Businesses going global

North America

Good news for Kiwi Cleantech exporters this month with the Biden Administration’s Inflation Reduction Act (IRA), promoting green industrialisation in the US. Although navigating domestic content requirements will be challenging, New Zealand exporters can now strategically position themselves to leverage these opportunities as investments in clean energy projects surge. This will create closer economic ties with the US while contributing towards a greener and more sustainable future for both nations. 

Kiwi talent will be on show in a few weeks when South by Southwest (SXSW) takes centre stage in Texas. The conference and festival event is one of the largest in the world spotlighting the music, film, and interactive media industry, annually drawing huge crowds to Austin. For New Zealand companies, SXSW is a gateway to the US market offering countless opportunities to showcase businesses and forge connections. 

Representing New Zealand at SXSW this year are luminaries like Kea World Class New Zealander and Co-Chair Linda Jenkinson, alongside tech pioneers Sally Hodges, Anton Mitchell, and Jessica Manins, who will delve into the challenges and unique prospects of the Kiwi tech scene. Kea WCNZer Sir Richard Taylor, founder of WETA and an Academy Award winner, will also join a panel of futurists exploring cutting-edge concepts. New Zealand’s film industry will also shine with productions like Lucy Lawless’ “Never Look Away” and Josephine Stewart-Te Whiu and Taika Waititi’s “We Were Dangerous” premiering at the event. Additionally, a lineup of New Zealand musicians, including ASHY, Swallow the Rat and Jess Cornelius, among others, grace the SXSW stage, highlighting Kiwi musical talent.

While Kiwi tech talent may be on show at SXSW, businesses looking for investment or acquisition will need to be across new US tax laws which may make these options less appealing for American investors. A tax change recently passed in the US now requires the cost of people working in research and development in places like New Zealand to be capitalised and depreciated over a 15-year period. This could affect Kiwi entrepreneurs who are looking to raise capital offshore as the added tax burden could make these companies less attractive to invest in or acquire. It could also limit the likelihood of US tech companies establishing engineering centres in New Zealand which would reduce opportunities for talent transfer and innovation.

Gary Fortune, Kea North America Regional Director

UK and Europe

This month, the NZ Winegrowers hosted their Annual Trade Tastings in London and Dublin, emphasising the significant contribution of New Zealand wine to the UK and Irish markets. These tastings provide opportunities for UK trade professionals to discover new wines, vintages, meet winemakers, and learn about the latest trends in New Zealand wine. It was encouraging to see strong support from the local New Zealand Food & Beverage community and a renewed enthusiasm for homegrown wines.

Recent data shows the UK market enjoys a substantial contribution of $1 billion from New Zealand wine sales in the UK alone, particularly in the still wine category, offering significant opportunities for growth and development within the industry. New Zealand wine still commands a premium of 25% above the category average, and in 2023, sales of New Zealand still wine surged by 7.7%, outpacing the overall growth rate of the still wine category in the UK, which stood at +2.2%. This robust performance underscores the strong demand and increasing popularity of New Zealand wines among UK consumers.

Also, this month upcoming changes to hospitality legislation are set to impact service charge distribution, aiming to ensure fair compensation for hospitality staff. The new law, effective from 1 July 2024, mandates that all tips and service charges must go directly to employees, providing greater financial security for workers in the industry. While tipping and service charges are commonplace in the UK, varying from 5% to 15% of the total bill, the legislation seeks to standardise practices and ensure equitable treatment of hospitality staff.

Several New Zealand focused events have been held in the UK this month. Notably Westminster Abbey hosted a special evensong in collaboration with the NZ High Commission to mark Waitangi Day and The NZ Society also held the Waitangi Day Church Service and The Waitangi Day Charity Ball, where the UK New Zealander of the Year Award winner Julia Maile, was announced. Julia is a remarkable individual who founded the charity MerryGoRound which sees children’s clothing passed from one family to another, creating a cycle of care and generosity. Julia’s story serves as a powerful reminder of the transformative power of compassion and action, and Kea congratulates her on being recognised for her work.

Sara Fogarty, Kea UK/Europe Regional Director

China

The second weekend in February marks the beginning of the Year of the Dragon in China. This year, the country celebrated with an eight day extended holiday. The four weeks of the Chinese New Year period is not only a time for those in China to reunite with family, it also provides a huge boost to the “holiday economy” and during this time many New Zealand businesses exporting to China will see a boost in sales. One Chinese shopping platform, JD.com, who took part in a special Chinese New Year Gala broadcast successfully sold 2,000 sets of 100% New Zealand imported wool quilts, worth over RMB 2 million (NZD456,706), over the four hour nationwide live TV show which is hosted on Chinese New Year’s eve. This show commanded an average of 30.3% of viewers across China on this date. 

Outbound travel has once again become the favourite way to enjoy the holiday time. Anti-seasonal destinations represented by New Zealand, Australia, and South Africa remain the top three popular destinations. One top travel agent under the Alibaba Group, saw its New Zealand Chinese New Year travel packages sell out five weeks before the holiday began. 

This month, China has also been in the headlines when it comes to high-tech development. One of Beijing’s state owned hospitals is using a ‘brain-computer interface”, developed by the hospital team, with implantable epidural electrodes which enabled a quadriplegic patient to realise brain-controlled functions such as drinking water on his own, with a grip accuracy rate of more than 90%. China has long been known for its tech developments and Kea receives a number of project requests for support in this sector. It will be interesting to see how businesses from both counties continue to collaborate as the year moves on. 

Rebecca Bao, China Regional Director

New Zealand

The Government is warning fiscal forecasts in the May budget are unlikely to look better than the half-year update delivered in December. Finance Minister Nicola Willis attended the 2024 New Zealand Economics Forum at Waikato University this month, and said she was not relying on any economic improvement when preparing her first budget. She warned higher interest rates were having an effect on employment which would have a “profound human impact” and “make a dent in the Government’s books”. Some economists feel the Reserve Bank could raise the Official Cash Rate above its current 5.50% level, which would have a negative impact on the Crown accounts.

New Zealand’s Sharemarket has also suffered a stumble this month with Fletcher Building announcing a loss after tax of $120 million in the first half of the 2024 financial year, and its chief executive, Ross Taylor, resigned along with Board Chair Bruce Hassell. While trading resumed later in the day the share price had dropped significantly with shares changing hands for $3.49, down from $4.16. John Tookley, a construction expert at AUT, says to have Fletcher struggling isn’t healthy for New Zealand and is indicative of wider problems associated with the building industry as a whole. 

Finally, this month New Zealand marked the one year anniversary of Cyclone Gabrielle, the storm which caused havoc to eastern regions of New Zealand, particularly Hawke’s Bay and Gisborne. Commemorations were held across the regions, as businesses and locals reflected on the work that has taken place over the last 12 months. The storm caused particular damage to New Zealand’s wine industry with many vineyards, particularly in the Esk Valley region, completely wiped out. 

Kellie Addison, Global Director Stakeholder Affairs

During the decade after the end of the Vietnam War, Mitchell’s family attempted to escape Vietnam to find a better life. Twice they failed, were arrested and sent to prison camps. After exhausting all their means, they were desperate to try one last time, but could only afford to send one person. As the eldest child, it was decided that Mitchell should make the journey, even though he was only twelve years old. With a group of others, Mitchell was able to evade local authorities and board a fishing boat, which sailed down the Mekong river and out to sea. After facing many ordeals and near-death experiences on the open ocean, the boat drifted towards an oil rig near Indonesia, where the refugees were eventually rescued.

Over the next two years Mitchell lived in four refugee camps in Indonesia, which he says were overcrowded and lacked basic human necessities. During this time, he was on the waiting list for resettlement in a safe country, and eventually he found out he was to be resettled in New Zealand. He arrived in Auckland in August 1985. 

“When I arrived in New Zealand, I faced many challenges including adapting to a new culture, a new schooling system, a new language, a new people and a new way of life. It took me ten years before I truly felt settled and at home in Aotearoa.”

Mitchell’s interest in software was kick-started back in the early 90’s, when he began studying information systems at the University of Auckland Business School, where he now serves as the Entrepreneur In Residence. This is also where he met Peter Vile, Robert Kang, Stephan Koch and Andrew Flint – the other Co-Founders of what is now known as CodeHQ.

“Learning about information systems led me to recognise that software development is where many new innovations happen. I found this realisation both exciting and inspiring, that I could be a part of creating the future of business. The tech industry itself also means a lot to me, as I love the environment where people value growth and development, and use their skills to help others. We founded CodeHQ in 1993 with a mission to help New Zealand businesses accelerate their digital transformation and technology innovation by scaling their software development capacity in both New Zealand and offshore. Since then, our business has constantly evolved to meet the changing demands of both our customers and the market.”

Mitchell says receiving the email telling him he was receiving a King’s honour was totally overwhelming.”

“When I first received the email, I really couldn’t believe it. It is a recognition that goes beyond just being part of this country. I had to read it many times before I could accept that it was real. I’ve seen others on the Honours list each year and feel really inspired by them and what they do for New Zealand. To find out I was going to be part of this group was just surreal.”

“However, this honour says less about me than about Aotearoa New Zealand as a country, where I was given citizenship and the opportunity to get a really good education, and develop my entrepreneurial career and eventually be a leader in the tech industry. This country makes it possible for everyone to build a meaningful life for ourselves and make a difference to others.”

In 2018, Mitchell received a Kea World Class New Zealand Award which recognised the work he has done to support Kiwi businesses and the tech community. At the time he also dedicated his award to all of those who had helped or worked with him along the way. He says the sentiment is the same as he reflects on being named on the 2023 New Year Honours List. 

“Being recognized is really important because it completes the psychological cycle of beginning as an outsider, coming in and being accepted, being recognized, and even celebrated. However, I have achieved none of the success I’ve been recognised for on my own, without the support and participation of others. So just as with my World Class New Zealand Award in 2018, the same goes for the 2023 King’s honour. It really is a recognition of everyone who has helped or worked with me to make such achievements even remotely possible.”

Along with honouring others who have helped or worked with him, Mitchell says he hopes this recognition will inspire the next generation of Kiwi entrepreneurs, especially those from refugee and migrant backgrounds who now call Aotearoa New Zealand home.

“Being recognised this way is deeply personal for me. I want to normalise refugees and migrants by demonstrating what people from outside can bring to New Zealand, while at the same time showing refugees and migrants what is possible in their new home.”

Mitchell’s incredible story was also captured in the TVNZ documentary “I Am a Refugee” you can watch here. https://www.tvnz.co.nz/shows/i-am/episodes/s2-e6

The Collective was founded by two chefs on a mission to bring great tasting natural yoghurt to the New Zealand market. The company has a strong history of innovation and when it launched in 2009, Sarah says their gourmet yoghurt offering was quite different to anything on shelves at the time. 

“Back then most yoghurt was more like goop in a tub. The market was dominated by big players and there wasn’t a lot of real natural yoghurt on offer. Our founders saw an opportunity to bring something different to Kiwis and within a year we had carved out a space for ourselves as the New Zealand premium yoghurt category pioneers.”

After their success at home, The Collective began looking at expansion opportunities and saw the UK as a natural next step. But while there are a lot of similarities between the two markets, they quickly learnt that it’s not as simple as a lift and shift. 

“One of the biggest things we have learnt is that the UK is the same, same but different. Some things you can replicate. For example our suckies. We launched our kids’ pouches in New Zealand and they were basically an overnight success, we were selling the equivalent of 10 million dollars of annualised retail sales within a matter of months. We were able to replicate that success in the UK because we took something innovative that we had tried and tested in New Zealand. But it doesn’t always work like that. For example, our split pots which we have just released in New Zealand, where you have yoghurt on one side and a topping on the other, are very innovative because there is nothing similar on the market at home but here in the UK there is already a developed split pots market dominated by Müller Corners, so we can’t expect the same overnight success. Another example is our dairy free yoghurt pouches for kids that we have recently launched in the UK and are a really strong seller for us but  we don’t believe are quite right for our New Zealand market yet.”

Along with what products do and don’t work, Sarah says The Collective has also learnt a lot about market entry and when and how to cut your losses. 

“We’ve tried to enter France twice. The first time could have gone better and there were a lot of learnings. Our second entry into the market went beautifully. We had an amazing distributor partner and got listings across the top 11 grocers nationwide. But then we were hit with the double whammy of Brexit and Covid. And all of a sudden we couldn’t follow our playbook, we couldn’t have people on the ground, running samplings and tasting and we had all this extra paperwork because the UK was no longer part of the EU, it was a nightmare, but because of our earlier experience we were better prepared. We went to retailers and were upfront. We said we are going to exit but we will be back to talk to you later and we gave them time so that the removal of products worked for both of us and we were able to protect those relationships.”

Today The Collective has almost 20% of the yoghurt market share in New Zealand and around 17% of the premium yoghurt market share in the UK. A lot of their success has come from their strong ethos of innovation, but Sarah wants other businesses to realise that their hits haven’t come without a few misses along the way. 

“We are founded by chefs and chefs love innovation. We have had some crazy ideas along the way – we once launched a dip that was really delicious but it was so thick you couldn’t put a chip in it, and no one is buying dip you need to eat with a spoon. We have also had products like breakfast pouches and smoothies which haven’t lasted in the market for long and were likely ahead of their time, but I think as long as you keep learning from what works and what doesn’t then it’s all valuable experience. 

It’s that lived and learned experience which Sarah says is important to draw upon when you face challenges. Sarah worked for Innocent Drinks in the UK during the 2008 GFC and says drawing on past experience and having upfront conversations with your team and customers is what will help businesses ride out the current climate. 

“I am lucky enough to be able to spend a lot of time with very senior people in the industry. We had the CEO of Waitrose, James Bailey in our office the other day, which is amazing for such a small player. He engaged with us for an hour and a half, and ate yoghurt and talked about our strategies. Everyone is saying the same whether it’s Waitrose or Tesco, none of them know, and no one has a crystal ball, but everyone is saying the next year or so is going to be really really tough. Very early on we got our board signed up to the fact that to navigate this, we need to continue to invest behind our premium brand positioning and stay true to that and to do that we are going to need cash. The team has got this mentality of, yes, every week there’s going to be new news but we know our strategy, we know the direction we’re going, we’re not going to pivot from that. However, week to week the tactics we use may change.”

Despite the challenges, the global climate presents Sarah says Kiwi businesses looking to enter the market shouldn’t be put off by this and there are still plenty of opportunities for companies which are in the right position to grab them. 

“Don’t be scared off because this current climate is not going to last forever. It’s going to be tough, but there’s going to be opportunities for businesses as well. I think the one thing that New Zealand brands and businesses can bring is that agility and that number eight wire approach. To be able to think creatively around this. Business processes and structures which are not performing well in the current market are those which are struggling to adapt. So I actually think that there’s an opportunity for New Zealand businesses, but just don’t underestimate the amount of investment that is needed and make sure you have a solid base to cushion any losses.”

Despite the challenges on the horizon, Sarah says she’s excited about the year ahead and the possibilities for the future. There are several other markets she has her eye on but her focus is on getting the UK market into good shape before expanding further. One thing is certain though – there is still a lot more to come for this Kiwi yoghurt company making waves around the world. 

1. What does global hiring actually mean? 

Put simply, global hiring is simply the practice of hiring employees internationally. Increasingly companies are using this model to navigate new hiring and talent demands in a shifting market. It’s important to understand that global hiring is very different to outsourcing. Global hiring is about connecting with the best talent to help build your business, not about reducing labour costs. 

“New Zealand based candidates are no longer simply choosing between New Zealand-based roles. They are involved in global recruitment processes with companies that have sophisticated candidate experience programmes in place, with remote working at their heart. This presents both a challenge and an enormous opportunity for Kiwi companies that can get their attraction and retention processes right to compete in this global talent market, all with the many lifestyle benefits of working in New Zealand.”

– Toni Truslove, Kea Global CEO

2. How do I know if it’s the right decision for my business?

Bevan Stephenson, from Global HR company Deel, says deciding to hire globally is a unique decision for companies, based on their needs. “Businesses need to consider whether global hires will fit into their company culture, how they’ll manage employee experience across time zones, and how to hire and pay these folks compliantly.” Because global hiring opens your talent pool up so widely, it’s important to determine what things are unique to your company before expanding your team. For example: What type of culture do you want? Will you want to continue meeting in person? Will you want employees to be clustered near one another, even if you’re in a distributed model? Things like this are important to decide before considering different regions to hire from. It’s also important to look at what company stage you are in. Has your product and/or company reached a stage where you can articulate it clearly to international peers?

3. How do I get started? 

Bevan says businesses first need to evaluate their hiring wants and needs and make some important decisions on how to hire and where to hire from, before strategizing and hiring your global team. There are several ways to hire globally

• Setting up an offshore entity – this can be time consuming and costly
• Work with an agency – this can take a lot of your time and money
• Hire contractors on your own – time and compliance risk; one of the biggest risks you take on when hiring globally is ensuring you’re compliant with local labour laws and regulations. 
• Hire with an EOR such as Deel. –  Pay a cost per employee per month and the EOR handles compliance etc. 

4. What are the challenges? 

When searching for global talent it’s important to remember that talent normalisation or mapping global hires to your needs can be confusing. What constitutes a “Senior Engineer” in one country, for example, can be very different in another. Bevan says the first thing companies need to do is to find ways to bring people of varying experiences together under your own company org chart in a way that makes sense. The benefits and pay you offer global employees can be wildly different based on the country you hire from. So, it’s important to understand the standard of the country you are looking to hire from. Businesses will also have to consider whether global hires will fit into their company culture, how they’ll manage employee experience across time zones, and how they will ensure their teams stay connected despite working remotely. An exceptional onboarding experience, setting clear KPIs, and in general, treating remote employees with the same care you treat domestic ones will go a long way to integrating these employees into your team. 

“The pandemic showed everyone how remote working could work, but lockdowns were a particular environment. I think to make remote working work successfully long term requires a really deliberate focus, particularly if you are a company in the growth stage. Our company tackled this by building remote teams around hubs in different markets. These hubs allow people to work in a hybrid way but still allow teams to be connected to the company values. When we hire people they have to be able to travel to their closest hub. We are not going to hire someone that’s not ever going to be able to come in at least once a quarter. So the company is borderless, but it is quite deliberate and focused on making sure that we can still put emphasis on the culture and bringing everyone together.”

– Kirsti Grant , Vice President of People Experience for Auror

5. What are the benefits? 

Bevan says there are a number of benefits for companies looking to hire globally. First and foremost it opens your company up to a much larger talent pool. “Businesses can access growing, quality talent in places worldwide. Removing geographic barriers means they can hire any connection, regardless of location.” Businesses also get access to local talent which can mean more language & cultural specialisations in various markets and the potential for your team to cover multiple time zones. For businesses looking to hire offshore Kiwi this can give you an internationally skilled employee who is already familiar with Kiwi culture and the New Zealand business environment. 

“We’ve seen incredible benefits from hiring Kiwi who have come back to New Zealand. If you’re an international company or you’re exporting then having that returning X Factor is incredible. Hire that person immediately because you’re about to get talent that is familiar with the markets that you’re exporting to but also understands your Kiwi business proposition.”

– Kirsti Grant, Vice President of People Experience for Auror

Kea Connect businesses receive a special 20% discount on all of Deel’s services. If you would like more information on how Deel can help your business, please get in touch with the Kea Connect team today.

Rebecca Brady (US): Rebecca is the founder of Top Seedz, a cracker and seed company based in Buffalo, New York. Rebecca’s business started as a passion project after she was unable to find a job when trying to return to work after taking time off to raise her family. She started her business in her home kitchen and sold her crackers at the local farmers market. Today she is the industry leader in this sector with a multi-national business selling products in 300 plus grocery stores across the USA. Her product was so innovative that when she first sold to Whole Foods the US grocery chain had to create a new category for her product as it didn’t fit into traditional cracker or biscuit channels. Top Seedz has won several international business awards and Rebecca is always quoted in the press as a native New Zealander. She always finds time in her hectic schedule to help and support new New Zealand businesses looking for advice and guidance in the dynamic US food sector. Heavily involved in giving back to the community, Rebecca’s company doesn’t just make sustainable snacks, it also works with a local organisation that helps refugees settle in Buffalo, to employ a diverse all-women team, including refugees and expats.

Sir Graeme Dingle and Jo-anne Wilkinson, Lady Dingle (NZ) – 25 years ago Sir Graeme and Lady Dingle vowed to make New Zealand the best place in the world for children to grow up. The Graeme Dingle Foundation programmes have touched the lives of more than 300,000 Kiwi kids, teaching them resilience, self-reliance and hope – breaking the cycle of intergenerational disadvantage by increasing the physical and mental well-being of New Zealand’s young people. At age 26, Graeme founded the Outdoor Pursuits Centre (Hilary Outdoors), and in the 40+ years since its conception, Graeme has worked alongside Jo-anne in leading and shaping the way for outdoor pursuits and enhancing the lives of young people in New Zealand, with their programmes being replicated in other countries such as Australia and Scotland. Graeme and Jo-anne’s work has been pivotal in securing our country’s economic prosperity, with a recent report showing that for every $1 invested in the Foundation an average of $7.80 is returned to Aotearoa New Zealand’s economy in the form of reduced crime, with young people getting better jobs and fewer becoming dependent on benefits. Graeme and Jo-anne’s passion for helping youth and love of the outdoors have inspired their world-leading programmes that are transforming what it is to grow up a Kiwi. Their sole purpose in life is to address challenging youth statistics, enhance NZ’s profile on the world stage, and promote a positive international image for the nation. Graeme is the recipient of numerous awards including an MBE for services to outdoor pursuits and he was Knighted in 2017 for services to young people. In 2011, Jo-anne received the Insignia of a Member of the New Zealand Order of Merit for services to youth, and in 2014, was the winner of the Westpac Women of Influence award in Social Enterprise.

Rebecca Smith (UK) Rebecca (Bex) is a World Cup and Olympic footballer who captained the Football Ferns to two Olympic Games and played at club level for a number of international teams. She is a passionate advocate of removing gender bias in football and actively works to increase opportunities for growth within women’s football. Bex is the founder of Crux Sports which consults with some of the world’s leading stakeholders in football including global brands, federations and confederations, international media platforms, AI technology, esports, agencies and some of the world’s top players, using its collective experience of years in football to identify, make, and capitalise on mutually valuable connections across its network. She was the Competitions Manager of FIFA’s Women’s World Cups and Strategic Planning in Women’s Football at FIFA in Zurich, Switzerland and was the Global Executive Director of Women’s Game for COPA90. She’s the Executive producer and host of the BBC podcast called “The Players Podcast” with top footballers which she uses to promote equality and mental health in sport. At COPA90, Bex developed the strategy for partners and brands for the 2019 Women’s World Cup as well as a larger future-facing women’s football initiative and oversaw the commercial, editorial, strategic, and marketing delivery of the business-wide initiative of the women’s proposition to normalise women’s football, fans, and women in football into coverage of the sport. 

Pauline Autet (France) Pauline is a curator and producer in the field of contemporary art. She has experience across research, development, design, editing and production of exhibitions and publications. She’s worked alongside artists and art professionals from emerging to established, at major public art museums as well as in private and independent projects, including overseeing the New Zealand pavilion for the Venice Biennale in 2015. Following her experience as an attendant of the New Zealand pavilion at the Venice Biennale, she thought something could be done to bridge the gap between Aotearoa and the wider art world and developed Contemporary HUM in collaboration with other New Zealanders based in Europe and beyond. She previously worked at City Gallery Wellington, 30upstairs Gallery and co-founded the nomadic gallery Elbowroom. As a freelance arts professional in Paris, she works with the New Zealand and French art scenes concurrently. Within a collaboration between the Pernod Ricard Foundation and the French Ministry of Culture, she is in charge of the editorial platform TextWork. She also coordinates Trampoline, a non-profit initiative created by a group of private organisations in France to promote the international visibility of the French art scene.

Growing the depth and breadth of the Kea World Class New Zealand network provides huge benefits to all of New Zealand and recognises the work extraordinary Kiwi are doing to lift up Aotearoa, New Zealand on the world stage. If you know someone who should be part of Kea’s World Class New Zealand network please nominate them here. Nominations will be assessed quarterly and successful inductees will be profiled to our community. You can find our more about the network by visiting the Kea website.