPAC is consistent with our<br />

strategy and delivers the Eastern<br />

<strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> kiwifruit growing<br />

region to Seeka’s operations, a<br />

region in which Seeka is already<br />

experiencing growth through new<br />

orchard developments.<br />

“The transaction is expected<br />

to be accretive to shareholders<br />

once the combined business is<br />

fully integrated. Seeka expects<br />

the bigger business to generate<br />

material efficiencies, synergy<br />

benefits and cost savings for the<br />

benefit <strong>of</strong> all stakeholders.”<br />

The Boards <strong>of</strong> Seeka and<br />

OPAC unanimously recommended<br />

the amalgamation.<br />

Whakatane Mill saved,<br />

but caution expressed<br />

Whakatane Mill owners SIG Combibloc have announced the sale <strong>of</strong> the mill to a<br />

consortium <strong>of</strong> investors led by European investor Dr Dermot Smurfit.<br />

The announcement means that<br />

besides staff who have chosen<br />

to take redundancy, more than<br />

200 mill staff will keep their jobs.<br />

Whakatāne mayor Judy Turner<br />

said she was thrilled by the news.<br />

“I’m particularly thrilled for<br />

the contractors outside the direct<br />

employment <strong>of</strong> the mill as this has<br />

been a very nervous time for them<br />

and their staff.”<br />

Turner said she was relieved the<br />

mill had been saved as its closure<br />

and loss <strong>of</strong> jobs would have been<br />

devastating for the local economy.<br />

“To the new owners, congratulations<br />

and well done. We’re really<br />

pleased to have you on board.”<br />

Relief at the announcement<br />

Karl Gradon <strong>of</strong> Toi Economic Development<br />

Agency said close to 300<br />

families would be breathing a sigh<br />

<strong>of</strong> relief with the announcement.<br />

“We really welcome Smurfit to<br />

the business community.<br />

“We have a wonderful opportunity<br />

to take the momentum that<br />

Smurfit brings to their alternative to<br />

plastic packaging technology, and it<br />

looks like we will have an impressive<br />

customer base that they will<br />

link Whakatāne Mill into globally,”<br />

he said.<br />

Confidential<br />

personal<br />

service<br />

“It’s very exciting for us.”<br />

However, Gradon expressed<br />

caution, saying while this was good<br />

news there were still clouds on the<br />

Karl Gradon<br />

horizon with the fibre-processing<br />

sector.<br />

“China has announced self-sufficiency<br />

in logs by 2035, which creates<br />

significant risk for the forestry<br />

sector.<br />

“The majority <strong>of</strong> New Zealand<br />

logs are exported to developing<br />

countries in their raw form in anticipation<br />

<strong>of</strong> their domestic logs becoming<br />

available in just a few years. Toi<br />

EDA encourages the government<br />

to work on policy that incentivises<br />

investment in added value processing<br />

in New Zealand, rather than shipping<br />

the value creation <strong>of</strong>fshore.”<br />

The Smurfit Consortium includes<br />

China has announced<br />

self-sufficiency in logs<br />

by 2035, which creates<br />

significant risk for the<br />

forestry sector.”<br />

– Karl Gradon<br />

New Zealand investors, and many<br />

have experience in owning and operating<br />

paper packaging businesses.<br />

A spokesman for the Smurfit<br />

Consortium, Ian Halliday, who will<br />

become chairman <strong>of</strong> the Whakatāne<br />

Mill, said the consortium looked<br />

forward to developing a more competitive<br />

operation to support customers<br />

in New Zealand and around the<br />

world.<br />

“We believe that the Whakatāne<br />

Mill has a very bright future as the<br />

only folding box board mill in Oceania,<br />

and we intend to invest heavily<br />

in the mill to support both our customers<br />

and New Zealand’s forest<br />

products industry,” he said.<br />

The mill will stop producing<br />

liquid packaging board and going<br />

forward will focus on its customers’<br />

requirements for high-quality<br />

folding box board, carrier board and<br />

food service.<br />

ADVERTORIAL<br />

Confidential<br />

Ensure your business<br />

personal<br />

is ready for sale<br />

service<br />

TABAK <strong>Business</strong> Sales<br />

was established in<br />

2001 to specialise in<br />

the sale <strong>of</strong> small to medium<br />

($300K to $10M) sized New<br />

Zealand businesses.<br />

During the last 20<br />

years the motivation factors<br />

for owners to sell their<br />

businesses has generally<br />

remained the same – retirement,<br />

divorce, health, death<br />

or wanting a change in<br />

lifestyle.<br />

Whatever the reason for<br />

selling you need to ensure<br />

that your business is ready<br />

for sale as you are not<br />

always given a warning or<br />

time to get it in the best possible<br />

shape.<br />

Since post Covid 19<br />

lockdown we have seen<br />

an increase in the number<br />

<strong>of</strong> owners who have listed<br />

their businesses with Tabaks<br />

suffering from burn out. We<br />

have had two sales recently<br />

where burn out has been the<br />

main reason for sale.<br />

One was due to many,<br />

many years in the trade and<br />

he was just over the stresses<br />

<strong>of</strong> day-to-day running <strong>of</strong> the<br />

business and dealing with<br />

staff and staff shortages.<br />

In the other case, the<br />

owner reached breaking<br />

point and found himself<br />

emotionally, physically and<br />

mentally exhausted due to<br />

long term stress, and could<br />

no longer turn up to work. In<br />

another instance, the business<br />

owner had been diagnosed<br />

with cancer.<br />

All <strong>of</strong> a sudden quality<br />

<strong>of</strong> life, destressing and<br />

spending time with loved<br />

ones and taking time to heal<br />

themselves, took precedence<br />

over the stress <strong>of</strong> running the<br />

business. Money and reputation<br />

etc all <strong>of</strong> a sudden takes<br />

a back seat.<br />

In the cases mentioned<br />

above the business owners<br />

had not intended to sell and<br />

found themselves ill prepared<br />

for sale.<br />

In the ideal world we<br />

like to work with business<br />

owners for a period <strong>of</strong> time<br />

to assist with the preparation<br />

<strong>of</strong> their business for sale.<br />

This can include making<br />

sure their financials exclude<br />

any personal items which<br />

have become blended in<br />

with the business expenses<br />

over time, and making sure<br />

customers contracts, leases,<br />

health & safety and employments<br />

contracts are all current<br />

and up to date.<br />

In some ways<br />

Selling<br />

it is a bit<br />

your busines<br />

like selling a house or a car.<br />

To get the best sale price you<br />

make sure that it is presented<br />

in the best possible way i.e<br />

neat and tidy with a little<br />

bit <strong>of</strong> maintenance where<br />

necessary.<br />

If the situation allows,<br />

business owners should start<br />

talking with their pr<strong>of</strong>essional<br />

advisors and a business<br />

broker well before listing<br />

their business for sale.<br />

BETTER BUSINESS SALES<br />

> BY PAUL BRLJEVICH<br />

Director at TABAK <strong>Business</strong> Sales. Paul can be reached on<br />

027 693 4079 or paulb@tabak.co.nz<br />

I have personally worked<br />

with a business owner<br />

for six years before they<br />

decided they were ready<br />

Selling your business?<br />

to go to the market. When<br />

it was taken to the market within 10 working days. I<br />

We connect quality businesses with serious bu<br />

the business was in the best<br />

We connect quality shape possible. businesses with serious buyers<br />

The average sale time<br />

for all businesses (industry<br />

wide) listed for sale in<br />

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Licensed REAA (2008)<br />

Licens


<strong>July</strong> <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 19<br />

ZESPRI marks record<br />

season in 2020-21<br />

Increased sales, the ongoing expansion <strong>of</strong> Zespri SunGold Kiwifruit production and<br />

great quality fruit underpinned by strong international demand have delivered a<br />

record result for Zespri’s 2020/21 season, returning record per tray returns across<br />

all categories, said the marketer in a statement.<br />

Zespri’s 2020/21 Financial<br />

Results show total global revenue<br />

generated by fruit sales<br />

reached NZ$3.58 billion, up 14 percent<br />

on the previous year, while total<br />

global operating revenue increased by<br />

16 percent to NZ$3.89 billion. Global<br />

sales volumes were up 10 percent on<br />

the previous year to 181.5 million<br />

trays.<br />

Direct returns to the New Zealand<br />

industry increased by 15 percent to<br />

$2.25 billion in spite <strong>of</strong> the considerable<br />

uncertainty generated by the<br />

Covid-19 pandemic. Earnings are<br />

spread through many regional communities<br />

including the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>,<br />

Northland, Nelson, Gisborne, and the<br />

Waikato, providing support to people,<br />

communities and businesses across<br />

the country.<br />

Strong returns<br />

There were strong returns on both a<br />

per tray and per hectare basis:<br />

• The average return for Zespri<br />

Green per tray increased to $7.51,<br />

with the average return per hectare<br />

reaching $76,722.<br />

• Zespri Organic Green reached an<br />

average return per tray <strong>of</strong> $10.53,<br />

and an average per hectare return<br />

<strong>of</strong> $66,453.<br />

• The average return for Zespri<br />

SunGold Kiwifruit increased to<br />

$12.46 per tray, and the average<br />

return per hectare was also a<br />

record $177,846.<br />

• Zespri Organic SunGold Kiwifruit<br />

saw a per tray return <strong>of</strong> $15.36,<br />

with the average per hectare return<br />

reaching $158,599.<br />

• Zespri Sweet Green achieved an<br />

average return per tray <strong>of</strong> $10.14<br />

and an average return per hectare<br />

<strong>of</strong> $56,853.<br />

Zespri’s Non-New Zealand Supply<br />

sales increased to $472.8 million<br />

while Zespri’s net pr<strong>of</strong>it after tax is<br />

$290.5 million, up from $200.8 million<br />

on the previous year.<br />

Zespri chairman Bruce Cameron<br />

said the results reflected the continued<br />

strong demand for Zespri Kiwifruit<br />

around the world, boosted by the<br />

industry’s hard work and investment<br />

to increase demand and supply.<br />

“After a season where we were<br />

forced to make such significant<br />

changes to our operations with a focus<br />

on keeping our people safe, getting<br />

our fruit to the world, and continuing<br />

to invest for the future, it’s pleasing<br />

to see such encouraging results for the<br />

industry,” said Cameron.<br />

Demand increasing<br />

“Demand for both Zespri Green and<br />

Zespri SunGold Kiwifruit increased<br />

and we’re pleased to see growing<br />

interest in our newest variety, Zespri<br />

Red, which is a testament to our<br />

industry’s ongoing investment in<br />

We’re also<br />

encouraged by the<br />

growth in sales<br />

<strong>of</strong> our Non-New<br />

Zealand supply, with<br />

strong returns to our<br />

partner growers in<br />

Italy, France, Japan<br />

and Korea.” – Dan<br />

Mathieson<br />

innovation and finding new ways to<br />

add value for New Zealand and our<br />

international production bases.”<br />

Zespri’s chief executive <strong>of</strong>ficer<br />

Dan Mathieson said the 2020/21 season<br />

again showcased the strength <strong>of</strong><br />

the Zespri brand in delivering value,<br />

attracting new consumers and supporting<br />

communities.<br />

“The unity <strong>of</strong> our industry allowed<br />

us to respond effectively to incredibly<br />

difficult conditions around the world.<br />

That response was underpinned by<br />

our investment in the Zespri brand,<br />

the trust we have built up with our<br />

customers and consumers globally<br />

and the resilience and adaptability <strong>of</strong><br />

Dan Mathieson, Zespri CEO<br />

our supply chain and sales and marketing<br />

teams.<br />

“The efforts <strong>of</strong> our people right<br />

throughout Zespri and our supply<br />

chain were critically important and<br />

we’re incredibly proud <strong>of</strong> the way<br />

they responded and <strong>of</strong> those members<br />

<strong>of</strong> our team who are still dealing with<br />

the ongoing impacts <strong>of</strong> COVID-19<br />

around the world.<br />

“We’re also encouraged by the<br />

growth in sales <strong>of</strong> our Non-New Zealand<br />

supply, with strong returns to<br />

our partner growers in Italy, France,<br />

Japan and Korea. These production<br />

bases are a critical part <strong>of</strong> Zespri’s<br />

12-month supply strategy.<br />

“12 month supply means we’re<br />

available to consumers year round,<br />

hold our shelf space and commercial<br />

partnerships, ensuring Zespri growers<br />

maximise the benefit from the<br />

increased international demand we’re<br />

creating, making our marketing and<br />

promotional spend more efficient and<br />

delivering stronger returns to growers<br />

in New Zealand and around the<br />

world.”<br />

Outlook <strong>2021</strong><br />

With the <strong>2021</strong>/22 New Zealand season<br />

now well underway, nearly all<br />

Zespri SunGold Kiwifruit has been<br />

submitted into inventory and the harvest<br />

<strong>of</strong> Green is in full swing.<br />

Mathieson said Zespri was expecting<br />

another record-breaking crop<br />

<strong>of</strong> Zespri Kiwifruit this year, again<br />

underpinned by the expansion <strong>of</strong><br />

Zespri SunGold Kiwifruit production<br />

as well as Zespri Red.<br />

“Our sales and marketing programmes<br />

are in full swing and<br />

demand from our markets is incredibly<br />

strong with our fruit selling<br />

quickly,” he said.<br />

“However, we are facing headwinds<br />

including industry capacity<br />

constraints, rising costs and securing<br />

enough people to get our fruit to the<br />

world, as well as pandemic-related<br />

disruption to our shipping channels<br />

and distribution in some <strong>of</strong> our<br />

markets.<br />

“We’re working hard as an industry<br />

to overcome these challenges in<br />

order to deliver ongoing positive<br />

value to all our stakeholders and New<br />

Zealand as we continue to grow as an<br />

industry, though we do expect they<br />

will remain an issue in the medium<br />

term.”<br />

People and communities<br />

“We know that our success is only<br />

possible with the support <strong>of</strong> our communities<br />

and it’s important to us that<br />

we continue to recognise that,” said<br />

Mathieson.<br />

“We’re delighted a record<br />

NZ$2.25 billion will be returned to<br />

the New Zealand kiwifruit industry,<br />

and to know that those returns will<br />

support jobs and communities around<br />

the country.<br />

“In 2020/21, Zespri partnered<br />

with KidsCan and Ronald McDonald<br />

House for the first time – two inspiring<br />

organisations who work hard to<br />

support those in need. We also shared<br />

over 100 tonnes <strong>of</strong> fresh kiwifruit<br />

with organisations around the country,<br />

so more people could access the<br />

health benefits.<br />

“We were also pleased to kick <strong>of</strong>f<br />

the first Zespri Young and Healthy<br />

Virtual Adventure, helping teach<br />

20,000 young New Zealanders<br />

about the importance <strong>of</strong> eating well,<br />

exercising and looking after the<br />

environment.<br />

“And we supported a number<br />

<strong>of</strong> important causes in our markets<br />

around the world as part <strong>of</strong> our purpose<br />

<strong>of</strong> helping people, communities<br />

and the environment to thrive. These<br />

efforts will grow as our industry does<br />

and as we focus on ensuring<br />

we have a positive impact<br />

around the world.”<br />

2020/21 financial results summary:<br />

• Zespri global operating revenue: NZ$3.89 billion<br />

• Zespri global fruit sales revenue: NZ$3.58 billion<br />

• Total New Zealand-grown fruit and service payments<br />

including loyalty premium: NZ$2.25 million<br />

• Zespri global trays sold: 181.5 million trays<br />

• Zespri’s net pr<strong>of</strong>it after tax: NZ$290.5 million<br />

• Expected Total Dividends: NZ$1.33


20 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong><br />

First on the scene<br />

Photos from the recent networking at a BA5 held at Basestation, Tauranga<br />

Photos by Vanessa Laval-Glad, Laval Photo and Video<br />

1<br />

2<br />

1 Steven Vincent and Megan Merritt, <strong>Bay</strong>leys. 2 Nick Hartley and Sally Green, Caleys.<br />

3<br />

4<br />

5<br />

3 LeeAnne Basset, FACEUP and Rob Bull, Plexus Consulting. 4 Jaycee Hazooria, ACE Consultants and Paul Khosla, ACE Consultants. 5 Pascale Hyboud-Peron, Basestation.<br />

6<br />

7 8<br />

6 Tania Wilson, Momenta Charitable Trust and Ge<strong>of</strong>frey Campbell, The Why. 7 Shane Jaxson, BONZ and Tony Snow, Stratus Blue. 8 Sam Ackerman, Ackermerc and Simon Fowler, The Colour<br />

Code.<br />

9<br />

10<br />

9 Gaylene Shanley Property Services Unlimited BOP, Browyn and Eddie Jackson, Grief Support Services. 10 Sam Ackerman, Ackermerc, Matt Cowley, Chamber <strong>of</strong> Commerce Tauranga,<br />

Leanne Brown, Harcourts and Lloyd Davies, Literacy Aotearoa.


<strong>July</strong> <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 21<br />

Pandemic inspires New Zealand<br />

s<strong>of</strong>tware product uptake<br />

Leading New Zealand<br />

fresh produce s<strong>of</strong>tware<br />

provider Radfords, which<br />

has its base in Tauranga,<br />

has overcome some initial<br />

global pandemic-related<br />

challenges to realign how<br />

it engages with global<br />

fresh produce businesses.<br />

These are showing a<br />

renewed enthusiasm<br />

to adopt automated<br />

pre and post-harvest<br />

technologies.<br />

Customer success manager<br />

Royce Sharplin said a considerable<br />

upswing in the demand<br />

for Radfords’ technology solutions in<br />

the past nine months had resulted in<br />

significant new business wins in Australia<br />

and the United States. This followed<br />

some challenging times after<br />

some sizeable projects were delayed<br />

by the uncertainty created by the pandemic<br />

and the lockdown conditions.<br />

He cited several drivers prompting<br />

the surge <strong>of</strong> interest from various<br />

operators along the fresh produce<br />

supply chain, including some from<br />

surprising new sectors.<br />

“There’s no doubt, the motivation<br />

for change has been exacerbated<br />

by coronavirus which has magnified<br />

operational inefficiencies for packhouse<br />

operators,” Sharplin said.<br />

Struggle for seasonal labour<br />

“Globally, fresh produce suppliers are<br />

struggling to find seasonal labour and<br />

they have found it harder to get physical<br />

labour into the packhouse and<br />

move people around due to physical<br />

distancing protocols.<br />

“This frustration has forced a scrutiny<br />

<strong>of</strong> systems and a rethink <strong>of</strong> current<br />

system capabilities. Radfords’<br />

Radford’s FreshPack s<strong>of</strong>tware is customisable and scaleable. Photo Supplied.<br />

FreshPack s<strong>of</strong>tware is customisable<br />

and scaleable to support fresh produce<br />

business growth.”<br />

Sharplin said Radfords had continued<br />

to strengthen its existing product<br />

line-up and industry-specific solutions<br />

that facilitated the electronic<br />

capture, processing, storage and<br />

reporting <strong>of</strong> information in response<br />

to demand.<br />

“The focus on tracking and tracing<br />

has never been greater. As global<br />

consumers demand healthy and safe<br />

produce, fresh produce suppliers need<br />

reliable and easy-to-use traceability<br />

technologies to support their efforts<br />

to meet this demand and assure their<br />

long-term survival.<br />

“Radfords has a suite <strong>of</strong> products<br />

that provide full traceability along<br />

Globally, fresh produce suppliers are struggling to<br />

find seasonal labour and they have found it harder<br />

to get physical labour into the packhouse and<br />

move people around due to physical distancing<br />

protocols. This frustration has forced a scrutiny<br />

<strong>of</strong> systems and a rethink <strong>of</strong> current system<br />

capabilities.” – Royce Sharplin<br />

the supply chain, eliminating the<br />

need for paper-based or manual input<br />

systems.”<br />

Pandemic-related travel constraints<br />

had made new deployments<br />

challenging, he said.<br />

“But we’re adapting and utilising<br />

technology. For example, we’re<br />

working on the introduction <strong>of</strong> smart<br />

glasses which will give us a virtual<br />

tour <strong>of</strong> a packhouse to assess needs.”<br />

New generation pushes for<br />

change<br />

He said a new tech-savvy generation<br />

working in family owned fresh produce<br />

businesses, was also agitating<br />

for change.<br />

“Second or third generation producers<br />

are approaching us directly as<br />

a result <strong>of</strong> not being able to travel or<br />

work <strong>of</strong>fshore. They have grown up<br />

with technology and are looking with<br />

fresh eyes at ways to optimise systems<br />

and processes and add value to<br />

the family business,” he said.<br />

Radfords had also experienced<br />

increased interest from operators who<br />

had outgrown their bespoke systems<br />

and urgently needed new systems to<br />

grow with them, he said.<br />

Radfords was currently in the<br />

scoping phase with a major Australian<br />

root vegetable producer and several<br />

apple and citrus producers in the<br />

United States, he said.<br />

“As there has been an inability to<br />

attend trade shows and meet producers<br />

face-to-face, we’ve noticed these<br />

conversations are starting at a more<br />

advanced point. Operators are doing<br />

their homework and speaking to likeminded<br />

businesses which already<br />

have Radfords’ technology.<br />

“We are, however, very excited<br />

about hosting new and existing customers<br />

at our Hort Connections booth<br />

in Brisbane.”<br />

Radfords has extensive experience<br />

in New Zealand’s kiwifruit and apple<br />

industries, having provided s<strong>of</strong>tware<br />

solutions for packhouse operators<br />

since 1989. However, it now has<br />

more than 80 clients around the world<br />

including Australia, the US, Italy,<br />

France, Korea and Japan.<br />

He said Radfords had sharpened<br />

its focus on the UX (user experience)<br />

<strong>of</strong> its core existing products during<br />

the past year, including the following<br />

products to give fresh produce customers<br />

a platform for efficiency and<br />

growth.<br />

• On-farm FreshGrow<br />

• FreshQuality<br />

• Packhouse solution, FreshPack<br />

• <strong>Business</strong> intelligence platform<br />

FreshInsights<br />

• Radfords’ cloud-based capability<br />

Radfords’ pandemic-inspired<br />

prosperity had generated jobs for an<br />

additional six employees at its Tauranga<br />

base, including two interns in<br />

collaboration with the University <strong>of</strong><br />

Waikato, he said.<br />

“We’ve also had to contract<br />

resources in Australia to support and<br />

absorb the extra work and will look<br />

to have more feet on the ground in the<br />

US this year,” he said.<br />

NEWSBRIEF<br />

Norse Skog Kawerau Mill closure update<br />

Norske Skog’s recent announcement that it would be selling the Tasman Mill’s<br />

assets and stopping production by the end <strong>of</strong> the month didn’t come as a<br />

surprise to the workers at the mill, or even most <strong>of</strong> the people around Kawerau,<br />

a town in the eastern <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> with a population <strong>of</strong> about 7500.<br />

The closure follows a strategic<br />

review that began<br />

at the mill last September<br />

2020. Norske Skog regional president<br />

Eric Luck said the company<br />

would work with employees and<br />

their union representatives on the<br />

implementation plan for the closure<br />

<strong>of</strong> the mill, with the aim <strong>of</strong><br />

making the process as smooth as<br />

possible.<br />

However, the announcement<br />

that Norske Skog will close is devastating<br />

for the families involved<br />

and for the wider regional wood<br />

processing sector.<br />

But the recent focus on diversifying<br />

the region’s economy away<br />

from reliance on forestry has been<br />

validated by the news, according<br />

to Toi EDA.<br />

Toi EDA sees great opportunities<br />

to reposition the workers due<br />

to the surge in economic confidence<br />

in the region.<br />

The Eastern BOP is one <strong>of</strong><br />

the few regions in the country to<br />

have rebounded strongly to pre-<br />

Covid-19 employment levels<br />

and continues to grow based on<br />

several catalytic sectors that are<br />

receiving significant investments.<br />

Demand for work is still<br />

strong<br />

Ian Morton, Toi EDA co general<br />

manager, says that “with the<br />

community-minded Sequal Lumber<br />

Mill taking on an extra shift<br />

in Kawerau, the booming boat<br />

building sector recruiting heavily,<br />

record planting in the high value<br />

horticulture sector, and Whakatohea<br />

Mussels taking on almost 100<br />

new roles, the demand for work<br />

ready employees is strong.<br />

Three years ago we recognised<br />

the need to change our economy<br />

to be more diverse and thankfully<br />

these opportunities exist today as a<br />

result.”<br />

The construction <strong>of</strong> the Kawerau<br />

Putauaki Industrial Development,<br />

leveraging the clean geothermal<br />

energy found in the town, has<br />

already begun to attract investment<br />

in the town, such as the Waiu Dairy<br />

Factory.<br />

The construction <strong>of</strong> the new<br />

roundabout to service the new<br />

industrial complex is well underway<br />

and the town is well set up<br />

to leverage the heavy industrial<br />

engineering expertise located in<br />

Kawerau.<br />

Mill workers wanting to start<br />

their own businesses are encouraged<br />

to tap into support resources<br />

that the EBOP Chamber <strong>of</strong> Commerce<br />

has on <strong>of</strong>fer, with a business<br />

advisory role that regularly visits<br />

Kawerau.<br />

The local industry community<br />

group, Industrial Symbiosis Kawerau,<br />

will continue to support those<br />

businesses that work alongside the<br />

Norske Mill to ensure they are able<br />

to identify new opportunities.<br />

Toi EDA co general manager,<br />

Karl Gradon, encourages central<br />

government to align wood processing<br />

policy that will reduce the<br />

incentives for log owners to export<br />

logs <strong>of</strong>fshore in their raw form<br />

and instead find ways to add value<br />

locally.<br />

The distortion in the world<br />

lumber market is extreme and,<br />

alongside our high energy costs, is<br />

causing the closure <strong>of</strong> our domestic<br />

processing capacity.<br />

If these distortions continues<br />

then the domestic wood processing<br />

sector will continue to be challenged<br />

and further closures will be<br />

on the horizon.


22 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong><br />

Pick the right tone <strong>of</strong> voice<br />

Anyone who has had a disagreement<br />

with their partner will know the danger <strong>of</strong><br />

getting your tone wrong. The same is true<br />

in marketing; get your tone <strong>of</strong> voice wrong<br />

and you risk failing to connect with potential<br />

customers or turning them <strong>of</strong>f your product<br />

or brand completely.<br />

But how do you pick the<br />

right voice? One <strong>of</strong> the<br />

first things to consider is<br />

the demographic you are marketing<br />

to. How old are your<br />

target customers? Are they<br />

male or female? Is your business<br />

operating primarily in the<br />

business to business or business<br />

to consumer space?<br />

Think about the way your<br />

ideal customers like to be spoken<br />

to, including what will<br />

grab and hold their attention,<br />

as well as what they are likely<br />

to find credible.<br />

Be aware <strong>of</strong> differences<br />

in tone<br />

Take the example <strong>of</strong> business<br />

selling the latest skate<br />

clothing to teenagers and<br />

school-leavers.<br />

The conversational and<br />

edgy tone that might be most<br />

effective to market to their<br />

audience is likely to be vastly<br />

different to the language used<br />

by an established technology<br />

company selling enterprise-level<br />

accounting s<strong>of</strong>tware<br />

to corporates.<br />

Your brand – and the way<br />

you want people to perceive<br />

your products and service – is<br />

another key consideration.<br />

If you operate at the luxury<br />

end <strong>of</strong> the market, your language<br />

should reflect that. You<br />

might emphasise the quality<br />

<strong>of</strong> your product or service, the<br />

story behind how it was created,<br />

and the superlative experience<br />

people will have when<br />

using it.<br />

This differs from the way<br />

you might market a product<br />

or service that is competing<br />

purely on price. Think <strong>of</strong> Pak<br />

‘n’ Save and its stick man ads;<br />

words like “cheap” need not be<br />

avoided if you are competing<br />

at the lower end <strong>of</strong> the market.<br />

Understanding your target<br />

customers, your brand,<br />

and your position within your<br />

market will help guide the language<br />

you use, as well as the<br />

tone and messaging that will<br />

be most effective.<br />

Keep in mind that in all<br />

cases, plain English should<br />

still be used. There’s no need<br />

to pack your content full <strong>of</strong><br />

acronyms, cliches or buzzwords,<br />

even in the most corporate<br />

<strong>of</strong> markets.<br />

It’s also important to ensure<br />

you’re up with the play with<br />

the language used by your target<br />

demographic. People will<br />

quickly notice if your language<br />

is out <strong>of</strong> touch.<br />

I recall the sales manager <strong>of</strong><br />

a company I worked for years<br />

ago who asked me to develop<br />

advert copy to promote a series<br />

<strong>of</strong> youth programmes that were<br />

being run in Auckland.<br />

He was determined to sprinkle<br />

terms like “sick”, “skux”<br />

and “the bomb” throughout<br />

his ad messaging, forgetting<br />

the lingo used by young people<br />

changes quickly and had<br />

moved on since his own children<br />

were in school.<br />

THE LAST WORD<br />

> BY JAMES HEFFIELD<br />

Director <strong>of</strong> <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> marketing and PR consultancy Last<br />

Word. To find out more visit lastwordmedia.co.nz or email<br />

james@lastwordmedia.co.nz.<br />

I’m sad to say my objections<br />

to including the terms<br />

were ignored, the ads were<br />

run, and they became the butt<br />

<strong>of</strong> a fair few jokes amongst<br />

their target audience.<br />

Change your language if<br />

necessary<br />

Changing the language you<br />

use to promote your product or<br />

service can require a chameleon-like<br />

ability to adapt the<br />

way you speak or write. However,<br />

it can pay real dividends<br />

when it comes to sales and the<br />

number <strong>of</strong> people engaging<br />

with your company.<br />

Many digital advertising<br />

platforms – including Google<br />

Ads and Facebook – allow you<br />

to run A/B testing <strong>of</strong> different<br />

wording to accompany paid<br />

ads you are running. This process<br />

allows you to present two<br />

variations <strong>of</strong> an ad to different<br />

members <strong>of</strong> your target audience<br />

while gauging which <strong>of</strong><br />

the variations attracts the most<br />

clicks and drives the most<br />

online sales.<br />

Using A/B testing to gauge<br />

the effectiveness <strong>of</strong> ads with<br />

subtly different language is<br />

just one way businesses can<br />

home in on the tone that resonates<br />

best with their audience.<br />

Getting your tone right is a<br />

constant learning process, and<br />

one that needs regular revision.<br />

What’s important is that you<br />

remain in tune with your target<br />

customers, continue to speak<br />

their language, and respond<br />

as your market position and<br />

brand continue to evolve.<br />

Phone me!<br />

Musings on luxury and leisure, post annus horribilis<br />

The original mobile telephone<br />

weighed in at<br />

impressive 2kg and was<br />

first demonstrated in 1979.<br />

The first commercially available<br />

handheld, the DynaTAC<br />

8000x was not available until<br />

1983.<br />

The four-year gap seems<br />

somewhat pedestrian given<br />

the speed to market <strong>of</strong> modern<br />

tech products. I guess that gave<br />

them time to ‘get it right’ and<br />

‘sort out the bugs’, rather like<br />

the time you need to develop<br />

LUXURY & LIFESTYLE<br />

> BY ALAN NEBEN<br />

Alan Neben is a Mount Maunganui local and experienced New Zealand<br />

publisher. He uses digital devices well in excess <strong>of</strong> the recommended daily<br />

limit. alan@bopbusinessnews.co.nz<br />

and launch a Covid vaccine –<br />

but that’s another story.<br />

The 1990’s: what heady<br />

days they were. Brick in hand,<br />

shoulder pads in place and<br />

Bollinger flowing, business<br />

lunches will probably never<br />

end so late-in-the-day again.<br />

Funny thing is, you didn’t<br />

actually need to use the mobile<br />

phone, you just needed to be<br />

seen with it and to occasionally<br />

fake an extremely important<br />

incoming call. An elaborate<br />

song and dance evolved<br />

around the façade <strong>of</strong> appearing<br />

to be a mobile-equipped VIP<br />

(Very Irritating Person).<br />

But that first mobile phone<br />

let the genie out the bottle, and<br />

as we know, you can’t easily<br />

get the toothpaste back in that<br />

bottle [sic].<br />

Must have had’s<br />

We’ve <strong>of</strong>ten seen new-fangled<br />

gadgets become the ‘must<br />

have’ … and then quickly<br />

become the ‘must have had’.<br />

Fax machines suddenly<br />

flourished in business in the<br />

‘80s, then declined as quickly<br />

in the ‘90s replaced by email,<br />

computers and printers – oh<br />

how quickly we forget.<br />

The now ubiquitous cell<br />

phone has not fallen victim<br />

to such a meteoric fall-fromgrace.<br />

On the contrary the<br />

mobile has evolved and morphed<br />

from a phone-calling<br />

device to a, “do-absolutely-everything-you-can-think-<strong>of</strong>,<br />

and-then-even-more-stuff,<br />

device”.<br />

The names may have<br />

changed, Motorola and Blackberry<br />

have been supplanted by<br />

Apple and Samsung, but the<br />

song remains the same. Hardly<br />

surprising that the biggest job<br />

confronting auditors for NAS-<br />

DAQ superstars like Apple is<br />

checking the correct number<br />

<strong>of</strong> zeros at the bottom <strong>of</strong> their<br />

The names may have<br />

changed, Motorola<br />

and Blackberry have<br />

been supplanted by<br />

Apple and Samsung,<br />

but the song remains<br />

the same.<br />

reports – trust me, it’s so easy<br />

to absent-mindedly transpose a<br />

billion and a million. There’s<br />

money in mobile.<br />

And all the while the fax<br />

machine can still only send<br />

faxes. Sad.<br />

Why, oh why then, given<br />

the ubiquitousness <strong>of</strong> the<br />

mobile phone, is it impossible<br />

to get a millennial GenZ’er<br />

to phone their grandmother<br />

or clear their voice mail messages?<br />

What part <strong>of</strong> cell phone<br />

(if you take away the cell part)<br />

do they not understand? And<br />

‘no, Gran doesn’t want you to<br />

DM her - She doesn’t do DM’.<br />

Virtually everyone nowadays<br />

has a mobile device. We<br />

can Uber, Ola, Holla, Tweet,<br />

swipe, post, friend, defriend,<br />

txt, IG, FB, WhatsApp, like,<br />

unlike, slack, follow, unfollow,<br />

pay, Afterpay, Paypal, filter,<br />

stream, cast, share and then<br />

ghost – you can even have blue<br />

teeth and make videos with a<br />

clock in the clouds.<br />

Yet ironically, the one<br />

skill the smart phone seems<br />

to be eliminating is the ability<br />

to “just call”. And that’s<br />

leading to a related problem<br />

– the declining ability to “just<br />

answer”.


<strong>July</strong> <strong>2021</strong> BAY OF PLENTY BUSINESS NEWS 23<br />

Brad Harkin, Director Harkin Ro<strong>of</strong>ing<br />

HARKIN ROOFING has a new purpose-built<br />

<strong>of</strong>fice and manufacturing facility at 94 Gargan<br />

Road, Tauriko.<br />

Built by Foster Construction, Harkin’s new<br />

footprint is approximately 1,210m², comprising<br />

400m² <strong>of</strong>fices, a manufacturing space for<br />

flashings and edge-protection, plus plenty <strong>of</strong><br />

storage space.<br />

Director Brad Harkin says that, having worked<br />

as a ro<strong>of</strong>ing subcontractor on several <strong>of</strong> their<br />

projects, he had seen first-hand the quality <strong>of</strong><br />

their work, Fosters was a natural choice.<br />

“Fosters are easy to work with” says Brad.<br />

“They instil a great level <strong>of</strong> trust through the<br />

project team and with clients.<br />

For Fosters, attention to detail was key to this<br />

project. The objective was to provide a well laid<br />

out facility suited to Harkin’s daily work, with an<br />

abundance <strong>of</strong> natural light.<br />

“Starting with a simple concept design, Fosters<br />

were involved in designing a practical space<br />

that was fit for purpose” continues Brad.<br />

“Throughout the project, nothing was too hard.<br />

I could pick up the phone, discuss a change and<br />

see it happen. There was no need to sign <strong>of</strong>f<br />

every step.”<br />

The result is everything Brad expected, and<br />

more.<br />

“The project was delivered on budget and on<br />

time” he concludes. “I can’t fault the building at<br />

all. And the quality <strong>of</strong> finish, especially through<br />

the <strong>of</strong>fices, really exceeded my expectations.”<br />

FOSTERS.CO.NZ . 07 570 6000


24 BAY OF PLENTY BUSINESS NEWS <strong>July</strong> <strong>2021</strong>

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