The third instalment of nzherald's Business Summer series about resilient SMEs.
KEY POINTS:
For over 80 years Rush Munro's has been using the same recipe and same technique to make the bucket loads of ice cream it churns out every year.
Over the years some industry players either expanded aggressively or included additives to their products but Rush Munro's has stuck
firmly to its old fashioned way of cutting fruits for the ice cream by hand and keeping the frozen dessert additive free amid a strong belief that it creates a better product.
"Being a small New Zealand company up against the big boys everyday is always a challenge," says John Bostock, who bought the business seven years ago. But "we've got demand exceeding supply, so we're keeping to the original roots and keeping it natural."
The strategy seems to be working for the maker of premium ice cream. The company, which opened in Hastings back in 1926, has been run off its feet in recent years trying to keep up with strong demand from new and existing customers and collecting an assortment of icecream awards, says Mr Bostock, who has other organic business interests. Rush Munro's has also been fending off a number parties keen to buy the food maker.
"We're staying away from the corporate model."
"By handcrafting, each batch is made on its own merits with a focus on flavours."
Among the handful of highlights for the company over the years, perhaps the one that stands out the most was the selection of Rush Munro's in 1999 to provide ice cream for the APEC summit New Zealand hosted for world leaders including the now former US president, Bill Clinton. Positive customer feedback and the awards the company has picked up over the years also brings a huge smile to his face.
"It may not sound like much, but it means a lot."
Besides a drive to keep Rush Munro's New Zealand-owned, Mr Bostock was also drawn to the company's organic philosophy, something he believes will help its drive of pursuing the ever growing health-conscious market.
"Our point of difference is the use of real fruit and real ingredients and our priority is to source local" produce, said the Hawkes Bay born and bred. "We've always been natural. The [ice cream] market is catching up with us."
At the latest ice cream competition, Rush Munro's picked up numerous awards, including two for best category, three gold and four silver. Of the more than 12 flavours.
Rising dairy prices is becoming a headache for Rush Munro's which has been forced to pass the increase on to its customers. The company hopes dairy prices will stabilise as it could damp customer demand, though this has yet to happen.
Mr Bostock says the big budgets held by larger ice cream making corporates would make it hard to compete in the industry but Rush Munro's long standing position enables it to keep up with peers.
"Because we're the oldest maker, we've got lots of relationships," he said of the company that generates revenue of $3 million a year.
"It's quite competitive and so getting established will take a lot of perseverance."
The amount of red tape companies have to endure is slowing productivity, he said.
"Bureaucracy is a huge issue for SMEs and all businesses."
"I don't think we are concerned about compliance but it's the time it takes to get through planning and the hurdles. The next focus for central government has to be to raise productivity of bureaucracy."
Right now Rush Munro's is preparing to launch its new organic range in the coming months and it is also eyeing potential export markets including Australia, he said.
"Organic is big and more people overseas are interested so, for us, the biggest issue is meeting the demand of customers."
