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Home / Bay of Plenty Times / Business

Comvita's rejig all about bigger picture

By Graham Skellern - Business Editor
Bay of Plenty Times·
8 Apr, 2012 10:00 PM5 mins to read

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Comvita New Zealand marked a real coming of age this week with a major restructure.

The Paengaroa-based natural health products manufacturer and marketer has created new business units and positions for key staff in a bid to increase its presence, and sales, in the global market.

Chief executive Brett Hewlett said: "We have grown rapidly and changed our business a lot in the last six years. One of the things the [unsuccessful] Cerebos takeover bid showed us was that there was the potential for a lack of understanding of how large we had become, and what we were involved in.

"As the business becomes more complex, you have to look for ways to simplify it and make it easily understood. We have given more autonomy and authority to the regions."

With annual sales approaching $100 million and more staff overseas than in New Zealand, Comvita has become a mini multinational selling manuka honey-based and olive leaf products to the health food, healthcare, skincare and woundcare sectors of 15 countries. Now it wants to expand those markets, particularly in North America.

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During the past six years, Comvita has bought businesses and introduced new products to build a strong operating platform - even at the expense of paying strong dividends to shareholders.

"We haven't grown and expanded just for the sake of it," said Mr Hewlett. "We wanted to create a more sustainable, profitable business, making sure we can continuously source the raw materials and distributing to markets on time in a reliable and consistent fashion.

"We had to put some scale behind the business. New Zealand-sourced natural products are in high demand overseas - and this presents an enormous opportunity. From an earnings point of view, we are comfortable about where we have got to and what we have achieved."

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Comvita, which will release its latest annual result on May 23, is on target to meet its forecast of $7.3 million to $8.2 million profit - although total sales are expected to fall just short of the $100 million milestone.

"If the New Zealand currency had played its part, we would have already passed that - even two years ago," said Mr Hewlett.

Comvita now has 350 staff - 120 at Paengaroa and 230 overseas, mainly in sales, marketing and retail roles. A total of 120 people are employed in the biggest hub, Hong Kong, which has 12 dedicated Comvita stores and space in 42 other retail outlets.

There are also 35 Comvita stores and space in 365 retail outlets on mainland China, offices in Taiwan, Seoul, Yokohama and Britain, and an olive plantation and factory in Australia.

Under the restructuring, Comvita has split its Asian markets into two business units - one covering greater China and Southeast Asia, and the other Northeast Asia. A new Pacific unit covering New Zealand, Australia, Canada and the United States has been established, as has wholly owned subsidiary Comvita Innovation, which will conduct research and development and liaise with universities and other research institutions.

Scott Coulter, previously chief marketing officer, has become chief operating officer overseeing marketing, sales, product development and the global supply chain and distribution.

He joined Comvita in 2002 after working in sales and marketing management roles at Dominion Salt and Tetra Pak, and was presented with the Bay of Plenty Export Achiever award in 2010.

John Burke, who engineered the response to the Psa bacterial outbreak as general manager of Kiwifruit Vine Health, joins Comvita as general manager apiary development. He will develop Comvita's apiary business and explore land development opportunities to plant selected species of manuka and increase the future supply of manuka honey.

Mr Burke worked for Rural Bank as a valuation consultant and then became chief executive, and a current director, of Te Awanui Huka Pak kiwifruit processing plant in Totara St.

Nevin Amos, previously chief of the supply chain, is moving to Japan to become general manager Northeast Asia. Dr Amos is completing a Prime Minister's Business Scholarship in Singapore before taking up his new role later this month.

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Dr Amos, who worked for Zespri International, Commonwealth Scientific and Industrial Research Organisation and Meat Industry Research Institute of New Zealand, has led Comvita's procurement, manufacturing, quality and distribution teams since 2006.

Ron Butt, based in Hong Kong, will continue to look after that region now as general manager Greater China and Southeast Asia. Before becoming involved with Comvita in 2005, he had a 10-year career with ExxonMobil in the Asia-Pacific region.

Alex Hutton, based in Brisbane, takes over as general manager Pacific and will continue to develop Olive Products Australia, which produces the leaf extract.

Ralf Schlothauer, previously chief technology officer, will run Comvita Innovation, which will be based in the Institute for Innovation in Biotechnology at Auckland University. Dr Schlothauer, from north Germany, is an associate professor at Auckland University.

Comvita Innovation will also conduct research and innovation work for other companies that have an association with Comvita.

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