Update Magazine - Issue 175 by Canterbury Employers' Chamber of Commerce

update

Grasping growth

Zero-waste beauty

Taska Prosthetics

Ethique

The change-maker

Q&A withâ&#x20AC;¦

Anton Matthews

Dr Rod Carr THE CHAMBER NOVEMBER Update 2019

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update CONTENTS

Further reading 02

Welcome Leeann Watson, Chief Executive Canterbury Employers’ Chamber of Commerce.

Business Profile WoolAid founder Lucas Smith is running at full pace.

Up/down How Ōtautahi Christchurch and Waitaha Canterbury are stacking up.

Business Profile Ethique - the world’s first zero waste beauty brand.

Economic Update Dominick Stephens, Westpac Chief Economist.

The Chamber The Canterbury Employers’ Chamber of Commerce (The Chamber) is a not-for-profit membershipbased service organisation that has been the home and voice of business in the Canterbury region since 1859. Comprised of over 2,800 member organisations that represent over 70,000 employees, The Chamber’s purpose is to empower people in business. To learn more about The Chamber visit www.thechamber.co.nz or phone 0800 50 50 96 to connect with one of our team.

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THE CHAMBER NOVEMBER Update 2019

FROM THE CHIEF EXECUTIVE

Welcome I am excited to bring you our next edition of Update magazine. You will notice that for this edition, we’ve changed it up with a new look and feel, which reflects our wider organisational focus on evolution and transformation. Like many organisations, we too are gearing up for a rapidly changing future, both internally within The Chamber, but also working to support our members through these changing times. We are currently progressing through a courageous strategic plan that will transform the organisation over the next few years. This will reposition The Chamber in what is often described as a period of change like no other we have ever seen before. Our three strategic drivers of redefining our business model, transforming our engagement and partnering for impact are underpinned by a continued commitment on delivering value to our members and a focus on people, culture, and strong commercial outcomes, ensuring the organisation is fit-forpurpose for a changing future. Many of these elements are reflected in our selection of businesses to profile in this publication, as well as the inspirational individuals and the thought leadership provided by our partner organisations. We are also proud to showcase the winners from our Westpac Champion Business Awards, which are such strong examples of the innovation in our region. We have also highlighted what we do best – make connections. We can not underestimate the immense value in networking with others, in areas such as exporting, manufacturing or research and development. We also connect you with specialist advisors to stay informed on key issues relating to health and safety, grant funding, employment relations,

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manufacturing, immigration, and international trade. Or providing the connection to experts who can assist businesses with digital transformation, facilitating workplace wellbeing initiatives and helping businesses build purpose and impact into their organisations. Alongside empowering people in business through building business and individual capability, we undertake a strong role in advocating for an operating environment conducive to business success and positive community outcomes. This is at both a local and national level on the issues that matter most to our local business community. We are proud to have recently reached The Chamber’s 160-year milestone, reinforcing The Chamber’s longevity and our unwavering focus on helping to empower people in business and shape a business environment that promotes innovation, productivity and economic growth, while supporting strong community outcomes.

to lead our people and community through change and transformation. This will be particularly important as we collectively adapt, evolve and respond to critical global issues, such as the future of work and climate change, and how we connect the head with the heart of our people to make the most of the opportunities that await us. Thank you to all our business partners, key stakeholders and Chamber members who continue to support our local business community and help to shape Ōtautahi into a vibrant and prosperous 21st century city centre to live, work, play, learn, visit and invest in. It’s an exciting time ahead. Leeann Watson CHIEF EXECUTIVE THE CHAMBER

Our three strategic drivers of redefining our business model, transforming our engagement and partnering for impact are underpinned by a continued commitment on delivering value to our members and a focus on people, culture, and strong commercial outcomes, ensuring the organisation is fit-for-purpose for a changing future. That community focus is key, as it reinforces what business is all about – people. While there is certainly a need to focus on big picture strategy, we also appreciate the need to place the same emphasis and effort on cultivating a positive workplace culture and helping

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THE CHAMBER NOVEMBER Update 2019

PARTNER CONTENT

Back to normal? We talk to Westpac Chief Economist Dominick Stephens about the local business environment and what’s in store for the future of the region. What’s going on in Canterbury? Canterbury has the special factor of being post-earthquake. The winding down of the rebuild has meant that Canterbury has been weaker than other regional economies in New Zealand for the past four years in terms of growth. The external facing part of Canterbury’s economy is heavy on manufacturing and dairy, and reasonably heavy on tourism. All those things are suffering in the wake of the trade war, which has slowed global trade in goods. This has affected dairy pay-outs and has particularly affected manufacturing production in New Zealand. While the locally induced rebuildtype economy has been slowing and the external economy has been strong in Canterbury; now the external side of the economy is also slowing, which is challenging at present. What is your view going forward? My view is that those external challenges will remain for a while. We will also see developments such as the big drop in interest rates and the cancellation in capital gains tax boost the housing market, particularly in Canterbury. We are already seeing signs that the housing market is turning around, and with very low interest rates I would expect that to continue. It could even provide a little more life into commercial property, which I know has been a struggle. A stronger housing market will tend to boost consumer spending, which should soften the blow over the year ahead or even lead to some economic improvement in terms of local domestic demand.

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The trade wars really are changing the landscape in terms of trade around the world. If you are an exporting business, then you absolutely are going to see the knock-on effects as global liberalisation of trade and tariff barriers go up around the world. For local businesses, keeping abreast of rules and regulations in overseas markets will be critical. Have the low interest rates significantly impacted local business? Interest rates are awfully low, which has changed the game in terms of business financing. The exchange rate is also changing rapidly, with the Kiwi really dropping against the US dollar but not so much against the Australian dollar. For an external facing business, or one buying in products from overseas, those exchange rate changes have moved a long way over the last year or two. That’s a situation I don’t expect to change in a hurry. So are we back to ‘normal’? Although the earthquakes were disruptive in terms of growth and GDP, the Canterbury economy was strong during the rebuild period, which created a lot of employment. The rebuild had been a temporary burst, but as it wanes, around 8,000 jobs have been or will be lost. Unemployment has been rising in Canterbury, even as it’s been falling throughout New Zealand. GDP growth has been slower than elsewhere in New Zealand as the economy starts to normalise with the slowing of the rebuild. However, I think the period of Canterbury’s growth underperforming the rest of the country is drawing to a close.

THE CHAMBER NOVEMBER Update 2019

PARTNER CONTENT

Power trip Orion is on a journey to cut green-house emissions – and they are taking the region’s businesses along for the ride. Orion owns and operates the electricity distribution network that provides power to central Canterbury. More than thirty percent of Orion’s passenger vehicle fleet is already electric, and they are encouraging the Canterbury business community to think sustainably and convert to electric vehicles (EVs) by taking part in a free one-week EV experience. The Orion EV Experience is a partnership between Orion and The Chamber, with support from the Energy Efficiency and Conservation Authority (EECA) Low Emission Vehicle Fund. Chamber members can sign up for the experience, which has proved so popular that the two Hyundai Kona vehicles are already booked into 2020. The initiative is expected to run for two years. General Manager Paul Deavoll says finding more sustainable transport methods is a significant way local business can help

Why run an electric vehicle (EV)? EVs are two-and-a-half to four times more energy-efficient than traditional internal combustion engine (ICE) vehicles. EVs have fewer moving parts and are cheaper to maintain. The electricity to fuel EVs in New Zealand is almost entirely renewable meaning almost zero carbon emissions. EVs do not produce tail pipe emissions that are harmful to human health. The running costs of an EV can be the equivalent to buying petrol at 30c per litre. Book your Orion EV Experience orionev.nz

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“Currently over 50 percent of Christchurch’s carbon emissions come from transportation. If a business wants to take a positive sustainability step to help the region meet its emissions targets, converting their fleet to electric vehicles is an easy way to do that cost effectively. 85 percent of our electricity is renewable so EVs here in New Zealand are very sustainable.”

reduce greenhouse gas emissions, while saving on petrol and road costs. “Currently over 50 percent of Christchurch’s carbon emissions come from transportation. If a business wants to take a positive sustainability step to help the region meet its emissions targets, converting their fleet to electric vehicles is an easy way to do that cost effectively. 85 percent of our electricity is renewable so EVs here in New Zealand are very sustainable.” Current electric vehicles on the market have a range of between 130km and 450km. Orion has invested in encouraging the uptake of EVs by installing vehicle chargers across the region to address driver ‘range anxiety’ – a term used to describe the anxiety some drivers can experience when their car has a low charge and they are away from a plug-in source. “We know people can get worried when driving an EV that they are going to run out of charge. This installed network of chargers goes a long way in reducing this fear and opens up the region significantly for the use of EVs.

“The chargers mean businesses aren’t restricted to only using the vehicles around Christchurch city. They can drive across the region and be confident they can re-charge the vehicle when necessary, all the while helping lower carbon emissions and still meeting their own business’ economic objectives,” Paul says. He says taking part in the initiative gives businesses a chance to assess the benefits of switching to EVs before having to make a firm commitment or monetary investment. From a total cost of ownership perspective, EVs are forecast to become cheaper than petrol or diesel vehicles within the next few years and the scheme can help businesses consider how they could implement a conversion from a traditional fossil fuel fleet. Paul says Orion’s own electric fleet will continue to grow as more of the specialised vehicles required by the company come onto the market. “We’re converting our fleet and trying to help other Canterbury businesses consider changing to EVs, because we want to make our region more liveable. Together, we can make a difference.”

THE CHAMBER NOVEMBER Update 2019

BUSINESS PROFILE WOOLAID

Lake Tekapo’s WoolAid starts hike to success A former Milford Track hiking guide is putting in the hard yards building his innovative merino wool plaster business into a global brand. Lucas Smith suspected antimicrobial, hypoallergenic and moisture-wicking merino was special, and in-field testing of his wool plasters proved this was the case. The results proved superior to incumbent plastic plasters, and paved the way to Lucas producing the world’s first merino wool adhesive bandage. His company WoolAid was founded in July, as an evolution from his six-yearold business Walk On. Demand for the product has been overwhelming since its first production run hit South Island stockists in August. “We went from zero percent to sold out almost overnight,” says Lucas. The young entrepreneur has his sights on international expansion, and admits he is running full pace. “It’s progressing a little faster than I’d like it to. We’ve had a lot of interest from the United States, Europe and Australia. It’s exciting but the demand is a little daunting.”

“We’ve had a lot of interest from the United States, Europe and Australia. It’s exciting but the demand is a little daunting.” – Lucas Smith

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As with any young business, there are challenges to growth. Potholes in the road include having to guide medical manufacturers to work with a luxury material instead of single-use plastic, and needing to pioneer scientific data on why wool is superior as a medical textile. WoolAid’s been supported by Chamber partner Callaghan Innovation, which has provided advice and a grant that Lucas spent “flying to China to supervise my life savings in merino wool fabric being processed by bandage manufacturers for the first time in human history”. The company is in the process of becoming a Chamber member, and for now Lucas enjoys getting tips from Chamber business advisor Rob Lawrence over turmeric lattes. While Lucas has a global vision, he is running the business from Lake Tekapo – a location he sees as a benefit rather than a drawback. “Us young people are constantly bombarded online with news of climate change, the rapid eco apocalypse and all kinds of news articles that makes one feel hopeless. “When I’m feeling like I can’t make a difference, I put my phone down and walk past a paddock of merino sheep quietly grazing, eating grass that is sequestering carbon from our atmosphere. “It gives me comfort knowing that, in my own small way, I’m creating a product that’s swapping out single-use plastic with merino wool – a fibre that’s born from an age-old carbon cycling process working before my very eyes in the mountains where I live.”

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Above: WoolAid founder Lucas Smith tested his initial product while guiding tourists on the Milford Track. Top: WoolAid’s environmentally-friendly bandages can be buried after use to return stored carbon back to the soil.

BUSINESSNZ

Snapshot of Kiwi business Being in business in New Zealand can be challenging, rewarding and even frightening. That’s a take-out from the latest Mood of the Boardroom survey. This survey of over 300 enterprises throughout New Zealand reveals some of the hopes, fears and successes of business operators today. Much of the annual survey covers everyday business issues like tax, competition or investment, but three questions delve further into the motives and inspirations of Kiwi business operators. Respondents are asked: What are your top priorities for this year? As usual, this year the top priority for many enterprises is the bottom line: “Sell more” “Pay the bills” “Raise capital” “Consolidate” As well as financial priorities, many companies are focused on digital change. For some this is a website upgrade, for others it’s enterprise-wide IT processes, automation or AI. Priorities included: “More IT investment to smarten business procedures” “Improving productivity through AI” “Update reporting systems” “Upgrade the IT system, work fewer hours”

For many organisations, staff issues are the biggest priority: “Recruitment of experienced IT engineers” “Need steady work in progress to retain the present staff” “Need to bring up the skill level” “Grow the team’s capabilities” Other priorities mentioned included changing business structures, improving customer experiences, new business lines, exporting, collaborating, and keeping up with regulation changes. The psychological toll of operating a business was summed up in one company’s priority for the coming year: “Keep the faith and try not to stress out” The things that caused most joy were captured in the question: What was your best achievement in the last year? Most responses were about finances: “Made a profit for the first time in four years” “$16 million turnaround from $10M loss to $6M profit” “Better than 10% growth after more than 50 years in operation as a manufacturer” “Started exporting” “Opened new branch in Queenstown” “Started prototype phase on project for US customer”

“Not controlling the track of our business in an increasingly digital world” “Rapid change in the market which we reacted slowly to” “Being too busy working in the business to spend the time needed to work on the business”

As well as financial priorities, many companies are focused on digital change ... other priorities mentioned included changing business structures, improving customer experiences, new business lines, exporting, collaborating, and keeping up with regulation changes. The results from the Mood of the Business survey serve as a reminder that operating a business is consuming and challenging, with real consequences for everyone involved – and that Kiwi businesses are approaching it with commitment and courage. Kirk Hope

CHIEF EXECUTIVE BUSINESSNZ businessnz.org.nz

You can almost hear the celebration in some of those comments. But the pain was also there in answers to: What was your biggest regret from the past year? Here the regrets were about finance and growth, but also relationships and lost opportunities: “Not taking growth opportunities” “Caught out by increased insurance costs” “Being a bank for my customers, not being tough enough on debtors”

THE CHAMBER NOVEMBER Update 2019

CHAMBER ADVOCACY

Advocating for Canterbury business As the home and voice of Canterbury business, we advocate on behalf of our members and the wider business community to shape a business environment that promotes innovation, productivity and economic growth, while supporting strong community outcomes. Through our key network partners BusinessNZ and the New Zealand Chambers of Commerce and Industry we advocate on behalf of our members, enabling us to collectively utilise our capabilities and resources to provide a strong business voice on issues that impact local business.

Submissions We also made a number of submissions and deputations on key issues, including: Christchurch City Council Long Term Plan Capital Acceleration Fund allocation Reform of Vocational Education (RoVE) Christchurch City Council emissions targets

Government working groups

Media engagement

Through our affiliation with BusinessNZ, we have had a seat at the table of important Government working groups, such as:

Over the last year, our local and national advocacy has included discussing and raising the profile of a wide range of key issues in the media, such as:

Future of Work Group

Immigration policy

Tax Working Group

Small Business Council

Workplace training

Trade for All Advisory Board

Capital gains tax Christchurch City Council Global Settlement Central Government Budget release

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In the last year, members of our Chamber team have provided local representation on a wide range of groups, such as the Christchurch City Council Central City Development Forum, Transport Liaison Group, the Canterbury Multi-Use Arena Reference Group, and APEC 2021 – to name a few. National representation has included Chief Executive Leeann Watson’s government appointments on the Small Business Council and the Trade For All Advisory Board. We are also regularly called on by both local and central government seeking input on specific topics, reflecting the confidence they have in The Chamber.

Holidays Act Review Fair Pay Agreement Working Group

Education reform

Local and national representation

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Local Government Directive In 2019, we also released our first Local Government Directive – a pre-election report in the lead-up to the local election. This document provides insights on issues raised by our members and the wider business community and includes commentary and key recommendations that will be used to steer advocacy activity in the year ahead.

Below is a snapshot of key issues, policy updates and developments that The Chamber is actively engaged with that will shape the business environment over the next few months and may directly impact your organisation.

Resource, Environment and Infrastructure

We will continue to update our member community on key issues as they develop, including how they will impact local business, and how to manage and mitigate challenges, and make the most of opportunities on the horizon.

Fresh water allocation

Zero Carbon Bill Emissions Trading Scheme review Waste levy expansion

Transition to low-emissions economy Infrastructure Bill Resource Management Act Reform

Employment Relations Employment Relations Amendment Bill Fair Pay Agreement Equal Pay Amendment Act High Performance High Engagement Holidays Act Review Worker transitions and protection Film Industry employment relations Minimum wage settings Privacy Bill

Export and Trade International trade and FTA monitoring Regional Comprehensive Economic Partnership

Immigration, Education, Skills and Training Reform of Vocational Education (RoVE) and Vocational Education Training (VET) review Temporary work settings review

Economy Overseas Investment Act Reform Reserve Bank of New Zealand Capital Adequacy Review

Trade For All Advisory Report

NCEA review

Standards de-jointing: Australia/ New Zealand

Tomorrowâ&#x20AC;&#x2122;s Schools Review

Local Government Funding and Financing

Migrant exploitation review

Commerce Act Review

Immigration policy review

Fair Trading Amendment Bill Small Business Council Report Building Act Review Establishment of Independent Fiscal Institution

Energy Electricity price review Fuel price review Process Heat in New Zealand

Health and Safety, Workplace Wellbeing

Fire and Emergency New Zealand Funding

MBIE strategy implementation and action plan Mental health and work review Plant structure and working at heights regulations

THE CHAMBER NOVEMBER Update 2019

BUSINESS PROFILE TASKA PROSTHETICS

Taska grasps chances to grow A fast-growing Christchurch company which pioneered the world’s first prosthetic hand with compliant fingers is using local networks to expand. Taska Prosthetics has the only waterproof multi-articulating myoelectric hand on the market, invented by engineer Mathew Jury. The device, controlled with electrical signals generated by the wearer’s own muscles, uses patented technology that makes the fingers comply.

“The hand was designed to be functional, as opposed to largely cosmetic, and to stand up to the rigours of everyday life. It has received huge interest because it has delivered on that front,” says chief executive Jamie Cairns. The two-year-old company – which has gone from shipping a few hands at the tail end of 2017 to more than three hundred – exports to Australia and the United States. Europe’s the next big market within reach, with agreements inked to supply Germany and France. Quality control With business booming, maintaining product quality has been paramount for the company, which brought assembly in-house last year. “That really paid dividends for us, and we’re now at the point where we are confident our supply capability will scale with demand,” says Jamie. “Although many will say that having too much demand is a good problem to have, the reality is if you don’t fix that relatively quickly, you’ll have much greater long-term issues to deal with.”

Above: Taska Chief Executive Jamie Cairns sees global expansion within reach. Right and far right: Taska’s award-winning artificial hand lets amputees tie shoelaces, cut a steak, or hold a child’s hand.

Taska, which took home three awards at the 2019 Westpac Champion Business Awards, is heavily engaged in new research and development and intends to establish an overseas office close to its major markets. “We are still a relatively new company and need to retain an opportunistic approach to a rapidly shifting industry.” The company went from 10 staff a year ago to almost 40, with further growth expected over the next year. It is of “huge benefit” to recruit technical staff through Canterbury’s vibrant medtech, engineering and manufacturing ecosystems, says Jamie.

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“The business is built by the people working in it, and we have not struggled to get great people.” – Jamie Cairns

“The business is built by the people working in it, and we have not struggled to get great people.” While being Christchurch-based can sometimes pose problems from a logistics viewpoint, “those challenges can focus the mind on being a little creative with your supply chain,” he says. “Joining The Chamber will allow us to leverage local networks and resource, but also hopefully provide us with the ability to contribute something back to the business community.”

THE CHAMBER NOVEMBER Update 2019

PARTNER CONTENT

Connecting our community Enable has grown from a small start-up into a large, community-owned business generating significant value to the Christchurch community through its world-class fibre broadband services. Chief Executive Steve Fuller has been involved in the company since its inception and says the region has seen significant change in that time. “I’ve been very fortunate for the last 12 years to be part of a rapidly growing company that’s focused on providing value and benefits to our community. This has been our single focus from the early days, with a mandate to disrupt the local commercial broadband access market in the first instance, and then to today where 110,000 homes and businesses are benefitting from our fibre broadband services. “Clearly, Christchurch is a very different city and community now to what it was when Enable was formed in 2007. It’s very difficult to get an accurate gauge on how much of this change has been due to the necessity of redevelopment postearthquakes and how much has been driven by the disruptive factors that are transforming how we all work, live, play, relax and connect with each other.” Having been in the telecommunications industry for over 40 years, Steve says there is one thing that is constant – technology drives huge change. “As a community we’re subject to the same technology, demographic and geopolitical pressures facing all communities – from social media, greater access to worldwide content, digital disruption from the likes of emerging artificial intelligence, and virtual, augmented and mixed realities, to increased connectedness all in the presence of increasing global environmental, natural resources, population growth and age changes, and economic pressures. “As we’ve moved beyond recovery to focus on growth and the future of our community, it’s clear that we have taken steps towards ensuring we are a community that can embrace and thrive responding to these local, national and global pressures. “I think we’re in an exciting position to set the foundations now to maximise the opportunities of the digital revolution that’s upon us as we embark upon the next decade.”

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Steve believes that balancing our city’s traditional strengths with future-focused connectivity will be key to realising the city’s transformational opportunity. “Our transformational opportunity sits within a mix of what has always made our region a fantastic place to live, and a digital revolution that has entirely removed the isolation we once felt. “Our size – big enough to make a difference but not too big, natural resources, the quality of lifestyle, the strength of and pride in our community are our traditional strengths. We can now leverage these strengths within a global economy, with very few barriers to reaching new customers or partners to innovate and grow with. “We can attract more tourists to visit our region and make it easy for them to share their experience with the world. The best people can come or stay here to work and live in our community, and they can do their best work here connecting easily with anyone, anywhere. We can easily access services that will make us more productive or more efficient – or, better yet, we can create these services, house them in the cloud and sell them to the rest of the world.” Clearly, the connectivity that’s made possible by world-class fibre broadband sits at the heart of all these opportunities. More critically, Steve says the fibre broadband connectivity can be used to strengthen our community. “Our purpose is fundamentally focused on contributing to our community. Fibre broadband provides a powerful tool to help more people in our community access essential services and work opportunities when they otherwise couldn’t or learn new skills and grow. The difficulty comes in the implementation and the realisation of value to the community – both social and economic – and the affordability in the current environment. “We’re very proud of our relationship with The Chamber and the work we continue to do, helping businesses make the most of digital technology and supporting the next generation of leaders in our community. The people of Christchurch will see more from us in this area in the coming years, as we focus more on enhancing our environment and growing our community connectivity.”

THE CHAMBER NOVEMBER Update 2019

EMERGING BUSINESS LEADER ANTON MATTHEWS

The change-maker Anton Matthews – fish and chip shop owner; emerging business leader; change-maker.

Through his commitment and dedication to revitalising and normalising te reo Māori, Fush restaurant owner Anton Matthews (Te Rarawa, Te Aupōuri) is fast making a name for himself – and creating a unique point of difference for his business – in Ōtautahi Christchurch. The role of manaakitanga (generosity and hospitality) Anton’s love of hospitality grew from his time working at the flagship Lone Star on Manchester Street. As well as gaining experience in front-of-house and customer service, and working his way up to bar manager, Anton was also provided an invaluable internship on how to run a restaurant. While working fulltime, Anton also completed a degree in Te Reo Māori and Māori Indigenous Studies, and a Graduate Diploma in Teaching at the University of Canterbury Te Whare Wānanga o Waitaha, and graduated from top Māori language academy Te Panekiretanga o Te Reo Māori.

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After trying his hand at teaching, Anton was drawn back to the world of hospitality, purchasing Joe’s Garage in Sumner with his wife Jess Matthews shortly after the Canterbury earthquakes. The couple took ownership of the new business at the same time as they welcomed a new-born daughter. A key part of their success in turning this business around was Anton’s “dream team” – friends and whānau who believed in Anton’s vision. In turn, Anton & Jess were able to provide jobs, as well as valuable work experience, for their younger siblings. “We were always brought up to be hospitable – it’s an incredibly important part of Māoritanga (culture). Your ability to look after other people is considered a measure of your mana. In Aotearoa, there is a tendency to look down on hospitality staff, whereas from a Māori point of view, the people who keep the hui going by feeding and serving the masses should be put on a pedestal. I wanted to integrate the tikanga (custom) of manaakitanga into our business.”

The writing on the wall

Groundswell of support

In 2015, Anton and Jess opened Joe’s Garage Wigram – the first business in the new property development – which soon became a foundation for a thriving community.

The response to his integration of te reo into Fush operations was so positive, Anton decided to hold a beginners’ te reo lesson at the restaurant, free of charge. The aim was to attract “maybe 20 people”, however when over 3,000 people indicated their interest on Facebook, the venue was hastily changed to the auditorium at Christchurch Boys’ High. Over 800 people attended on the first night.

“We saw the writing on the wall that Wigram would very quickly become a key suburban hub. The new residents appreciated that we put some skin in the game and gravitated towards a business that was part of their collective new beginning.” Joe’s Garage Wigram remains the busiest Joe’s franchise in the city. However, Anton wanted a new challenge – to set his own brand up from scratch, coincidentally at the same time as their second tamaiti (child) was born. Initially, Fush was all about setting a new standard in the New Zealand staple, by using the freshest, most sustainable local ingredients, and promoting social procurement. “We take our cultural responsibility around kaitakitanga (guardianship and sustainability) very seriously and are committed to providing meaningful mahi (work) for some of Aotearoa’s most vulnerable people while maintaining a financially sustainable business.” However, Anton soon realised that the gourmet fish and chip shop could also be a vehicle for him to make a difference to how his young family saw the world. “I only speak te reo at home to my tamariki (children), so I was surprised when my three-year-old reverted to speaking English when we were at the restaurant or out in public. This showed me how important it was to make Fush like our home environment – to normalise te reo as part of our everyday life, regardless of where we are. So I started weaving te reo through the Fush brand and promoting and encouraging te reo in our workplace through our menus, t-shirts, music, signage and conversation. “I want to shape an environment where to be able to speak te reo and understand tikanga and manaakitanga is of immense value. I also want to make our reo accessible, where people feel comfortable asking how to pronounce and use kupu Māori correctly.” Anton credits his primary education at Te Kura Kaupapa Māori o Te Whānau Tahi, one of Christchurch’s two full-immersion Māori language schools, coupled with his secondary education at Christchurch Boys’ High School for his ability to “walk comfortably in both worlds”. Fush is now one of the few restaurants in Aotearoa to have a bilingual te reo Māori and English menu, with every item listed in both languages, as well as popular colloquialisms.

“The huge level of interest from people of all ages, ethnicities and walks of life showed that people genuinely wanted to learn more about our culture. But it also put the responsibility back on me to do whatever I could do build on this interest and make te reo accessible for all people, not just Māori. “Te reo Māori is on the cusp of survival. Since the Native Schools Act was passed in 1867, te reo Māori has taken a beating. Although the Act never outlawed speaking te reo Māori, it made English the language of education and so anyone speaking the language was punished. So, by the time the Māori Language Act of 1987 came around, te reo Māori was like a patient in ICU. Since then, the language has come in and out of consciousness and it feels like, at last, the language has left the hospital and is back in the community like a long lost friend, saying kia ora to everyone. I believe we need to be sharing our language and culture, and engaging as many people as we can to ensure it is not only surviving but thriving for future generations.” Anton has now taught thousands of people basic te reo Māori around Aotearoa. He also has plans to scale Fush and open more eateries in 2020. An emerging leader At the 2019 Westpac Champion Business Awards, Anton was recognised with the Emerging Business Leader Award for his dedication to revitalising and normalising te reo in Ōtautahi. “This award means a lot to me, as it shows that we’re making a change and starting a kōrero (conversation) about normalising te reo, not just in the Māori community, but in the wider business world. We’re also making the rest of Aotearoa sit up and take notice. “From a business point of view, Fush demonstrates how valuable te reo is as a unique point of difference and an opportunity that other businesses can leverage very easily. We have an opportunity in Ōtautahi to make a change and lead the country in this movement, one kōrero at a time.”

THE CHAMBER NOVEMBER Update 2019

BUSINESS PROFILE ETHIQUE

The world’s first zero-waste beauty brand Local beauty product company Ethique is making a global impact by helping people lighten their load on the world. Over 80 billion plastic shampoo and conditioner bottles are thrown out annually, with only nine percent of the world’s plastic recycled, and eight million tonnes of plastic ending up in the ocean each year. But switched-on consumers are scrubbing up with Ethique’s solid concentrated bars, which are plastic-free and packaged in certified compostable materials.

Business doing good • Ethique’s products are certified vegan and cruelty-free and certified palm oil-free by the Orangutan Alliance • The company is certified carbon neutral and working to be carbon positive – where 120 percent of its carbon emissions are offset • Ethique donates 20 percent of profit to charities, and is living wage accredited • It is ranked in the top 10 percent of global B Corps (a certification for businesses which meet the highest standard of social and environmental performance, public transparency, and legal accountability to balance profit and purpose).

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To date, the company has saved a huge five million plastic bottles from being made and disposed, and aims to ramp this up to 50 million by 2025. Chief executive Brianne West started the company in 2012 as a University of Canterbury Te Whare Wānanga o Waitaha science student, with seven compostable products. Growth has been phenomenal, averaging 300 percent for the past three years. Ethique’s products, which now include a baby and pet product range, are stocked in 14 countries and will be in 5,000 stores before the end of the year, with a focus on Europe and Asia. Intensive work has gone on behind the scenes to get to this stage. “Any business owner or entrepreneur knows that starting and scaling a business is full of challenges. But certainly, creating an ethical one has been very hard,” Brianne says. She had to start from scratch to formulate solid products (particularly difficult for face cream and self-tanner), and develop compostable packaging, which is up to 16 times more expensive than plastic. Scaling an unusual product is tough too, but Brianne says “incredibly supportive partners” invested heavily to ensure rapidly growing demand could be kept up with. The young entrepreneur wants to see “a bar in every shower”, although there’s a long way to go to educate people. “We’re trying to encourage consumers to think that maybe they don’t reach for a bottle, but for the plastic-free bar. And with that, we encourage businesses to think about their packaging.”

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Brianne says the company’s recent win at the Westpac Champion Business Awards helped to raise the issue – and solution – within the local business community, which has been very well received. “There is an opportunity for Canterbury businesses to really lead the way in social change. Even if it’s only getting one other business to see the environmental, social – and financial – benefits of zero-waste, that’s a win.”

Above: Ethique’s plant-based products are plastic-free and cruelty-free.

“Starting and scaling a business is full of challenges. But certainly, creating an ethical one has been very hard.” – Brianne West

Right: Ethique chief executive Brianne West started the company to tackle the world’s plastic problem.

THE CHAMBER NOVEMBER Update 2019

PARTNER CONTENT

Integrity in the digital age Mint Design’s mission has always been about bringing trustworthy digital marketing services to Canterbury’s business community. It was a courageous aim when the marketing agency started in 2010; the digital age had heralded massive business change and cowboys were rife in the industry. But it’s one that has paid off – as the company still works with many of the original clients they took on because of their reputation for integrity, while other agencies have long gone. Mint Design Managing Director Shayne Moore says the key to maintaining these relationships has been good communication and keeping current as digital marketing has evolved. The goal now is to expand nationally. “We want to be the most trusted digital agency in New Zealand. In the next 12 months we want to set-up an Auckland office to be able to cover more of New Zealand more effectively and within five years, we want to be one of the largest suppliers of marketing to the country’s accommodation sector.” Shayne says it’s about creating more jobs in New Zealand by helping Kiwi businesses grow, his own included. The Mint team has gone from three to 17 in the last decade – boosted by winning a significant contract with Google Street View in 2015 – and that growth is set to continue. “We’re very proud of the fact that our hard work has created jobs for Kiwis, it’s a huge passion of ours and a personal driver in business. Our team’s key strength is that everyone is data and numbers driven” says Alice Moore, Co-Founder at Mint Design. Investment is digital marketing is crucial as the make-up of the country’s workforce shifts to being predominantly millennials. “In five years, 80 percent of the workforce in New Zealand are going to be millennials who consume far less traditional media. To be taken seriously in the market, and to adapt to this new generation of decision makers, you’ve got to invest in digital,” Shayne says.

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where DIGITAL

MARKETING

meets BUISNESS GROWTH

“We got the basics right from day one. We’re responsive; we pick up the phone when clients call and we do what we say we’re going to do. Sounds simple, but these basics are often lacking, particularly in the digital marketing sector. At the same time, we’ve stayed innovative in our sector. If we were offering the same services today as we offered five years ago, we’d be out of business. “Our clients need us to help them stay on top of digital marketing trends and partner with them to execute digital marketing campaigns.”

Big changes in digital marketing over the last decade: Click costs on Google Ads have skyrocketed. Some industries who used to pay a few cents per click now pay $50 due to the number of people using Google Ads. The right people are needed to manage ad campaigns to keep costs down. The huge uptake of social media. Mint were pioneers in using Facebook, attracting 20,000 fans when only a business with three staff. Now, most businesses are on Facebook or other platforms to some extent.

Mobile usage has grown exponentially. In most sectors, mobile now makes up over 50 percent of the traffic on websites. The rise of video content YouTube is now 37 percent of all mobile data used worldwide. This rises to almost 60 percent after adding in Facebook, Snapchat and Instagram.

THE CHAMBER NOVEMBER Update 2019

FIVE MINUTES WITH DR ROD CARR

Q&A with Dr Rod Carr Dr Rod Carr was looking forward to retirement after 10 years as University of Canterbury’s Vice-Chancellor. But this didn’t last long for the Christchurch businessman, who’s had a prominent career including as the Reserve Bank of New Zealand’s former Deputy Governor and Chairman, and Jade Software Managing Director. Dr Carr was recently appointed chairman-designate of the proposed Climate Change Commission (and in October fitted in his 23rd marathon at age 60, in -10 degree conditions in Greenland’s Polar Circle, no less). Update magazine sat down for a chat.

What inspired you to take on the Climate Change Commission role? I retired from a full-time chief executive responsibility when my contract with the University of Canterbury came to an end last January. I was looking forward to a slower pace of life with a few directorships. But I became aware the government was establishing the Commission and would be looking for a chair. When I happened to mention it to my kids, in a round-the-table dinner conversation, they were pretty adamant this was the only job I should do in my retirement, should the government choose to appoint me. I should let all other ones go, because this was the issue for their generation. You could say it’s pretty compelling when your four kids tell you it’s not time to hang up your boots.

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It’s a huge issue to tackle, and there’s a feeling of hopelessness amongst some youth that those at the top will actually do something. What’s your message to these young people? Despair is never a good place to be. I have enormous confidence in the creativity of human beings. I’m a realistic optimist – I do believe that climate science has been known for a long time, but it has taken a surprising amount of time to galvanise mainstream awareness to action. But it’s reassuring to see the UN framework agreement and reassuring to see other countries put in place the type of institutional arrangements New Zealand is contemplating.

Let’s move on to the future of Christchurch – what would you like to see improved? Well, 20,000 more people would make a world of difference. We have an amazing city, a high quality of life, a world-class education system. We have affordable housing compared to other parts of the country and the world, and access to a clean and exciting hinterland with recreational pursuits. But we have excess office space and underutilised retail and hospitality space. We can accommodate the extra people and it would be great if they came soon. How do you attract them? There’s a whole bunch of things which create a vibrant, interesting city. But there has to be good quality jobs which attract talent and make them want to stay, and create more good jobs – it’s a virtuous circle.

“Climate change action is later than is should have been, but is all lost? No, I don’t believe that for a minute. We must act now for tomorrow may be too late.” – Dr Rod Carr There’s some really exciting research and plenty of young start-ups coming out of Christchurch, but a whole lot won’t make it. What’s your advice to entrepreneurs? The infrastructure supporting entrepreneurs is qualitatively and quantitatively better than it was 15 years ago. There are incubators at the university, the angel capital market is much more developed and there are significantly more pro bono or low cost support services. So my advice to entrepreneurs is make sure you access those networks of talent and people. It’s reassuring to see CO2 emissions are now being assessed in a standard international way to provide an evidence base of where we are and where we’re going, and the impact of changes we need to make. There is reassurance that action is being taken. That action is later than it should have been, but is all lost? No, I don’t believe that for a minute. There will be significant new technology and changes in production processes and consumer preferences, which will provide opportunity to redevelop how we consume and what we produce. But we need to do this with urgency – we need to act now as tomorrow may be too late.

If you want to be an entrepreneur you need to be flexible – the chances of finding the one bright idea that’s able to be carried to market on its first go are very low. Entrepreneurs need to develop skills, knowledge, capabilities and experiences so when they develop ideas, they can double down on winners and let go of losers. And it’s not just young start-ups. Companies with 20-40 employees wanting to grow to 120 employees face challenges with cashflow, leadership and the founder being willing to compromise on control to engage additional talent. But what we’re beginning to see in Canterbury is a conveyor belt of progress – which is pretty exciting.

THE CHAMBER NOVEMBER Update 2019

PARTNER CONTENT

Building our own business confidence Joanna Norris believes that it’s time to back ourselves. The ChristchurchNZ Chief Executive says Christchurch businesses have good reason to be confident and to advocate for our city. “I think people should be really proud of this city and excited by all the opportunities and possibilities,” says Joanna. “I’m proud of what we’ve achieved so far, but I’m more excited about the platform it creates for us to keep exploring and lead from this part of the world.” As the economic development arm of the Christchurch City Council, ChristchurchNZ is tasked to provide in-depth and up-to-date information about the city’s performance across a number of indicators that impact life in the city. The organisation not only keeps close tabs on the city’s economic indicators, but it has also developed a Prosperity Framework for the city. In addition to traditional economic measures, such as GDP growth, this considers wider and longerterm aspects of societal wellbeing, such as those set out in the United Nations Development Goals, the Government’s Living Standards Framework, and the Council’s community outcomes and carbon neutral targets. The key impetus behind this work is to provide valuable insights to businesses, policymakers and the wider community about the state of the region. “The Christchurch economy is strong; it’s diverse, and businesses here have shown the ability to be adaptable and resilient,” says Joanna. “But we need to keep in mind that we’re coming off a period of heavy stimulus created by the post-quake construction boom. That period saw an enormous amount of activity in terms of volume that created a growth bubble. As that stimulus declines, we are still in positive growth, but the economy is slowing, and we need to replace the construction activity with new economic activity.” With construction activity past its peak, Joanna says the Christchurch economy needs to look to the wider economy for growth. Currently this is being driven by expansion in manufacturing and tourism. The BNZ-Business NZ Performance of Manufacturing Index for Canterbury during the June 2019 quarter was 53.1, which suggests expansion and is above the national average of 50.8.

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When considering year-on-year growth, Christchurch continues to outpace New Zealand with regards to total visitor spend growth. Christchurch total visitor spend increased 4 percent for the year ending June 2019 compared to a 3.2 percent increase in New Zealand. With a focus on both domestic and international visitor attraction, ChristchurchNZ is dedicated to ensuring the city is positioned to meet the needs of both these markets. In particular, the organisation houses expertise in Asian visitor markets, offshore engagement and a convention bureau. Joanna says visitors and locals alike are responding well to the city’s growing portfolio of world class attractions, including the regenerating central city. This interest is fuelled by campaigns such as the winter Baby Come Back campaign, delivered by ChristchurchNZ and partners including central city businesses and Christchurch City Council and Ōtakaro Ltd. The campaign was designed to bring people back within the four avenues, change perceptions of the city centre, and make residents

the city’s biggest ambassadors, it was also created to make people laugh and create a conversation about our central city. The campaign was widely accepted by local businesses, with retailers creating themed events and products, and central city businesses experiencing a less-drastic winter downturn. Spending in the central city core was up 11 per cent compared to June 2018. More specifically, spending on apparel increased 24 per cent, hospitality spending increased 21 per cent, and accommodation spending increased 7 per cent. These are big wins for the central city, says Joanna. “I’m hugely optimistic about the city that we have built. Central city retailers and hospitality have had to show real courage in investing back into the CBD because some of the public sector anchor projects have taken longer than some people expected. “They’ve shown a real commitment to our city and we know their courage will be rewarded over time because we’ve built an exciting and dynamic modern city – and we still have more

to come in the form of Te Pae Christchurch Convention Centre, Metro Sports Facility, the Canterbury Multi-Use Arena, and the Lyttelton Port cruise berth. “When I speak to my counterparts around the country, they are envious of what we have been able to achieve so far. We’ve built 50 years’ worth of infrastructure in eight years, while they’re still struggling with congested roads, airports beneath ideal standard and facilities across their cities that are closed because of earthquake damage or risk. “When it comes to lifestyle, we have big advantages. The quality of living you have here while still having a high value job in an interesting sector is enviable – and you can afford to buy a house. People are fast discovering the best kept secret – Christchurch, New Zealand.” So yes, there’s a lot to be confident about, says Joanna. “The more that we stand up for Christchurch, the more confidence grows, and the more people will want to move here – to live, work and invest in our region.”

THE CHAMBER NOVEMBER Update 2019

WHAT’S HAPPENING IN THE REGION

Up/down A look at the economic data1 for Ōtautahi Christchurch and Waitaha Canterbury shows how we’re stacking up.

Unemployment remains relatively low

Economic growth is positive Economic growth continues to be positive, but at lower levels than the past four years. The value of economic output in Christchurch reached $21.53 billion in the year to June 20192. This represents 8.6 percent of New Zealand GDP, similar to the previous quarter. The size of the Canterbury economy for the year to June 2019 amounts to $31.6 billion which represents 12.6 percent of New Zealand GDP. GDP growth for the year up to June 2019 was 1.2 percent for Christchurch and 1.7 percent for Canterbury compared with the previous year. National growth is also lower compared with the previous year, while still positive at 2.5 percent. This deviation from national growth rates has continued a trend since March 2017 (with the exception of the June 2018 quarter) and reflects the continued transition out of the rebuild.

Information sourced from ChristchurchNZ Quarter 2 2019 Economic Report

Measured in 2010 prices – Infometrics estimates

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The unemployment rate in Christchurch and Canterbury decreased to 3.8 and 3.5 percent respectively. The lower levels of unemployment are welcome, however with the continued lower levels of rebuild construction the good unemployment rate will likely continue to be under pressure for the next few years. The unemployment rate decreased in all but one of the twelve New Zealand regions in the June quarter and as a result the national rate is lower at 3.9 percent from 4.4 percent in March 2019.

Labour force participation rates transition to ‘normal’ The labour force participation rate in Christchurch in the June 2019 quarter increased to 70 percent, while the Canterbury rate increased to 69.4 percent. These rates are slightly lower than the national rate, after several years of being higher than the country as a whole. The convergence of our regional rates with the national rate reflects the transition of the local labour market out of the rebuild stimulus towards more normal conditions.

Visitor spending up International visitor spending was $222 million in Christchurch for the 2019 June quarter, up 7.4 percent on June 2018, however the domestic visitor spend was down by 1.4 percent. The increase in international spending has resulted in a slight increase in total visitor spending for the June quarter by 1.3 percent compared to the 2018 period. The long-term trend line is positive for both domestic and international spending in Christchurch. When considering year on year growth, Christchurch continues to outpace New Zealand with regards to total visitor spend growth. Christchurch total visitor spend increased 4 percent for the year ending June 2019 compared to a 3.2 percent increase in New Zealand.

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Imports and exports

Building activity remains high Building activity in the region remains above pre-earthquake levels, however at lower volumes than the post-quake highs. The June 2019 quarter was 2.7 percent higher than the June 2018 quarter. Residential activity increased by 1.5 percent from June 2018, and the non-residential market experienced a 11.1 percent decrease from June 2018 levels. While activity continues to track back towards normal levels, it is still higher than pre-quakes indicating the ongoing importance of the construction sector to the local economy.

The value of imports through Christchurch Airport and Lyttelton Port was $1.29 billion in the June 2019 quarter, down 9.2 percent from the same period last year while the share of national imports is at 8.3 percent for the quarter. In the June quarter, the value of exports through Christchurchâ&#x20AC;&#x2122;s air and sea ports was $2.3 billion, a 34.5 percent increase on the same period last year. The share of national exports for Christchurch is at 13.1 percent of national exports for this period. Exports from Christchurch are dominated by machinery and mechanical appliances, dairy produce, preparations of cereals, flour, starch or milk and meat. The exchange rate weakened slightly (by 1.5 percent) in the current quarter, compared to the June 2018 quarter. The weaker exchange rate means that New Zealand exports are relatively cheaper, while imports are more expensive

Business confidence Performance of Manufacturing The BNZ-Business NZ Performance of Manufacturing Index for Canterbury during the June 2019 quarter was 53.1, which suggests expansion, and is above the national average of 50.8. Performance of Services The BNZ-Business NZ Performance of Services survey (PSI) indicator averaged 49.2 for Canterbury in the June 2019 quarter, down from 54.5 in June 2018. Values over 50 indicate the sector is expanding and the index has dipped just below this threshold. Nationally the PSI averaged 52.3 in the June quarter, a fall from 54.6 in the same quarter last year, continuing a positive run since 2011.

Higher retail spending The Marketview data for Christchurch spending shows that spending for the second quarter of 2019 is higher (2.6 percent) compared to the corresponding period in 2018. The year-on-year growth to June 2019 is positive at 2.1 percent for spending in Christchurch. Local residents are the primary spenders in the city, representing 72.4 percent of all spending and year-on-year growth was at 0.6 percent in June 2019. International spending growth was driven by a 13 percent increase in spending from international visitors not from Australia.

Encouraging growth in central city

Central city business Central City Business and Employment 2018 figures show total employment within the Four Avenues to equal 39,500 employees (18.3 percent of the Christchurch workforce), with 3,897 business units operating (9.3 percent of Christchurch businesses). This equates to 77.0 percent and 65.1 percent of pre-quake levels respectively.

Central city spending increased by 8 percent for the June quarter compared with the June 2018 quarter. The annual growth is up by 10.2 percent. Growth in central city spend is due to a combination of increased spending by local residents, residents from the adjacent regions and international visitors. The local population continues to provide the greatest volume in spend for the central city.

THE CHAMBER NOVEMBER Update 2019

PARTNER CONTENT

The impact of AI UC Business MBA Director Chris Vas is part of a large international study looking at Asia Pacific, the future of work and the impact of AI (artificial intelligence) on organisations. While Chris’ focus was on Singapore, he believes Singapore can be used as a model approach for New Zealand businesses and policy-makers. Q. What were the key findings from the study?

Q. What are the opportunities for agritech?

Surprisingly, the data showed that a large number of managers were grappling with technologies to do with automation – even those operating in a space where technology is a given and part of business status quo.

In 2018, the Singapore Government announced that it would make co-funding available up to $2 million, under its Agricultural Productivity Fund, to strategic food farms that use productivity enhancing systems in the production of eggs, leafy vegetables and fish. Furthermore, to encourage adoption of new technologies the Government offered up to 70 per cent co-funding that would test-bed new agritech aligned with urban farming systems.

Another aspect that was suprising was around data and security, and the impact on the future of work. This was becoming more important as opposed to the other challenges that businesses faced, such as service, innovation or engagement. In terms of technology use, 3D printing, machine learning, and AI all rated quite highly as the future technologies that would have an impact. Q. How is the Singapore Government enabling the transition? The Singapore Government released the Model Artificial Intelligence Governance Framework, which looks at how the Government would like AI to be adopted by businesses, but also how AI would be used ethically and how the community would benefit. This included introducing ‘AI for everyone’, whereby anyone in the community can sign up for Government-funded AI courses to encourage individuals to think outside the jobs they currently work in to build capaibilities around data science, AI and machine learning. The New Zealand Government’s recently introduced Industry Transformation Plans states that they are trying to emulate the Singapore model, which shows that they already see merit in its approach. However it will be important to realise that both governments are vastly different and so are our operating environments. It will also be critical that we have government, business, education providers, iwi and workers all agree on a common vision and what needs to be done to realise it.

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More recently, through its economic investment arm, Enterprise Singapore and SEEDS Capital appointed co-investment partners to catalyse $90 million in further innovative activity in the agritech sector. The Government also introduced an incentive mechanism to offset training costs for farms that employed vocational graduates with agritech related skills. These initiatives have led to an innovation spike – from a handful of urban food farms in 2016 to over 20 by the end of 2018. In New Zealand we’ve long had an advantage in terms of agricultural outputs and food products, but it’s a very finite period before we lose that position through this kind of technology-enabled production. There is a real need to mobilise a higher-wage economy through innovation, value-added services development and appropriate skills transition to create the next generation of innovation industries. This is reflected in our new MBA programme where there is a focus on tools and technologies, however the essence is targeted at skill development, insight generation, and innovation-led thinking.

AI today is largely based around automation of processes â&#x20AC;&#x201C; not the qualitative aspects around empathy and emotional understanding (although we might get there in the next five to seven years).

THE CHAMBER NOVEMBER Update 2019

BUSINESS PROFILE CASSELS BREWING

Woolston’s tastiest drop wins discerning tipplers An award-winning Christchurch craft brewer wants to be the city’s go-to place for a tipple – and judging by its recent global success, this shouldn’t be hard.

“Brewing beer is in our DNA.” – Alasdair Cassels

Family-run Cassels Brewing Co won the world’s best stout and porter prize at this year’s prestigious World Beer Awards, which featured 3500 beers from 50 countries. It even beat beer giant Guinness – not bad for a local brewery that produces between half a million and a million litres of beer a year. Cassels, based at The Tannery in Woolston, was founded in 2009 by father-and-son team Alasdair and Zak Cassels, with Alasdair’s son-in-law Joe Shanks. This family focus sets Cassels apart from other breweries,

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says Alasdair, who long brewed beer at home before going commercial. “Brewing beer is in our DNA. Our focus has always been on quality and producing balanced beers. “Family members have to pull their weight, but we are lucky because the two youngest partners have different skill sets. “Joe is an aircraft engineer and is a natural fit fixing our technical issues and building the brewery and bars, while Zak has excellent sales skills.”

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The business was impacted in the 2011 Christchurch earthquake, but out of the rubble a successful bar, brewery, restaurant and music venue was built. Sales growth is clocking along at more than 60 percent year-on-year and is expected to continue at this rate for the next five years. Cassels, which employs more than 100 staff, is striving to be the “city’s brewery”, especially as heavyweight Lion was not replaced after also falling victim to the earthquake, says Alasdair.

The business has plenty of growth left in the New Zealand market, where it has only just started to become established. It also has several export markets, including the United Kingdom, with two full-time sales staff based there. Being a member of The Chamber has proved invaluable as the business scales overseas, Cassels marketing manager Kerry Sutcliffe says. As well as human resource help, the Chamber provides Certificate of Origins for Cassels’ exports into China and Taiwan. “The service we have received from this team has been amazing and I wouldn’t have been able to complete my first China application without them.”

Above: Cassels’ milk stout won the world’s best stout and porter in September. Left: Alasdair and Zak Cassels and Joe Shanks make Cassels Brewing Co a family affair.

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MEMBER SERVICES AND PARTNERS

Contact us As the home and voice of Canterbury business, we offer a comprehensive range of services and resources designed to help your business grow. To learn more about The Chamber visit www.thechamber.co.nz or phone 0800 50 50 96 to connect with one of our team. Partnerships The Chamber would like to acknowledge our partners who enable us to provide maximum value to our members.

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Business Partners Editors Kirsten Wick kirstenw@cecc.org.nz Sarah Townsend saraht@cecc.org.nz

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Business to 5G the power of 5G launches in parts of Christchurch, December 2019

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Canterburyâ&#x20AC;&#x2122;s Business Magazine from The Chamber

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