Businesses going global

North America

PepsiCo is the latest company to come under the spotlight for sustainability claims. The company is being sued by New York state for plastic pollution along the Buffalo River that is allegedly contaminating the water and harming wildlife. According to the lawsuit, PepsiCo is the single largest identifiable contributor to the problem. The New York complaint says Pepsi broke state laws by failing to warn the public about the risks from plastic packaging and promoting misleading statements about its effort to combat the pollution and claims Pepsi should be designing its packages and products in a way that is not harmful to human health. The lawsuit follows Coca-Cola, Danone and Nestle who were accused earlier this month of making misleading claims about their plastic bottles. These cases and subsequent developments should be watched carefully by businesses who are using sustainability claims on their products and packaging. Recently Kea partnered with DLA Piper to hold a webinar on greenwashing claims and how businesses can make sure their claims stand up. This can be viewed online here.

The Asia-Pacific Economic Cooperation (APEC) summit took place in San Francisco this month and addressed a range of global issues and economic concerns, US President Joe Biden and China’s President Xi Jinping will discuss the Israel-Hamas war during their high-level summit, highlighting the importance of addressing geopolitical challenges within the context of economic discussions. The ongoing Russia-Ukraine conflict will also be a key focus, reflecting the interconnected nature of global affairs discussed at the summit.

Gary Fortune, Kea North America Regional Director

UK and Europe

The UK government is set to announce hundreds of millions of pounds more in funding for companies wanting to manufacture batteries for electric vehicles aiming at attracting EV manufacturers, including the likes of Tesla and Chinese firms. The announcement will be part of a wider package aimed at stimulating growth in advanced manufacturing, which could be good news for Kiwi businesses looking to grow their presence in the UK market. With inflation having fallen to less than half its peak of 10.7% last year, the government is widely expected to extend a tax break that allows firms to offset 100% of the money they spend on new machinery and equipment against their profits. This policy is currently due to expire at the end of the 2025 tax year. 

Across Europe energy prices continue to cause problems for business owners and consumers as the volatile oil and gas markets remain under pressure from current conflicts and a weak global economy. Natural gas prices were 15% higher in October. At one point, they rallied by 40% to touch an eight month high.For the average consumer and household, this spells more uncertainty. As the markets become prone to swings and volatility it will impact consumer budgets and spending power, inevitably flowing through to the retail sector. For those businesses operating in the UK and Europe markets careful planning is being advised in case things get bumpy moving forward. 

Sara Fogarty, Kea UK/Europe Regional Director

China

This month the 6th China International Import Expo (CIIE) was successfully held in Shanghai. New Zealand brands showcased in the country pavilion include high-end food and beverages, as well as various unique consumer goods. Also, there are other New Zealand exhibitors participating independently in various locations across the CIIE, where they promoted their products and services across a diverse range of industries and sectors.The 6th CIIE saw a 40 percent year-on-year rise in the number of small and medium-sized overseas companies attending and attracted a record 410,000 attendees. 

Also this month China marked Double 11, a popular Shopping Festival held on the 11th of the 11th, China’s largest e-commerce player Alibaba Group reported record year-on-year growth during this sales period, while rival JD.com reported sales volumes at a record high. Many New Zealand brands have been doubly busy with both CIIE and Double 11. Jack Hu Tao, chairman of Pacific Alpaca Home Textile Group, said CIIE on-site sales have far exceeded his expectations. The company came with products worth RMB1 million(NZ$236,016) , and during the first two days of the expo, nearly 80% of which was sold. Customers turned to cross-border e-commerce channels for their products during the Double 11 promotion as a “carry on” shopping channel. 

Kea has been involved in several in-market events this month. On Nov 6th we co-hosted Breakfast with the New Zealand Ambassador to China in Shanghai. This event welcomed a hundred guests who mixed with delegates from CIIE and the local Kiwi business community to enjoy a Kiwi breakfast and share their opinions on business prospects in China. On November 11th, Kea co-hosted the much anticipated Kiwi Brunch welcoming 200 kiwis and friends of New Zealand at Shanghai’s Westin Hotel. We were honoured to receive Consul General to Shanghai, Deputy Consul General and Trade Commissioner on the day. 

Rebecca Bao, China Regional Director

New Zealand

Following confirmed election results earlier this month, National, ACT and NZ First have entered into formal coalition discussions. While neither of the three parties will commit to a date for the deal, negotiations are progressing and all parties agree they are very close to a confirmed Government. The length of time needed for negotiations meant Prime Minister-elect Christopher Luxon was unable to attend the APEC summit in San Francisco, instead Damien O’Connor, New Zealand’s caretaker trade minister attended on the Government’s behalf.

The 10th annual TIN report was released this month, highlighting a healthy growth in New Zealand’s Tech sector. Total revenue in the tech sector increased 11.8% to $17.1 billion for FY23, while export receipts jumped 13.1% to $13.05b, with North America the fastest growing market, and fintech the fastest growing sector. However the report also showed a drop off in local hiring with New Zealand’s top 200 tech companies adding 2127 staff overseas for a new high of 31,145, but locally, jobs fell by 193 to 32,729. TIN MD Greg Shanahan says the tech sector needs more support in terms of talent-generation, both of offshore talent and generating the skills within New Zealand and more investment support for early stage companies. He is also advocating for a stronger voice for technology within senior circles. National has already promised to address the third point by saying its Cabinet will include a dedicated Technology Minister, expected to be the party’s tech spokeswoman, Judith Collins.

Kellie Addison, Global Director Stakeholder Affairs

Dr Spackman will discuss the importance of the the three C’s – critical thinking, creativity and collaboration, which are some of the most important skills for employees to have, and how a deeper understanding of how different factors relate to each other is a critical tool when it comes to giving you or your businesses the edge.

Using his expertise in neuroscience and mathematics Dr Spackman has created a world changing learning tool, Ako Maps which harnesses critical thinking and uses it to better understand ‘wicked’ problems. The tool has been adopted by top schools, universities and governments and was used by global Governments to map and understand the multiple factors which played a part in the Covid pandemic. Listen to the webinar below.

What is happening? 

This month the Independent Electoral Review, established by the Minister of Justice, began its first stage of engagement on the future of New Zealand’s electoral system. Elections are a critical part of our democracy and this is a broad review of New Zealand’s electoral laws covering aspects such as how elections work, voting rights for overseas-based New Zealanders, voting methods, voting age, the length of the Parliamentary term, political donations, election campaigns, and the thresholds for parties to enter Parliament under MMP. 

There are some broader constitutional matters that are not being considered by the Review. This includes alternatives to the MMP voting system, re-establishing an Upper House, the role and functions of the Head of State, the current size of Parliament, and the future of the Māori electorate seats. Online voting is also out of scope.

How can I take part? 

If you are keen to have your say, the consultation document is available here, and written submissions are invited until 14 November. You can answer as many questions as you like, or just share your views without answering the questions. The Review welcomes submissions on a single issue, a few issues, or the whole review. You are encouraged to share what matters most to you within the Terms of Reference. 

There will be a second chance to engage with the review from April 2023 after the Panel has produced its draft recommendations from this current round of consultation. This will give the public the opportunity to see how their input has been used and provide further feedback, to inform the Panel’s final report.

Wellington has always felt like home to finance manager Marie-Anne Wong. She left the capital in 2007 to head off on her OE to London, and after several years away she met her British husband and decided to stay a little longer. After the birth of her first child, she started thinking about returning home to be closer to her family, however the years passed and her second child was born and the tickets never got booked. 

“Before Brexit and the pandemic New Zealand felt close enough, I used to go home every 12-18 months, and I felt at home in both the UK and New Zealand. But something shifted after Brexit, I can’t even describe it but things felt different, there was a real feeling of division. Then the pandemic hit and the borders closed and all of a sudden Wellington felt really far away.” 

Marie-Anne and her partner realised there would never be a perfect time and decided they needed to take the plunge and book tickets. 

“We bought flights in Dec of 2021 and the following week and both gave three months’ notice at work. I look back at how quickly it all happened now and I can’t actually believe we did that. But I think the key is to not overthink it.” 

Returning to Wellington has been quite the experience. The family packed up their belongings in March, but they didn’t make it onto a boat until September and at present they are still waiting for them to arrive in New Zealand. Upon landing in Wellington they spent three months staying with family while house hunting and have just managed to buy a home. They have moved so many times in the past 12 months that their four year old questioned why they had to live in so many houses. Despite all the challenges and the fact they are still settling in (and waiting for their furniture) Marie-Anne says the family are loving their new lifestyle. 

“Wellington is such a fantastic city. I love being back near the water and the hills again, I love the vibe of the place. We are really looking forward to the summer months when we can get out and explore the city properly. The sense of community in our neighbourhood is great. This weekend we dressed up and went down to the local hall where they had set up a haunted house for Halloween. I love the availability and variety of asian food, it’s so easy to get good sushi here. I also love it that not every shop is a chain, there are so many local cafes and small businesses to explore, it’s part of what makes Wellington so special.”

They have also noticed some of their living costs have come down with the move. 

“Childcare and electricity are cheaper here and our mortgage is on par with what we were paying to rent in London, but here we have more space and a backyard. But the biggest difference is the commute. We have a 15 min drive to work, in London we could barely get to the end of the road in 15 minutes and our commute was closer to an hour.”

Marie-Anne says she and her husband both were told New Zealand has a buoyant job market and they were lucky that they both got jobs without too much trouble. She’s also enjoyed the ease of setting things up and the lack of red tape in New Zealand. 

“I love that you can just call someone if you have a problem or a question and you get hold of them and they help you. In London even just finding the right person to call was sometimes so much work that I just didn’t bother.”

Leaving New Zealand in 2007, Marie-Anne says she didn’t have too many expectations of what she was coming back to, but the one thing she has noticed is the increased use of Te Reo. 

“My husband and I are trying to get ourselves up to scratch in Te Reo, because people use so many Maori words in everyday language now, and we don’t know what a lot of them mean. Our four year old has actually picked it up a fair bit and sometimes he will translate for us, he gets a bit mixed up from time to time but it’s great to see him embracing it.” 

Marie-Anne’s advice to other Kiwi feeling the pull of home is to just pick a realistic date to return and go for it. 

“My advice is honestly, don’t think about it too much. Just go with your gut. If you want to come home don’t wait for the right time because you will always be waiting. Just make it happen, pick a day and make it happen. There is never a perfect time and things will never be exactly right, you just need to take that leap.”

This content was produced in partnership with Wellington NZ. Their ‘Esc to Wellington‘ campaign is inviting skilled people to Wellington Te Upoko o Te Ika, as a destination to work, live, and thrive.

Matt Donn has had an interesting couple of years. He’s watched consumer behaviours go one way and then another, and then back again. A long time F&B guy he says he’s grateful for all the different roles he worked across his career, including those for big companies like Fonterra and Foodstuffs, which in hindsight helped him prepare for the challenge of leading Tom & Luke through the past few years of global upheaval. 

“I always advise people to get as much experience as you can rather than just trying to go straight up. Do lots of different things because ultimately that will benefit you. When I worked for Fonterra I was able to be part of product creation, understanding that process was so beneficial. I spent time in the supply chain and got a chance to run factories – things that I didn’t always think interested me at the time. Then during my time in sales at Foodstuffs I got to see and talk to food and beverage companies all over New Zealand, seeing it from a retailer’s side was an amazing learning for me. Being able to understand all of the pieces in the dynamic really develops you and I’ve been so grateful for all that knowledge and all those connections over the past few years.”

Matt took over as CEO of Tom & Luke in June of 2019 and since then he’s seen so many changes across global markets that sometimes all he could do was just keep up to date. 

“Consumer habits changed overnight because of the way we were living, then as people’s lives changed they changed again, and it was really hard to predict which way things would go from one day to another and in one market to another. In food things like digital shopping have really accelerated, but that doesn’t always translate to snacking as its typically quite an impulsive purchase, if people aren’t moving, they’re not in supermarkets, they’re not going to the gym, all of those impulse occasions have been taken away from them, that was probably the biggest challenge for us, just keeping up with changes in different markets and trying to work out what would come next.”

Matt says the company has come through the past few years with a lot of learnings and a deeper understanding of what success means to them.  

“The biggest thing we did, aside from of course managing costs, was making sure our Innovations were really on point and playing to consumer needs and having really good options that consumers want rather than just singly focusing on one. I’ve also learnt a lot around mental resilience and the ability to work under pressure in an ever changing environment. I don’t think I could ever go back and tell myself “hey this is how you do it.” You are always learning and you just have to solve each one as it arises. There’s always going to be challenges or things you need to deal with, but there’s always going to be off the back of it some really amazing things that you as a team or a group of people are able to pull off, so that’s probably the biggest one is mental resilience and the ability to keep going no matter what.”

Matt says his biggest advice to others wanting to crack the snack food market is just to make sure you use the support of those in the industry willing to help you out, whether it be at home in New Zealand or abroad. He says the support he has received from others in the past is also one of the key reasons he has become a solver for Kea Connect. 

“There’s always challenges or things going on. It could be a question around a company set up, managing supply chain, marketing, it could be a legal issue, those types of things all businesses encounter and it’s been great to be able to get that advice in the past and be in a place now where I can pass it on to someone else. If I can give back to someone else what other people have given me then that would be a really nice thing to do. We all have to help each other, because in the end that’s how we all succeed.”

Matt is just one of Kea’s many ‘solvers’ – Kiwi who are keen to provide advice and mentoring to other Kiwi businesses through our free Kea Connect service. If you’d like to speak to Matt or any of our other solvers then get in touch with Kea Connect today.

Fast-growing Wellington based software firm Hnry, helps self-employed people manage their accounts. The company’s catchphrase – ‘Never think about tax again’ has resonated with its customers and the business has seen incredible growth in New Zealand and Australia. 

Launched in 2017, Hnry is the brain-child of co-founders James and Claire Fuller. The couple initially moved back to Wellington from London as that was where Claire’s family were based. Claire says they had no long term plans to remain in the capital, but found themselves falling in love with the city all over again and quickly realised it was the perfect place to start their business. 

“The start-up community in Wellington is phenomenally supportive, everyone seems to know someone who might be able to help. Connections are made, and time and advice are given, for no other reason than people want to help you succeed. I can’t imagine that occurring on such a vast scale in any other city in the world.”

That’s a sentiment shared by investment company Sharesies whose Co-founder Brooke Roberts says Wellington is full of experienced people who are keen to give back to those starting out. 

There is a real community full of purpose driven, connected people from well established companies like Xero and Trade Me who really want to share their knowledge. Being connected to these people has helped us to build an incredible team. There’s just this great energy in the city which is always growing.” 

Sharesies launched five years ago with the goal of making investing as easy and accessible as possible, and today it has more than 600,000 investors across New Zealand and Australia, with

more than 10% of the New Zealand population having an account. During the company’s Australia launch Brooke says she did move to Sydney for a while to get things off the ground but the company’s home will always be Wellington. 

“Ultimately we have a great team in place in Australia and I have been able to return home. I’ve got young kids and one of the best things about being Wellington based is the lifestyle the city offers you, I’m never more than 15 minutes away from them.”

The Wellington lifestyle is something which global company Montoux sees as a bonus. Chief Product Officer and Founder Klaas Stijnen says they have found the liveability of the city a unique selling point when it comes to attracting staff.  

“Because we are looking for quite a few people in highly specialised areas, we hire from both New Zealand and offshore. People see Wellington as a really great city to live and work in, which ultimately is really beneficial to us.”

Montoux  develops technology to help insurers optimise actuarial workflows, and while the business has offices all around the world, Klaas Stijnen says the company has never had any doubts about Wellington being one of its key hubs.

“Our Montoux offices share the same building as a few other fintech businesses, it’s just great to feel so connected, to have access to a lot of minds and feel like you are not alone. We are all fighting the same fight, even if it’s in slightly different areas with slightly different problems, we can all help each other.” 

Sharesies Co-founder Brooke says another bonus to being headquartered in the capital is the proximity to regulators, something which was key during their start-up period. 

“We were launching a business which operates in a highly regulated environment, so making sure we could build relationships with the right people and really understand those regulations was really important.”

Despite all three companies expanding into offshore markets none of them see their home city’s location as a disadvantage, in fact Claire says when Hnry decided to expand into Australia they originally thought they might need to relocate, however Covid threw a spanner in the works.

“As a result of the pandemic we were forced to change our approach to launching in Australia. We had no option but to manage everything from Wellington and over the past two years we have been able to remotely recruit a phenomenal team in Sydney to take over the day to day running of the Australian operation. This has taught us, and our investors that we don’t need to relocate in order for international expansion to be successful, and we can remain living in the city we love”

This content was produced in partnership with Wellington NZ. Their ‘Esc to Wellington‘ campaign is inviting skilled people to Wellington Te Upoko o Te Ika, as a destination to work, live, and thrive.