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Businesses going global

Tell us a bit about your background. How did you end up in London?

I have spent a great deal of my working life in food and hospitality. Cooking and baking have always been part of my life and from a very young age I was in the kitchen getting involved. As with many people who work in the hospitality business I am passionate about feeding people great food and creating experiences and memories through food and drink. I owned my first food business in Wellington when I was 21 years old which was a delicatessen and catering company. We made everything in the store from pate to bread. I decided to sell that business to come over to the UK and arrived here in 1997. With a couple of friends from NZ  and chef Peter Gordon we created Gourmet Burger Kitchen which went pretty well and grew in to a large chain of restaurants. Later on I opened Kopapa in London with Peter & Michael McGrath. 

What is the story behind Crosstown Doughnuts?

Like most Kiwis I am big fan of a great quality coffee. I had wanted to do something with coffee when I was approached by a young Australian guy called JP Then. He was looking to do something different in the coffee space in London. I didn’t want our food to be the same as what everyone else was doing and so we settled on the idea we would do artisan doughnuts with our coffee. We now have 12 shops and sell them in Harrods, Whole Foods and deliver them fresh all over the UK everyday.  JP and I are huge fans of online ordering and we have created a software company called Slerp which is the platform base for our online business at Crosstown. 

Covid-19 saw many businesses, especially in hospitality, have to pivot their offerings. Can you talk a bit to what you and the team at Crosstown have done?

Crosstown has been extremely lucky that we have managed keep our business intact during the pandemic. London has been extremely badly hit. As the first lockdown approached we could see panic buying starting at supermarkets. Other people in the hospitality trade were also seeing their businesses disappear in front of their face. So I contacted the guy who supplied all our milk and a friend of mine who had a large bakery and created the Crosstown Collective. The demand  just exploded and for the next 3 months we delivered fruit & veg, milk bread and doughnuts. Our customers were incredible and our staff were even more amazing. We had the technology, the space and the logistics to serve hundreds of people across London on a daily basis. 

What were your motivations behind starting ‘Operation Doughnation’?

A couple of years ago I floated the idea to JP about this program to support emergency services. It came to mind after a terrorist event here in London. When the pandemic started the whole country could see the pressure that the NHS and emergency services were under. We could see from the way that our customers were buying that our doughnuts were giving them a break from this really bad situation our country was in. So as is so often the case, JP and our team was able to pull the technology together and get the logistics organised to get food parcels and doughnuts to these people in need. The UK are such a generous nation and we were able to create a channel to enable them to give these amazing NHS staff a moment away from the madness. 

On a personal level, as someone who is staying in the UK, what are you most hopeful for in 2021?

On a personal level I want to see my children get back to school! Home schooling is one of the hardest things we have ever done. Children have zero understanding of production efficiency. The main thing for us to do is to navigate the next 12 months and ensure that having got this far we don’t fall on the home straight. I have been very proud to keep our teams at Crosstown and Slerp all working and even growing which is testament to the great people we have working at both companies. As I look around the hospitality trade in London it has just been destroyed and so many people have lost great businesses through absolutely no fault of their own. We are some of the lucky ones. 

How has running a business changed for you over the past 12 months?

Crosstown is now a better business than it was. A crisis forces you to focus like never before. 50% of our business is now online. We have added two new lines in cookies and ice cream at Crosstown. Both are going great. We also now offer National Delivery 5 days a week and that has opened up huge opportunities to us.  At Slerp we completed a funding round and have now laid the ground for that business to keep growing in to 2021 and beyond. 

What’s next for Crosstown?

Crosstown will continue to innovate with new products which is really exciting. We have partnered with a couple of large corporations that approached us to develop new lines with them which is exciting. And it is highly likely that Crosstown will open its first overseas territory in late 2021 or early 2022. So some exciting things happening. 

CONTRIBUTOR

Adam Wills

Co-founder

Crosstown Doughnuts

World Class New Zealander

HOW KEA CAN HELP

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Filed Under: Businesses going global, COVID-19 recovery, Global Kiwi Tagged With: Covid-19, Crosstown Doughnuts, hospitality, UK

Tell us about TE WAI and what drove you to launch the business?

TE WAI™ ~ ‘The Water’ is a New Zealand created hydrating, fine-mist facial spray featuring five native extracts Kawakawa, Manuka, Kowhai, Mamaku and Pohutukawa infused in pure New Zealand water. 

Kawakawa has anti-microbial and analgesic properties and reduces inflammation. Manuka assists with healing. Kowhai is perfect for cleaning and moisturising. Mamaku has soothing and moisturising properties. Pohutukawa promotes soft youthful skin.

Te Wai delivers an immediate increase in skin moisture and hydration to energise and revive the skin in one quick spritz, helps set makeup, cools hot sweaty skin, nourishes the skin and provides an enhanced, bright and fresh look. 

There is no other product in this format on the market offering these botanicals and this New Zealand provenance. So much so TE WAI is determined to take on the big players in the $1.7 billion global facial spray market. While still in its first year of market launch, TE WAI has just been announced as a finalist in this year’s UK Pure Beauty Global Awards. 

All this came about when TE WAI co- founders Brooke & Carrick Graham returned home from overseas, and wondered how they could best share New Zealand’s irrepressibly wild freshness with the friends they’d left offshore.

A full three years in development, Brooke and Carrick set out to capture the uniqueness and healing properties of New Zealand’s native flora and deliver these via a hydrating fine mist facial spray, all wrapped in the provenance of the country they love.

What was your initial approach to funding? 

Like many New Zealand start-ups, they are fully self-funded by the co-founders. As brand and consumer awareness has grown, alongside actively pursuing  new overseas market opportunities for TE WAI, the founders remain open to new investment and capital streams.

What were the key decisions the business needed to make to extend offshore? 

The focus has always remained on the TE WAI brand particularly when engaging in discussions with overseas parties. There has to be a good brand fit as from day one, we wanted to build an internationally recognised New Zealand brand. To achieve this we are passionate about working with people around the world that share the same enthusiasm for TE WAI (and for New Zealand), which has sometimes meant focusing on smaller distributors than expending considerable time and effort on big-name companies where TE WAI could get lost in the mix. 

In terms of key decision-making for the business another element important to us was having agreement between the co-founders on market entry initiatives. It sounds self-evident but we wanted this to be a team effort and recognise that we both have strengths and weaknesses, so ensuring we play to those strengths are essential. 

Where have you exported to, and what have been the key challenges throughout your export journey across these markets?

Like any bright-eyed entrepreneurs the sheer size and scale of China beckoned brightly. We’ve learnt, despite working with a talented Chinese marketing contact, having Daigou ‘product experience officers’, and TE WAI on Taobao and with New Zealand based Chinese traders, there’s not a lot of love for a brand unless you’re prepared to drop your price and throw a significant amount of money to advertise it in China.  These experiences have certainly reinforced the point of working with people who are passionate about the TE WAI brand.

Instead we took the approach of being more strategic in our marketing and building overseas market entry points. This has led to sales in Australia, Singapore and early-stage discussions that would see TE WAI entry into and available across the GCC markets and in India. We’re also specifically targeting a number of other markets to build and support the TE WAI international brand positioning strategy.

Tell us about your experience with Kea Connect since reaching out in 2018?

We were aware of Kea Connect and that it facilitated connections to other New Zealanders around the world. When we reached out to Kea we were amazed at the level of support and enthusiasm offered to us from day one. This support has been fantastic and has allowed us to directly engage with people in-market as we started exploring exporting opportunities. 

We utilised Kea Connect as a sounding board for the TE WAI concept, shared our initial MVP with Kea Connections for feedback and market validation. Thanks to these connections and conversations, New Zealand now has a brand that is taking on global cosmetic brands. 

How has TE WAI grown since 2018? 

Don’t you love this question. Taking an idea and then developing a formula, finding a delivery vehicle (hydrating, fine-mist facial spray), creating a brand story and Trade-Marked brand, identifying sustainable packaging options, then creating a MVP for market testing, manufacturing options has seen the TE WAI journey spread out over three years. When we finally took delivery of finished goods it was four days before New Zealand was moved into Level 4 lockdown thanks to Covid-19. That week, a key consumer market for us – international tourists, all but vanished.

Not deterred, we have subsequently focused on ‘Bringing a bit of New Zealand to the world’. It’s early days, but with initial sales in New Zealand, Australia, Singapore, China, and market entry planned for the GCC and India, sales of TE WAI are expected to double over the next six to twelve months. 

You were recently announced as a finalist in the UK’s Pure Beauty Global Awards – congratulations! How did this come about?

A motivating factor being the creation of TE WAI was to capture a unique expression of New Zealand and build a brand that supported this great country of ours. As we started creating TE WAI we knew we had something quite special particularly as New Zealand has some of the most amazing botanicals in the world.

As part of the strategy to ‘Bring a bit of New Zealand to the world’ we’re very proud of TE WAI and believe it can compete against the best offerings in the US$1.7 billion global facial spray market, hence entering the UK’s Pure Beauty Global Awards.  We’re absolutely thrilled that TE WAI has been announced as a Finalist.

It’s also recognition and a huge vote of confidence in the New Zealand businesses that have helped us on this journey – we wouldn’t be here without their help.

For businesses that are considering whether they are ready to expand, what would be your top piece of advice?

Give it a go as nothing ventured nothing gained. 

CONTRIBUTOR

Brooke and Carrick Graham

Founders

TE WAI

Kea member



HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

Filed Under: Businesses going global, Businesses growing at home, Kea Connect success stories Tagged With: Kea Connect, Skincare, Te Wai

  • CASE STUDY – FEEDING THE FUTURE
  • INSIGHTS FROM OUR GLOBAL COMMUNITY
  • THIS MONTH IN NUMBERS
  • GROWTH THROUGH KEA CONNECT
  • NEWS FROM OUR PARTNERS
  • TRENDING AT KEA
  • UPCOMING EVENTS
  • HOW KEA CAN HELP


CASE STUDY


FEEDING THE FUTURE

Last year $4.9 Billion dollars was invested in the alternate proteins industry, that’s 3x the total amount of the three previous years combined. What opportunities does this create for a food producing country like New Zealand and how are Kiwi businesses getting on board? As the global discussion at Expo 2020 turns to the future of food, we talk to Kea members leading the charge. READ MORE



INSIGHTS FROM OUR GLOBAL COMMUNITY


CHINA

While our borders may be reopening China’s remain very firmly shut with experts predicting they may remain that way for much of the year. We look at what this could mean for foreign brands and offer advice on how to navigate this hurdle as markets around the world reopen. READ MORE

London

UK & EUROPE

Across Europe many of our Kea community are being both professionally and personally affected by the conflict in Ukraine. Our UK and Europe Regional Director Sara Fogarty looks at what the flow on effect could mean for those wanting to do business in the region. READ MORE

USA cityscape

NORTH AMERICA

The conflict between Ukraine and Russia is dominating much of the landscape in the US and adding further stress to supply chains already under pressure from the pandemic. Our North America Director Gary Fortune has advice for Kiwi export businesses affected by the upheaval. READ MORE

Auckland city landscape picture

NEW ZEALAND

Welcome news with the announcement of the reopening of New Zealand borders to tourists. Our Government Relations Director Saya Wahrlich explains the Government’s key strategies for reconnection. READ MORE



THIS MONTH IN NUMBERS


37

Number of Kiwi businesses assisted

124

Number of connections made

750

Number of connections made year to date*

BUSINESS CONNECTIONS MADE IN MARKET THIS MONTH**

SECTORS KEA CONNECT SUPPORTED THIS MONTH

*Year to date reflects financial year commencing 1 July 2021 to 30 June 2022
**Some businesses were provided with connections in more than one market


GROWTH THROUGH KEA CONNECT

Each month Kea Connect helps Kiwi businesses grow by connecting them with Kiwi experts in markets all around the world. Here is an example of two businesses we helped this month.


LOCKDOWN LEADS TO SUCCESSFUL ONLINE BUSINESS

The Kiwi Artisan Co. is a success story of the pandemic. The business originally started as a market stall in Central Otago supporting local producers. However, as lockdowns hit and local markets and events were cancelled across the country operations ground to a standstill. Determined to not give up the company launched an online platform as a way to support the small-batch artisan community and offer broaden artisan platter options for both Kiwi and global customers. Goods are delivered direct to the buyers door and the business hopes to grow the artisan presence not only within New Zealand but also in the rest of the world.

The Kiwi Artisan Co. approached Kea Connect looking for help to grow in the US market, Kea was able to introduce them to three CEOs of New Zealand brands who have extensive experience in this market. Their insights and on-the-ground knowledge have since helped The Kiwi Artisan co. to explore options outside of New Zealand.

SOCIAL ACTION THROUGH CREATIVITY

Bead & Proceed is a social enterprise that exists to educate people about the 17 UN Sustainable Development Goals (SDGs) and inspire action towards them through creativity. The company offers tailored SDG workshops and ongoing SDG consulting for businesses interested in growing their impact. To date, they have worked with a range of corporates and organisations including councils, universities, professional service firms, schools, and other leading businesses in the agriculture and tourism sectors. 

The founder has been training more facilitators to run workshops throughout New Zealand and is seeing growing interest from overseas to facilitate virtual workshops. She approached Kea Connect to gain more knowledge of business strategy advice, mentoring, and connections to build her networks. Kea facilitated connection to help her grow her networks in the UK and Europe.



NEWS FROM OUR PARTNERS


MARKET YOUR BUSINESS ON WECHAT

With over 1.2 billion monthly active users, WeChat has been described as China’s “super app” NZTE is offering a webinar on the effective use of the platform for businesses. It will cover how WeChat is positioned in China’s digital landscape, how to integrate WeChat into your marketing strategy and how to build traffic to your account. Sign up here

RAISING THE BAR RETURNS FOR 2022

Raising The Bar Home Edition is back, the event features Six fascinating talks from University of Auckland researchers on topics from democracy to wine to genetics. All the talks can be enjoyed from the comfort of your own home. To register and find out more visit their website

REIMAGINING TāMAKI MAKAURAU

Auckland Unlimited’s report Reimagining Tāmaki Makaurau Auckland: harnessing the region’s potential explores the changes needed for Auckland to reach its potential and become a truly global, liveable and sustainable city that is fit for the future.



TRENDING AT KEA


CREATING CHANGE ON INTERNATIONAL WOMEN’S DAY

“The generation before me paved the way, they fought very hard for me to be where I am and I do not take that for granted.” To celebrate International Women’s Day this March we spoke to five inspiring Kiwi women including World Class New Zealander Chelsea Winstanley, about the biases they have faced and how they are working hard to create change for the next generation. READ MORE

A DOCUMENTARY OF DISCOVERY

“You hope that you are not failing the team, by being out here and doing the work you are doing. You hope you are lifting the game and in turn lifting New Zealand.” This month China based Kiwi Documentary maker Vicki Lin tells us about the responsibility she feels to uphold New Zealand’s creative reputation in China and explains why her Kiwi upbringing has given her a unique edge in the ultra competitive market. READ MORE


RETURNED KIWI SETS SIGHT ON BREWING REBELLION

Grant Caunter has recently returned to New Zealand after working for one of the world’s biggest beer companies. Despite a career in beer, Grant decided to give up drinking during one particularly long European lockdown, now he’s putting his brewing knowledge to good use starting New Zealand’s first zero alcohol brewery that’s focused on full flavour. READ MORE



UPCOMING EVENTS


WORLD CLASS SPEAKER SERIES: Our next World Class Speaker Series features Ronnie Peters. Ronnie is one of the internet’s original designers. The New York based World Class New Zealander is the Founder and CEO of 360 Design and was working in UX before the job title even existed. Join us to hear Ronnie discuss the value of good design and why it’s so important to businesses big and small. Plus hear about the future of the industry and how virtual worlds and the metaverse are helping brands connect with customers like never before. SIGN UP

VIRTUAL RETURNER MEETUPS: Every month Kea holds returner meetups to build our community of recently returned Kiwi. It’s an important way for Kea members to build their personal and professional networks and share their experiences with others. The next event will take place on Wednesday the 6th of April. If you know someone who has recently returned to Aotearoa please encourage them to come along. ATTEND

HOW KEA CAN HELP

Join

Join the Kea community, and stay connected to New Zealand, its people and businesses wherever you are in the world.

READ MORE

Jobs

Post job opportunities and attract internationally experienced Kiwi talent.

READ MORE

Kea Connect

Help Kiwi businesses explore their global potential through our worldwide community.

READ MORE


Filed Under: Businesses going global

China

There’s little-to-no-likelihood of China opening up in this half of 2022, and just a slim chance we may start to see signs of a gradual opening later in the year. For foreign brands with stakeholders based outside the mainland, it is a challenging time. Closed borders make it much more difficult to build and maintain relationships with team members and key partners, but also difficult to keep abreast of the market, and ensure that things are tracking as they should be.

With the inability to travel to China, many foreign brands have increased their reliance on distributors. While some brands have flourished through great relationships, many haven’t been quite as lucky. This article entitled Losing control of your brand has some great advice for those working with distributors.

The inability to travel has seen many stakeholders become more reliant on teams on the ground in China. This isn’t always a bad thing, but it can be if stakeholders are flying blind. Foreign brands working with localised teams know that it is a balancing act: it’s important to ensure on-the-ground staff have autonomy to localise for the unique China market and make decisions swiftly. But at the same time you’re ultimately responsible for ensuring your brand stays true to its roots and doesn’t stray too far from the very DNA that makes it successful and appealing to Chinese consumers. Once borders open again, the lines between products sold in China and those outside will blur again, so it’s will be critical for businesses to ensure that things haven’t strayed too much.

This update was written with the help of the team at China Skinny

UK & Europe

 Across the region many of our community are feeling the impact of the conflict between Ukraine and Russia and are having to navigate developments day by day. Many people are working to assist and support colleagues, partners and friends on the ground in the two countries as best they are physically able.

One Kea member shared with me that “from London to Ukraine is about 1100 miles, about the same length as New Zealand”.  This really brings home how close this conflict is to us.

Businesses throughout Europe and and the UK are bracing for even higher inflation and disruption to their supply chains. Experts say the conflict will amplify the economic impact of the pandemic and reverberate through an increase in the cost of energy, shipping and commodities.

The Ministry of Foreign Affairs and Trade is warning the conflict will cause significant anxiety for many key trading partners in Europe, and that an extended invasion will weigh on global economic growth, and could potentially affect the medium term prospects for New Zealand. The price of a wide range of globally traded commodities, particularly oil and wheat, have already risen and are likely to increase further. The flow on financial effects could also affect the value of the New Zealand dollar.

For now Kiwi businesses are being urged to stay across the situation and examine not only their direct exposure to the conflict, but also the exposure of their suppliers. Many are warning that the ongoing events shouldn’t just be treated as a regional conflict but rather as a global one.

Sara Fogarty, Kea UK/Europe Regional Director

North America

It has been an eventful month in New York with the Russia-Ukraine conflict dominating headlines. President Joe Biden is using strong words to denounce the situation and the US has imposed a number of sanctions on Russia. Recent modelling suggests that States with greater exposure to the financial markets, like New York and Connecticut, would be under pressure as extended hostilities after a Russian occupation of Ukraine heighten uncertainty and put a further big dent in stock prices. For businesses there isn’t much to be done except to stay across developments and be aware of increasing supply chain disruptions and possible rising costs of things like fuel. Unfortunately it’s another potential blow after several years of hardship caused by the pandemic.

Looking at the pandemic the US reached a milestone this month as the country acknowledged the second anniversary of the arrival of Covid-19. Today, omicron infections are at an all-time low, and the vast majority of pandemic restrictions have been lifted throughout the US. New York has seen an end in vaccine mandates for gyms, restaurants, and theatres here in New York; however public transport and air travel will still require masks for the time being. Many employees are now starting to return to offices but won’t be required to work in person for the entire week. NZ companies need to be aware of this when seeking new hires. In a recent Pew survey, 60% of US workers able to do their jobs from home say that, given a choice, they’d prefer to work from home all or most of the time.

And finally a bipartisan bill, called the Sunshine Protection Act, was passed unanimously by the Senate this week to make daylight saving time permanent across the United States next year. The bill still needs approval from the House and then President Biden to sign into law, but everything points to this becoming a reality again here in the USA. They were here before in 1973 when they passed a similar law only to be reversed the following year. Watch this space.

Gary Fortune, Kea North America Regional Director

Auckland city landscape picture

New Zealand

The big news this month is the announcement that New Zealand is ready to reconnect to the world with the country’s border reopening to non citizens from next month, much earlier than originally indicated.

Fully vaccinated Australian citizens and permanent residents will be able to enter the country without self-isolation or managed isolation and quarantine [MIQ] from 11:59pm 12 April 2022, in time for the Australian school holidays and well in advance of the ski season. Fully vaccinated visitors from visa waiver countries, and visitors from other countries who already hold a valid visitor visa will be less than three weeks later, from 11:59pm 1 May 2022.

Travellers will still need proof of a recent negative Covid test result from pre-departure and proof of vaccination.

Fully vaccinated people including New Zealand citizens and residents, some skilled workers and travellers on working holiday schemes can already enter New Zealand now from anywhere in the world without the need to self-isolate or enter MIQ.  

Tourism New Zealand is poised to launch a new global campaign to let the world know Aotearoa is open for business. However domestic tourism would continue to be a focus as rebuilding the tourism sector is expected to take some time.

Prior to COVID-19, tourism contributed 5.5 per cent to GDP, bringing in about $41 billion altogether, international making up $17 billion of that. It was also responsible for 8 per cent of our national workforce.

The Unite Against Covid 19 website has up-to-date information for all people planning travel to New Zealand, including those leaving and returning for holiday or business trips. The site includes details on pre-departure tests, vaccination requirements and testing requirements on return. 

Saya Wahrlich, Global Director, Government & Industry


HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

Filed Under: Businesses going global

China

Kiwi businesses exporting to China will watch with interest the upgrade to the NZ-China Free Trade Agreement (FTA) which enters into force on April 7, 2022. The upgrade to the agreement with our largest trading partner will modernise it, further reduce barriers for exporters, and boost trade. It was a world-first for any developed country when New Zealand entered into the original free trade agreement with China in 2008, giving us a unique competitive advantage at the time. Two-way trade (exports and imports of goods and services) has more than tripled from $9 billion to over $32 billion since the free trade agreement was signed. To learn about the areas covered by the negotiations and detailed objectives of the negotiations, read MFAT’s update.

China has been getting a lot of attention lately with the Winter Olympics in Beijing. With any international event comes branding opportunities and at these Games, all eyes have been on China lately with the Winter Olympics in full swing. 18 year old Chinese American ‘snow princess’ Eileen Gu is arguably the biggest brand ambassador in China right now. 

Born in America to a Chinese mum and American dad, and raised by her mum and Chinese grandma in San Francisco, Eileen switched allegiances to compete for China after just two competitions for the US. Her polished conversations with Media and her polite refusal to be pulled into political tensions has made her popular with both Chinese and Western brands. She has worked with some big names including Mengniu, Luckin Coffee and Bank of China. You’ll also see her face all over Louis Vuitton, Tiffany & Co, Victoria’s Secret. Last year, she earned at least ¥200 million ($31.4m) in brand ambassadorships alone. Her appeal with a wide range of brands and markets should be a reminder to Kiwi businesses that trusted Brand ambassadors still have huge sway with Chinese consumers. While the impact of social influencers may have swayed recently there is still a lot to be gained from getting the right person to market your brand. 

UK & Europe

The feeling that travel home is now a reality has brought many emotions to our offshore community and we are starting to see an increase in people looking to explore offshore opportunities and Kea community members reaching out with requests to navigate restrictions and protocols in the market. Working from home is still commonplace in London but in person events are back on the calendar, although these require some more planning with lateral flow tests, numbers and air flow.

Kiwi export businesses will benefit from the signing of the historic free-trade agreement with the United Kingdom, sealing a deal agreed in principle last year. The deal will see the UK eliminate all tariffs on New Zealand exports, with duties removed on 99.5 percent of current trade from entry into force. It’s expected to save Kiwi exporters roughly $37m each year on tariffs. The FTA should come into force by the end of 2022.

The big winners for New Zealand will be the wine, honey dairy and red meat sectors and it’s estimated New Zealand goods exports to the UK will increase by over 50 percent. The deal will also create opportunities for New Zealand businesses to grow and diversify their trade when it comes into force and is the first FTA to include specific climate change and indigenous provisions.

Continuing with the theme of climate change, we are seeing a real focus on sustainability coming from Germany. The country has a new centre-left three party coalition with an ambitious agenda. Led by the Social Democrats and joined by the Greens and liberal FDP, their Coalition Agreement sets out their agenda for the next four years and has signalled continuing support for free trade agreements, provided they include strong sustainable provisions. This is likely to affect our agricultural and tourism exports.

The German Government wants to promote more sustainable farming practises and animal welfare and has signalled it intends to introduce mandatory animal welfare labelling and comprehensive country-of-origin labelling, beyond what EU law currently requires. The scope of this is unclear at this stage but it’s good for Kiwi exporters to keep an eye on the changes. 

The Health sector is also under review with coalition parties agreeing to legalise recreational cannabis, which could impact on the German market for medical cannabis. The Government will also support the proposed EU ban on microplastics in cosmetics, which could affect some exporters. 

Other initiatives in the Coalition Agreement worth mentioning include the intention to make German Customs faster and more digitalised, and to make it easier to set up a business in Germany (including through digitalised procedures). This is good news for New Zealand exporters looking to expand into EU operations and reducing costs associated with customs. 

For more on what the new German Government means for New Zealand exporters see the full MFAT report here

Kea community member John Bache has worked with AUDI, BMW, Porsche, and Volkswagen. He explains how the new German Government policies are affecting the automotive industry. Read more

Sara Fogarty, Kea UK/Europe Regional Director

North America

The peak of the omicron wave seems to be in the rear-view mirror in the United States, with new Covid cases falling to half those seen during January. The tension between Russia and Ukraine dominates news over here, alongside the protests at the Canada border and rising inflation. As Covid cases fall, we see some states starting to ease mask mandates, and more and more offices are reopening. Events like the Super Bowl and the upcoming Coachella concert are again drawing huge crowds.

As restrictions relax and with the recent news of the New Zealand border reopening, Kiwi businesses will undoubtedly be eyeing an entry into the U.S. market this year. I caught up with several US-based Kea members who have well-established companies here to ask them what sort of advice they would offer those starting business stateside.

Chris Perfect is the owner of Concept and Perspective, a business advisory firm that helps organizations grow and navigate complexity, change, and risk. His most important advice is to do your research.

“The American market is vast. Unless your business model is to sell (online) and ship, choose a narrow piece of the market to focus on. Remember that America is an incredibly diverse country. Demographics, culture, political affiliation, buying habits vary significantly between states (and often within states)! Don’t make assumptions, with borders reopening, take the time to visit, listen, learn, ask questions and test assumptions.”

This statement echoes Six Barrel Soda founder Joe Slater who says it’s crucial businesses treat each state as a separate entity with its own set of procedures, laws, and tax requirements. Make sure you work with a partner who understands your brand, services the proper channels, and is willing to work together for long-term success.

While the vastness of the American market may be one of the biggest hurdles for Kiwi businesses to get their heads around, the American legal system is also another challenge.

Novelli CEO. Craig Pinker urges businesses entering the U.S. to engage a good lawyer. “In smaller markets like New Zealand and Australia, we tend to operate a lot more on handshake/informal agreements, whereas here in the U.S.A., most things are done via written agreements. Boilerplate agreements, redlining, and negotiation via a war of Word documents were new to me and not something I expected. With the litigious nature of the U.S.A., there are a lot of mediocre lawyers around who do not always have their client’s best interests at heart. It’s worth paying for good advice on structuring your entity as while it’s expensive; it’s money well spent.”

With the ability to visit key markets on the not too distant horizon, this is an excellent time to start looking to the U.S. for the opportunities it brings. There are plenty of Kiwi businesses that have seen success in the U.S., and I hope many others will join them this year.

Gary Fortune, Kea North America Regional Director

Auckland city landscape picture

New Zealand

DIGITAL ITP REACHES NEW MILESTONE

It has been a busy start to 2022 for the Digital Technologies Industry Transformation Plan (Digital ITP) with two milestones being reached. The publication of the Draft Digital ITP for the period 2022 – 2032 proposes the detailed sector transformation steps needed to move toward a future state defined by a tech sector with high-quality jobs, productive businesses, weightless exports, low emissions, and regional job growth. MBIE is seeking feedback on the draft, with submissions due by 5pm 31 March 2022.

We have also seen the launch of the New Zealand Tech and Innovation Story. One of the workstreams of the Digital ITP, the Tech Story was created in collaboration with industry and government and delivers a compelling, consistent way of promoting our tech capabilities to the world. It aims to help our tech businesses grow by attracting investment, talent and global sales and also helps share what we stand for as a country and our values when it comes to creating tech.

With the evolving COVID-19 situation playing out in NZ and globally, technology and digital tools have become a lifeline for businesses during the pandemic and they are making a real difference to business productivity and performance. Since starting in 2021 MBIE’s Digital Boost Educate platform now has over 44,000 Kiwi business owners, business starters and employees engaging. The team runs daily 10am Digital Boost Q&A sessions on Facebook and anyone in business can sign up for the free skills training. MBIE’s Better for Business team recently released two new reports on the health of New Zealand businesses and the New Zealand business digital landscape taking a closer look at the impacts being felt by different industry sectors.

Saya Wahrlich, Global Director, Government & Industry


HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

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Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

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Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

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Filed Under: Businesses going global

  • CASE STUDY – AGAINST ALL ODDS
  • INSIGHTS FROM OUR GLOBAL COMMUNITY
  • THIS MONTH IN NUMBERS
  • GROWTH THROUGH KEA CONNECT
  • NEWS FROM OUR PARTNERS
  • TRENDING AT KEA
  • UPCOMING EVENTS
  • HOW KEA CAN HELP


CASE STUDY


AGAINST ALL ODDS

Guled Mire was born into the Somali Civil War and after spending several years in a refugee camp in Kenya, was resettled in New Zealand with his family at age 6. During his teenage years he struggled to fit in and was repeatedly told by his teachers that ‘University wasn’t a place for people like him.’ Despite this, he went anyway and after passing with flying colours, was awarded a Fulbright scholarship to study Public Policy at an Ivy League University in America. He talks about his inspirational journey, why he never gave up and how he wants to use his offshore experience to give back to the country that took him in. READ MORE



INSIGHTS FROM OUR GLOBAL COMMUNITY


CHINA

Kiwi businesses exporting to China will watch with interest the upgrade to the NZ-China Free Trade Agreement (FTA) which comes into force on April 7, 2022. We look at the effect this will have for exporters. Plus with the Winter Olympics coming to a close we also examine the valuable role of good brand ambassadors. READ MORE

London

UK & EUROPE

Good news for Kiwi exporters this month with the signing of the UK-New Zealand FTA. Our UK and Europe Regional Director Sara Fogarty explains at what this means for Kiwi exporters. Plus she takes a look at the ambitious agenda set out by the new German Government. The centre-left three way coalition, is heavily focused on sustainability and has announced some bold plans including a focus on sustainable farming practises and digitalising German customs.

 READ MORE

USA cityscape

NORTH AMERICA

As restrictions relax and borders reopen there will no doubt be Kiwi businesses eyeing an entry into the US market our North America Regional Director Gary Fortune caught up with several US based Kea members and US business owners to ask them what sort of advice they would offer those looking to expand. READ MORE

Auckland city landscape picture

NEW ZEALAND

It’s been a busy start to 2022 for the Digital Technologies Industry Transformation Plan (Digital ITP) with two milestones being reached. The publication of the Draft Digital ITP and the launch of the New Zealand Tech and Innovation Story  Government Relations Director Saya Wahrlich explains. READ MORE



THIS MONTH IN NUMBERS


14

Number of Kiwi businesses assisted

55

Number of connections made

594

Number of connections made year to date*

BUSINESS CONNECTIONS MADE IN MARKET THIS MONTH**

SECTORS KEA CONNECT SUPPORTED THIS MONTH

*Year to date reflects financial year commencing 1 July 2021 to 30 June 2022
**Some businesses were provided connections in more than one market


GROWTH THROUGH KEA CONNECT

Each month Kea Connect helps Kiwi businesses grow by connecting them with Kiwi experts in markets all around the world. Here is an example of two businesses we helped this month.


PREMIUM MILK MEETS PREMIUM COFFEE

Creating beautiful coffee sachets filled with coffee from around the world is the key to DouXuan Coffee’s success. The company made a huge splash when they exhibited at the Shanghai Coffee and Food Festival in 2021, and in an effort to build on that early success they approached Kea’s Regional Director in China seeking connections with New Zealand premium milk brand Taupo Pure for a potential collaboration. As an exporter of premium dairy and goat milk powders with strong provenance and a focus on the China market, DouXuan felt the Taupo Pure brand aligned strongly with its target audience. The connection was successful and resulted in a cross brand collaboration of Douxuan coffee and an initial trial of 50,000 sachets of Taupo Pure milk powder for the China market.

URGENT REQUEST CREATES INROADS FOR KIWI TRANSPORTATION COMPANY

Transportation and logistics software company M2X provides one platform to optimise transportation, increase efficiency and reduce both costs and carbon emissions. The Kiwi company analyses billions of possible scenarios, to allow businesses to make stronger decisions based on more data, more analysis and more computational power than ever before and allowing companies to future proof their transport management. The founder came to to Kea asking for help with in-market connections for an upcoming short notice trip to the US. within days, Kea was able to make high level introductions to four Kea community members. The M2X team were then able to travel across North America to make the face to face connections Kea had arranged.



NEWS FROM OUR PARTNERS


THREE MAORI BOYS GO GLOBAL

NZTE’s short documentary ‘Three Māori Boys’ tells the story of the Kiwi trio behind the premium beverage brand Wai Mānuka. The documentary aired on Maori TV this month and highlights the boys journey to take their product to the world. It can be watched in full here

NZ INTERNATIONAL BUSINESS AWARD WINNERS ANNOUNCED

On 17 February 2022, a group of extraordinary businesses were recognised as the winners of the New Zealand International Business Awards 2021. See the full list of this year’s winners and read about their stories.

AS BORDERS REOPEN HOW WILL MARKETS PERFORM?

BNZ Head of Investment Solutions Louis Nel takes a look at how financial markets could perform in 2022 as countries reopen and the threat from the pandemic starts to ease.



TRENDING AT KEA


THE FUTURE OF WORK

There is no doubt the pandemic has changed the way we work forever. This month we speak to experts in our Kea community about what the future of work will look like and how we can balance our personal and professional lives. Plus we examine how adapting your company’s wellness offering can help attract and keep top talent and compete with larger companies who can afford to offer bigger salaries. READ MORE

SOWING THE SEEDZ OF SUCCESS

US based Kiwi, Rebecca Brady has transformed her love of baking crackers into a highly successful business. Her company Top Seedz, employs only female refugees and she’s got a strong track record of helping other Kiwi businesses break into the tough US market, plus Top Seedz just won a million dollars in an international business competition. She shares her recipe for success. READ MORE


WORKPLACE CULTURE CRUCIAL FOR STARTUP SUCCESS

Data cleaning company Segna is a Kiwi startup on the road to success. After being accepted into one of Silicon Valley’s most prestigious start up programmes, co-founder Aryan Lobie realised his business was about to experience significant growth. So he contacted Kea Connect to get help with a common problem – how to create a positive workplace culture and avoid growing pains. READ MORE



UPCOMING EVENTS


WORLD CLASS SPEAKER SERIES: Our next World Class Speaker Series features CEO and China marketing expert Jennifer Ma. Jennifer is the founder of the ‘Little Oasis’ childcare chain which is based on the New Zealand principals of education and play and has 15 centres across 11 locations in China. Recent changes to China’s education policies have meant she has had to pivot her business model to keep up with regulations. Jennifer is also in the process of launching a children’s beverage line and family first hotel complex. As part of giving back to her community, she also works to get Chinese mothers back into work and helps Kiwi businesses understand the China market. She will discuss the trends and changes in marketing to children and families in China and look at what the new Government focus on “family time” could mean for New Zealand brands. ATTEND

VIRTUAL RETURNER MEETUPS: Every month Kea holds returner meetups to build our community of recently returned Kiwi. It’s an important way for our community to build their personal and professional networks and share their experiences with others. The next event will take place on Wednesday the 2nd of March. If you know someone who has recently returned to Aotearoa please encourage them to come along. ATTEND

HOW KEA CAN HELP

Join

Join the Kea community, and stay connected to New Zealand, its people and businesses wherever you are in the world.

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Jobs

Post job opportunities and attract internationally experienced Kiwi talent.

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Kea Connect

Help Kiwi businesses explore their global potential through our worldwide community.

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Filed Under: Businesses going global

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