How did you diversify the business from there?
It's been quite a big shift. Initially we made a peony root soap, with the help of a Nelson-based company called Global Soap, because that was a traditional product our kids couldn't use. We have a stall at the Nelson market for our peonies, and we started selling the soaps there and had a great uptake, which prompted us to be a bit braver and make a creme.
As part of that process we had to learn the protocols around how to harvest, dry and handle peony root. One of our major challenges has been finding equipment to do these jobs because no one else is producing peony root in New Zealand, so it's been a massive learning curve. For example, we had to build a dryer to dry the root, so we turned to the guy who runs the mushroom farm up the road to see how he dries his product, then we got my father, who's an architect, on the job.
It took 10 months of development to come up with a formula for the creme that works really well, and we've since diversified into more general natural skincare. We also make teas to promote hormonal balance and boost immunity. And then as a result of requests from customers we've been developing a shampoo.
How has that diversification worked with your original cut flower business?
We've managed to work it in a way that's quite complementary, but we've had to work around some issues. We're transitioning to being organic at the moment, because that's an asset with our value-added skincare products, but that's meant we've said goodbye to the US cut flower market because we can no longer meet their biosecurity rules around shipping. We're still able to export to Asia and Australia though and I'm told there is a new and growing market for organic flowers.
Where are your value-added products sold? Have you diversified your geographical markets?
We sell online, in a few different retail outlets around the country, and then we've got our Nelson market stall, which gives us a good opportunity to talk to customers and meet people from around the world who then order online. We've also recently taken on a Chinese graduate who's selling our product into China, which is really exciting. One of the stumbling blocks for our business has been that Kiwis aren't used to using peonies as a medicinal herb. To grow the business and be able ot put some investment into further R&D and infrastructure we really need some good revenue streams, and the Chinese market is massive.
What plans do you have for future diversification?
We gained some funding through Callaghan Innovation to test the concentration of the active ingredient in the peony root that's in the 21 different varieties of peonies we grow. The Cawthron Institute here in Nelson was able to do that testing for us, and that knowledge opens the door for us to create more products. For example, we want to be able to produce peony root in a capsule form as a health supplement to promote hormonal balance, because we feel there's a need and it's a lucrative market, but you have to have the scientific evidence to back those products up.
In this business you never know what's going to come across your doorstep so you just have to be open to opportunities.
