Projects } TBK Capital

New share issue for expansion into China and beyond

TBK capital has been involved with the Waiuku-based company DryNZ Ltd for some years now, and has successfully raised capital for the company in the past. It is now seeking working capital to deliver a uniquely New Zealand-harvested and packaged product into the Chinese market; and for intentional expansion.

TBK capital has been involved with the Waiuku-based company DryNZ Ltd for some years now, and has successfully raised capital for the company in the past. It is now seeking working capital to deliver a uniquely New Zealand-harvested and packaged product into the Chinese market; and for intentional expansion. 

Branded products

Four years ago the business began specialising as a producer, supplier and exporter of dehydrated New Zealand fruit and vegetable powders, pieces and slices.  It uses a gentle air-drying technology to process a variety of plant-based foods. Its products are used to add uniquely New Zealand flavours to everything from ice cream and yoghurt, to breakfast cereals, snack foods, smoothies and refreshing teas.  

Its fruit powders are a key ingredient in the iconic New Zealand range of Ti ORA natural tea blends, which are already sold in seven different countries around the world. Following this success, and their research offshore, DryNZ has developed its own branded product: Pure NZ drinking fruit.

Available in sachet form, it combines top-quality New Zealand dried fruit powders with Manuka honey.  This product was launched in China and New Zealand in August 2020 and has already generated interest from distributors in Australia, the U.S. and Asia.

Product diversification

DryNZ has continued to future-proof its business, ensuring it remains a strong, viable and an attractive investor option, now and in the future. In its present state as a small company, it’s agile enough to take full advantage of its in-house expertise to develop new product lines serving a range of sectors.

Accordingly the owners have a strong focus on diversification, which they see as key to ensuring the longevity of the business.  As a result of this strategy DryNZ is now the beneficiary of changes in demand. And following the successful completion of air-drying trials, has become the official supplier of dried super-premium New Zealand pet food products to one of China’s leading pet food producers, Ying Kou Jia Yuan Pet Products Co Ltd.

The company now supplies pet food to distributors across 19 Chinese cities, plus Hong Kong, and nine overseas suppliers in seven other countries.

Projected growth of international dried food market

The dried food market is estimated at around US$400 billion worldwide. The market for organic foods is already at US$38 billion per annum. Additionally, there is strong growth in niche segments such as medicinal and emergency rations.

A recent report on the New Zealand non-dairy industry has highlighted the potential opportunities for New Zealand value-added dried food products, stating that: “Consumers are increasingly looking to food to provide additional benefits to support a healthy lifestyle. The functional food and nutraceutical industries are responding to this increasing consumer awareness by investing in the development of products to meet this demand.

“The health ingredient and functional foods industry within New Zealand is still relatively small but is predicated to play an increasing role in New Zealand’s future export profile due to the exciting growth potential. New Zealand’s isolated location provides optimal conditions for producing a wide range of high-quality ingredients and natural products based on a safe and reliable source”.

Projected growth of pet food market in China

The market intelligence and advisory firm Mordor states “the Chinese pet food market is projected to register a compound annual growth rate of 6.3%, over the next five years”.

According to a survey conducted in 2018, China has more than 27 million dogs as pets, ranks third in the world in terms of dog ownership, and about 9% of urban households in China own a dog. Pet owners are picky, not only about food but also about sales channels.

As DryNZ’s China partnership moves forward the company will be looking at further developing its pet food offerings, as well as continuing to build on its traditional portfolio of products lines, which are delivering returns via three main revenue streams;

  • wholesale sales/end-to-end product development,

  • retail and online sales,

  • and contract sales/toll drying.

Mordor goes on to say “At the same time, the dry pet food segment is projected to register a compound annual growth rate of 7.1%, during the forecast period. Pet owners usually prefer pet foods that do not have overpowering odours, which reinforces their preference toward dry pet foods.

“In addition, dry pet food is the most convenient type of food in terms of storage, as well as for feeding by Chinese pet owners. Owing to rising disposable incomes and the increasing number of pet owners in China, the market for dry pet food is expected to grow at a rapid rate in the country.”

Capital raising and application of funds

Currently, DryNZ is operating near full capacity. To ready the business for product diversification and projected capacity demand, DryNZ is adopting a staged approach to expanding their drying technology and capability. 

For increased productivity the business will purchase a state-of-the-art vacuum cabinet dryer from Swiss-based technology specialist Bucher Unipektin AG, plus the associated building works and supplemental processing equipment.  This dryer will replace the four existing leased Rexmoi tray air dryers, increasing capacity and efficiency five-fold.  This will allow the business to remain at the forefront of the latest technological advances in drying capability.   

DryNZ is seeking a capital injection of $1,000,000 for:

  • Leasehold improvements to facilitate two separate processing lines in the current factory: one for pet food, and one for fruit and vegetables.

  • The lease of a second Rexmoi tray air dryer from Tauranga-based Drying Solutions Limited.

  • The lease of a further two Rexmoi tray air dryers as demand increases, taking the total to four within the existing factory.

  • Market development to support the ongoing marketing and promotion of DryNZ’s pure NZ drinking fruit project and pure NZ pieces, powders, herbs and spices.

  • Market development for the expansion into their own pet food brand within the New Zealand domestic market.

  • Working capital to implement the expansion.

The Offer

Based on a previous valuation of the business and revised financial projections, the directors have placed a pre-money valuation of $4,422,000 on the Company. At this valuation, if fully subscribed, the new shareholders would own 18.44 % of the Company.

Oversubscriptions will be considered in which case existing shareholders equity would be reduced on a pro rata basis.

For a copy of their detailed Investment Brochure and the IM describing the Offer, reply to this email of give me a call on +64 21 902 901

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.


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


For more information, please click the contact button below to send us a message.


⇑ back to top