Icecream finds gateway to Asia
After successfully exporting to Australia, Kiwi icecream company OOB has expanded its horizons to Asia.
OOB has been exporting organic frozen berries and icecreams to Singapore for three years and, more recently, has found distributors in Malaysia and China.
Co-founder of OOB Robert Auton said Singapore had been a gateway into Asia.
‘‘Singapore is a food hub and the other countries get inspired by what they see there,’’ he said.
‘‘It’s quite good to have products on shelf there because it’s seen by other markets.’’
He said New Zealand’s reputation for high food standards also makes kiwi firms attractive to Asian distributors.
Auton and co-founder Shannon Auton established OOB over a decade ago, in an orchard near Omaha, Northland. Starting with organic blueberries, they gradually expanded into mixed berries and a range of organic ice cream.
OOB has been exporting to Australia since 2012, partnering with supermarket distributors Coles and Woolworths.
Auton said the sheer size of Asia made it an interesting region in terms of growing business.
‘‘When you’re looking at products that are premium you’ve got a very limited market domestically,’’ he said.
‘‘Asia is a bigger market and we need to look at larger markets to make it worthwhile from a manufacturing perspective.
‘‘But it’s just baby steps at this time, because we’re only a small company.’’
Auton said frozen fruit had been surprisingly popular in Malaysia.
‘‘They seem to like the convenience or the organic status of these frozen products.’’
OOB’s revenue for the past year was more than $17 million.
Distributors in Singapore and Malaysia receive two to four containers of product each year and this is forecast to grow to about eight containers annually.
Auton said that although Singapore and Malaysia had been relatively easy markets to get into, China had been the most challenging with a lot of competition and rigid compliance regulations.
As a result OOB has been exporting solely ice cream to China.
Although OOB is looking to develop a stronger foothold in its current Asian markets, Thailand and Indonesia are being considered as potential future targets.
As it grows its Asian distribution, Auton said OOB will also be establishing e-commerce channels and using social media to engage with customers strongly influenced by the platforms in Asia.
His advice to other Kiwi businesses embarking on breaking into Asia is to play it safe.
‘‘Don’t try and beat your own path. Maybe follow where others have gone before you, at least in terms of distributors that are maybe selling similar products.
‘‘There’s a lot of tyre-kickers coming out of Asia. Do everything by the book.’’
He said businesses should aim to create a sustainable, long-term strategy and build relationships.