Sweetening the market
BRAND POWER: Husband and wife team Ron and Pamela Steele have made Comvita honey a household name in the UK.Related articles
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A solid product and tenacious business sense has ensured Comvita honey products have made an impact on the global market. ERICA FOSBENDER talks to Ron and Pamela Steele about being the driving force behind the product.
14 Jun 2005
Husband and wife team Ron and Pamela Steele know a niche market when they see one, which is why they have been successfully running businesses in the UK for 20 years.
The Steele’s have made Comvita honey and other bee-based products an indispensable commodity in the UK and Ireland and have made it something they can’t live without in Europe. "The business is going well, but you have to work hard in the UK. We just get on with it," Pamela said.
The Steeles import Comvita products through their company the New Zealand Natural Food Company, which they started in 1986 in a bid to bring natural and organic products to the UK and Ireland.
They also run Peppercorns Food Service, a food service company that similarly specialises in health foods such as breakfast cereals and bar snacks.
However, the high New Zealand dollar is causing more than a few headaches for the Steeles who rely on the quality reputation of their products imported from New Zealand through their company the New Zealand Natural Food Company (NZNF). And buying the products in New Zealand dollars puts the Steeles in the same compromised position as smaller business in New Zealand.
"The high New Zealand dollar is grossly overvalued and is hurting exporters. Exporters are screaming. We have to be careful. But we run a tight ship," Ron said.
It’s been a ship that’s successfully changed the taste of the UK honey market, from plain clover to dark varieties. The Steeles introduced manuka honey and several other dark bush honey such as rata to the UK, and now UK brand leader Comvita manuka honey can be found in stores including, Sainsbury’s, Fresh and Wild, Holland and Barrett and in health food stores.
Other bee-based products include health supplements, active manuka honey dressings, skin therapy creams and other therapeutic items. But they are mindful of the importance of diversifying, knowing the high price companies pay if they rely on one product or retailer. So along with Peppercorns and NZNF, the Steeles also have their own brand of creamed bush honey, Eco-Kiwi.
Having intimate knowledge of their neck of the UK and New Zealand markets is more than an advantage for the Steeles and ensures the Comvita name is solidly represented.
"We’re [NZNF] a UK company run by New Zealanders, so we understand both markets," Pamela said.
"To be able to identify with the two markets is a huge benefit."
But getting the product on to northern hemisphere shelves is no mean feat, there are the issues of geography and time and it is imperative there is the staff in the UK to do the groundwork.
There is no financial partnership between NZNF and Comvita, just an understanding the product will be promoted and distributed within the growing market, Ron said.
"Success [of Comvita] has been driven by PR – I’m a strong believer in PR," Pamela said.
"Manuka honey not a fly by night product, people have benefited from it. Health journalists trust the products to be able to write about it."
Comvita outgrew the New Zealand market early on, and in 1994 the Steeles brought it to the UK, doing the legwork that ensured the product’s success.
It is a boutique range, much like the New Zealand wine market, and promises quality rather than quantity. With the UK, Ireland and Europe, Comvita has access to about 400 million people where New Zealand could only offer less than 4 million.
"We can’t compete on price so we have to compete on quality – it’s premium honey.
You can always trust New Zealand honey," Ron said. The Steeles are busy cracking the lucrative Middle East market, particularly Dubai, which is a popular holiday spot for Europeans. They already stock a spate of five-star hotels with Peppercorn cereals and bar snacks. Also a favourite in the Middle East is honeycomb, Ron said. Apparently they love it and are not fussed if it’s not perfectly symmetrical with a slight range in colour, unlike Japanese expectations.
"In Japan it has to be cosmetically perfect or they won’t accept it," Ron said.
But that’s just one of the quirks of the business and the Steeles are finding more than enough interest in their brand in the UK and Europe. Given its market presence and trusted brand, Comvita’s reputation can only improve, and the Steeles will ensure its lasting shelf life.
• For more information or to order Comvita products visit www.nznf.co.uk or www.peppercornsfoodservice.com.
