Company Profile: Nelson Honey
Around 85% of their products are destined for export, with China, Australia, South East Asia and the USA being some of their primary markets
Nelson Honey is a family owned producer and exporter of high quality honey based goods, based out of Motupiko, 50km south of Nelson.
Their focus is on producing high grade active manuka honey, although the larger section of the business revolves around high value bee venom and honey based cosmetic products.
First opening in 1973, the company has ties to the industry and region stretching back much further – the business was formed by Philip Cropp, a third generation beekeeper whose grandfather started beekeeping in the Nelson region over 100 years ago.
Nelson Honey employ around 60 people, many of which work to care for and maintain the 4000 beehives the firm has spread throughout the top of the South Island. Around 85% of their products are destined for export, with China, Australia, South East Asia and the USA being some of their primary markets. They also established a UK-based office to further expand their export markets, marketing their honey products throughout Europe, which has been most successful in creating interest and demand for their cosmetic ranges so far.
One particular success for Nelson Honey has been their Royal Nectar brand, which is venom and honey based cosmetic range, with demand currently out stripping production. “As a pioneer of this market Nelson Honey has managed to cement a solid position for the brand worldwide in a relatively short space of time” said Rob Hawkes, the Chief Executive of Nelson Honey.
Whilst the Royal Nectar range has a dedicated market following, Nelson Honey plan to continually expand and adapt the variety of products they offer as demand in certain markets changes. “All markets are continually evolving and we recognise the need to remain innovative and proactive,” said Rob.
Rob Hawkes explained some of the keys to their model and success, particularly their customer focus, “Some of the ‘points of difference’ from our competitors include our family history, location and small company approach. Nelson Honey remains a family business and has long term enduring relationships with many of our customers – we aren’t in any way corporate. We understand that our customers are our most important asset, and supplying them with high quality, innovative products at a fair price remains our primary aim.”
Building and maintaining customer relationships are vital for small businesses and Nelson Honey understand this and incorporate this approach into the core of their business. “Many of our customers have become members of our extended family over the years and we value their loyalty and support” said Rob.
As a producer of high-quality goods, one of challenges Nelson Honey face is counterfeit and cheap, but lower quality products coming into markets. Rob explained, As with any innovative business, success creates some challenges, as a market leader we are now seeing many other companies offering products similar to ours,“ says Rob.
“Unfortunately we are also seeing an influx of counterfeit product coming out of China. In the past this was restricted to the Chinese market, however we are now seeing evidence of this in both our Australian and New Zealand domestic markets,” said Rob.
As with many products, the Chinese market represents a huge opportunity for growth and expansion, due its vast size and rising middle class incomes. However being successful in the Chinese market comes with challenges.
“The Chinese consumer in particular has a deep distrust of products on their own shelves, so we are working at many levels on ways of combating this to promote the quality of our products. In the past New Zealand manufacturers were able to place a huge reliance on the fact that their goods were manufactured in clean green New Zealand. However the markets we operate in are demanding more than this these days, and proof of authenticity is high amongst these demands” says Rob.