Alliance buys Goldkiwi Asia
Meat processor Alliance Group has bought Goldkiwi Asia, a Singapore-based marketing and sales company, as it seeks to get closer to its Asian markets.
Alliance chief executive David Surveyor said the new business would be known as Alliance Asia and give it a stronger Asian connection.
Goldkiwi Asia has customers in China, Hong Kong, Thailand, Vietnam, Malaysia, Singapore and Indonesia since the early 1990s.
Surveyor said buying the company was an important step in Alliance’s vision to create a stronger co-operative for the benefit of shareholders and staff.
The acquisition would position Alliance directly in the market and accelerate its understanding and responsiveness to Asian customers.
‘‘This will ensure we are now closer than ever to our Asian customers and end-consumers with our new Asian headquarters in Singapore connecting us to some of the world’s largest populations and their growing demand for quality foods. It will also lift Alliance’s visibility and engagement across all steps of the supply chain.’’
Alliance had worked closely with Goldkiwi Asia for more than 25 years and it had played a key role in building Alliance’s presence in the region, he said.
‘‘This is a proven relationship and a natural next step in our strategy. Goldkiwi Asia has supported our strategic cooperation with our important Chinese in-market partner Grand Farm. This will continue as we seek to improve the returns and add value to both businesses.’’
Goldkiwi Asia founder and director Paul Stephens said the deal was made at the right time for the business.
‘‘We are moving up the value chain and we are driven to secure a better return.
‘‘Consumers want to know more – not just about the food, but also its story. Alliance is 100 per cent owned by farmers, who take great care and know their craft. This resonates with consumers.’’
Surveyor said Alliance was developing new approaches to retail and e-commerce and product development in the Asia markets over the coming year.
‘‘We are matching our products with markets which requires investment in product development, packaging and services,’’ he said.
The company originally announced its plans to buy the Singapore-based marketing and sales company at its shareholder roadshows last October.
Alliance chairman Murray Taggart said it had been a longer process than expected, but the two companies’ long history with one another meant it had been business as usual during the process.
It would be beneficial for Alliance to be closer to its Asian markets, and have more in-depth market knowledge, as well as an ability to quickly respond to market requirements, he said.
‘‘It all comes down to getting closer to our customer, whether it’s retail, food service, or businesses that supply to retail and food service. We can’t achieve that sitting in an office in Invercargill,’’ Taggart said.
The co-operative could no longer rely on traditional methods for selling products, with the rise in social media and the digital age changing how consumers were buying, Taggart said.
‘‘What we’re trying to signal is that the conventional channels that connected to markets aren’t going to be the same ones going forward.’’
Goldkiwi Asia staff will transfer to Alliance Asia. The transition for Goldkiwi Asia staff was likely to be a seamless one.
‘‘The Goldkiwi staff have always considered themselves pretty much Alliance staff anyway,’’ Taggart said.