Projects } TBK Capital

DryNZ Capital Raise - Exports to China

DryNZ is a Waiuku-based dried ingredients supplier whose business is focused on the export of dried New Zealand fruit and vegetable powders, pieces and slices. It uses a unique vacuum drying technology to manufacture a variety of products, such as breakfast foods, smoothies, fruit teas, snack foods.

Global food trends such as provenance, traceability, plant-based and convenience foods have heightened the demand for dried products.

DryNZ   is a Waiuku-based dried ingredients supplier whose business is focused on the export of dried New Zealand fruit and vegetable powders, pieces and slices. It uses a unique vacuum drying technology to manufacture a variety of products, such as breakfast foods, smoothies, fruit teas, snack foods.

Dried fruit can also be harvested from non-tier produce, which helps to reduce waste from growers. Collecting fruit and vegetable juice for repurpose, having solar panels on the roof, and re-using factory water via a sanitation system are among DryNZ’s sustainability goals for the future.

Included in these is a range of dried fruit granules, named ‘pure NZ drinking fruit’. Mixed with manuka honey powder, this product has been designed specifically for the Chinese market which will be sold via the lucrative social and e-commerce app WeChat. With just two vacuum dryers in production, a third - that will increase its drying capabilities sevenfold - is now needed to meet this new demand.

The business is owned - and been funded by - a group of New Zealand investors. A successful issue of new shares in the company, DryNZ Limited, raised $1,000,000 last year and the Company is now raising a further $1,500,000 through the issue of new ordinary shares to fund the new dryer and ancillary equipment.

The Chinese Market
DryNZ’s ‘pure NZ drinking fruit’ has undergone an intense trialling and auditing process to determine the above mentioned products’ suitability for the Chinese market. Throughout this process, DryNZ formed a business relationship from a Chinese customer, with a wealth of experience in exporting food products from the U.K. into China.

As a result of this market research - and liaison with their Chinese contact - DryNZ understands the key pillars of purchase in the eyes of the Chinese consumer – health, authenticity and traceability – and have tailored their product to fit within these market constraints.  It has run numerous product trials in the lead up to the Chinese launch. For example changing the recipe to be slightly sweeter for the Chinese palette, has been one of the more effective outcomes of these trials.

Fortunately New Zealand’s reputation as a world leader in soil quality, water quality, air quality and general quality of produce, is important in China, and contributes greatly to the perception of DryNZ’s products as fresh and healthy. Accordingly, DryNZ’s ‘pure NZ drinking fruit’ will be viewed as a premium product in China.

Marketing strategy
DryNZ’s choice of WeChat as their sales platform is an educated decision. In China, WeChat isn't just a social app. it’s a lifestyle app – an all-in-one system with an audience base of over 1 billion.

The WeChat Wallet allows users to make purchases quickly and easily right from the app, before being shipped directly from New Zealand to the Chinese customer. A CCIC traceability sticker with QR code will be attached to all boxes of DryNZ’s ‘pure NZ drinking fruit’, enabling Chinese consumers to view how many times the box has passed through international borders.

In addition to increased consumer trust, traceability is vitally important for food safety and operational efficiency.

Growth potential
DryNZ’s sustainability is ingrained in the core operations of their business, given the nature of exporting dried fruit (produces significantly less carbon emissions due to decreased water weight).

Dried fruit can also be harvested from non-tier produce, which helps to reduce waste from growers.

Collecting fruit and vegetable juice for repurpose, having solar panels on the roof, and re-using factory water via a sanitation system are among DryNZ’s sustainability goals for the future.

This breakthrough of export into China will be start of their international business.

Want to know more?
For a copy of the Information Memorandum please reply to this email. Or if you like call DryNZ CEO Anne Gibson on 022 323 1009 and she will send you a copy.

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The above investment is not an offer of financial products that requires disclosure under the Financial Markets Conduct Act 2013 (Act) and is available only to wholesale investors as defined by that Act. It is intended for distribution only to selected people to whom, under the relevant laws, it can be lawfully distributed. It cannot be distributed in any other jurisdiction, or to any other people. It is not an offer or solicitations in any jurisdiction in which such offers or solicitations are not authorised, or in which the person making such offers or solicitations are not qualified to do so, or to any person to whom it is unlawful to make such offers or solicitations. Any representation to the contrary would be unlawful. No action has been taken by any person that would permit a public offering in any jurisdiction where action for that purpose would be required.

Cheers



John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 10,120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Mobile +64 21 902 901
Email john.paine@tbkcapital.co.nz
 

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