Overall winners Heilala Vanilla celebrate their awards. Photo/Salina Galvan Photography.
The Te Puna-based manufacturer and exporter of high-end vanilla products also picked up two other accolades: the Business, Digital & Technology Innovation Award, and the Manufacturing & / or Distribution Award, which was sponsored by Bay of Plenty Business News.
Meanwhile, in the recent Rotorua Westpac Business Awards, Tim
Rigter, General Manager of Red Stag Timber picked up the award for the Rotorua Business Person of the Year, and the Rotorua Lakeside Concert Charitable Trust received the Outstanding Contribution to Rotorua Award.
n For full details of the two Bay of Plenty Awards events, please see pages 10-19.
HeilalaVanilla chief executive Jennifer Boggiss withAlan Neben and PeteWales from Bay of
Bay of Plenty Business News has a circulation of 8000, distributed throughout Bay of Plenty between Waihi and Opotiki including Rotorua and Taupo, and to a subscription base. www.bopbusinessnews.co.nz
Bay of Plenty Business Publications 309/424 Maunganui Road, Mount Maunganui, 3116
Bay of Plenty Business Publications specialises in business publishing, advertising, design and print media services.
Tauranga’s future as a city of strategic importance to New Zealand cannot be left to a small group of petty politicians who have a long track record of hindering, or even worse, stopping progress.”
– Tenby Powell
From the editor
It is with great pleasure and pride in the Bay that we bring you our annual Westpac Business Awards coverage for both Tauranga and Rotorua. We truly occupy an enviable position in New Zealand.
We have mostly decent weather, the best port in New Zealand and a supportive and collaborative business community that produces a wide range of products and services, from smart tech entrepreneurs to some of the country’s most accomplished manufacturers and exporters.
As I write this, the US is preparing for a presidential transition from Donald Trump – surely the least competent leader the country has ever endured – to Joe Biden, whose most redeeming characteristics at this point appear to be the old-fashioned virtues of practical experience and sanity.
Watching the outgoing president’s “strike force” of low-quality legal buffoons stumbling their way through a succession of failed challenges in their attempts to overturn the vote has been both fascinating and appalling. Nothing so much summed up the past four years as Trump’s refusal for weeks to accord the incoming president the same courteous handover of power that he experienced himself at the end of the Obama presidency.
His decision to throw “strike force” member Sidney Powell under the bus was much in keeping with his behaviour throughout his presidency. Staff members could typically be lauded one week, fired the next. Even although admittedly Powell managed to, in one observer’s words,
“separate herself from the pack with conspiracy theories that reached nonsensical new heights”, her real contribution to the transition debacle was as an example of why working for Trump was seldom a great career move.
It has been a very perplexing four years for all observers who welcome America’s return as a functioning western democracy, now better-equipped to help deal with the pandemic that is infecting the world.
While Tauranga politics hasn’t descended to quite such bizarre and vitriolic depths, Tenby Powell’s recent resignation and its repercussions, have not done the city any favours.
Many in the business community supported Powell, and had hopes that he would unplug what some see as a log jam in decision-making that has held up infrastructure development. It now seems clear that Powell’s approach has not been workable.
His supporters argue that, from the beginning, Powell was opposed by several other councillors – several of whom were failed mayoral candidates. There was also some residual resentment that Powell had been able to return to Tauranga after a long period of absence, and had received a clear local mandate for the mayoralty. That, suggest his backers, essentially doomed him because a majority of
councillors worked to frustrate his plans from the outset.
Opponents, on the other hand, decried Powell as being high-handed and being naive in coming into the city and expecting a military style of leadership to work in a council in which he has only one vote and must at times encourage and conciliate.
We do not at the time of writing know which of several options the government will take with regard to the Tauranga City Council.
Council voted – with Powell’s casting vote – to request that the Minister of Local Government, Nanaia Mahuta, appoint a Crown Manager and Observer to assist the council to address the behavioural issues and underlying growth management problems.
The Council has adopted a range of recommendations proposed by the Review and Observer Team – which was scathing about the Mayor and council’s inability to work together. The aim is to address elected member behaviour and performance and assist in addressing the city’s underlying growth and development issues.
Powell said on resigning that Tauranga’s future as a city of strategic importance to New Zealand cannot be left to a small group of petty politicians who have a long track record of hindering, or even worse, stopping progress.
As it stands, a by-election will be held for both the mayoralty and the vacancy created by resignation in Pyes Pa/Otumoetai. However, that will depend upon the extent to which the Labour government wishes to become involved in the issue. Potential contenders such as Greg Brownless, who told me he plans to contest both elections, said it was impossible to make any decisions on the issue until the government reached a decision on whether or not it planned to appoint a manager. It seems unlikely that the Single Transferable Vote structure adopted by council for the last election was a success, since by definition, the most popular candidates did not always win, but in some cases simply the least unpopular. As in most local body elections, electoral turnout is low. It is unlikely to improve unless a new council emerges that shows itself as being more inclined to collaborate and maintain a more civil approach to establishing a workable plan for the city’s long term future prosperity.
David Porter
New kiwifruit investment fund kicks off
A new investment fund targeting SunGold kiwifruit orchards is rapidly approaching its initial subscription target as assorted investors, growers and institutions are drawn to the fruit’s promising rate of return.
By RICHARD RENNIE
Origin Capital Part-
ners aims to raise $50 million in its first fund-raising round before Christmas and has an initial three orchards signed up to purchase. The investment company is fronted by some high-profile Bay kiwifruit identities, including ex-Zespri chief executive Lain Jager and ex-Zespri chairman Craig Greenlees.
Other principals include current Zespri chairman Paul Jones and ex-banker Dominic Jones, who has recently returned from the UK to head up the group’s funding process.
Jones said in contrast to some syndication schemes, the Origin Capital model involves first raising the capital, then going into the property market to source suitable orchard investments, rather than raising funds on a deal-by-deal basis.
Known as a “committed fund” model, this offered better access to debt, which could be secured over the property purchased. It also meant the fund could move more quickly on properties as they became available, rather than identifying a property, then having to go to market to source the funds on a deal-by-deal basis.
Jones said the group was
already well on its way to raising the $50 million targeted in its first funding tranche, and had unconditional offers in play on two orchards and a third orchard site in play.
Low interest rates fuelling demand
He said the low deposit rate environment most investors faced right now was spurring increased interest, given SunGold orchards can return from 10-13 percent in cash returns per annum.
“And gold kiwifruit are hard to replicate elsewhere,” he said.
“You have a fruit that has a high market value, supported by an industry structure with a single marketer, and a co-operative structure for growers. New Zealand is proving the best place to grow this fruit in the world.”
Jones said the principals had been concerned when the fund was first mooted in March that the global pandemic might affect the fund, but investors’ appetite for sector investment had not been dampened.
Zespri has enjoyed surging on-line sales of the SunGold fruit in China particularly, as consumers seek out health-giving, easily consumed fruit products in response to the threat of Covid-19.
The ability of SunGold to grow over a relatively wider climatic zone than Green kiwifruit has added to the fruit’s flexibility, and Jones said he anticipated the group would have about 65 percent of its orchard portfolio based in the Bay of Plenty, with the rest spread between Northland and Gisborne.
About 85 percent of the industry’s fruit is sourced from the Bay of Plenty.
Plans to expand the fund
Longer term, the fund group has a wider portfolio in mind, with its second offering targeting a $100 million fund raise, and a third targeting $250 million.
Jones said investor interest has ranged from smaller retirees seeking to put in $100,000, to larger investment groups with several million, and included growers wanting to expand their investment in the sector.
Each tranche of fundraising could be matched dollar for dollar with a debt provision, and 50 percent debt was not unusual in the sector, Jones said.
By 2030, the group is aiming to be New Zealand’s leading provider of premium primary sector investments.
The group is confident the
You have a fruit that has a high market value, supported by an industry structure with a single marketer, and a co-operative structure for growers. New Zealand is proving the best place to grow this fruit in the world.”
– Dominic Jones
growth in licensed area for growing SunGold will continue after the remaining two years’ worth of licences have been tendered.
“[Zespri] have not put a position in the ground beyond that, other than that they expect a further 2000 ha over the following four years,” he said. “We have three years to spend what we raise.”
The Zespri licences for SunGold reached record heights in this year’s tender round, selling for $400,000 per ha, well up on the $290,000 a year before.
Jones said the main constraint for green fields kiwifruit conversions was water access, and issues around labour tended to be very seasonal in nature.
Typically, the group was seeking orchards with scale to them and that were either already in SunGold production, about to be grafted to SunGold, or offering a site for establishment.
Operations could be run by a third-party management group, or if running successfully, they would be left as they were.
“The sector continues to perform outstandingly really and if the world continues to look like it does now, Zespri is likely to continue to roll out its licences.”
Dominic Jones
Defensive options in New Zealand
OWHAT TO DO WITH YOUR MONEY
> BY BRETT BELL-BOOTH
Investment Adviser with Forsyth Barr Limited in Tauranga, and an Authorised Financial Adviser. Phone (07) 577 5725 or email brett.bell-booth@forsythbarr.co.nz.
ctober capped off a good quarter for the New Zealand equity market, with the earnings reporting season signalling better than expected results for many companies.
The government’s relative success in navigating the Covid-19 pandemic was rewarded in October’s election.
The shift by centre-right voters towards Jacinda Ardern’s Labour Party resulted in the first one-party majority government in New Zealand since the first MMP election in 1996. This clear-cut win and its political ratification of a more centralist policy platform would likely have comforted most investors.
Inflation data for September quarter was lower than expected at +1.4 percent, boosting expectations the RBNZ will likely ease financial con-
ditions even further. Investors’ search for income provided further support for defensive dividend yield stocks including listed property, which had a very strong quarter.
A strong housing market flow benefits the economy
In addition to stock markets, another beneficiary of ultra-low interest rates is the housing sector. Around the world, house sales, prices, and construction demand have all recovered strongly. The importance of housing to the broader economy should not be underestimated. Increased housing activity is reflected in areas such as retail, manufacturing, and transport. Stronger house prices and the positive wealth effect for homeowners boosts consumer
sentiment and retail sales. It supports stronger construction activity, and demand for durable goods such as house furnishings. This has all contributed to the better-than-expected resilience of economies this year.
Learning to live with Covid-19
To date, activity in the global economy has exhibited a V-shaped recovery in areas such as housing sales, construction, retail sales, and manufacturing. Many companies in New Zealand and offshore are experiencing better-than-expected outcomes, which is translating through to better employment demand.
The recovery may face a setback over the next few months as the latest wave of the pandemic sweeps back through
the Northern Hemisphere. However many businesses and economies have adapted to live with the virus.
The “working from home” theme is becoming an, at least semi permanent, theme in many economies, with numbers of people moving out of the cities and into the suburbs.
While many countries are seeing new virus cases hitting new highs, hospitalisations and deaths are at a fraction of levels seen earlier in the year.
The risk of most economies being completely shut down again is low. There also continues to be a number of vaccine prospects in late-stage human trials – the potential for a treatment being available at some stage in 2021 remains reasonable. Investors should be confident that, in general, the trough in earnings is behind us, and a recovery is underway.
Clean Sweep for LINK at Annual REINZ Awards
LINK celebrated another incredible evening with six wins at the 2020 REINZ Awards. For the fifth year in a row LINK were awarded Large Business Broking Office of the Year! On top of this, LINK won all available awards for the business brokerage industry.
With the year it’s been, LINK truly appreciates these successes and the people behind it all – an exceptional way to the end the year.
Aaron Toresen, LINK’s chief executive officer, was excited to share the evening with the team.
“While 2020 has been extraordinary for lots of reasons, our performance at this year’s REINZ awards was nothing short of sensational.
“Winning every category against our competitors in this marketplace was a very welcome reminder of the great company we are all part of.
”
Among the 41 awards that were presented, LINK won:
• Large Business Brokerage of the Year – LINK Ellerslie
• Medium Business Brokerage of the Year – LINK Bay of Plenty
Small Business Broker of the Year – LINK Christchurch
• Small Agency of the Year (All Disciplines) – LINK Business Brokers
• Business Broker Salesperson of the Year – Bruce Cattell, LINK Ellerslie
• Business Broker Rising Star of the Year – Jeff Wiley, LINK Ellerslie
Uncertainty still ahead, but stick to the plan
The commentary above all sounds pretty positive. And clearly equity markets have responded favourably. But these remain unprecedented times.
We’re still navigating the first global pandemic in over a century. Interest rates are the lowest in history, which may lead to economic imbalances longer-term.
Governments are spending money with abandon, funded largely by central banks printing money, but this can’t last forever.
Given the recovery in equity market values since March, we note that:
1. Markets are able to remain resilient in the face of bad news.
2. Share prices reflect the
long-term earnings companies will generate over the years and decades ahead, not just the next six to 12 months.
3. It’s not possible to consistently time or predict short-term movements in markets.
Overall, it’s important to establish and remain committed to an investment plan that meets your longterm goals. This column is general in nature and is not personalised investment advice. This column has been prepared in good faith based on information obtained from sources believed to be reliable and accurate. Disclosure Statements for Forsyth Barr Authorised Financial Advisers are available on request and free of charge.
• Finalists also included:
• Medium Business Brokerage of the Year – LINK North Shore
• Business Broker Salesperson of the Year – Lindsay Sandes, LINK Ellerslie
• Business Broker Salesperson of the Year – Martin Plom, LINK Ellerslie Business Broker Rising Star of the Year – Steve Catley, LINK Bay of Plenty Bindi Norwell, chief execu-
tive at REINZ says: “Every year we have a significant number of high-calibre entries, many of whom have won their own local or agency awards making for some extremely tough competition.
“It has been great to be able to come together and celebrate success from across the country. To win one of these awards is to be the best of the best, and that is a noteworthy achievement.
With a growing reputation for
the highest level of customer service, LINK has become the most trusted brokerage focusing on service, value and integrity. The team at LINK is proud of the company’s history and is committed to continuing the tradition of selling businesses, as only LINK can. Aaron Toresen said “Whether a member of our administration team, marketing, finance, management or of course the brokers – who make it all happen – every member
of LINK can be enormously proud of this achievement.
“Winning any award when pitched against your competitors is a great moment, but to have a clean sweep of every business broking category was the ultimate validation. It takes real teamwork to achieve results like this and my deepest thanks go to every person who makes up part of this special group.”
LINK’s size and reach mean that its brokers have the opportunity to utilise their knowledge, experience and connections to successfully sell any business. “We have the best brokers in the business; from the rising star (and the runner up!) to the broker earning the most in New Zealand (and the runners up!) to each category size of office and even an all disciplines award…this was a defining moment for LINK.
“With the world changing, LINK’s business model has returned to a focus on NZ, so rest assured the best is yet to come” says Toresen.
LINK Directors and team representatives at REINZAwards. Photo/REINZ
To consumer or not to consumer
You don’t need me to tell you that it’s been an extraordinary year… Covid-19, the whole country working from home, several high-profile data security breaches, Privacy Law changes, general elections, and Australia and Argentina beating the All Blacks. This year has certainly had its trials.
But, as businesses, we have learned a lot as well. Probably the main shift that we have all seen has been the move to a more flexible workforce.
Whether we like it or not, widespread remote working is here to stay. For a number of years there has been a massive focus on mobile working.
Ironically, thanks to the pandemic, we may now actually be “on the move” less. For many, our homes have now become our workplaces and offices are emptier than they were before, or are being shared.
As we move away from constant mobility, and with more businesses embracing video conferencing, and measuring productivity through outcomes rather than time spent in the office, personal computer (PCs) sales have increased, whereas mobile device sales have slumped.
A Recent IDC New Zealand report shows commercial PC sales jumped up a massive 61.5 percent from last year and
worldwide mobile phone sales dropped 12 percent in the first quarter this year. Businesses and schools sent people home to study and work. The Ministry of Education handed out 17,000 notebooks to students studying online, and product lines ran out.
Computer makers used up stock in weeks that would normally take months. The requirement to technically tool up our workforce to enable them to work from home has brought with it a new set of challenges and options for businesses and organisations to consider.
To ensure you support your workforce and protect your business, it’s important that your choice of IT equipment and technical set up, firstly, works for you, and, secondly, does not compromise you from a security perspective. Far too often we have conversations with businesses having issues with IT set ups and security inconsistencies purely based on the hardware and licensing decisions being made.
One of the main issues is the purchase of consumer grade products for commercial use. Consumer-based products can look great, but the clue is in the name – they are made for consumer/domestic use –not business.
So what are the fundamental differences and why should you buy business-grade technology for businesses?
Home v pro, business and personal
Licensing for operating system (e.g. Windows) and office products are different for home use. There are different end user licence agreements (EULAs) for these and one key element is that you should not be using personal or home licenses for generating an income.
But even more important is the security, integration and business functionality you get with the correct licensing, especially if needing to connect to a remote office or headquarters.
What’s in a laptop?
TECH TALK
> BY TONY SNOW
Tony Snow is chief executive and co-founder of Stratus Blue. He can be contacted at Tony@stratusblue.co.nz.
Business laptops typically cost 10 to 20 percent more than consumer laptops with similar hardware features, but the premium is a smart investment.
Business laptops have key advantages and are made with commercial use in mind.
• They are more robust and made to go in and out of bags everyday and to work eight hours-plus per day.
• They have options to connect to multiple screens, docking stations and wireless connectivity are easier.
• Their business grade software has features that make it easier to manage,
connect to the network, and has enhanced security options.
• They have a longer lifespan due to swappable components and configuration options – unlike consumer models.
• Due to the longer expected lifespan they also come with longer warranties and preferential treatment from suppliers – like getting a replacement machine while yours is getting fixed.
Desktop PCs in the future?
As we are moving less, desktop PCs are coming back into fashion, not just because the
gamers are taking this option, but also because they have real advantages.
• PCs last much longer than consumer laptops.
• They are easier to upgrade or to replace components. It’s harder to break or drop a desktop – even the micro or mini versions.
• You tend to get a lot more for the same money as a laptop. As a rule of thumb, a $2000 desktop will have better features than a $3000 laptop. If your staff are moving less and most of the computing may be done in one location, it is worth discussing all hardware and licensing options with your IT provider.
Emotions do not improve business communication
In my time in the debt collection and dispute mediation industry I have had many instances where we step into a dispute that has been literally raging for 12 months with personal insults and at times threats or even instances of violence only for us to step into the fray and have the whole dispute resolved and paid within hours. The client asks us in amazement: “ How the heck did you get that so and so to back down and pay?”
TCREDIT CONTROL
> BY NICK KERR
Nick Kerr is Area Manager BOP for EC Credit Control NZ Ltd.
He is also a director of International Private Investigations Ltd.
Nick can be reached at nick.kerr@eccreditcontrol.co.nz
here is no magic trick or special talent, it is simply that we are trained to de-escalate the situation by removing the emotion –and therefore the emotional response. Once the emotion is removed you are left with facts. And as well-known American political commentator Ben Shapiro says: “Facts don’t care about your feelings.”
An analogy of this, is water spilling on someone. If Mr X is walking down the street after having a few of his favourite beverages at the local tavern and a big fat raindrop falls on his shoulder he will most likely brush off the water and
get on with his travels.
Let’s now put Mr X back in the tavern putting his best efforts into impressing Miss R with witty repartee and smooth dance moves.
During a particularly impressive move, Mr G bumps into Mr X and spills a small amount of water on him. This time Mr X reacts with anger and pushes Mr G, starting a bar brawl resulting in injuries and a few arrests.
You see the problem in the outlandish scenario above is not the water spilling – it is the perceived disrespect bestowed and the perceived embarrassment suffered. The same factors apply to many other per-
sonal and business disputes.
Once we get a chance to sit down with both parties in a dispute, we often find that the source of the aggression and anger comes from both parties’ inability to see past what they believe is happening and discuss what has actually gone on that led to the disputes.
“I didn’t understand that the extra work I asked for would cost that much” – turns into “you are a ripoff artist that tried to con me.”
And “I really didn’t budget for the extras that I needed as I didn’t even think that I would need them” turns into “this bottom-feeding customer is trying to ruin my business that I have
We often find the source of the aggression and anger comes from both parties’ inability to see past what they believe is happening and discuss what has actually gone on that led to the disputes.
spent 20 years building.”
If the conversation was begun calmly, with both sides acknowledging a mistake had been made, and a plan was made to rectify the problem as soon as it was noticed, then the emotions around the fear, embarrassment and frustration would not even occur. And before you knew it, the whole situation would be resolved.
As humans, we can be a reactive and emotional bunch, but there are a few things that you can do to avoid the emotional escalation of disputes.
1. Focus on the facts not on feelings or opinions in any
communication.
2. Use the three-draft method: in the first draft, write using the most extreme emotions, strong language, insults etc you can come up with. Download every raw emotion into words, then once you have finished, press DELETE. In your second draft, write a still emotional, but more fact-based and polite message and again, once finished push DELETE. In the third version, write only about facts and suggestions of what could be done to rectify the situation. Only
then do you press SEND. Using this method you can get out all of the frustration off your chest and still keep your composure and professionalism.
3. And if you feel that the positions held by both parties are too far away to come together or if de-escalation does not seem possible –especially if the dispute involves large amounts or key relationships – then use a third-party mediator. Just a thought. As always, this is not meant to be prescriptive or legal advice.
Embracing new ways to work – Suburban desk talk
Advances in technology, a more diverse workforce, a flight to quality, the importance of global marketplaces and changing expectations around property requirements, were all having an impact on the space that companies and office-based operators were committing to.
There was never a “one size fits all” template in the office market. However, what is becoming clear is that businesses that embrace new ways of working, are flexible, and leverage technology, will thrive in the post-Covid-19 economy.
Those businesses with a core + flex model in place, will be able to have different teams working safely from different premises for a far more efficient use of time and resources should other disrupting events occur in the future.”
– Lloyd Budd
The work-from-home mandate saw office workers plugging in from widespread loca-
tions, and since then, there has been serious reconsideration about where employees could
be based going forward, with CBD premises not necessarily being the sole answer.
Opting to positively fragment footprint
This emphasis on having a more distributed workforce is a trend being seen globally and in New Zealand, as corporates and larger businesses opt to positively fragment their physical space footprint beyond the usual centralised head office model.
Lloyd Budd, Bayleys’ director Auckland Commercial & Industrial, believes that
The way we access and use workplaces was already undergoing change prior to the pandemic outbreak, but the global health crisis has accelerated some of those trends in the office sector.
the way offices are designed, how occupancy costs are approached, and this evolving distributed workforce model will structurally change office space dynamics and the suburbs will take on new meaning.
“Larger companies and businesses with scale are proactively looking to the core + flex model of office space with a consolidated central location supported by smaller satellite flexible spaces in the suburbs that can expand and contract to cater for varying staffing and work flows,” he said.
“Those businesses with a core + flex model in place, will
be able to have different teams working safely from different premises for a far more efficient use of time and resources should other disrupting events occur in the future.
“Many office-based businesses operate on a project basis rather than an office hours basis, and so can accommodate flexible ways of working in the suburbs – with one upside being fewer cars making the commute in and out of CBDs.”
n Courtesy of Bayleys Workplace Insights https://www. bayleys.co.nz
Welcome to summer!
Summer is just around the corner and so is the sizzling line-up of Summer events at Trustpower Baypark.
Bring People Dancing is about connecting people through positive experiences and setting future goals that let those with mental illness know they are not alone.
New Zealand – its time to chat, it’s time to korero. No more sweeping under the carpet, no more stigma. Tauranga will open the conversation… and right now, in this country, we need to talk more than ever.
Join mental health advocates Sir John Kirwan and Mike King on December 12. Take in the superb sounds of kiwi sensations: Mitch James, Alayna, Thomas Oliver, Dan Sharp and more, with amazing production to match. Let’s chat, let’s bring people dancing and let’s make a difference.
Speedway
Speedway Season is now in full swing. Upcoming summer dates for all adrenaline junkies are December 5, 26, 29, January 5, 8, 9, 16, 29 and 30.
To enjoy watching the races in style, we have a number of Corporate Boxes available to comfortably entertain your guests.
With the box you get an exclusive, spacious and comfortable box with an outdoor balcony for up to 20 guests, full kitchen facilities and fridge.
A corporate box also offers ongoing inbox bar service with dedicated catering stewards, along with a high qual-
ity catering service delivered to your box. Please contact us on events@bayvenues. co.nz or 07 577 8560 for more information.
Bay Dreams
As we look forward to Bay Dreams on January 3, 2021, we reflect on the most unpredictable year of our lives –2020 has truly brought it all. Due to the changing international travel restrictions around Covid-19, we have called in 30 more acts to give you the summer you deserve, including a few of the biggest international DNB (Drum ‘N Bass) and hip hop artists we could convince to quarantine, plus many kiwi legends.
Exemptions for these artists have been approved by the government.
In true Bay Dreams fashion, we are proud to present you with the biggest international line-up in the country again this summer.
Colour Dash
Bring some colour to your summer and register for the Colour Dash on January 24. This is a 5km non-competitive fun run – or walk – for people of all ages where participants are splashed with a hurricane of special colourful dust at each kilometre. Every registrant gets: a free t-shirt, a bag of colour and an explosion of fun.
Smashing through the barriers of the conventional and carving a path for himself, Macky Gee has turned the heads of some of the industries biggest players; to become one of the most promising and spectacular artists in DNB music today. From weekly radio shows to playing gigs around the UK and Europe, Macky wanted to carry on building on this creative vibe and soon found himself going to college to study Music Production learning his craft and honing his studio skills to give him both the
desired confidence and knowledge to push forward making his own original tracks which would eventually change the sound of DNB. Macky will be performing on January 31.
Premier conference venue
Trustpower Baypark is Tauranga’s Premier Venue for conferences, meetings, entertainment and exhibitions. Offering a complete package in one convenient location that features state of the art meeting rooms, in-house catering, audio visual services, professional confer-
ence organiser (PCO) and marketing/promotional services.
New Year – New Meetings
Trustpower Baypark are pleased to offer a “New Year –New Meetings” promotion as a fresh start to 2021 for all of your strategic planning, training and team building needs.
On offer is a 25 percent discount for small meetings confirmed before 23 December 2020 and held between 5 January – 31 March 2021. The discount applies to Venue Rental, Audio Visual, Catering and Baystation and is
subject to availability.
Virtual meetings
“Bring your events online” with our Virtual Meetings. The range of onsite and offsite services include: Remote Presentation, Video Conferencing, Web Streaming and Streamed Hybrid Conferences. The Virtual Meeting services also include purpose-built, broadcast standard studios and offer competitive packages to enable you to continue to stay connected to your audience. Ask about our competitive packages today.
Macky Gee
Bay Dreams
Heilala Vanilla wins newlook Westpac Business Awards
Heilala Vanilla won the Business of the Year Award at the recent Westpac Tauranga Business Awards 2020, which were reconfigured to take into account the impact of Covid-19 on the region.
The manufacturer and exporter of high-end vanilla products also picked up two other notable awards – for Business, Digital & Technology Innovation, and for Manufacturing & / or Distribution.
There were significant changes from the usual format this year by Westpac Business Awards organisers the Tauranga Chamber of Commerce, to take into account possible Covid-19 disruptions and keep social contacts safe.
Given that 2020 has been such an unusual and challenging year for business and the wider community, the Chamber saw this as an opportunity to reset a number of elements of the awards. Chief executive Matt Cowley said high on that list were changes to the judging process.
This year the Chamber introduced a Head Facilitator, KPMG Wellington’s Sven Pannell, who spent a week visiting all the entrants and making an initial assessment. He then chaired a panel of judges made up of local business leaders in a “pitch weekend”.
In an additional break with tradition, the award winners were announced at a Love Local cocktail event at Trinity Wharf, which showcased food and beverages from around New Zealand.
Total attendance numbers were smaller than usual to take into account the need for
crowd distancing measures.
Cowley said he was delighted to see the business community come together and support local success in what had been a tough year.
“This year was not necessarily about huge profits and major growth, but more about our people, the way everyone has worked to come through the challenges presented to us and how we supported each other to achieve this,” he said.
Sven Pannell spent a full week visiting all the entrants and making an initial assessment, before chairing a judging panel of local business leaders in a ‘pitch weekend’.
While the pitch process was daunting for some entrants, the judges said it was a valuable and insightful exercise for them. The judges then had a vigorous discussion to land on this year’s finalists, winners and the Westpac Tauranga Business of the Year.
The judges said the section process was challenging, but despite the problems of 2020, there was a very high standard of entrants.
“It’s been an unprecedented year for businesses in the Bay and across New Zealand,” said Pannell.
“It has required business leaders to dig deep into their emotional and, often, financial reserves. It’s also provided a range of opportunities for those with the capability, resilience and preparedness to take
David Maris fromTrustpower,award sponsor for the Business,Digital &Technology InnovationAward,with chief executive,Jennifer Boggiss and Ruby Grant from HeilalaVanilla.
tauranga business awards
them, so there were a lot of positive stories emerging from the finalists this year.”
‘Bean to bottle’ creators
Overall winners Heilala Vanilla operate a “bean to bottle” process that grew out of an aid project in Tonga started by founder John Ross.
Unique to the market, their main competitors are synthetic products, while Heilala Vanilla is pure, grown and dried in Tongan. It is a highly scientific, unrefined process (cold pressed, slow extract), and Heilala Vanilla is constantly innovating, creating new prod-
ucts from the base product.
Heilala Vanilla chief executive Jennifer Boggis told Bay of Plenty Business the awards were a great validation for the company’s strategy.
“It’s great to get the confirmation from the judges that we’re on the right track,” she said. “And it’s great to get local recognition – it was a real boost to the team.”
Because of Covid-19, the company hadn’t been able to travel to Tonga, where its vanilla is grown. But they were delighted at being able to successfully complete the harvest. “We’ve been operating there for 15 plus years and
we’ve built up strong trusting relationships – it was a real testament to the Tongan team.”
Sven Pannell said Heilala Vanilla continued to innovate, and the panel was excited to see what was in store for the team.
The company also has a considered focus on corporate social responsibility. Heilala Vanilla’s mission is to build a better future for the people of Tonga, and through this, the world. The company has built a partnership with the Tongan King and the local community of farmers, who all grow and process the vanilla beans.
In a population of 200,000,
they employ more than 200 women and are projected to support more than 1000 families by 2025.
“[We] felt that Heilala Vanilla has many of the characteristics we see in New Zealand’s highest performing businesses,” said Pannell.
“[The company has] a deep understanding of their global customers, what they care about and how to reach them; a focused and planned approach to international expansion; and a deeply-held purpose to transform the future of their vanilla-growing partners in Tonga.”
Mainfreight – which recently opened an impressive
new eco-friendly base in Tauranga – was recognised this year for its Corporate Leadership. While they move freight around the world, Mainfreight also maintains a strong local connection to their community, the judges said.
The Kollective – TK won the Social Enterprise Award. It is New Zealand’s largest co-working space and is dedicated to the success of notfor-profit, social enterprise and charitable organisations.
PMG Funds, which specialises in funds invested in the commercial property sector, received the Service Excellence Award, with chief exec-
Scott McKenzie
uting the win to having strong values and a commitment to customers.
“At PMG, our core values matter,” he said. “Our values help all PMG team members have a singular and united vision that guides us. In a pandemic environment, it’s culture and commitment to our customers that have helped us all get through. I feel very fortunate to work with such a clever bunch of passionate professionals.”
The winner of the Emerging Business Award was Undercover Industries, started Continued on page 13
utive
attrib-
Corporate Leadership winners Mainfreight.
westpac tauranga business awards
by Gavyn and Shannon Burns in 2015. The company emphasises precision in creating a range of pergolas, awnings and shade covers.
Flatwhite café and restaurant in Waihi Beach won the Sustainable Business Award, Toi Ohomai Institute of Technology received the Customer Experience Award, and Barrett Homes took out the ACC Workplace Safety Award.
Two new awards
This year also saw the introduction of two new awards.
The People & Culture Award asked the public to nominate businesses that they felt, either as either staff or customers, demonstrated a great culture within. The nominated businesses then went out for public voting.
The Chamber said the inaugural award received a huge response with winner Mount
Skin & Body receiving just over a third of the total votes.
The other new award was the Continuous Improvement/ Lean Award, which recognises the need for companies to be improving processes and systems to gain the productivity benefit.
Award criteria said this could be through small incremental bites or with a breakthrough development.
The inaugural winner of the award was Bake Shack, which
makes and distributes between 10,000 to 15,000 pies every day, which are then delivered throughout New Zealand.
The company was constantly looking for ways to improve the process, while maintaining their high quality, the judges said.
“This year’s entrants came in all shapes and sizes, but in their DNA is a set of common traits of high performance,” said Pannell.
“Among these is a relent-
less desire to deliver value to their customers and people, coupled with the continuing motivation to be better tomorrow than they are today.
“What’s been particularly impressive is the extent to which businesses are actively supporting their people and their communities.
“It’s clear to me that being a business in the Bay means something special - that it is both a privilege and a responsibility. We wish all appli-
cants and finalists a successful 2021.”
Westpac Tauranga Area Commercial Manager, Clare Basire congratulated the winners.
“We’ve been amazed by the resilience and innovation of businesses big and small, who have connected with their customers and communities, overhauled their operations and adapted to the ‘new normal’ in a matter of weeks and months.”
From page 11
The Kollective won the Social EnterpriseAward.
Undercover Industries won the Emerging BusinessAward.
PMG’s Dennis McMahon and Scott Mckenzie with the team’s Service Excellence Award.
Sustainable Business Award winners Flatwhite Cafe.
Toi Ohomai winners of the Customer ExperienceAward.
Barrett Homes won theACCWorkplaceAward.
westpac tauranga business awards
Mount Skin & Body,winners of the inaugural People & CultureAward as voted by the General Public.
Westpac tauranga Business AwardS 2020
Sponsored
Sponsored
Rotorua business awards celebrate resilience
Leading businesses were acknowledged for their resilience and hard work throughout the Covid-19-disrupted year at this year’s Rotorua Westpac Business Awards.
Rotorua Business Cham-
ber Chief Executive
Bryce Heard congratulated the 10 award winners and the finalists, saying the entries had been the strongest in year seen in years.
He also thanked the judges for the excellent work done to determine the finalists and the winners, and to the sponsors whose support had allowed the awards to take place at the well-attended event at the Rotorua Events Centre.
The annual awards were reshaped this year to reflect
the impact of Covid-19.
The organisers said the awards recognised and celebrated Rotorua business’ resilience to the trauma they were going through.
This year the usual 18 categories were halved.
However, the judges also awarded a special Chamber Commendation Award to Kaitiaki Adventures to celebrate a company that had been a finalist for the last few years and was recognised for its “continued excellence in business”.
Build Back BetterAward winnerWaimanguVolcanicValley (with Leon Fourie fromToi Ohomai).
Essential Business of the Year Award winners Rotorua Airport Limited.
Watchdog Security winners of the Employer of theYearAward (with Brett O’Riley from the EMA). All RotoruaWestpac BusinessAwards 2020 by Michelle Cutelli Photography.
The Essential Business of the Year category recognises, thanks and celebrates those who supplied the community with “essential” goods and services during the lockdown, acknowledging the health and safety measures taken to protect staff, and how the operation benefited the Rotorua community.
Rotorua Airport CEO Mark Gibb says that while the airport is honoured to have been nominated for the award, the win is on behalf of all Rotorua’s essential workers who worked through the lockdown period, supplying our community with much-needed goods and services.
“It has been a year like no one could have predicted, and it started with many uncertain variables in front of us, but day by day we were able to tackle these head on”.
“As New Zealand’s domestic flights all but shut down over April, our focus turned towards supporting essential air traffic and medical and emergency flights. Our business had to adapt at pace to our new world and we deployed our business continuity plan to ensure we could continue to operate, and our people, airport staff and customers, could continue to use the airport safely.” – Mark Gibb, CEO Rotorua Airport
Rotorua Business Chamber team with Michelle Cutelli.
Community Support/CareAward winners Piripoho Service.
Heard and KiriTahana.
Red Stag Rotorua Business of theYearAward went toTim Rigter,General Manager at Red StagTimber (with MartyVerry from Red StagTimber).
Westpac rotorua Business AwardS 2020
Red Stag
The NZME People’s ChoiceAward winners from Rotovegas Boxing Gym.
The Rotorua Lakes Council Outstanding Contribution to RotoruaAward went to the Rotorua Lakeside Concert CharitableTrust (with Mayor Steve Chadwick).
Jenny Lux from Lux Organics won the Environmental SustainabilityAward.
Kotihi Reo Consultants Anaha Hiini and Grace Hiini won the Bilingual BusinessAward.
CONNECTING BUYERS AND SELLERS OF QUALITY BUSINESSES
When is the right time to sell your business? Right now.
At TABAK, we promise to guide you through the sales process with focus, integrity and complete confidentiality.
First on the
scene
Networking photos from the recent B5 event held at The Kollective Tauranga by the Momenta Charitable Trust, a not-for-profit helping disadvantaged people to access a world of opportunities.
1 2 3
4 5 6
9 10 11
1 KerryWebb,Momenta CharitableTrust and Katie Richardson,Ministry of Social Development-Greerton. 2 KateTerry and Belinda,Insightfull. 3 Robin Olivier,RobustAction Coach and Matt Cowley,Tauranga Chamber of Commerce.
9 Linda Giltrap,TradeNZ,ChrisTurner,Balanced Success and Sam Fellows,Momenta CharitableTrust. 10 TanyaWilliams, Ministry of Social Development-Greerton. 11 Paul Curry,Momenta CharitableTrust.
7 Dave de Graaf,Momenta CharitableTrust,Liz Davies,SociaLink and DanAllen-Gordon,Graeme Dingle Foundation-BOP. 8 Brian Rowney,Results Unlimited,Rachael Gemming,EY andTony Stack,Classic Group.
4 Fiona Mackenzie,The Culture Co, and Paul Khosla,ACE Consultants. 5 LynTrail,Surveying Services and Claire Russell, Thinkplus. 6 Campbell Higgins,Momenta CharitableTrust and Katie Richardson,Ministry of Social Development,Greerton.
There has been a significant rise in the number of people interested in purchasing their own franchised business in the current Covid-19 economic and social environment.
IFRANCHISING
> BY NATHAN BONNEY
Nathan Bonney is a director of Iridium Partners. He can be reached at nathan@iridium.net.nz or 0275-393-022
have previously stressed the critical importance of potential franchisee entrepreneurs undertaking thorough due diligence of the opportunity, including engaging specialist advice from accountants, solicitors and bankers.
We are now seeing a large proportion of first-time business owners, and as such there is an additional level of due diligence required.
However, I’m not talking about the due diligence that can be undertaken or outsourced to the specialist advisors. It’s not an in-depth evaluation of the market or the brand. It is far more personal and closer to home – a self-examination of one’s motivations for embarking on a journey of franchise ownership.
At the heart of this is a need for what I call a motivational analysis. A good place to start is with Simon Sinek’s “Start With Why”. Reading the book or just watching the 18-minute TedTalk will provide you with a general overview of why some are extremely successful when others are not.
The same philosophy and approach can be applied to make better decisions when buying into a franchise system and create better outcomes for entrepreneurs. In essence you need to look deeply at why you are wanting to acquire a franchise business.
Map out motivations
By looking at the profiles of franchisee entrepreneurs, we can map out their likely motivations and create a matrix of the type of franchises or business that will speak to their “why” and help you examine your own motives.
There are two most common profiles, so let’s look at the kinds of franchise formats that tend to suit each of these. The first group can be called “Plan B-ers”.
This group can typically include the recently made redundant, and those returning to work post children. Now, it can also include those who have had a taste of self-determination during lockdown and want to go it on their own.
Their backgrounds will be varied as their skillsets. What is common with a majority of Plan B-ers is inherent in the title – this isn’t their first choice, so many will be looking to buy a job and/or some security.
For some of this group they will use the opportunity to
By looking at the profiles of franchisee entrepreneurs, we can map out their likely motivations and create a matrix of the type of franchises or business that will speak to their “why” and help you examine your own motives.”
make that career diversion into something they always wanted to do. However most will be looking at playing it safe. The safest and most comfortable path for Plan B-ers is to look at their core skill and experience sets and apply these to a franchise structure.
They are usually risk adverse, so well-structured, established systems will suit them best. This could be systems designed around a professional service such as HR, accounting or perhaps property management, if from a professional background.
Home services and or trade-related options may be sought by those from the trades, and perhaps retail franchises if they are from hospitality or retail backgrounds. Other options or systems that have earning guarantees or income protection will be very desirable to this group.
The second group can be described as Twilighters – people looking towards, but not quite ready to retire. Three factors come into consideration with this group.
Preservation of capital is usually paramount, so key issues include how much the system is to buy into, and how safe it is as a business. Their general objective is likely to be protecting an asset base that
has been created over a lifetime of employment.
The second consideration is around earnings expectations. Quite often, the motivation for Twilighters is not solely income, but more a desire to stay involved and have a business interest.
The third consideration is much more practical – what’s involved with running the franchise, how hard is the work, and how much time is involved to run it successfully.
Combining these three objectives at various volumes produces a match with systems that are generally at the lower investment level, and often those that can have hours and attention varied to suit.
Alternatively, for the well capitalized franchisee entrepreneur, secure high performing capital systems are also a consideration, key factors being their ability to be operated under management and or the ability to on-sell.
We have touched on just two of the why profiles for potential franchisee entrepreneurs, but the commonality with these – or any of the other profiles – and the key to their success is to understand the motivation for purchasing a franchise and seek out systems that are able to speak to your “why”.
15 Nikki Moloney,Momenta CharitableTrust and Sally Blackler,EmployNZ. 16 Shane McConigly,CreateLeap and Sara Stewart,Momenta CharitableTrust.
19 Philippa Power,Anteris and Paul Bateman,Momenta CharitableTrust. 20 Meg Jones,The Shine Collective and Lisa Gilmour,ABC Business Sales.
21 Kurt Macalister, Momenta Charitable Trust and Frank Hekker, Kiss IT. 22 Keira Nesdale,Bayleys and Dale Koerner,BlueOcean.
Is your retail business ready for the Christmas rush?
Getting prepped for the holiday shopping rush is about more than just putting some tinsel on the store-bought Christmas tree and offering a silly season sale.
Christmas specials matter, but if you don’t have the basics right, you will be missing out on revenue.
In a physical store you will want to ensure you have adequate staff to maintain good customer service and reduce queues when things get busy. Online, you want the product descriptions and photos to be strong and your website’s check-out process to be quick and painless.
Catering for the unique context of 2020 also matters. That means considering what Covid-19 means for your potential buyers.
Covid-19 and the ‘buy local’ movement
For Kiwi retailers, this Christmas will be a little bit different to those in recent years.
With overseas travel off the cards due to the Covid-19 pandemic, many people are looking to spend their Christmas cash in different ways – whether it be buying a new barbeque, a boat, or eating out every night during a local New Zealand holiday.
There’s also a heightened awareness among New Zealand consumers of the strug-
gles some Kiwi businesses are facing as a result of the pandemic, and a willingness among many to support their local stores.
If your product is locally made, now is the time to play on that by making it central to your brand story. Your website, product packaging, physical and online stores and social media accounts are all good places to let your customers know.
Run an effective online store
Online stores and digital channels have really come into their own for many New Zealand businesses in recent months.
More and more New Zealanders are doing their shopping online, so it pays to make sure your products can easily be found in a Google search. You will also want to ensure you have an online store with great photos, helpful product descriptions, and user-friendly check-out process.
NZ Post’s E-commerce Spotlight research found that almost 1.5 million New Zealanders shopped online in the first half of 2020, partly due to the Covid-19 lockdown. This included 172,000 Kiwis
who shopped online for the first time, which helped to drive a 30 per cent higher total e-commerce spend compared to the same period in 2019. This increased familiarity with web stores among Kiwi shoppers will only see them buying more online in future.
Having an online store matters for those selling overseas too. Many Kiwi businesses I work with that sell overseas have also seen a higher proportion of their revenue coming in via online channels this year as people in other countries try to avoid public spaces.
Covid-19 may be largely under control in New Zealand, but that’s not the case in many other countries around the world.
Finally, don’t forget to bring the Christmas spirit to your online store, as well as your physical one. This can be done through temporary changes to your website’s design, friendly Christmas messages and holiday season specials.
The value of a social good cause
There’s another important point worth considering if you want to tap in the psyche of sellers at this time of year.
THE LAST WORD
> BY JAMES HEFFIELD
Director of Bay of Plenty marketing and PR consultancy Last Word. To find out more visit lastwordmedia.co.nz or email james@lastwordmedia.co.nz.
Christmas is a time of giving and many people are looking out for opportunities to contribute to those less fortunate than themselves.
If consumers perceive that your product makes a positive contribution to society, or the environment, your chances of selling during the holiday period will receive a
jump start. This could be done through your manufacturing process, which might be more environmentally friendly than your competitors. Or perhaps you partner with or support a local charity, contributing a percentage of every sale to help support their cause.
If you make a difference like this it should be well
communicated in your promotional materials, as well as in store. Backing ethical products and positive causes matters to many consumers – perhaps more this year than ever before.
After all, we’ve all seen the value of kindness and helping each other out in times of need this year.
A most unusual year brings out the best in many
As we draw near the end of 2020, we can reflect on what has been a most unusual year for all, and one that many of us would not have predicted, particularly not the widereaching effect that Covid-19 has had, not only us, but the entire world.
We can be thankful as many other countries are still in lockdown, and as we head into Christmas we have relative freedom in our daily activities – certainly something to be grateful for.
It’s been a tough year, but for the most part, we’ve done well. Whilst there are plenty of casualties as a result of Covid19 and the ensuing economic environment, there has been support and as tenacious Kiwis it’s been refreshing to see the true kiwi entrepreneurial spirit shine through. Having the ability to “pivot” being key. Reflecting on 2020, I think it’s a year that many of us are very keen to close the door on – but what does the coming 12 months hold for us as employers moving into 2021?
Covid-19 continues to dominate our landscape and unemployment figures are really starting to rise – almost doubling in the past three months –and expected to peak at around 7.5 percent this time next year.
As Covid-19 continues to ravage countries around the
world, there are far-reaching effects felt throughout the business community. Businesses are continually reshaping their business models and as we head into Christmas this will also put pressure on those who are working hard to remain profitable.
The lack of international students is also having a big impact on funding streams at tertiary education level.
The wage subsidy band-aid is at an end, businesses have taken up the loan options available and now many are faced with the reality of reducing staff and operations to account for the Christmas and New Year period and potentially beyond.
Although some sectors, including primary sectors, continue to flourish, those reliant on imports are dealing with reducing freight options putting pressure on supply chain and retailers really struggling with stock levels.
There is also the reduced ability to source labour from overseas, which is affecting productivity in those sectors
HUMAN RESOURCES
> BY KELLIE HAMLETT
Kellie Hamlett is Director and Recruitment & HR Specialist, Talent ID Recruitment Ltd. She can be contacted on kellie@talentid.co.nz
who rely heavily on migrants for seasonal operations, and this is also flowing into skilled and technical roles.
Interestingly, it is incredibly difficult at present to find staff. With high employment levels, many would expect the opposite.
However, it is becoming increasingly difficult to find staff for some basic level roles, and I suspect, talking to employers in other regions that this is the case nationwide – or within the regions at least.
Kiwis are certainly not rushing to fill roles that would ordinarily have been filled by temporary migrant workers.
What do employers face?
So what does 2021 have in store for employers? Firstly, another raise in the minimum wage – this will go from $18.90 to $20.00.
The current minimum wage sits at 59 percent of the average wage in New Zealand which
puts us at the highest in the developed world and is almost 70% of the median wage. There is no doubt that this will drive costs higher for all.
Broadly speaking minimum wages are mostly associated with work paid on an hourly rate basis – so those in retail, hospitality, services, tourism, and manufacturing. This comes at a time when thousands of roles are being disestablished and many businesses are struggling.
A plus for the regions post-lockdown is that many families are choosing to relocate out of the cities – realising that many can work remotely from any location and that the regions potentially offer better lifestyle options.
I guess there are many lessons to be learnt from lockdown. There’s no doubt that the house prices, pressures of life in the large cities and the desire for lifestyle change has seen numerous individuals and families choose to make our wonderful region home.
We have seen a number of newly created roles across both Tauranga and Rotorua markets that reflect the growth of some of the businesses within our region. So it’s positive so note that there is some business confidence.
In particular we have seen a number of newly created middle management roles come to the market as business owners recognise the need to add value to their current business operations.
It is also refreshing to note that salary and benefit packages are competitive across the Bay of Plenty making it easier for our employers to compete for quality candidates nationwide. In summary, 2020 has been a year that none of us will forget. With unexpected challenges on all levels, we’ve had to be resilient and with the election behind us and another new year ahead, again we are fortunate in so many ways, and know that out of adversity comes strength. Wishing you all the very best for the festive season.
Preschool | Primary | College
World-class education in the Bay of Plenty
ACG Tauranga is a secular, co-educational school that offers an academically focussed education option for Bay of Plenty families seeking personalised care and a nurturing environment, supported by a range of activities, a globally-recognised curriculum and a values-driven education.
› Internationally-recognised Cambridge curriculum helps students enjoy learning
› Individual tutor for each student provides mentoring, coaching and ongoing support
› Excellent facilities in a landscaped campus
› Specialist subjects and teachers from Primary to College.
› Holistic approach to education with numerous sporting and cultural opportunities available
› Small class sizes and innovative learning environment
› Friendly, supportive environment ensures new students settle in quickly
› Private school buses operating throughout the Bay of Plenty
We look forward to welcoming you and your family to our school.
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