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iFAB 2013 F&B INDUSTRY OVERVIEW January 2014 v1.00e

iFAB 2013

http://www.coriolisresearch.com/


The Food and Beverage Information Project The Food & Beverage Information Project is the first comprehensive overview of the state of New Zealand’s Food & Beverage (F&B) industry. Part of the Government’s Business Growth Agenda (BGA), it is an integrated programme of work focusing on the six key inputs businesses need to succeed, grow and add jobs; export markets, capital markets, innovation, skilled and safe workplaces, natural resources and infrastructure. Essentially, the BGA Export Markets goal will require lifting the ratio of exports from today’s rate of 30% of GDP to 40% by 2025. This equates to doubling exports in real terms (or tripling exports in nominal non-inflation adjusted terms). This in turn equates to achieving a 7% per annum growth rate over the next twelve years. This five-year project analyses the main sectors in F&B, including dairy, meat, seafood, produce, processed foods, and beverages, as well as providing an overview of how the industry is fairing in our major markets. It also conducts in-depth sector reviews on a rotating basis. The information is updated annually and feedback from users shows the project is acting as a vital tool for companies looking to expand and grow exports. Why Food & Beverage? The Food & Beverage industry is vitally important to the New Zealand economy. Food & Beverage accounts for 56% of our merchandise trade exports and one in five jobs across the wider value chain. In addition, F&B acts as a vital ambassador for the country, being in most cases the first exposure global consumers get to “Brand New Zealand.” New Zealand’s F&B exports are growing strongly and the country’s export performance is strong and improving relative to peers. In the 15 years leading up to 2010, New Zealand's food and beverage exports grew at a compound annual rate of 7% per annum. So one way to look at the challenge is to ask – can we continue to grow our food & beverage exports at the same rate? To understand if this is possible we need to know what has been driving our success.

What is the purpose of the food and beverage information project? The project pulls together the available information on the food and beverage industry into one place, in a form which is familiar and useful to business. The reports contain analysis and interpretation of trends and opportunities to materially assist with business strategy and government policy. The information will be of vital use to businesses, investors, government, and research institutions as the industry expands and diversifies. This industry view will be very useful to government, enabling better dialogue and the opportunity to address issues collectively. What benefit will this bring to businesses? The Project will have many uses for businesses. These include:

– As a base of market intelligence to enable business to be much more targeted in their own market research

– Reviewing and informing offshore market development (including export and investment) strategies

– Assisting in identifying areas of innovation and R&D for the future

– Identifying strategic partners and collaborators – Enabling a company to benchmark performance with that

of its competitors – Monitoring industry activity – Gaining a better understanding of their own industry

sector – Identifying internal capability needs or external inputs

How will government use the reports? This information will provide much greater insight into the industry, which is useful for a range of policy development, from regulatory frameworks to investment in science and skills and facilitating access to international markets. In particular, a single source of factual information will enable government agencies to better coordinate their efforts across the system and be more responsive to addressing industry issues.

iFAB 2013

2


IFAB 2013 OTHER RELATED iFAB REPORTS

3

This industry overview forms a part of the wider Food & Beverage Information Project

Other reports, including those from previous years, are available on the MBIE or Coriolis website…

http://www.med.govt.nz/sectors-industries/food-beverage/information-project/ http://www.coriolisresearch.com/reports/


http://www.coriolisresearch.com/pdfs/coriolis_iFAB_2013_dairy.pdf

http://www.coriolisresearch.com/pdfs/coriolis_iFAB_2013_seafood.pdf

http://www.med.govt.nz/sectors-industries/food-beverage/information-project/









http://www.coriolisresearch.com/reports/

http://www.coriolisresearch.com/reports/

http://www.coriolisresearch.com/pdfs/coriolis_iFAB_2013_meat.pdf

http://www.coriolisresearch.com/pdfs/coriolis_iFAB_2013_produce.pdf

http://www.coriolisresearch.com/pdfs/coriolis_iFAB_2013_processed.pdf

http://www.coriolisresearch.com/pdfs/coriolis_iFAB_2013_beverages.pdf

iFAB 2013

IFAB 2013

EXPORT VALUE BY TYPE %; US$m; 2012

EXPORT SECTORS In 2012 New Zealand exported US$21b worth of food & beverages, 56% of total merchandise trade; dairy products make up almost half of the F&B exports

5 Source: UN Comtrade database; Coriolis classification and analysis

EXPORT VALUE OF FOOD AND BEVERAGE SECTORS %; US$m; 2012

Dairy, $10,226 , 49%

Meat, $4,447 , 21%

Seafood, $1,238 , 6%

Produce, $1,586 , 8%

Other food, $191 , 1%

Processed foods, $1,722 , 8%

Pet/animal feed, $289 , 1%

Beverages, $1,257 , 6%

Total = US$21b

Food and Beverage,

$20,956 , 56%

Other exports, $16,349 , 44%

Total = US$37b

See separate sector reports for further information and definitions


IFAB 2013

ANNUAL CHANGE IN EXPORT VALUE BY TYPE US$m; 2012 vs. 2011

BENCHMARK – EXPORT GROWTH BY SECTOR In 2012 the value of New Zealand’s core food & beverage exports grew by +US$67m, though performance varied strongly by sector

6 HBC Health and Beauty Care; Source: UN Comtrade database; Coriolis classification and analysis

PERCENT CHANGE IN EXPORT VALUE BY TYPE %; US$m; 2012 vs. 2011

$117

$66

$51

$35

$35

-$23

-$36

-$180

$30

$27

$16

$3

$3

-$2

-$7

Beverage

Processed Food

Seafood

Pet & Animal Foods

Other Foods

Dairy

Produce

Meat

Seed for sowing

Live Animals

Tobacco

Supplements

Fertilisers

HBC/Household

Pharmaceuticals

Net Core F&B +$67m

F&B RELATED CATEGORIES

CORE F&B CATEGORIES

23%

14%

10%

4%

4%

0%

-2%

-4%

57%

48%

33%

28%

15%

-1%

-3%

Other Foods

Pet & Animal Foods

Beverage

Seafood

Processed Food

Dairy

Produce

Meat

Fertilisers

Tobacco

Supplements

Seed for sowing

Live Animals

HBC/Household

PharmaceuticalsNet Related F&B +$70m


IFAB 2013 FOOD & BEVERAGE - SITUATION

General New Zealand is a developed, temperate-climate country in the Asia-Pacific region. It is a stable democracy with strong economic freedoms (Index of Economic Freedom #4), excellent investor protection (World Bank #1) and low corruption (Transparency International #1). It is by almost all measures the most attractive investment destination in the temperate zone of the Southern Hemisphere. Food & beverages The Food & Beverage industry is important to New Zealand and the country is a major F&B exporter. New Zealand’s F&B exports are growing strongly and the country’s export performance is strong and improving relative to peers. The country has demonstrated capability in the production of temperate-climate food and beverages. It is the largest exporter in the world of dairy products and lamb and a major exporter of beef, kiwifruit, apples and seafood. Drivers The success of New Zealand in temperate foods is built around a natural environment conducive to agriculture. New Zealand – surrounded by the Pacific Ocean – has the light of Spain with the climate of Bordeaux. This climate will also moderate the effects of global warming going forward (relative to large continents). The country’s farmers are highly productive and efficient. The country has no agricultural subsidies and regulation is light handed. New Zealand has a supportive infrastructure for food and beverages along the total value chain.

New Zealand is a leader in food safety and product traceability. Customers and consumers around the world trust food and beverages produced in New Zealand. In science, New Zealand spends more than half a billion dollars a year on Agri-Food research across a wide range of areas, from fruit genetics to nutraceuticals. The country is also home to four major universities respected globally for their Agri-food research. Opportunities While New Zealand is a major global F&B exporter, the country has significant untapped capacity to export more. New Zealand is a country the size of Italy with the population of Singapore. However Italy feeds a domestic population of 60m people and exports twice as much F&B as New Zealand. To achieve the goals and the Business Growth Agenda, New Zealand will need to roughly double the country’s food and beverage exports over the next 15 years (in real terms)1. This will be achieved through both growth of existing major sectors and the newer emerging growth stars. New Zealand is a young country still discovering its comparative advantages and new industries continue to emerge. In the past twenty years New Zealand wine, honey, aquaculture and avocados have all emerged from almost nothing into world leading sectors. New Zealand has attracted investment in F&B manufacturing from around the world. Global leaders have already endorsed New Zealand by investing in manufacturing in the country and about a quarter of the F&B manufacturing sector (by turnover) is foreign owned.

New Zealand has clear comparative advantage in food & beverage (F&B) production and the capacity to continue growing for the foreseeable future

7 1. Doubling in inflation-adjusted real terms which is tripling in nominal dollars over the same period


IFAB 2013 F&B – SWOT ANALYSIS While New Zealand is well positioned in F&B, it is not without challenges

8

STRENGTHS WEAKNESSES

- Natural environment favourable to pastoral agriculture; low cost, grass fed dairy, beef and sheep production systems

- Clean water and generally healthy aquatic environment; quota management system preventing collapse of fish stocks through overfishing

- Strong biosecurity; lack of many key plant and livestock diseases

- High standards of food safety and animal welfare; regulatory credibility allowing exporters flexibility

- Potential for year round production

- Positive reputation internationally (but low awareness)

- National champion Fonterra with resources to address global markets and opportunities

- Relatively low cost energy inputs

- Six to twelve weeks sea freight to major markets; very expensive airfreight to Northern Hemisphere; excessive shipping costs across the Tasman

- Twelve to twenty four hours flight for senior managers to meet with customers

- Relatively small domestic market

- Only one top 50 global food and beverage company (Fonterra) based here

- Fonterra is limited in its ability to add value due to the risks associated with competing with its own customers

- No deep and rich food cultural heritage or tradition to draw from for new product development (vs. France or Italy)

- Small food producer in an absolute sense; limited defensibility of current commodity and ingredient position

- Significant trade barriers limiting New Zealand access to North America and Europe

- Despite strong food safety systems & reputation, a number of recent high-profile issues (e.g. whey, nitrates)

OPPORTUNITIES ISSUES/THREATS/RISKS

- Ongoing moves towards more free trade through bilateral and multilateral talks

- Continued income and consumption growth in Asia

- Ongoing global growth of foodservice

- Aging baby boomers seeking healthy foods

- Closer economic integration with Australia

- Growing Asian population in New Zealand

- Genetic modification to create super-food

- Intensification leading to increased production and improving return on assets

- Ongoing dairy industry consolidation, particularly in South America

- Changing global weather patterns (also potentially a threat)

- Further investment in in-market production

- Consolidation by retail chains in North America, Europe and Asia leading to uneven bargaining and downward pressure on prices

- Consolidation by F&B manufacturers making New Zealand a sales office

- Increasing food and beverage production in China

- Disease outbreak affecting stock numbers and or trade access

- Emissions Trading Scheme (ETS), climate change legislation affecting cost of business

- Southern South America rapidly adopting the AU/NZ pasture system (e.g. Argentina, Uruguay, Brazil)

- The boom/bust economic cycle expresses itself in China

- Adoption of genetically modified animals or feed by poor countries changing international competitive dynamics


IFAB 2013 FIRMS - SITUATION

An important sector New Zealand’s food & beverage (F&B) manufacturing sector is large, with more than 2,600 enterprises, employing almost 85,000 people with a total revenue of approximately NZ$38 billion. It accounts for 56% of merchandise trade exports.

Still New Zealand owned, primarily by farmers Historically New Zealand has been a major producer of ingredients through farmer-owned cooperatives and marketed via quasi-government monopsonies1.

The New Zealand F&B industry is predominantly owned by New Zealanders. Four of the top five New Zealand F&B firms are owned by farmers. There is nothing “wrong” with farmers owning the food industry and this is a common situation across many peer group counties.

Moving to the centre Broadly speaking 50% of what is sold in a supermarket anywhere in the world is fresh perishables (e.g. meat, seafood, produce, dairy) and 50% is consumer-ready packaged shelf-stable products. The export mix of peer group countries match these proportions (i.e. 50/50). New Zealand, on the other hand, is 80% weighted toward perishables and only 20% shelf-stable. This mix limits industry profitability.

In the last 10-15 years New Zealand’s F&B industry has begun to transform into a producer of consumer ready packaged goods.

Processed/packaged F&B are showing rapid growth, and over the next 20 years New Zealand’s F&B exports will likely come to resemble those of peer group countries.

While doubling F&B exports over the next 15 years (in real terms) is a clearly a stretch, all of our research suggests it is possible.

To achieve this, the path forward over the next 20 years is about turning ingredients into packaged/processed foods (e.g. infant formula instead of milk powder). This transition will require large amounts of new investment in research, plants and equipment, sales and marketing.

Conceptually this will require something approaching tripling the amount of capital in the F&B industry. Firms will need to make a significant increase in their investment to make this required transition to packaged goods.

Foreign capital filling the gap

Producer owned co-operatives strive to maximise returns to members, which limits availability of capital to fund growth.

Nevertheless, international investors are providing a large and constant in-flow of capital, particularly in the areas of strong growth potential going forward (i.e. beverages and processed foods).

F&B manufacturing is an important sector that will require significant capital if it is to triple exports over the next fifteen years

9 1. A monopsony is a monopoly on selling not buying; also referred to in New Zealand as a “single desk” (the “desk” in question being figurative) or single point of entry


IFAB 2013

Food & beverage manufacturing/ processing $37.7b

SIMPLIFIED MODEL OF THE NEW ZEALAND FOOD & BEVERAGE INDUSTRY SUPPLY/VALUE CHAIN (model; NZ$b; YE June 2011 or as available)

NZ F&B INDUSTRY VALUE CHAIN MODEL We propose the following simplified model of the New Zealand food & beverage industry value chain; this model guides our work

10 1. The total value to NZ of its F&B exports in 2011 was $25.3b. Other countries use our ingredients to make finished goods , or add a margin for wholesaling and/or distribution, capturing significant additional value. 2. Treat as directional; Source: Statistics NZ; MAF SONZAF; past Coriolis research; Coriolis estimates and analysis

Land $18.4b

Horticulture & Crop Farms $3.9b

Oceans & Lakes

Domestic Food Retailing $18.7b

Domestic Foodservice & Hospitality $6.5b

Value FOB of New Zealand F&B exports1

$25.3b

Primary Secondary Markets

Livestock Farms $14.5b

Aquaculture

Wild capture

Food & beverage wholesalers $25.3b

Expenditure by New Zealand consumers on F&B $22.5b

Expenditure by non-NZ consumers on F&B products primarily of NZ origin ~$140-200b2

Global food manufacturers & wholesalers sales of F&B products primarily of NZ origin ~$100-150b2

Global food retailing & foodservice sales of F&B products primarily of NZ origin ~$140-200b2

Expenditure by tourists in NZ $2.7b

Consumers

Value of NZ F&B imports $4.0b

Dairy

Meat

Produce

Processed/other

Nutraceuticals

Seafood

Beverages

We consume domestically almost 50% of the food we produce (by value)

4-6 times value added outside NZ


iFAB 2013

IFAB 2013

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

196

1

196

4

196

7

1970

1973

1976

1979

198

2

198

5

198

8

199

1

199

4

199

7

200

0

200

3

200

6

200

9

Cereals 2,589 37%

Oilcrops /oilcakes

502 7%

Vegetables incl. root & pulses

1,969 29%

Fruit & nuts 652 9%

Seafood 168 3%

Meat 299 4% Milk

739 11%

GLOBAL FOOD PRODUCTION BY SUPER-CATEGORY The world produced almost seven billion tonnes of food in 2011; total global food production has grown at 2% CAGR* over the last 50 years, leading to per capita growth of 0.6% CAGR over the same period

GLOBAL RAW VOLUME PRODUCTION BY SUPER-CATEGORY Tonnes; millions; 2011

50 YEAR GLOBAL RAW PRODUCTION BY SUPER-CATEGORY Tonnes; millions; 1961-2011

12 * CAGR = Compound annual growth rate; Note: 2011 is latest data available for all countries globally in FAO AgStat as of November 2013; Source: UN FAO AgStat database; Coriolis analysis

Total = 6,919m tonnes

Cereals

Oilcrops/cakes

Fruit Seafood

Milk

2%

4%

3% 3%

2%

50y CAGR*

50y CAGR

2%

50 YEAR GLOBAL RAW AVAILABLE CONSUMPTION PER CAPITA Kilograms/person; 1961-2011

Vegetables 2%

Meat 3%

-

100

200

300

400

500

600

700

800

900

1,00019

61

196

319

65

196

719

69

1971

1973

1975

1977

1979

198

119

83

198

519

87

198

919

91

199

319

95

199

719

99

200

120

03

200

520

07

200

920

11

Cereals

Oilcrops/cakes

Fruit Seafood

Milk

0.5%

2.3%

1.0% 1.4%

-0.1%

50y CAGR

50y CAGR 0.6%

Vegetables 0.4%

Meat 1.2%

NOTE: Read as raw farm gate level production, although meat is dressed bone-in carcass weight and seafood is landed weight; what consumers actually consumer will be smaller than this amount for a range of reasons


IFAB 2013

902 1,117 1,182 1,261 1,146 1,229

346

469 620 599 693

787

29

41 51 53 91

96

160

245

321 378

533

711

59

83

115 169

268

390

130

176

203 285

378

530

212

273

362

492

664

921

100

133

208

266

362

536

363

519

651

897

1,303

1,728

2,302

3,057

3,713

4,400

5,438

6,928

1961 1971 1981 1991 2001 2011

Europe 1,229 18%

N America 787 11%

Australasia 96 1%

C/S America 711 10%

NA/ME/CA 390 6%

SS Africa 530 8%

S Asia 921 13%

SE Asia 536 8%

East Asia 1,728 25%

GLOBAL RAW VOLUME PRODUCTION BY REGION Tonnes; millions; 2011

GLOBAL FOOD PRODUCTION BY REGION New Zealand produces 0.3% of global food volume

13 1. Unlike page prior contains 9m in “other”; Note: 2011 is latest data available for all countries globally in FAO AgStat as of October 2013; Source: UN FAO AgStat database; Coriolis analysis

Total = 6,928m1 tonnes

Europe/Russia

New Zealand 23/0.3% Australia 66/0.9% Pacific Islands 7/0.1%

Australasia

C/S America

E Asia

SE Asia

S Asia

NA/ME/CA

SS Africa

Other

50 YEAR RAW VOLUME PRODUCTION BY REGION Tonnes; millions; 1961-2011

0.6%

1.7%

2.4%

3.0%

3.2%

3.4%

3.0%

3.8%

2.9%

50y CAGR

50y CAGR 2.2%

N America


IFAB 2013 TOP 46 FOOD PRODUCING COUNTRIES New Zealand is the forty-sixth largest food producing country in the world; it is achieving the fastest growth rate of any major developed country producer

TOP 46 FOOD PRODUCERS Tonnes; millions; 2011

10 YEAR PRODUCTION GROWTH RATE CAGR % of tonnes; 2001-2011

14 Source: UN FAO AgStat database; Coriolis analysis

1,565 718

695 298

201 189

153 131 129

119 105 102 100 92 88 86 79 77 72 70 69 66 66 66 62 60 56 52

42 42 40 34 33 32 31 30 30 30 29 28 27 25 25 25 23 23

ChinaIndiaUSA

BrazilRussia

IndonesiaNigeria

ArgentinaFrance

UkraineTurkey

GermanyPakistanCanada

Viet NamThailand

MexicoBangladesh

IranSpain

ItalyChina

AustraliaEgypt

PolandPhilippinesMyanmar

United KingdomJapan

KazakhstanRomaniaEthiopia

MalaysiaSouth Africa

GhanaNetherlands

PeruTanzania

UzbekistanColombia

UgandaBelarus

South KoreaMorocco

DR CongoNew Zealand

3.1% 3.2%

1.2% 3.8%

1.1% 4.7%

3.1% 3.4%

0.4% 3.8%

2.1% -0.5%

3.4% 1.9%

4.4% 1.4%

0.3% 4.4%

3.3% 0.8%

-0.6% 4.1%

-0.1% 2.9%

-1.5% 3.1%

5.1% 0.5%

-1.9% 5.0%

1.1% 6.1%

4.1% 1.9%

4.5% 1.1%

2.6% 6.1%

6.9% 1.1% 1.1%

2.3% -1.0%

5.4% 0.7%

2.4%

ChinaIndiaUSA

BrazilRussia

IndonesiaNigeria

ArgentinaFrance

UkraineTurkey

GermanyPakistanCanada

Viet NamThailand

MexicoBangladesh

IranSpain

ItalyChina

AustraliaEgypt

PolandPhilippinesMyanmar

United KingdomJapan

KazakhstanRomaniaEthiopia

MalaysiaSouth Africa

GhanaNetherlands

PeruTanzania

UzbekistanColombia

UgandaBelarus

South KoreaMorocco

DR CongoNew Zealand

Developed Developing


iFAB 2013

IFAB 2013

TOTAL AREA: NEW ZEALAND VS. SELECT US EAST COAST STATES VS. SELECT DEVELOPED PEER COUNTRIES km2; 2013

BENCHMARK - AREA New Zealand is not a small country; many regions of New Zealand are the size of major European countries or American states

Source: Wikipedia; CIA World Fact Book; Coriolis analysis

14 6

26

12 8 14 7

22

8 10 12

23

45

32

34

122

19

13

23

24

25

62

31

37

41

43

70

49

3

NZ USA Europe

Northland Auckand

Waikato

Bay of Plenty Gisborne

Hawke’s Bay

Taranaki

Manawatu-Wanganui

Wellington Nelson/Tasman

Marlborough

West Coast

Canterbury

Otago

Southland

Belgium

Netherlands

Switzerland

Denmark

Ireland

Slovakia

Luxembourg

New York

New Jersey

Connecticut

New Hampshire

Vermont

Maryland

West Virginia

275

289

274

16


IFAB 2013

NEW ZEALAND LAND USE km2; 000; 2012

NEW ZEALAND LAND USE Farming uses 48% of New Zealand’s land area, however most farmland is used for grazing; historical declines in total farm area appear to have slowed or stabilised over the past few years

17 Source: Statistics New Zealand; World Database of Protected Areas (http://www.wdpa.org); Department of Conservation; Coriolis analysis and estimates

Farming 127 48%

Forestry 16 6%

National parks 71

26%

Other DOC 14 5%

Other 39 15%

Total = 268 (000) km2

10 YEAR CHANGE IN FARMING AREA BY LAND USE Hectare; 000; 2002-2012

FARMING AREA BY LAND USAGE TYPE Hectare; 000; 2012

NEW ZEALAND LAND USE OVER LAST DECADE km2; 000; 2002-2012

Lifestyle blocks Cities and towns

Idle lands Other government

Other

-

50

100

150

200

250

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Farming & Forestry

Parks

All other uses

Tussock 2,741 22%

Pasture 7,888 62%

Arable 468 4%

Horticulture 128 1%

Onfarm native bush 1,075 8%

Other 410 3%

Total = 12,584 (000) ha

8,255 8,086 7,888

3,287 2,900 2,741

424 367 468

110 133 128

1,302 1,074 1,075

2002 2007 2012

Pasture

Tussock

On-farm native bush

Arable Horticulture

13,762 12,993 12,584


IFAB 2013

TOTAL NEW ZEALAND FOOD PRODUCTION VOLUME AT FARM GATE Tonnes; 000; 1961-2011

NEW ZEALAND – TOTAL FOOD VOLUME New Zealand produces a large and growing volume of food, particularly dairy

18 1. Not dried; 2. dressed but bone-in; 3. “green weight” as reported; Source: United Nations AgStat database; data is provided by MAF/MPI; Coriolis analysis

-

5,000

10,000

15,000

20,000

196

119

62

196

319

64

196

519

66

196

719

68

196

919

7019

7119

7219

7319

7419

7519

7619

7719

7819

7919

80

198

119

82

198

319

84

198

519

86

198

719

88

198

919

90

199

119

92

199

319

94

199

519

96

199

719

98

199

920

00

200

120

02

200

320

04

200

520

06

200

720

08

200

920

1020

11

Grains/Cereals

Vegetables

Fruit

Seafood3

Meat2

Dairy1

2%

2%

5%

5% 1%

2%

50y CAGR (61-11)

50y CAGR (61-11)

2%

Eggs 0.5%


IFAB 2013

FARM GATE GROSS AGRICULTURAL REVENUE FROM FOOD AND BEVERAGE PRIMARY PRODUCTS NZ$b; nominal/non-inflation adjusted; YE Mar; 1996-2013

NEW ZEALAND – FARM GATE REVENUE Farm gate revenue is growing medium term, though down in the most recent year

19 Note: totals may not add due to rounding; Source: MAF SONZAF (various years); Coriolis analysis

Dairy

Beef

Lamb

Deer

Fruit

Vegetables

Other horticulture Crops & seeds $0.4 $0.4 $0.3 $0.3 $0.3 $0.3 $0.4 $0.4 $0.4 $0.4 $0.3 $0.4 $0.5 $0.7 $0.7 $0.8 $0.7 $0.7 $0.2 $0.2 $0.2 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.6 $0.5 $0.6 $0.7 $0.6 $0.6 $0.7 $0.7 $0.9 $0.7 $0.7 $0.8 $1.0 $0.9 $0.9 $1.0 $1.0 $1.0 $0.7 $0.7 $0.7 $0.9 $0.9 $1.1 $1.2 $1.2 $1.4 $1.3 $1.4 $1.5

$1.8 $2.1 $2.3 $2.2 $2.4 $2.3

$0.1 $0.1 $0.1 $0.1 $0.1 $0.1

$0.1 $0.1 $0.1 $0.1 $0.1 $0.1

$0.2 $0.2 $0.2 $0.2 $0.2 $0.2

$0.1 $0.1 $0.1 $0.1 $0.1 $0.1

$0.2 $0.1 $0.2 $0.2 $0.2 $0.2

$0.2 $0.2 $0.2 $0.2 $0.2 $0.2

$1.0 $1.3 $1.4 $1.2 $1.3

$1.8 $1.9 $2.0 $1.8 $1.8 $1.7 $1.8

$1.7

$2.2 $2.1 $2.0 $2.2 $2.0

$0.2 $0.2 $0.1 $0.2 $0.1

$0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2

$0.3

$0.3 $0.2 $0.2 $0.2

$0.2

$1.2 $1.0 $1.3 $1.3 $1.5

$1.8

$2.1 $1.9 $2.1 $2.2 $2.1

$2.2 $1.7

$2.1 $1.8 $2.1 $2.2

$2.2

$3.2 $3.3 $3.3 $3.2

$3.6

$5.0

$6.2

$4.7

$5.3 $5.5 $4.6

$5.2

$10.1 $6.6

$7.6

$9.8 $9.8

$9.3

$7.7 $7.9 $8.1 $8.2

$9.0

$11.4

$13.4

$11.6

$12.7 $12.8

$11.7

$12.7

$17.6

$15.5

$16.3

$18.9 $19.2

$18.4

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Pigs Poultry

6.4%

3.8%

4.2%

0.7%

7.4%

3.4%

1.7% 3.6%

1.4% 4.7%

17y CAGR

(96-13)

17y CAGR

(96-13) 5.3%


IFAB 2013

AREA km2; 000; 2013

BENCHMARK – PRODUCTION DRIVERS Benchmarking with a range of size/climate peers highlights New Zealand’s low yield per farmed hectare, driven by using a primarily pastoral system

20 1. Italy uses 2011; Source: United Nations AgStat database; Coriolis analysis

378

301

275

243

70

49

43

41

37

31

Japan

Italy

New Zealand

UK

Ireland

Slovakia

Denmark

Switzerland

Netherlands

Belgium

42

69

23

52

10

6

19

7

30

14

Japan

Italy

New Zealand

UK

Ireland

Slovakia

Denmark

Switzerland

Netherlands

Belgium

$4,448

$39,816

$20,955

$28,703

$11,863

$4,489

$18,371

$7,905

$73,507

$39,544

Japan

Italy

New Zealand

UK

Ireland

Slovakia

Denmark

Switzerland

Netherlands

Belgium

FOOD PRODUCED Tonnes; million; 2011

F&B EXPORT VALUE US$m; 20121

111

231

85

215

144

121

444

176

824

466

Japan

Italy

New Zealand

UK

Ireland

Slovakia

Denmark

Switzerland

Netherlands

Belgium

VOLUME PER FARMED AREA

Tonnes/km2; 2011


IFAB 2013 TOTAL FOOD VOLUME Peer group benchmarking suggests New Zealand has ample capacity to increase or intensify food production volume for the foreseeable future, though this will likely require land use change and more irrigation

AGRICULTURAL LAND USE BY TYPE: NZ VS. PEERS % of agricultural area; km2; 2012 or as available

TOTAL FOOD PRODUCTION VOLUME AT FARM GATE Tonnes; 000; 1961-2011

21 1. Data at source appears to excludes on-farm native bush and other; 2. available data is consented to irrigate not actually irrigated; Source: World Bank; CIA World Fact Book; UN AgStat database; Coriolis analysis

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

196

1

196

3

196

5

196

7

196

9

1971

1973

1975

1977

1979

198

1

198

3

198

5

198

7

198

9

199

1

199

3

199

5

199

7

199

9

200

1

200

3

200

5

200

7

200

9

2011

Switzerland

Ireland

Denmark

New Zealand

Netherlands

Japan

United Kingdom

Italy

93%

83%

73%

62%

60%

54%

49%

39%

33%

26%

25%

13%

7%

0%

7%

2%

4%

19%

18%

1%

0%

2%

0%

16%

17%

20%

36%

37%

27%

34%

60%

67%

72%

75%

71%

Japan

Denmark

Slovakia

Belgium

France

Italy

Spain

Netherlands

UK

Switzerland

Ireland

New Zealand

Arable land

Fruit/perm. crops

Pasture/other agricultural land

AREA IRRIGATED: NEW ZEALAND VS. PEERS km2; 000; 2012 or as available

37,800

27,500

26,000

25,920

10,770

5,650

4,490

1,830

1,700

400

250

-

Spain

Italy

France

Japan

New Zealand

Netherlands

Denmark

Slovakia

UK

Belgium

Switzerland

Ireland

1

2


iFAB 2013

IFAB 2013 NUMBER OF FIRMS The number of F&B firms has grown over the past year, five years and decade, led by processed/other and beverages

NUMBER OF F&B INDUSTRY ENTERPRISES

Enterprises; 2002-2012

23 Note: for this chart seafood includes seafood processing and aquaculture, but not fishing boats (see related document); Source: Statistics NZ business demographics database; Coriolis analysis

CHANGE IN NUMBER OF F&B INDUSTRY ENTERPRISES CAGR; absolute change; periods as given

53 52 57 60 58 59 58 73 80 84 90

262 260 267 255 269 258 269 267 271 275 267

491 486 487 465 450 430 430 411 387 378 387

352 376 395 397 392 385 375 356 345 341 347

631 672

724 761 780 804 823 825 841 877 876

63 71

70 78 81 83 81 85 85 80 88 310 335

359 376 409 440 443 474 528 552 560

2,162

2,252

2,359 2,392 2,439 2,459 2,479 2,491

2,537 2,587 2,615

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dairy

Meat

Seafood

Produce

Processed /other

Pet/animal

Beverages 1.9%

0.6%

1%

CAGR 10y

CAGR 5y

CAGR 1y

453

156

28

ABS 10y

ABS 5y

ABS 1y


IFAB 2013

$2,035

$1,640

$1,487

$1,371

$1,212

$1,088

$730

$669

$641

$613

$534

$534

$500

$494

$487

$471

$466

$460

$414

$406

$378

$377

$373

$336

$320

Fonterra

Silver Fern Farms

Talley's*

Zespri

Alliance

ANZCO

Goodman Fielder

HJ Heinz NZ

T&G

Open Country

Lion - Beer, Spirits & Wine NZ

MG Marketing

Westland

Hawkes Bay Meat*

CCA

Sealord

Tegel Foods

DB Breweries

Sanford

Independent**

Frucor

Nestle NZ

Synlait

Nutricia

Inghams

Mondelez NZ

ANNUAL TURNOVER BY TOP 50 FOOD & BEVERAGE INDUSTRY FIRMS NZ$m; FY2012

iFAB50 TOP 50 F&B FIRMS BY TURNOVER The revenue of the Top 50 companies in FY2012 was over $42.8b

24 *Estimates based on # employees and industry sector averages; ** FY10 Independent Liquor; # Mr Apple figure is Scales operations; Note: Talley Group Includes estimate of AFFCO and Talley’s seafood/processed foods turnover plus 54% of Open Country; Source: various company annual reports; NZCO; Coriolis interviews, estimates and analysis

Total FY2012 $42.8b

$19,769 1 2 3

$301

$300

$293

$277

$260

$246

$236

$230

$228

$227

$222

$220

$195

$192

$175

$175

$175

$171

$160

$154

$152

$150

$144

$140

NZ Sugar

Wilson Hellaby

Griffins Foods

GWF NZ

Taylor Preston*

McCain Foods

Pernod Ricard

Greenlea Premier*

Tatua

Mr Apple#

Delegat's

Brinks

Mars NZ

Constellation

A.S. Wilcox*

Fresh Direct

Hansells Food

Vitaco Health

Hellers

Aotearoa Fisheries

Cerebos

Sanitarium*

Pepsico

Leaderbrand


IFAB 2013

TOP 10 ANNUAL TURNOVER GROWTH NZ$m; FY2012 vs FY2011

iFAB50 TOP 10 F&B FIRMS BY TURNOVER GROWTH The Top 10 companies (by revenue growth) grew by a combined total revenue of $455m

25 Excludes estimates; Source: various company annual reports; NZCO; Coriolis analysis

Total FY2012 $455m

1

2

3

$138.1

$77.9

$72.2

$29.0

$28.9

$28.0

$24.0

$21.8

$18.7

$17.0

Nutricia

Synlait

Zespri

Tegel Foods

McCain Foods

Tatua

Turners andGrowers

Hansells Food

Westland

Griffins Foods


IFAB 2013

TOP 10 ANNUAL PERCENT TURNOVER GROWTH % revenue; FY2012 vs FY2011

iFAB50 TOP 10 F&B FIRMS BY PERCENT TURNOVER GROWTH Five of the iFAB50 companies showed significant double digit growth over the year

26 Excludes estimates; Source: various company annual reports; NZCO; Coriolis analysis

9 Miraka did not make the iFAB50 but is standout entering the market and jumping to $125m in 2012

1

2

3

59%

26%

14%

14%

13%

7%

6%

5%

5%

5%

Nutricia

Synlait

Hansells Food

Tatua

McCain Foods

Tegel Foods

Griffins Foods

Mars NZ

Vitaco Health

Zespri


IFAB 2013

TOP 10 ANNUAL TURNOVER LOSSES NZ$m; FY2012 vs FY2011

iFAB50 TOP 10 F&B FIRMS BY TURNOVER DECLINE The TOP 10 turnover losses totalled $546m

27 *Sealord figure compares FY11 15 months vs FY12 12 months; Excludes estimates; Source: various company annual reports; NZCO; Coriolis analysis

9

TOP 10 ANNUAL PERCENT TURNOVER DECLINE % revenue; FY2011 vs FY2012

Total FY2012 $-546m

* -$128.3

-$102.0

-$86.4

-$76.0

-$38.4

-$31.3

-$23.8

-$22.1

-$21.8

-$16.3

Alliance

Fonterra

Sealord*

Silver Fern Farms

Open Country

CCA

MG Marketing

Pernod Ricard

Lion - Beer, Spirits & Wine NZ

DB Breweries

-15.1%

-8.6%

-8.6%

-6.0%

-5.7%

-5.6%

-4.3%

-4.3%

-3.9%

-3.6%

Sealord*

Pernod Ricard

Alliance

CCA

Open Country

Delegat's

Aotearoa Fisheries

MG Marketing

NZ Sugar

Silver Fern Farms


IFAB 2013

TOP 50 OWNERSHIP MODELS 2013, (does not equal 50)

iFAB50 TOP 50 F&B FIRMS BY OWNERSHIP Over half of the iFAB50 have full or part foreign ownership

28 VC Venture Capital; Source: various company annual reports, websites, NZCO; Coriolis analysis

9

28

20

14

10

8

Foreign owned

Public

Private NZ (individuals,families)

Cooperatives/Iwi/Charity

Private Equity/VCDoes not include all PE

investment in Public/Private foreign companies


IFAB 2013

PRIVATE EQUITY OWNERSHIP Model, 2013

iFAB50 F&B FIRMS BY OWNERSHIP Private Equity companies own (or part own) companies in NZ with revenues in excess of $3billion

29 Source: various company annual reports, websites, NZCO; Coriolis analysis

COMPANY REVENUE NZ$m; FY2012

$730

$669

$471

$336

$293

$227

$171

$160

HJ Heinz NZ

T&G

Tegel

Inghams

Griffins Foods

Mr Apple/Scales

Vitaco Health

Hellers

-0.8%

3.7%

6.6%

5.0%

6.2%

2.0%

5.5%

0.0%

COMPANY REVENUE CHANGE NZ$m; FY2012 vs FY2011

Total $3b


IFAB 2013 KEY PRODUCTION METRICS Total F&B industry employment is flat over the past decade and up in the last year, suggesting productivity improvements

TOTAL EMPLOYMENT BY F&B PROCESSING ENTERPRISES Headcount; as of Feb; 2002-2012

30 Note: 2012 data latest available as of October 2013; 1. Does not include employees of subsidiaries of processed foods firms (e.g. Mars, Nestle & Heinz) which are counted under processed/other; Source: Statistics NZ business demographics database; Coriolis analysis

CHANGE IN TOTAL F&B INDUSTRY EMPLOYMENT CAGR; Absolute change; periods as given

9,910 10,950 11,640 11,960 12,620 10,870 9,950 10,440 10,810 10,890 10,750

30,610 30,620 31,670 32,070 30,860

31,100 31,680 30,910 30,330 29,080 29,710

10,540 9,970 9,380 9,190 8,960

8,570 8,030 8,360 8,220 8,050 8,290

9,130 8,740 9,060 8,970 8,770

8,210 8,200 7,990 7,660 8,170 8,380

16,790 17,085 17,725 17,615 17,760

19,660 19,790 18,705 17,265 17,185 17,480

470 650 510 580 610 650 720

760 780 900

820

7,400 7,810 8,190 8,330 8,670 8,930 9,270 9,370

8,950 9,050 9,010

84,850 85,825 88,175 88,715 88,250 87,990 87,640 86,535

84,015 83,325 84,440

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Dairy

Meat

Seafood

Produce

Processed /other

Pet/animal1

Beverages

0.0%

-0.4%

1%

CAGR 10y

CAGR 5y

CAGR 1y

-410

-3,550

1,115

ABS 10y

ABS 5y

ABS 1y


IFAB 2013 EMPLOYMENT BY REGION F&B industry employment down across most regions over last five years other than Auckland

F&B INDUSTRY EMPLOYMENT BY REGION Headcount; as of Feb; 2007-2012

5 YEAR CHANGE IN EMPLOYMENT BY REGION CAGR; Absolute change; 2007-2012

31 1. Data is geographic level; classified elsewhere would include non-dairy processing activities (e.g. wholesaling); Source: Statistics New Zealand; Coriolis analysis

Otago/Southland

Canterbury

West Coast Nelson/Tasman/Marlborough

Hawkes Bay/Gisborne

Waikato/Bay of Plenty

Auckland

Northland

Classified elsewhere1

Wellington/Manawatu/Taranaki

11,355 11,178 11,368 11,177 9,839 10,173

12,145 12,360 12,655 12,545 12,240 11,990

750 735 730 775 740 725

3,505 3,298 3,010 2,838 3,265 3,195

1,335 1,345 1,493 1,560 1,468 1,528

13,424 13,370 11,341 11,541 11,686 11,875

7,388 6,798 6,588 6,313 6,411 6,658

11,680 12,030 11,370 11,400 11,754 11,531

14,765 14,910 15,325 14,985 14,665 15,840

1,970 1,730 1,850 1,730 1,650

1,645

9,673 9,886 10,805

9,151 9,607 9,280

87,990 87,640 86,535 84,015 83,325 84,440

2007 2008 2009 2010 2011 2012

Marlborough

-1,182

-155

-25

-310

193

-1,549

-730

-149

1,075

-325

-393

Otago/Southland

Canterbury

West Coast

Nelson/Tasman

Marlborough

Wel/Mana/Tara

HB/Gisb

BOP/Waikato

Auckland

Northland

Classified Elsewhere


IFAB 2013

Fonterra 9,000

11%

SFF 7,000

8%

Alliance 5,000

6% Talley Group

3,600 4%

ANZCO 2,500 3%

Goodman Fielder 2,190 3%

Sanford 2,000 3%

T&G 2,000 2%

Tegel 2,000 2% Heinz Watties 1,800

2%

Other 45,870

55%

F&B PROCESSING INDUSTRY EMPLOYMENT BY KEY FIRM

Headcount; total 2012 and companies 2013

EMPLOYMENT BY FIRM The top ten firms in the F&B industry account for 45% of industry employment; a long tail of other firms account for the other 55%

32 Note: Talley Group incorporates Talley’s, AFFCO & Open Country; Fonterra is domestic NZ employment Source: SNZ business demographics; various websites; published articles; Coriolis interviews & analysis

Total = 84,440

Top 3 25% Top 10 45%


IFAB 2013

# Announced Investment Firm Facility Location Opened/planned

1 2010 $500 Fonterra World's largest 30 tonne an hour dryer Opened in two phases

Darfield Phase 1 : August 2012 Phase 2: Sept 2013

2 Apr 2013 $250m Fonterra Evaluating extending plant and building another spray dryer

Pahiatua -

3 Dec 2012 $214m Yili Infant formula plant (47,000t, 100 people)

Glenavy, Canterbury June 2014

4 Feb 2013

$212m Yashili Processing plant (52,000t, 120 people) Pokeno Feb 2015

5 Jan 2013 $126m Fonterra New UHT plant (Milk and cream for FS), 90 new staff

Waitoa, Waikato March 2014

6 2013 $103m + $17m

Synlait Dryer 3 (WMP, SMP, formulated) + new Dry store (22,500m2)

Dunsandel, Canterbury Aug 2015 March 2014

7 June 2011 $100m Synlait New plant (Dryer 2, for IF and Nutritionals)

Dunsandel, Canterbury Sept 2011

8 Sept 2012 $100m Westland Three dryer powder plant, - consents granted Feb 2012

Rolleston -

9 July 2010

$90m Miraka Milk powder plant (35,000 WMP) Mokai, Taupo August 2011

10 April 2013

$67m Dairy Goat Second dryer (4x capacity), + canning Hamilton Aug 2014

IDENTIFIED MAJOR INVESTMENTS IN NEW F&B PLANT/EQUIPMENT IN NEW ZEALAND As of October 2013

iFAB TOP TEN NEW F&B INVESTMENTS All of the iFAB Top Ten largest F&B investments that have emerged over the past few years are in the dairy industry and total almost NZ$2b

33 Source: Coriolis from various published articles and annual reports


IFAB 2013

#

Acquirer

Target

Total price (global)

NZ Total Assets

Date

Details

1 Berkshire Hathaway & 3G Capital

H.J. Heinz (incl. Heinz-Watties)

US$2.8b (incl. debt)

NZ$685m (FY13)

Jun 2013 Private equity acquired Heinz globally including Heinz-Watties NZ

2 Texas Pacific Group (TPG)

Inghams (incl. Inghams NZ)

A$850m NZ$232m (FY12)

Mar 2013 US private equity acquires #1 AU & #2 NZ chicken processor

3 BayWa Turners & Growers NZ$157m for 72.5%

Mar 2012 BayWa of Germany acquired GPG share in T&G

4 Heineken ~50% of APB/DB it did not own

S$7.9b NZ$150m (50% of NZ$298m

Sep 2012 Dutch brewer acquires remaining 50% of AP Breweries it does not own (APB owns DB Breweries NZ)

5 Nisshin Seifun Group Champion Flour NZ$55m Dec 2012 Major New Zealand flour miller from Goodman Fielder

6 Fonterra 6% of Bega Cheese Australia

A$46m NZ$52m

Nov 2013 Acquired 6% of Australian cheese firm; “longstanding partnership”

7 Eastpack Satara Acquisition /merger

$50m (Satara FY11)

Mar 2013 Mergerof the #1 and #2 postharvest kiwifruit and avocado companies; Satara delisted and the new company called EastPack

8 Fonterra New Zealand Dairies Nutritek Russia

NZ$48.5m Sept 2012 Milk processing factory Studholme ,Waimate (former assets owned by Nutritek), purchased out of receivership

9 GrainCorp Gardner Smith A$302m NZ$47m Aug 2012 Major Australian oilseed crusher

10 Delegat’s Barossa Valley A$24.7m NZ$28m

Apr 2013 Acquisition of the assets of Barossa Valley Estate including a 41 hectare vineyard and 5,000 tonne winery in the Barossa Valley

IDENTIFIED MAJOR ACQUISITIONS INVOLVING NEW ZEALAND F&B FIRMS As of October 2013

iFAB TOP TEN F&B ACQUISITIONS The iFAB Top Ten acquisitions in the New Zealand F&B sector accounted for over NZ$1.5b worth of assets changing hands; the Berkshire/3G acquisition of Heinz, including Heinz-Watties NZ, being the largest


TOTAL TOP 10 = ~NZ$1.5b


IFAB 2013

EUROPE

AMERICAS

AUSTRALIA

ASIA

FOREIGN INVESTORS The New Zealand F&B industry has attracted investment from a wide range of global leaders

35


IFAB 2013

RECENT NEW FOREIGN INVESTMENT IN NEW ZEALAND FOOD INDUSTRY As of October 2013

FOREIGN INVESTORS – NEW ARRIVALS A wide range of new arrivals have invested in the New Zealand food & beverage industry over the past few years


2010 2011 2012 2013


iFAB 2013

IFAB 2013

1 2 3 4

FONTERRA CO-OPERATIVE GP Theo Spierings Chief Executive

SILVER FERN FARMS Keith Cooper Chief Executive

TALLEY’S GROUP Michael & Peter Talley Joint Managing Directors

ZESPRI INTERNATIONAL Lain Jager Chief Executive Officer

DESCRIPTION: Fourth largest dairy company in the world by turnover; first by milk intake

DESCRIPTION: Leading processor, marketer and exporter of lamb, beef, venison to 60 countries, 16,000 farmers over 22 processing sites

DESCRIPTION: Family owned food business in four main divisions of Seafood, Meat (AFFCO), Frozen Vegetables and Dairy (54% Open Country Dairy)

DESCRIPTION: Exporter and marketer of Kiwifruit, originally NZ Kiwifruit Marketing Board; corporatised Legal monopsony outside Australia; sales for 2,700 growers

KEY PRODUCTS: Milk powder, butter, cheese, yoghurt, formulas and other dairy products

KEY PRODUCTS: Meat (Lamb, beef, venison), wool, pelts, byproducts and co-products

KEY PRODUCTS: Meat cuts, frozen vegetables, frozen seafood and dairy ingredients

KEY PRODUCTS: Kiwifruit marketer

OWNERSHIP: NZ Co-operative (10,578 farmer shareholders)

OWNERSHIP: NZ; Co-operative (16,000 farmers) OWNERSHIP: NZ; Private (100%Talley’s Group) OWNERSHIP: NZ; Corporate (kiwifruit growers)

COMPANY NUMBER: 1166320 COMPANY NUMBER: 149713 COMPANY NUMBER: 168346/ 3342490 COMPANY NUMBER: 1027483

ADDRESS: 9 Princes Street, Auckland Central, Auckland 1010

ADDRESS: 218 George Street, Dunedin 9016 , New Zealand

ADDRESS: Port Motueka, Motueka, South Island

ADDRESS: 400 Maunganui Road Mount Maunganui

PHONE: +64 9 374 9000 PHONE: +64 3 477 3980 PHONE: +64 3 3 528 2800 PHONE: +64 7 572 7600

WEBSITE: www.fonterra.com WEBSITE: www.silverfernfarms.com WEBSITE: www.talleys.co.nz, www.affco.co.nz; WEBSITE: www.zespri.com

YEAR FORMED: 2001 YEAR FORMED: 1948 YEAR FORMED: 1936 / 1904 (AFFCO) YEAR FORMED: 1988

STAFF EMPLOYED: 17,000 (~9,000 NZ) STAFF EMPLOYED: 7,000 (peak) STAFF EMPLOYED: ~3,600 STAFF EMPLOYED: 250

REVENUE: $19,769 (FY12) $18,643m (FY13) REVENUE: $2,035 (FY12) REVENUE: $1,640* REVENUE: $1,448m (‘13) $1,487 (‘12)

COMPANY HIGHLIGHTS: Drought; precautionary recall; plant expansions in NZ, New plants in Asia, Investment of ~$1b in dairy farms in China

COMPANY HIGHLIGHTS: Part of FarmIQ $150m joint investment ; Rebuilt flagship Te Aroha plant after fire; x-ray machines to be added to all plants to measure cuts and yields

COMPANY HIGHLIGHTS: MDC approved +16ha expansion of three mussel farms in Pelorus Sounds (Sep 2013) Involved in industrial disputes between meatworkers’ union and AFFCO

COMPANY HIGHLIGHTS: Global sales and volumes of kiwifruit lower that last year but returns to orchard higher, continued recovery post Psa plant losses, ongoing grafting to new varieties; success of Sungold (G3) in the market

38 Source: annual reports, company websites, company data, NZ Companies Office, interviews, Coriolis estimates

iFAB50 FIRM PROFILES


http://www.fonterra.com/

http://www.talleys.co.nz/

IFAB 2013

5 6 7 8

ALLIANCE GROUP Grant Cuff Chief Executive

ANZCO FOODS Mark Clarkson Managing Director

GOODMAN FIELDER NZ LTD Peter Reidie Managing Director GFNZ

HEINZ WATTIES Michael Gibson Chief Executive Officer

DESCRIPTION: Processor of lamb, sheep, beef and venison; 5,000 farmers send to 8 plants

DESCRIPTION: Vertically integrated farming and manufacturing facilities; leading exporter of beef and sheep meat over 11 sites

DESCRIPTION: Manufacture, marketing and distribution of food and dairy products in NZ, Australia and Asia-Pacific

DESCRIPTION: two plants in Hawkes Bay, 1 Canterbury producing processed vegetables, foods, sauces

KEY PRODUCTS: Lamb, sheep, beef and venison meat cuts, byproducts and co-products

KEY PRODUCTS: Beef, lamb, sheep meat, healthcare solutions, offals and co-products, prepared and gourmet foods

KEY PRODUCTS: Baking, dairy, meals, bread, biscuits, smallgoods, dressings

KEY PRODUCTS: Frozen vegetables, sauce, soups, jams, meals, processed meat-based foods, petfood

OWNERSHIP: NZ; Co-operative (5,000 farmers) OWNERSHIP: NZ/Japan (Itoham 48%; Nippon 25.1%; Harrison 12.6%; JANZ 11.7%; others)

OWNERSHIP: Australia: Public (ASX/NZX) wholly owned subsidiary of Goodman Fielder Ltd

OWNERSHIP: USA: Private (HJ Heinz; Berkshire Hathaway & 3G Capital)

COMPANY NUMBER: 154786 COMPANY NUMBER: 656378 COMPANY NUMBER: 1508360 COMPANY NUMBER: 540128 562309 (H.J Heinz Company (NZ) Ltd

ADDRESS: 51 Don Street, Invercargill ADDRESS: Unit 2, 49 Sir William Pickering Drive, Harewood, Christchurch

ADDRESS: 2/8 Nelson Street, Auckland Central, Auckland

ADDRESS: 46 Parnell Road, Parnell, Auckland

PHONE: +64 3 214 2700 PHONE: +64 3 358 2200 PHONE: +64 9 301 6000 PHONE: +64 9 308 5000

WEBSITE: www. alliance.co.nz WEBSITE: www.anzcofoods.com; www.cmp.co.nz; www.riverlands.co.nz

WEBSITE: www.goodmanfielder.com.au www.goodmanfielder.co.nz

WEBSITE: www.heinzwatties.co.nz

YEAR FORMED: 1948 YEAR FORMED: 1984/1995 YEAR FORMED: 1968 / 1986 YEAR FORMED: 1934/1992

STAFF EMPLOYED: 5,000 STAFF EMPLOYED: 2,500 STAFF EMPLOYED: 2,190 total STAFF EMPLOYED: 1,800

REVENUE: $1,371 (FY12) REVENUE: $1,212 (FY12) REVENUE: Total NZ$1,088m (FY12) segmented into processed, milling $542m; dairy, meat, oils $546m

REVENUE: $730m (FY12) $773 (FY13)

COMPANY HIGHLIGHTS: $57m operating loss for 2012, first loss in 20 years. Closed Sockburn (CHCH) plant in 2012, cease sheep operations at Mataura; Using “Pure South” as umbrella brand for beef, lamb and venison; Secured deal with Marks and Spencer’s (UK)

COMPANY HIGHLIGHTS: pre-tax loss of $25.6m in 2012; Partnering with Waitrose (UK); Developing pharmaceutical, nutraceutical products for healthcare sector

COMPANY HIGHLIGHTS: In 2012 announced selling Integro Foods and NZ Milling business to focus on core business; Wilmar acquires 10.1% of GF in 2012

COMPANY HIGHLIGHTS: Decision in 2011 by Heinz to move manufacturing of select processed vegetables and sauces from AU to NZ; 2013 shift infant formula production from England to NZ, parent HJ Heinz acquired by Warrens Buffett’s Berkshire Capital and 3G Capital for US$28b




http://www.goodmanfielder.com.au/

http://www.goodmanfielder.co.nz/

IFAB 2013

9 10 11 12

TURNERS & GROWERS Alastair Hulbert Chief Executive Officer

OPEN COUNTRY Steven Koekemoer Chief Executive

LION – B,S & W NZ Rory Glass Managing Director

MG MARKETING Peter Hendry Chief Executive Officer

DESCRIPTION: Grows, processes, a range of fruit, primarily for NZ, also exports to Australia, Chile, etc. Owns a large number of subsidiaries and brands (Status, Delica, ENZA, Floramax, Kerifresh, Fresh Food Exports 75%)

DESCRIPTION: A dairy ingredient manufacturer, 3 plants; capacity 900m l/year; 500 suppliers, exports to 45 countries

DESCRIPTION: Brewer of beer, maker of wine; Steinlager, Lion Red, Speights, Canterbury Draught, Stella Artois (license), Mac’s, Isaac’s, Emersons, Wither Hills, Corbans, Te Hana, Lindauer, Daniel le Brun, Huntaway, and marketer and distributor of many spirits

DESCRIPTION: Distributor and wholesaler of fruit and vegetables, exporters and importers of Dole, Sunkist; 700 growers, 400 grower shareholders

KEY PRODUCTS: Distributor and trader of apples, kiwifruit, tomatoes, flowers, citrus, bananas etc.

KEY PRODUCTS: Full range of Milk Powders (Standard and UHT), Milk Proteins, Milk Fats and Cheese

KEY PRODUCTS: Beer, wine, spirits, RTDs, cider KEY PRODUCTS: Fresh fruit and vegetables

OWNERSHIP: : Foreign Private Germany PE (Baywa, 73%), Private NZ (Dossor 12%) PE NZ (Direct Capital 10%)

OWNERSHIP: Private; AFFCO/Talley’s Group 54%; Olam (Singapore) 25%; others

OWNERSHIP: Japan; listed on TYO (2503) OWNERSHIP: NZ; Co-operative (~400 growers) Market Gardeners Ltd (includes LaManna Australia)

COMPANY NUMBER: 41406 COMPANY NUMBER: 1911063 COMPANY NUMBER: 33986 COMPANY NUMBER: 1407

ADDRESS: 8 Monahan Road, Mt Wellington, Auckland

ADDRESS: Unit L Building 4, 195 Main Highway, Ellerslie, Auckland 1051

ADDRESS: 27 Napier Street, Freemans Bay, Auckland 1011

ADDRESS: 78 Waterloo Road Hornby, Christchurch


WEBSITE: www.turnersandgrowers.com WEBSITE: www.opencountry.co.nz WEBSITE: www.lionco.com www.lion-nathan.com.au www.kirin.com www.kirinholdings.co.jp

WEBSITE: www.mgmarketing.co.nz

YEAR FORMED: 1897 YEAR FORMED: 2004/2007 YEAR FORMED: 1860/1968/1977 YEAR FORMED: 1923 / 1987

STAFF EMPLOYED: 2,000 STAFF EMPLOYED: 200 STAFF EMPLOYED: 1,000 STAFF EMPLOYED: 320

REVENUE: $669.1m (FY12) REVENUE: $641m (FY12) REVENUE: $613.2m (FY12; YE Sep) REVENUE: $267m (FY12) $534.4m under management

COMPANY HIGHLIGHTS: Company had a loss (EBIT) of $18m; writedown in assets; continued success of apples in Northern Hemisphere; new ENZAFoods factory; development of ENZA Red and Summer Kiwi; strategy to become more vertically integrated; considering selling land to value of $100m and non –core businesses

COMPANY HIGHLIGHTS: Company has increased number of suppliers to 600 and will process 947m litres of their own milk for 2013/2014 season; Focused on high quality ingredients is providing steady growth and profitability

COMPANY HIGHLIGHTS: Acquired Emerson’s brewery (New Zealand craft beer company)

COMPANY HIGHLIGHTS: Extending operations in Australia; EBIT $7.6m; 50:50 JV with Te Mata exports sees move into exporting for group; ongoing marketing under local “Nature’s Pick” brand




http://www.lionco.com/

http://www.lion-nathan.com.au/

http://www.kirin.com/

http://www.kirinholdings.co.jp/

IFAB 2013

13 14 15 16

WESTLAND Rod Quin Chief Executive

HAWKES BAY MEAT CO. + PROGRESSIVE MEATS Craig Hickson Owner, Director

COCA-COLA HOLDINGS NZ Barry O’Connell Managing Director

SEALORD Graham Stuart Chief Executive Officer

DESCRIPTION: Regional dairy cooperative based in West Coast region; expanding into Canterbury, 4% milk supply

DESCRIPTION: Multi business processors and marketers of lamb (some venison) over four locations in the North Island; HBMC owns Ovation New Zealand 100%, TeKuiti Meats, 100% Lamb Packers Fielding 100%, Pasture Petfoods (37%), Progressive Leathers; Progressive Meats (toll processor)

DESCRIPTION: Manufacturer and distributor of juice and soft drinks; many brands under license from Coca-Cola USA

DESCRIPTION: Vertically integrated seafood fishing and marketing company exporting to over 60 countries, significant global investments

KEY PRODUCTS: Milk powders, milk proteins, growing up milk powder, butter, base IF, bioactives, ‘own made’ yoghurt “Easiyo”, other dairy products

KEY PRODUCTS: Lamb cuts, co-products , ingredients, mechanically deboned meat (MDM), Petfood ingredients

KEY PRODUCTS: Soft drinks, juices, water KEY PRODUCTS: Frozen and chilled fish, oysters, mussels and other prepared seafood products

OWNERSHIP: New Zealand; cooperative (380+ farmers)

OWNERSHIP: Private (Hickson (majority) and others)

OWNERSHIP: Australia; listed on ASX OWNERSHIP: Kura Limited 100% NZ: Aotearoa Fisheries 50%, Japan: Nippon Suisan Kaisha 50%

COMPANY NUMBER: 153032 COMPANY NUMBER: 1894570/252512/600768/ 36215

COMPANY NUMBER: 440039 COMPANY NUMBER: 168963 / 1097137

ADDRESS: 56 Livingstone Street, Hokitika, 7810 , New Zealand

ADDRESS: 10 Cook Street, Waipukurau 4242, New Zealand

ADDRESS: The Oasis, Mt Wellington Private Bag 14916, Panmure Auckland

ADDRESS: Level 3, Building 8 666 Central Park, Ellerslie, Auckland

PHONE: +64 3 756 9800 PHONE: +64 7 878 6045 +64 6 873 9090 PHONE: +64 9 570 3000 PHONE: +64 9 579 1659

WEBSITE: www.westland.co.nz www.easiyo.com

WEBSITE: www.tkmeats.co.nz; www.ovation.co.nz WEBSITE: ccamatil.co.nz ccamatil.com

WEBSITE: www.sealord.com/nz

YEAR FORMED: 1937 YEAR FORMED: 1980 YEAR FORMED: 1939/1948 YEAR FORMED: 1974

STAFF EMPLOYED: 400 STAFF EMPLOYED: 1,300 STAFF EMPLOYED: 1,100 STAFF EMPLOYED: 1,100 (+400 offshore)

REVENUE: $534m (FY12) $535 (FY13) REVENUE: ~$500m REVENUE: $494m (FY12; YE Dec) REVENUE: $487 (FY12)

COMPANY HIGHLIGHTS: Commissioned a Nutritional wet products plant in Hokitika during 2013 and gained resource consents for new Rolleston plant

COMPANY HIGHLIGHTS: HBMC acquired 100% share in TeKuiti Meats in 2012; Acquired Welsh meat processing company in 2012

COMPANY HIGHLIGHTS: New MD; $15m investment in beverage bottle plant in Christchurch; parent acquired Fijian brewer

COMPANY HIGHLIGHTS: New brand campaign; exits all of Argentinian fishing business Yuken; part of Precision Harvesting project to target fish




http://www.westland.co.nz/

http://www.easiyo.com/

http://www.ovation.co.nz/

http://ccamatil.co.nz/

http://ccamatil.com/

IFAB 2013

17 18 19 20

TEGEL FOODS John Lea Chief Executive Officer

DB BREWERIES Andy Routley Managing Director

SANFORD Volker Kuntzsch Chief Executive Officer

INDEPENDENT LIQUOR Julian Davidson Chief Executive

DESCRIPTION: Leading fully integrated poultry processor in New Zealand; 3 plants manufacturing 1,200 product lines, processing 40m broilers annually

DESCRIPTION: Manufacturer of beer; Monteith’s, Tui, DB, Export Gold, Old Mout

DESCRIPTION: Wild capture and aquaculture harvesting, farming, processing and marketing; 9 plants and 11 vessels that freeze and pack

DESCRIPTION: Distiller of spirits, brewer of beer, Woodstock, Cruiser, Cody’s, Canterbury Cream, Boundary Road, others

KEY PRODUCTS: Chicken (fresh, frozen, smoked, meals)

KEY PRODUCTS: Beer, Cider, RTDs KEY PRODUCTS: Chilled and frozen fish, squid, mussels, salmon

KEY PRODUCTS: RTDs, spirits, beer

OWNERSHIP: Private: Affinity Equity Partners (Sing) OWNERSHIP: Netherlands; listed on Euronext Heineken International (via Asia Pacific Breweries, Singapore); Third largest brewer in the world

OWNERSHIP: NZ; Public (NZX: SAN) (37% Amalgamated Marketing/Goodfellow Family)

OWNERSHIP: Japan; listed on TYO (2502); Asahi Group Holdings


ADDRESS: 3rd Floor, Tower B, 100 Carlton Gore Road, Newmarket, Auckland

ADDRESS: 1 Bairds Road, Otahuhu, Auckland ADDRESS: 22 Jellicoe Street, Freemans Bay Auckland

ADDRESS: 35 Hunua Road, Papakura, Auckland


WEBSITE: www.tegel.co.nz WEBSITE: www.db.co.nz www.theheinekencompany.com

WEBSITE: www.sanford.co.nz/ WEBSITE: www.independentliquor.co.nz/ www.asahigroup-holdings.com

YEAR FORMED: 1875/1966 YEAR FORMED: 1930/1966 YEAR FORMED: 1881/ 1904 YEAR FORMED: 1987

STAFF EMPLOYED: 2,000 STAFF EMPLOYED: 500 STAFF EMPLOYED: 2,000 STAFF EMPLOYED: 170

REVENUE: $471m (FY12) REVENUE: $465.7m (FY12; YE Sep) REVENUE: $460m (FY12) REVENUE: $414.4 (FY10)

COMPANY HIGHLIGHTS: Opened new value added production line to grow export markets; built new hatchery in Christchurch, selling and leasing back its 8 industrial properties over 2013 to reinvest capital in export operations. Achieved some of the lowest global FCR^ (1.4 to 1.6). Profit of $6m in FY2012

COMPANY HIGHLIGHTS: New MD replacing Brian Blake (in March 2013); parent Asia Pacific now fully controlled by Heineken

COMPANY HIGHLIGHTS: Eric Barratt retiring as CEO after 15 years; NZ business both deepwater and inshore shown improved performance; Australian business underperforming; reduced debt significantly; Fined US$1.9m in 2012; part of Precision Harvesting project to target fish

COMPANY HIGHLIGHTS: Acquired The Mill (May 2013, 35 stores); acquired Founders Brewery (Feb 2013); write down of assets in NZ of $533m; court action against former PE owners

42 ^FCR Feed Conversion Ratio; Source: annual reports, company websites, company data, NZ Companies Office, interviews, Coriolis estimates



http://www.db.co.nz/

http://www.theheinekencompany.com/

http://www.independentliquor.co.nz/

http://www.asahigroup-holdings.com/

IFAB 2013

21 22 23 24

FRUCOR BEVERAGES Carl Bergstrom Group Managing Director

NESTLE NZ Veronique Cremades-Mathis Country Manager & CEO

SYNLAIT MILK LIMITED John Penno Managing Director

NUTRICIA NZ Mark Mitchell Manufacturing Director

DESCRIPTION: Manufacturer of soft drinks, juices and other beverages; V, Just Juice, Citrus Tree, Mizone, others

DESCRIPTION: Manufacturer and Importer of Culinary, Confectionery, Beverages, Milks, Breakfast cereals, Snacks, Infant Nutrition and Petfood products. HO in Auckland, 3 regional sales offices; 3 factories: Culinary, Confectionery and Petfood.

DESCRIPTION: Synlait Milk is a Canterbury based dairy manufacturer focussed on supplying higher value dairy products to leading milk-based health and nutrition companies

DESCRIPTION: Manufacturer of infant formula

KEY PRODUCTS: Soft drinks, juice, water KEY PRODUCTSCoffee, Tea, Nourishing drink, Creamer, Chocolate, Confectionery, Culinary, Snacks, Breakfast cereals, Infant Nutrition, Milks and Petfood

KEY PRODUCTS: Infant and adult nutritional formulations, Milk powders (WMP, SMP) functional food ingredients, and specialised products

KEY PRODUCTS: Infant formula and related dairy nutritionals

OWNERSHIP: Japan; private; Suntory Holdings (90% Kotobuki Realty; Torii family; others)

OWNERSHIP: Swiss; public listed (Nestle) OWNERSHIP: New Zealand; listed on NZX; Bright (China) 39% ; Mitsui (Japan) 8%; Friesland (Netherlands) 7.5%

OWNERSHIP: France; Listed (Euro: BN)


ADDRESS: 86 Plunket Avenue, Wiri, Auckland 2104 ADDRESS: Level 3 Buildings 1 & 2, Carlaw Park Commercial, 12-16 Nicholls Lane, Parnell, Auckland

ADDRESS: 1028 Heslerton Road, Rakaia, Rd 13 , New Zealand

ADDRESS: 37 Banks Road, Mount Wellington Auckland


WEBSITE: www.frucor.co.nz www.suntory.com WEBSITE: www.nestle.co.nz WEBSITE: www.synlait.com WEBSITE: www.nutriciababy.co.nz www.nutricia.co.nz www.danone.com

YEAR FORMED: 1987 YEAR FORMED: 1926 NZ YEAR FORMED: 2000/2005 YEAR FORMED: 1996

STAFF EMPLOYED: 900 STAFF EMPLOYED: 750 STAFF EMPLOYED: 130 (FY12), 171 (FY13) STAFF EMPLOYED: 100

REVENUE: $405.8m (FY12; YE Dec) REVENUE: $378m (FY12) REVENUE: $377 (FY12) $420 (FY13) REVENUE: $373m (FY12)

COMPANY HIGHLIGHTS: Parent Suntory went public in Japan as family owners sold down share (Jul 2013)

COMPANY HIGHLIGHTS: Integration of Wyeth Infant Nutrition acquired in December 2012; 2013 selling its Jenny Craig business (pending); Opening of Nespresso second boutique in Wellington

COMPANY HIGHLIGHTS: Went public in July 2013 $120m capital raising it restructure debt and reinvest; upgraded plant to produce spray dry lactoferrin

COMPANY HIGHLIGHTS: Impacted in 2013 by Fonterra’s WPC80 Precautionary Recall (Whey Protein Concentrate)




http://www.frucor.co.nz/

http://www.suntory.com/

http://www.nutriciababy.co.nz/

http://www.nutricia.co.nz/

http://www.danone.com/

IFAB 2013

25 26 27 28

INGHAMS ENTERPRISES NZ Adrian Revell Plant Manager

MONDELEZ NZ Alastair de Raadt Managing Director

NZ SUGAR COMPANY Bernard Duignan General Manager

WILSON HELLABY Fred Hellaby Managing Director

DESCRIPTION: Fully owned subsidiary of Inghams Australia, #2 Chicken and turkey processor in NZ, vertically integrated in NZ; includes 3 mills

DESCRIPTION: Global confectionery and dairy company; primarily confectionery manufacturing based in Dunedin

DESCRIPTION: Sugar refining company based in Auckland; Blends Sugar, dairy and other ingredients for export; importer and distributor of alternative sweeteners and oils

DESCRIPTION: Processing and further manufacturing of meat products at two plants in Auckland; rendering business and significant presence in domestic branded meat market

KEY PRODUCTS: Chicken meat, horse feed KEY PRODUCTS: chocolate, sweet/sugar confectionery

KEY PRODUCTS: Refined sugar, “Simply” oils and fats, “equal” artificial sweetener

KEY PRODUCTS: Processed beef, sheep, pig and goat frozen and chilled, processed meats and offal

OWNERSHIP: Private Equity Ingham Enterprise AU (TPG Private Equity)

OWNERSHIP: USA Public listed (MDLZ) OWNERSHIP: 75% Singapore; listed (Wilmar International) and 25% AU co-operative (Mackay Sugar)

OWNERSHIP: Private: (Syminton, Hellaby)

COMPANY NUMBER: 464829 COMPANY NUMBER: 204724 COMPANY NUMBER: 91943 / 3252111 COMPANY NUMBER: 900980

ADDRESS: 624 Waihekau Road, R D 1, Waitoa, 3380 , New Zealand

ADDRESS: 494 Rosebank Road, Avondale, Auckland 1026

ADDRESS: 60 Colonial Road, Birkenhead, Auckland ADDRESS: 131 Portage Road, Otahuhu, Auckland


WEBSITE: www.inghams.co.nz WEBSITE: www.cadbury.co.nz WEBSITE: www.chelsea.co.nz WEBSITE: www.wilsonhellaby.co.nz

YEAR FORMED: 1990 YEAR FORMED: 1868 / 1930 YEAR FORMED: 1884 YEAR FORMED: 1998

STAFF EMPLOYED: 1,043 STAFF EMPLOYED: 500 STAFF EMPLOYED: 180 STAFF EMPLOYED: 600

REVENUE: $336m (FY12) REVENUE: $320m (FY12) REVENUE: $301m (FY12) REVENUE: +$300m (FY12)

COMPANY HIGHLIGHTS: Profit of $30m in 2012; Transition to Ross 308 chicken stock in NZ

COMPANY HIGHLIGHTS: Cadbury changed name to Mondelez globally; 2012 amalgamation of Kraft, Cadbury & Natural Confectionery Co.

COMPANY HIGHLIGHTS: $21m profit on the back of increased exports and reduced costs; Wilmar acquired in 2010 via CSR’s Sucrogen business

COMPANY HIGHLIGHTS:




http://www.cadbury.co.nz/

http://www.chelsea.co.nz/

http://www.wilsonhellaby.co.nz/

IFAB 2013

29 30 31 32

GRIFFIN’S FOODS Ron Vela Chief Executive Officer/ Executive Chairman

GWF NZ General Manager – Baking Division NZ

TAYLOR PRESTON Simon Gatenby Chief Executive Officer

MCCAIN FOODS Louis Wolthers Regional President SANZAR

DESCRIPTION: Auckland based manufacturers and marketers of biscuits, salty snacks and muesli bars producing 200m units pa

DESCRIPTION: GWF Bread manufacturing at two bakeries, Weston Milling at three locations, Purity Foods (Big Ben) and Jasol (Cleaning products)

DESCRIPTION: Multispecies meat processors processing 1.5m animals annually, based in Wellington, exporting to 60 countries

DESCRIPTION: Frozen vegetable manufacturer based in Timaru (potato processing) and Hastings (vegetables); supplied by 150 growers

KEY PRODUCTS: biscuits,(Griffins, Huntley and Palmers…) chips (ETA), muesli bars (nice & natural)

KEY PRODUCTS: bread (Tip Top, Ploughmans, Burgen, Golden) Big Ben pies

KEY PRODUCTS: Sheep and beef meat cuts KEY PRODUCTS: Frozen vegetables and meals

OWNERSHIP: Australia; Private Equity: Pacific Equity Partners Fund III (PEP)

OWNERSHIP: UK; listed; Associated British Foods UK (Weston Family)

OWNERSHIP: Private (Taylor, Preston & Grace) OWNERSHIP: Canada: Private (McCain family)

COMPANY NUMBER: 4932 / NZ Snack Food Holdings 1774272

COMPANY NUMBER: 52216 COMPANY NUMBER: 1906031 COMPANY NUMBER: 459976

ADDRESS: Tower B Level 5, 100 Carlton Gore Road, Newmarket, Auckland

ADDRESS: Building 3, Level 2, 666 Great South Road Ellerslie, Auckland

ADDRESS: Centennial Highway, Ngauranga Gorge, Wellington

ADDRESS: Meadows Road, Washdyke, Timaru or Omahu Road, Hastings,


WEBSITE: www.griffins.co.nz WEBSITE: www.gwfbaking.co.nz WEBSITE: www.taylorpreston.co.nz WEBSITE: www.mccain.co.nz

YEAR FORMED: 1864 YEAR FORMED: 1950s YEAR FORMED: 1991 YEAR FORMED: 1987

STAFF EMPLOYED: 1,000 (850 FTE) STAFF EMPLOYED: 1,000 STAFF EMPLOYED: 800 STAFF EMPLOYED: 400-500 (seasonal)

REVENUE: $293 (FY12) REVENUE: $277 (FY12) REVENUE: $260m* (FY12) REVENUE: $246m (FY12)

COMPANY HIGHLIGHTS: $20.5m net profit for calendar year 2012; successful “Dear Griffin’s” campaign; international division now generating 30% of group turnover, exporting to over 26 countries. Invests $70m in Auckland plants to support growth

COMPANY HIGHLIGHTS: COMPANY HIGHLIGHTS: COMPANY HIGHLIGHTS: Holds McDonalds French fries contract; closes potato factory in Australia

45 Source: annual reports, company websites, company data, NZ Companies Office, interviews; *Coriolis estimates



http://www.griffins.co.nz/

IFAB 2013

33 34 35 36

PERNOD RICARD WINEMAKERS Fabian Partigliani Managing Director

GREENLEA PREMIER Tony Egan Managing Director

TATUA CO-OPERATIVE DAIRY Paul McGilvary Chief Executive

DELEGAT’S GROUP Jim Delegat Managing Director

DESCRIPTION: Wine maker and grower; Montana, Church Road, Deutz, Brancott Estate, Stoneleigh, Longridge ,

DESCRIPTION: Meat processor based in the Waikato

DESCRIPTION: Specialist dairy ingredients and food products manufacturer, 190ML of milkpa exports 94% of its products, exports to 60 countries

DESCRIPTION: Manufacturer of wine; Oyster Bay

KEY PRODUCTS: Wine, sparkling wine KEY PRODUCTS: Meat KEY PRODUCTS: specialist ingredients (Caseinate, whey proteins, AMF), nutritionals, whipped cream, specialty cheeses

KEY PRODUCTS: Wine

OWNERSHIP: France; listed on Euronext OWNERSHIP: New Zealand; Private (Egan family) OWNERSHIP: New Zealand; cooperative (108 farmers)

OWNERSHIP: New Zealand; listed on NZX:DGL (Delegat family ~66%)


ADDRESS: Level 5, 4 Viaduct Harbour Avenue Auckland Central, Auckland 1010

ADDRESSGreenlea Lane, Hamilton, Waikato ADDRESS: State Highway 26, Tatuanui, Waikato ADDRESS: Level 1, 10 Viaduct Harbour Avenue, Auckland


WEBSITE: www.pernod-ricard-nz.com WEBSITE: www.greenlea.co.nz/ WEBSITE: www.tatua.com WEBSITE: www.delegats.co.nz

YEAR FORMED: 1961 (Montana) YEAR FORMED:1992 YEAR FORMED: 1914 YEAR FORMED: 1947/1991

STAFF EMPLOYED: 750 STAFF EMPLOYED: 500 STAFF EMPLOYED: 280 STAFF EMPLOYED: 50

REVENUE: $235.9m (FY12) REVENUE: $230m* (FY12) REVENUE: $228m (FY12) REVENUE: $222m (FY12) $230m (FY13; YE June)

COMPANY HIGHLIGHTS: Changed name to Pernod Ricard Winemakers NZ; rebranded Montana as Brancott

COMPANY HIGHLIGHTS: COMPANY HIGHLIGHTS: Plans for a new speciality products drier worth $65m

COMPANY HIGHLIGHTS: Acquired Barossa Valley Estate in Australia; acquired 496ha in Marlborough and several vineyards in Hawkes Bay; case sales up +25% to North America; North America will be key growth region for the group for the next 6 years; Operating EBIT $44.6m




http://www.pernod-ricard-nz.com/

http://www.delegats.co.nz/

IFAB 2013

37 38 39 40

MR APPLE NZ Andrew van Workum Chief Executive Officer

VAN DEN BRINK POULTRY Karl van den Brink Managing Director

FRESH DIRECT LTD Peter Turner Managing Director

A.S. WILCOX & SONS Kevin Wilcox Managing Director

DESCRIPTION: #1 apple exporter; vertically integrated with 53 orchards, 3 packhouses, 1 coolstore and logistics service Part of the SCF receivership; Exported 4.2m cartons. Owns 10% T&G

DESCRIPTION: Vertically integrated poultry processor in New Zealand (#3) across three plants

DESCRIPTION: Fresh produce and flower wholesalers and importers; plus exporting via sister company JP Exports Ltd, and Purefresh Organics, Taste Zone, Turners Floral, Turners Produce, Valley Fresh companies

DESCRIPTION: Grower and distributor of Potatoes, onions, carrots, persimmons over 2,500 acres, includes export division Southern Fresh Produce, and Plains Produce and Potato supplies

KEY PRODUCTS: Apples KEY PRODUCTS: Chicken products primarily for domestic retail and foodservice

KEY PRODUCTS: Fresh flowers, fruit and vegetables (apples, blueberries, broccoli, oranges, tomatoes etc.) Purefresh brand

KEY PRODUCTS: Fresh potatoes, onions and carrots branded as Fresh Zone, Country Fresh, Field Fresh and Econo Pack

OWNERSHIP: NZ: Scales Corp (PE: Direct Capital 82.8%)

OWNERSHIP: NZ; Private: (Van Den Brink) OWNERSHIP: NZ; Private (Turner Family) OWNERSHIP: NZ; Private (Wilcox Family)

COMPANY NUMBER: 545180 COMPANY NUMBER: 66969 (others) COMPANY NUMBER: 668313 COMPANY NUMBER: 51206

ADDRESS: Station Road, Whakatu, Hawkes Bay ADDRESS: 652 Great South Road, Manukau, Auckland

ADDRESS: 29 Clemow Drive, Mount Wellington, Auckland

ADDRESS: 58 Union Road, Pukekohe Franklin, Auckland


WEBSITE: www.mrapple.co.nz; www.scalescorporation.co.nz

WEBSITE: www.brinks.co.nz WEBSITE: www.freshdirect.co.nz www.jpexports.co.nz/

WEBSITE: www.aswilcox.co.nz www.sofresh.co.nz

YEAR FORMED: 1998 YEAR FORMED: 1964 YEAR FORMED: 1995 YEAR FORMED: 1954

STAFF EMPLOYED: 220 -1700 (seasonal) STAFF EMPLOYED: ~400 STAFF EMPLOYED: 300+ STAFF EMPLOYED: 170

REVENUE: Gp sales $227 (FY12) Mr Apple ~$140m* (FY10 Gp $186m Mr Apple $116m 62%)

REVENUE: $220* (FY12) REVENUE: $150-200 (FY12) REVENUE: $150-$200* (FY12)

COMPANY HIGHLIGHTS: 2012 Gp sales $227m with 13.6m profit; Acquired 50% Fernridge apple business aim to increase consolidation in sector

COMPANY HIGHLIGHTS: Ownership of multiple companies with (Taylor and Van Den Brink); Tegel looking to acquire in 2009 but refused by Commerce Commission

COMPANY HIGHLIGHTS: Expanding warehousing and undergoing operational restructuring to gain efficiencies

COMPANY HIGHLIGHTS:




http://www.freshdirect.co.nz/

http://www.sofresh.co.nz/

IFAB 2013

41 42 43 44

NOBILO HOLDINGS CONSTELLATION BRANDS NZ Joe Stanton Chief Executive Officer

MARS NZ Gerry Lynch General Manager

HANSELLS FOOD GROUP John McKay CEO

VITACO HEALTH GROUP Geoff Norgate Chief Executive Officer

DESCRIPTION: Grower and manufacturer of wines; Nobilo, Kim Crawford, Drylands, Monkey Bay, Selaks

DESCRIPTION: Manufacturer and distributor of packaged food, confectionery, and petfood

DESCRIPTION: Manufacturers of a wide range of processed foods

DESCRIPTION: Health and wellness products manufacturer of branded and contracted supplements, vitamins, Infant formula, health foods (baking, cereals, teas etc.)

KEY PRODUCTS: Wine KEY PRODUCTS: chocolate confectionery, petfood (Whiskas, Pedigree), rice (Uncle Bens), Masterfoods

KEY PRODUCTS: puddings, deserts, spices, flavours, soups, beverages

KEY PRODUCTS: nutritional supplements, sports nutrition, health foods, infant formulas

OWNERSHIP: United States; listed on NYSE (STZ) OWNERSHIP: USA; Private (Mars family) OWNERSHIP: Mixed NZ/Thailand (Kasisuri + Supachok 22%)

OWNERSHIP: Mix: NZ Private (Thompson 64%; Norgate 8%,others) AU Private Equity (Next Capital 6%)


ADDRESS: 45 Station Road, Huapai PO Box 471, Kumeu Auckland

ADDRESS: Building 14, 666 Great South Road, Penrose, Auckland, 1051

ADDRESS: 17 Botha Road, Penrose, Auckland ADDRESS: Cnr Kordel Place and Accent Drive, East Tamaki, Auckland


WEBSITE: www.constellationnz.com www.cbrands.com

WEBSITE: www.mars.com WEBSITE: www.hansells.com WEBSITE: www.vitaco.co.nz

YEAR FORMED: 2004 YEAR FORMED: 1983 YEAR FORMED: 1934 YEAR FORMED: 1957 /2006

STAFF EMPLOYED: 270 (Dry 100) STAFF EMPLOYED: 350 STAFF EMPLOYED: 350 STAFF EMPLOYED: 400 (370 FTE)

REVENUE: $192m (FY12) $195.8m (FY13; YE Feb) REVENUE: $195m (FY12) REVENUE: $175m (FY12) $189m (FY13) REVENUE: 171m (FY12) $184m (FY13)

COMPANY HIGHLIGHTS: Parent firm sold all Australian operations in Dec 2010

COMPANY HIGHLIGHTS:

COMPANY HIGHLIGHTS: COMPANY HIGHLIGHTS:




http://www.constellationnz.com/

http://www.cbrands.com/

http://www.mars.com/

http://www.hansells.com/

IFAB 2013

45 46 47 48

HELLERS LTD Nick Harris Managing Director

AOTEAROA FISHERIES Carl Carrington Chief Executive Officer

CEREBOS GREGG’S Andre Gargiulo Country Manager - NZ

SANITARIUM HEALTH AND WELLBEING Pierre van Heerden General Manager

DESCRIPTION: Bacon, ham and smallgoods manufacturer

DESCRIPTION: Pan iwi organisation with 50% ownership in Sealord, and full ownership of Moana Fisheries, OPC Fish, Prepared Foods, Pacific Marine Farms & Kia Ora Seafood.

DESCRIPTION: Auckland based manufacturers of coffee, beverages, sauces, gravies, etc.

DESCRIPTION: Auckland based manufacturers of nutritional and innovative health foods

KEY PRODUCTS: bacon, ham, smallgoods KEY PRODUCTS: Fresh and frozen Fish, oysters, mussels, + prepared seafood products

KEY PRODUCTS: coffee, sauces, gravies KEY PRODUCTS: Cereals, spreads, beverages

OWNERSHIP: Mixed NZ: PE (Rangatira 50%) , (Private: Heller, Harris, others)

OWNERSHIP: NZ; tribal (various iwi/tribal holdings); ownership of Moana Pacific, Pacific Marine Farms, Kia ora Seafoods, OPC

OWNERSHIP: Foreign: Singapore; listed (SIN: C20; Suntory 83%)

OWNERSHIP: NZ; charity (Seventh-day Adventist Church)

COMPANY NUMBER: 386096 COMPANY NUMBER: 1581332 COMPANY NUMBER: 247266 COMPANY NUMBER:-

ADDRESS: 67 Main North Road, Kaiapoi , Canterbury ADDRESS: Level 3, Moana Pacific House 138 Halsey Street, Auckland

ADDRESS: 291 East Tamaki Road, East Tamaki, Auckland

ADDRESS: 124 Pah Road, Royal Oak, Auckland

PHONE: +64 3 375 5017 PHONE: +64 9 302 1520 PHONE: +64 9274 2777 PHONE: +64 9 625 0700

WEBSITE: www.hellers.co.nz; www.rangatira.co.nz

WEBSITE: www.afl.maori.nz WEBSITE: www.cerebos.co.nz WEBSITE: www.sanitarium.co.nz

YEAR FORMED: 1988 YEAR FORMED: 2004 YEAR FORMED: 1984 YEAR FORMED: 1900

STAFF EMPLOYED: 500 STAFF EMPLOYED: 500 (incl 250 Prepared Foods) STAFF EMPLOYED: 350 STAFF EMPLOYED: 350

REVENUE: $160m* (FY12) REVENUE: $154.1 (FY12) REVENUE: $152m (FY12) REVENUE: $150m* (FY12)

COMPANY HIGHLIGHTS: COMPANY HIGHLIGHTS: New Prepared Foods facility near completion; Agreement with Cawthron Institute to take over Pacific oyster nursery; Restructuring business; Sold share in Seafood Processors; Part of Precision Harvesting project to target fish; Overall profit of $17m





http://www.rangatira.co.nz/

http://www.cerebos.co.nz/

http://www.sanitarium.co.nz/

IFAB 2013

49 50

BLUEBIRD FOODS LTD PEPSICO NZ HOLDINGS Sean Goodwin General Manager

LEADERBRAND Richard Burke General Manager

DESCRIPTION: Global beverage and snack food manufacturer; all beverages contract packed by Frucor

DESCRIPTION: Range of salads, produce and fruits for domestic retail, processing and export; squash to Japan; Growing on 3,000ha

KEY PRODUCTS: non-alcoholic beverages, snacks, salty snacks, nuts, chips

KEY PRODUCTS: Lettuce, broccoli, squash, sweetcorn, salads, watermelons

OWNERSHIP: USA; Public listed (NYSE: PEP)

OWNERSHIP: NZ; Private (McPhail)

COMPANY NUMBER: 163343 / 1882013 COMPANY NUMBER: 827392

ADDRESS: 124 Wiri Station Road, Manukau, Auckland

ADDRESS: 33 Parkinson Street, Gisborne, Hawkes Bay

PHONE: +64 9 9 262 8800 PHONE: +64 6 867 6231

WEBSITE: www.bluebird.co.nz; www.pepsico.com WEBSITE: www.leaderbrand.co.nz

YEAR FORMED: 1947 YEAR FORMED: 1975

STAFF EMPLOYED: 680 STAFF EMPLOYED: 187 (+300 seasonal)

REVENUE: $144m (FY12) REVENUE: $140* (FY12)





iFAB 2013

IFAB 2013

$1,746 $2,019 $2,468 $2,591 $2,549 $2,876 $3,220 $2,834 $2,842 $3,407 $2,891

$1,543 $1,672

$1,950 $2,082 $2,003 $2,130

$2,265 $1,941 $2,026

$2,443 $2,652

$703 $884

$1,135 $1,245 $1,319

$1,661 $1,878

$1,727 $2,175

$2,560 $2,609

$439 $482

$509 $568 $580

$1,001 $1,098

$643 $869

$1,059 $944

$48 $83

$123 $155 $226

$322

$384

$319

$430

$587 $543

$412 $476

$596 $746 $888

$1,192

$1,537

$1,233

$1,584

$2,226 $2,299

$85 $102

$121 $152 $184

$246

$292

$247

$421

$516 $411

$770

$925

$1,078 $1,182 $1,256

$1,933

$2,217

$1,622

$2,272

$2,633 $2,527

$1,483

$1,712

$2,378

$2,557 $2,475

$2,802

$3,220

$3,150

$4,358

$5,434 $6,071

$7,238

$8,364

$10,370

$11,288 $11,497

$14,180

$16,133

$13,736

$16,993

$20,888 $20,955

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

10 YEAR NEW ZEALAND FOOD & BEVERAGE EXPORT VALUE BY SUPER-REGION US$m; 2002-2012

F&B EXPORTS BY REGION Over the past decade total New Zealand F&B exports have achieved strong growth, driven primarily by the developing world; however growth flattened in the last year

52 1. Other is a mix of remote islands, Antarctica, cruise ships, military ships, etc. and is too small to enumerate but is included in total; Source: UN Comtrade database; Coriolis analysis

Europe 5% +$1,145m

N. America 6% +$1,109m

Australia/ Pacific Is. 14% +$1,907m

NA/ME/CA 19% +$1,887m

Indian Sub 17% +$326m

SE Asia 13% +$1,756m

East Asia 15% +$4,587m

TOTAL 11% +$13,717m

C/S America 8% +$504m SS Africa 27% +$495m

CAGR Absolute

10 Year

10y CAGR

11%

Other1


IFAB 2013

TOP 25 NEW ZEALAND FOOD & BEVERAGE EXPORT MARKETS BY VALUE US$m; 2012

EXPORT DOLLARS China continues to be New Zealand’s number one F&B export market; the key Anglo-Sphere countries and Japan round out the top five

53 *Hong Kong Special Administrative Region (SAR); Source: UN Comtrade database; Coriolis analysis

$3,180 $2,341

$2,198 $1,396

$840 $553

$522 $514

$485 $473 $472 $457 $443 $437 $436

$367 $365

$342 $316 $311

$295 $235

$211 $199 $199

ChinaUSA

AustraliaJapan

United KingdomMalaysia

TaiwanSaudi Arabia

Rep. of KoreaHong Kong SAR

IndonesiaGermany

PhilippinesSingapore

United Arab EmiratesVenezuela

ThailandAlgeria

NetherlandsCanada

EgyptViet NamSri Lanka

MexicoBelgium

*


IFAB 2013

TOP 25 NEW ZEALAND FOOD & BEVERAGE EXPORT MARKETS BY INCREASE IN VALUE US$m

EXPORT DOLLAR GROWTH While the US and Australia continue to grow, China, the Middle East and SE Asian destinations stand out as growth markets

54 Source: UN Comtrade database; Coriolis analysis

5 YEAR CHANGE; 07-12 1 YEAR CHANGE; 11-12

$2,570 $841

$520 $327

$289 $216

$182 $178 $170 $161 $158 $149

$110 $107 $106 $98 $89 $84 $75 $72 $60 $54 $51 $49 $48

ChinaAustralia

USAUnited Arab Emirates

JapanHong Kong SAR

MalaysiaEgypt

SingaporeAlgeria

Saudi ArabiaNetherlands

IranTaiwan

VenezuelaThailand

BangladeshPeru

NigeriaSouth Korea

RussiaJordan

Viet NamIndonesia

Libya

$641 $222

$80 $64 $54 $52 $46 $37 $37 $33 $24 $23 $13 $12 $10 $10 $9 $9 $7 $7 $5 $5 $4 $3 $3

ChinaUSA

Hong Kong SARUnited Arab Emirates

EgyptAustralia

PeruLibya

MalaysiaViet Nam

JapanJordan

ChileIran

Papua New GuineaPakistan

Saudi ArabiaOman

AzerbaijanBrazil

GuyanaUkraineSenegalCroatia

Uruguay


IFAB 2013

BOTTOM 25 NEW ZEALAND FOOD & BEVERAGE EXPORT MARKETS BY DECREASE IN VALUE US$m

EXPORT DOLLAR DECLINE The reorientation to China is matched in part by declines in exports to Mexico, Europe and a range of other primarily secondary markets; recent declines in South Korea, Thailand & the Philippines are concerning


-$199 -$125

-$73 -$67

-$37 -$30 -$28 -$27

-$16 -$11 -$9 -$6 -$6 -$5 -$3 -$3 -$2 -$2 -$2 -$2 -$2 -$1 -$1 -$1 -$1 -$1

MexicoBelgiumDenmarkCubaItalyFranceSyriaSpainDominican Rep.PanamaGuatemalaNorwayEl SalvadorGreeceArgentinaJamaicaTunisiaAustriaTanzaniaSeychellesTajikistanNeth. AntillesBoliviaCongoGuamGabon

-$115 -$108

-$74 -$67

-$61 -$60 -$58 -$57 -$54 -$53 -$51 -$46

-$41 -$37 -$37 -$36 -$34

-$31 -$30 -$27 -$26 -$23 -$22 -$20 -$19

DenmarkMexicoSouth KoreaThailandBelgiumPhilippinesFranceUnited KingdomSri LankaAlgeriaIndiaSpainCubaSyriaNetherlandsRussiaTaiwanOther Europe, nesGhanaIndonesiaItalySingaporeMoroccoGreeceSudan

5 YEAR CHANGE; 07-12 1 YEAR CHANGE; 11-12


IFAB 2013

TOP 20 NEW ZEALAND FOOD & BEVERAGE EXPORT MARKETS BY CAGR PERCENT CHANGE IN VALUE US$m; %

PERCENT GROWTH Strong growth rates coming out of Africa, the Middle East and other developing markets


5 YEAR CAGR; 07-12 1 YEAR CHANGE; 11-12

314%

148%

104%

71%

67%

54%

54%

49%

48%

42%

42%

41%

39%

39%

39%

38%

37%

34%

33%

33%

Mali

Mongolia

Iraq

Sierra Leone

Libya

Macao SAR

Zimbabwe

Benin

Uruguay

Bangladesh

Turkey

Romania

Senegal

China

Côte d'Ivoire

Myanmar

Peru

Cambodia

Djibouti

Haiti

462%

245%

240%

239%

179%

139%

132%

128%

115%

101%

87%

83%

78%

78%

74%

67%

59%

47%

46%

46%

Equatorial Guinea

Libya

Sierra Leone

Uruguay

Macao SAR

Estonia

Romania

Croatia

Nepal

Iraq

Tunisia

Djibouti

Peru

Benin

Chile

Kiribati

Latvia

Brazil

Guinea

Jordan Screened to $1m+ NZ exports to markets


IFAB 2013

TOP 25 DAIRY MARKETS BY CAGR PERCENT CHANGE IN EXPORT VALUE US$m

PERCENT DECLINE Cuba, Denmark and a range of developing countries lead declining markets by CAGR


5 YEAR CAGR; 07-12 1 YEAR CHANGE; 11-12

-28%

-22%

-21%

-21%

-20%

-15%

-13%

-12%

-10%

-9%

-9%

-8%

-8%

-8%

-7%

-7%

-6%

-5%

-4%

-4%

Cuba

Argentina

Denmark

Seychelles

Dominican Rep.

El Salvador

Mexico

Syria

Gabon

Belgium

Norway

Panama

Guatemala

Austria

Tunisia

Italy

Kenya

Malta

Spain

GuamScreened to $1m+ NZ

exports to markets

-78%

-72%

-59%

-54%

-51%

-51%

-50%

-44%

-42%

-42%

-39%

-37%

-35%

-35%

-33%

-32%

-31%

-29%

-27%

-26%

Denmark

Cuba

Gabon

Syria

Dominican Rep.

India

Zimbabwe

Ghana

Togo

Turkmenistan

Greece

Aruba

Mexico

Namibia

Morocco

Mali

Curaçao

Spain

Saint Lucia

Bahamas


IFAB 2013

TOTAL FOOD & BEVERAGE EXPORT VALUE IN 2012: NZ VS. COMPETITORS US$m; 2012; 2012 vs. 2011

BENCHMARK – EXPORT GROWTH VS. COMPETITORS New Zealand’s performance in a difficult year globally was good relative to European competitors but poor relative to Canada and Australia (discussed next page)


EXPORT VALUE 2012 1 YEAR $ CHANGE IN VALUE 1 YEAR % CHANGE IN VALUE

$73,507

$70,545

$43,735

$31,044

$29,979

$20,955

$18,371

$14,749

$11,863

$6,560

$4,448

$2,002

Netherlands

Germany

Canada

Argentina

Australia

New Zealand

Denmark

Chile

Ireland

South Africa

Japan

Finland

$2,224

$1,510

$208

$67

-$58

-$137

-$267

-$633

-$900

-$2,000

-$2,257

-$2,522

Canada

Australia

Chile

New Zealand

Japan

Finland

South Africa

Ireland

Denmark

Netherlands

Germany

Argentina

5%

5%

1%

0%

-1%

-3%

-3%

-4%

-5%

-5%

-6%

-8%

Canada

Australia

Chile

New Zealand

Japan

Netherlands

Germany

South Africa

Denmark

Ireland

Finland

Argentina


IFAB 2013

$20,888

$28,469

$20,955

$29,979

New Zealand Australia

F&B EXPORT VALUE: NZ VS. AUSTRALIA US$m; 2011-2012

FOCUS – NZ VS. AUSTRALIA Australia is growing its food and beverage exports to a wide range of markets where New Zealand is not; in particular Pakistan, India, Iran and SE Asia


2011 2012 2011 2012

+$67 (0%)

+$1,510 (5%)

TOP 15 AU F&B EXPORT MARKETS BY 1Y VALUE GROWTH VS. NZ US$m; 2012 vs. 2011

-$1,500 -$500 $500

China

Pakistan

Belgium

Iran

USA

India

Indonesia

Philippines

Thailand

United Arab Emirates

Sudan

Nigeria

Qatar

Yemen

Denmark

NET Other

AU

NZ

Australian growth coming from across a wide range of products including vegetables, fruits, oilseeds rice and other grains


iFAB 2013

IFAB 2013

$2,966 $3,341 $3,875 $4,239 $4,639

$6,345 $7,445

$5,735

$7,995

$10,249 $10,226

$2,085 $2,524

$3,153 $3,401 $3,141

$3,363

$3,882

$3,406

$3,836

$4,627 $4,447

$693

$688

$823 $873 $853

$907

$949

$875

$1,033

$1,187 $1,238

$713

$826

$1,170 $1,076 $1,024

$1,266

$1,333

$1,261

$1,348

$1,621 $1,586

$44

$76

$86 $94 $99

$112

$143

$128

$141

$156 $191

$408

$524

$719 $999 $1,058

$1,278

$1,310

$1,301

$1,429

$1,655 $1,722

$120

$128

$167

$153 $159

$187

$256

$241

$241

$254 $289

$208

$258

$378

$454 $524

$722

$816

$789

$971

$1,140 $1,257

$7,238

$8,364

$10,370

$11,288 $11,497

$14,180

$16,133

$13,736

$16,993

$20,888 $20,955

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

10 YEAR NEW ZEALAND F&B EXPORTS BY CATEGORY/SUPER-CATEGORY (HS4/6 LEVEL) US$m; 2002-2012

F&B – EXPORTS BY TYPE New Zealand food & beverage exports have achieved strong growth over the past decade, driven by beverages, processed foods and dairy in rate of growth, and dairy and meat in absolute value


Dairy 13% +$7,259m

Meat 8% +$2,362m

6% +$545m

Produce 8% +$873m

Other food 16% +$147m

Processed foods 15% +$1,314m

Beverages 20% +$1,049m

TOTAL 11% +$13,610m

CAGR Absolute

10 Year

10y CAGR

11%

Pet/animal feed 9% +$169m

Seafood


IFAB 2013

EXPORT VALUE OF TOP 40 F&B PRODUCTS (HS6 LEVEL) IN 2012 US$m; 2012

EXPORT DOLLARS Milk powder and frozen meat continue to be New Zealand’s only “billion plus” exports; however there is a strong group of $100m+ products, many of which are growth engines

62 WMP Whole Milk Powder, SMP Skim Milk Powder, MBM Meat and Bone Meal; Source: UN Comtrade database; Coriolis analysis

$1,374

$1,253

$1,108

$916

$840

$824

$799

$680

$513

$448

$407

$406

$319

$310

$293

$261

$241

$240

$211

WMP

Beef, frozen boneless

SMP

Sheep, frozen bone-in

Butter

Kiwifruit

Wine, bottle

Cheese, cheddar, etc.

Other milk fats and oils

Natural milk constituent nes

Sheep, chilled bone-in

Casein

Innovative foods

Sheep, frozen boneless

Caseinates/other derivatives

Apples

Frozen fish, nes

Infant formula retail

Anlene; other dairy nutritionals

Milk albumin

$4,243 $210

$185

$180

$177

$171

$159

$148

$145

$129

$125

$108

$103

$99

$97

$88

$87

$86

$85

$84

$74

Beef, chilled boneless

Fresh cheese

Sheep, chilled boneless

Rock Lobster, fresh

Frozen fish fillets

Deer, fresh & frozen

Mussels (not-live)

Wine, bulk

Buttermilk powder, other fermented

Animal fats

Canned beef

Honey

MBM for pet food

Grated or powdered cheese

Processed cheese

Whey & modified whey

UHT milk, other whole fluid

Beef, frozen bone-in

Sauces

High fat fluid milk

*

*

*

NOTE: All F&B export products at HS6 level. Definitions in Sector reports


IFAB 2013

IFAB TOP 40 GROWTH CATEGORIES BY CHANGE IN EXPORT VALUE IN CY12 US$m; 2012 vs. 2011

EXPORT DOLLAR GROWTH In 2012, casein, cheddar cheese wine and innovative foods led export value growth; however there is a strong second tier of growth categories for New Zealand

63 IF Infant Formula; Note: Innovative Foods (HS210690) are products that did not exist when the trade codes were developed and/or last revised; Source: UN Comtrade database; Coriolis analysis

$97

$94

$64

$57

$55

$48

$44

$26

$24

$23

$21

$20

$20

$20

$19

$17

$17

$16

$16

$14

Casein

Cheese, cheddar, etc.

Wine, bottle

Innovative foods

Milk albumin

Frozen fish, nes

Beef, frozen boneless

Fresh cheese

Natural milk constituent nes

Frozen fish fillets

Wine, bulk

Bulk IF; other sweet WMP

Fish extracts

WMP

Whey & modified whey

Beer

Infant formula retail

Kiwifruit

Honey

Other flavoured beverages

$14

$12

$12

$11

$11

$10

$10

$10

$9

$8

$8

$8

$7

$7

$7

$6

$5

$5

$5

$5

Sauces

Pet food

Beef, chilled boneless

Chicken, frozen

Ketchup

Lactose 99%

Mixes & doughs

Sheep, frozen offal

Breakfast cereal, flakes

Apples

Animal food; meat greaves

Chilled fish, nes.

Peptones/protein sub.

Caseinates/other derivatives

Rock Lobster, fresh

Chocolate mixed

Gelatin

Animal food; fish based

Crustaceans nes, frozen

Yogurt

*


IFAB 2013

IFAB BOTTOM 40 DECLINING CATEGORIES BY CHANGE IN EXPORT VALUE IN CY12 US$m; 2012 vs. 2011

EXPORT DOLLAR DECLINE In 2012, butter/other milk fats and frozen sheep/lamb led declining categories by value


-$216

-$141

-$88

-$82

-$56

-$40

-$32

-$25

-$25

-$23

-$20

-$18

-$18

-$17

-$14

-$13

-$10

-$9

-$9

-$8

Butter

Other milk fats and oils

Sheep, frozen boneless

Sheep, frozen bone-in

Anlene; other dairy nutritionals


Onions

Frozen fish meat

Avocados

Sheep, chilled bone-in

SMP

Grated or powdered cheese

Mussels (not-live)

Deer, fresh & frozen

Squid (non-chilled)

Frozen french fries

Sheep, frozen carcass

Mussels, prepared

Bulk chocolate

Processed cheese

-$6

-$6

-$5

-$5

-$4

-$4

-$4

-$4

-$4

-$3

-$3

-$3

-$3

-$3

-$2

-$2

-$2

-$2

-$2

-$2

Soups

High fat fluid milk

Dairy spreads

Beef, frozen tongues

Salmon, frozen whole

Potatoes

Salmon, chilled whole

Breakfast cereal, puffed

Tomatoes

Animal fats

Albumins (excl. egg albumin), albuminates, other

Prawns, frozen

Oysters

Beef, frozen bone-in

Maize (corn) flour

Prep/pres fins

Pears

Beef, frozen livers

Frozen mixed veg

Canned chicken


IFAB 2013

TOP 25 F&B EXPORT CATEGORIES BY VALUE PER KILOGRAM US$/kg; 2012

$/KG In 2012 rock lobster led export categories over $1m in terms of dollars per kilogram, however there are a wide range of interesting very high value products being exported from New Zealand


$64.99

$46.60

$42.50

$41.20

$37.24

$33.77

$33.12

$26.66

$25.53

$24.70

$21.63

$21.40

$19.55

$19.30

$18.57

$18.26

$17.82

$16.99

$14.61

$14.39

$13.89

$13.84

Ginseng roots

Saffron

Grape must

Lobster, prep/pres

Hop cones, ground, in pellets

Vegetable products other

Albumins, albuminates

Crustaceans not frozen,nes

Mushrooms, dry

Sheep, chilled offal

Other mushrooms, dry

Pork, chilled nes

Vanilla

Vermouth

Cocoa butter, fat and oil

Raspberries, etc.

Flour, meal and powder (Chapter 8)

Crabs (excl.frozen)

Coffee husks and skins

Scallops (excl. live, fresh or chilled)

Green tea in immediate packings

Cardamoms

Anchovies, prep/pres

Hop cones (excl. ground)

Shrimps and prawns (excl. frozen)

$59.88

$56.32

$31.63

$30.42

$27.49

$27.06

$24.72

$23.94

$23.45

$23.24

$22.11

$18.45

$18.12

$15.09

$14.34

$13.82

$13.21

$12.63

$12.62

$12.32

$12.15

$12.00

$11.98

$11.79

$11.68

Rock Lobster, fresh

Other animal fats and oils

Frozen rock lobster

Bluefin tuna, frozen whole

Dried fish, not smoked (excl. cod)

Invertebrates nes

Fish extracts

Bigeye tunas (Thunnus obesus), chilled

Peptones/protein sub

Bluefin tuna, chilled whole

Salmon, smoked

Rennet

Prawns, frozen

Mussels, prepared

Deer, salted/dried

Blue-veined cheese

Roasted coffee, not decaffeinated


Seaweeds

Meals and pellets of fish

Black tea

Honey

Crustaceans nes, frozen

Blackcurrants; other

Oysters

$354.65

$331.24

CATEGORIES OVER $1M CATEGORIES UNDER $1M

$161.00


iFAB 2013

IFAB 2013

KEY FOOD & BEVERAGE INDUSTRY ORGANISATIONS 2013

F&B – INDUSTRY ORGANISATIONS As a major food and beverage producer, New Zealand has a strong range of industry bodies and organisations

67 Source: Coriolis analysis

DAIRY MEAT SEAFOOD PRODUCE PROCESSED FOODS BEVERAGES


IFAB 2013

KEY FOOD & BEVERAGE INDUSTRY RESEARCH BODIES IN NEW ZEALAND 2013

F&B – INDUSTRY SCIENTIFIC RESEARCH New Zealand has strength in food and beverage research across a range of research institutes

68 Source: Coriolis analysis

RESEARCH AND SCIENCE ORGANISATIONS UNIVERSITIES


IFAB 2013 F&B – INDUSTRY SCIENTIFIC RESEARCH New Zealand Food Innovation Network provides four open access commercial scale R&D and pilot plant facilities for the food and beverage industry

69 Source: NZFIN

Location Focus Capability

Processed/FMCG foods Space/equipment for hire Export registrations ~1000 kg/shift

- Extrusion & milling/blending - UHT/Beverage - High pressure processing - Freeze drying - General processing - Multiple packaging styles - Production kitchen

Dairy & Infant Formula ~500 kg/hour

- Spray dryer - Evaporator - Other dairy equipment - Packing

Dairy Fruit & vegetables All Food and Beverage

- Same equipment range as Manukau (1/5th scale)

- Same equipment range as Waikato (1/20th scale)

- Post harvest technologies - Meat and small goods pilot plant

All Food and Beverage Sourcing of: - pilot equipment - technical expertise - business expertise

Auckland

Massey Univ.


IFAB 2013 METHODOLOGY & DATA SOURCES

This report uses a range of information sources, both qualitative and quantitative.

The numbers in this report come from multiple sources. While we believe the data are directionally correct, we recognise the limitations in what information is available. In many cases different data sources disagree (e.g. Statistics New Zealand vs. FAO vs. UN Comtrade). Many data sources themselves incorporate estimates of industry experts (e.g. FAO AgStat). As one example, in many cases, the value and/or volume recorded as exported by one country does not match the amount recorded as being received as imports by the counterparty [for understood reasons]. In addition, in some places, we have made our own clearly noted estimates.

All trade data analysed in all sections of the F&B Information project are calculated and displayed in US$. This is done for a range of reasons:

1. It is the currency most used in international trade

2. It allows for cross country comparisons (e.g. vs. Denmark)

3. It removes the impact of NZD exchange rate variability

4. It is more comprehensible to non-NZ audiences (e.g. foreign investors)

5. It is the currency in which the United Nations collects and tabulates global trade data

The opinions expressed in this report represent those of the industry participants interviewed and the authors. These do not necessarily represent those of Coriolis Limited or the New Zealand Government.

Coriolis has not been asked to independently verify or audit the information or material provided to it by or on behalf of the Client or any of the data sources used in the project. The information contained in the report and any commentary has been compiled from information and material supplied by third party sources and publicly available information which may (in part) be inaccurate or incomplete. Coriolis makes no representation, warranty or guarantee, whether express or implied, as to the quality, accuracy, reliability, currency or completeness of the information provided in the report.

If you have any questions about the methodology, sources or accuracy of any part of this report, please contact project lead Tim Morris at Coriolis, on +64 9 623 1848

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Data was from a variety of sources, and has a number of identified limitations


IFAB 2013 GLOSSARY OF TERMS

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This report uses the following acronyms and abbreviations

A$/AUD Australian dollar N/C Not calculable

ABS Absolute change N.H Northern Hemisphere

ANZSIC AU/NZ Standard Industry Classification NZ New Zealand

AU Australia NZ$/NZD New Zealand dollar

Australasia Australia and New Zealand R&D Research and Development

b Billion S Asia South Asia (Indian Subcontinent)

CAGR Compound Annual Growth Rate SE Asia South East Asia

C/S America Central & South America (Latin America) S.H Southern Hemisphere

CRI Crown Research Institute SS Africa Sub-Saharan Africa

CY Calendar year (ending Dec 21) T/O Turnover

E Asia East Asia US/USA United States of America

EBITDA Earnings before interest, tax, depreciation and amortization

US$/USD United States dollar

FAO Food and Agriculture Organisation of the UN UK United Kingdom

FY Financial year (of firm in question) US United States of America

£/GBP British pounds YE Year ending

JV Joint venture YTD Year to date

m Million Sources

n/a Not available/not applicable AR Annual report

NA/ME/CA North Africa / Middle East / Central Asia Ce Coriolis estimate

N. America North America (USA, Canada) Ci Coriolis interview

Nec/nes Not elsewhere classified/not elsewhere specified


Coriolis is a boutique management consulting firm that focuses on food, consumer packaged goods, retailing and foodservice. Coriolis advises clients on strategy, operations, organization, and mergers and acquisitions. We develop practical, fact-based insights grounded in the real world that guide our clients decisions and actions. Founded in 1999, Coriolis is based in Auckland, New Zealand and works on projects across the Asia Pacific region. WHAT WE DO We help our clients assemble the facts needed to guide their big decisions. We make practical recommendations. Where appropriate, we work with them to make change happen. HOW WE DO IT Our style is practical and down-to-earth. We try to put ourselves in our clients’ shoes and focus on actions. We listen hard, but we are suspicious of the consensus. We provide an external, objective perspective. We are happy to link our fees to results. WHO WE WORK WITH We only work with a select group of clients we trust. We build long term relationships with our clients and more than 80% of our work comes from existing clients. Our clients trust our experience, advice and integrity.

Typical assignments for clients include… FIRM STRATEGY & OPERATIONS: We help clients develop their own strategy for growing sales and profits. We have a strong bias towards growth driven by new products, new channels and new markets. MARKET ENTRY We help clients identify which countries are the most attractive – from a consumer, a competition and a channel point-of-view. Following this we assist in developing a plan for market entry and growth. VALUE CREATION We help clients create value through revenue growth and cost reduction. TARGET IDENTIFICATION We help clients identify high potential acquisition targets by profiling industries, screening companies and devising a plan to approach targets. DUE DILIGENCE We help organisations make better decisions by performing consumer and market-focused due diligence and assessing performance improvement opportunities. EXPERT WITNESS We provide expert witness support to clients in legal cases and insurance claims. We assist with applications under competition/fair trade laws and regulations. READ MORE ON OUR WEBSITE.

ABOUT CORIOLIS’ SERVICES

CORIOLIS LIMITED PO BOX 90-509 AUCKLAND, NEW ZEALAND T: +64 9 623 1848 www.coriolisresearch.com

ABOUT CORIOLIS’ SERVICES

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Documents

New Zealand iFAB 2013 Overview - Ministry of Business ... · comprehensive overview of the state of New Zealand’s Food & ... The reports contain analysis and interpretation of trends