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Marketing honey

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4 hours ago, frazzledfozzle said:

I like the “Faux Manuka” that’s a phrase I will start using .

What about the term fake ####?

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17 hours ago, flash4cash said:

What about the term fake ####?

Well. That works but probably won't catch on in print. 

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Posted (edited)

@Adam Boot In current and also trending terms what is our market spread for exported Honey.

In particular % into the US and China.

Edited by Philbee

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2 hours ago, Philbee said:

@Adam Boot In current and also trending terms what is our market spread for exported Honey.

In particular % into the US and China.

Difficult one to be specific as honey can take multiple routes to market. With some certainty you can say that China remains the largest single market for NZ honey and in particular Manuka.  The USA would be the largest consumer of honey and one of the largest honey consumers per capita. Not all of our honey takes a direct route to the USA so I think the % split is not entirely accurate. Personally I like the US market and I think it has legs. The product and marketing mix needs to be clever to carve out a high value position. They have access to a lot of cheap honey and a lot of junk honey so no point chasing the spiral down. Unfortunately where Manuka is concerned there are some crazy, misleading grading systems floating around that have muddied the water. There are also a few legal battles from dodgy Manuka Honey hitting the shelves. Lots of marketing needed but definitely a longterm opportunity. 

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Posted (edited)

Adam

The Chinese economy is about to shrink dramatically, what is New Zealand's current exposure to this in terms of unfilled export contracts for this season's production.
Also how reliant is the NZ industry on funds  from China sales this season to fund marketing into the US?

In other words if the Chinese suddenly reduce their purchases will this cause us to become so strapped for cash that we are unable to fund any significant marketing strategy?

 

Note

The word "shrink" is used where others are using the term "Slow down"
Thing is that it's likely China's growth figures have been misrepresented on the high side for a while and "shrink"may be an appropriate term

 

 

 

 

 

Edited by Philbee

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19 hours ago, Philbee said:

Adam

The Chinese economy is about to shrink dramatically, what is New Zealand's current exposure to this in terms of unfilled export contracts for this season's production.
Also how reliant is the NZ industry on funds  from China sales this season to fund marketing into the US?

In other words if the Chinese suddenly reduce their purchases will this cause us to become so strapped for cash that we are unable to fund any significant marketing strategy?

 

Note

The word "shrink" is used where others are using the term "Slow down"
Thing is that it's likely China's growth figures have been misrepresented on the high side for a while and "shrink"may be an appropriate term

 

 

 

 

 

Correct 

 

And then further on from there , the market in China will try to be re established by those remembering the good prices but forgetting the scorching , or should I say those with optimism .

Focusing heavily on China brings short term wealth at the cost of long term disappointment . 

The smart marketer would close that door and invent something new 

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23 hours ago, M4tt said:

Correct 

 

And then further on from there , the market in China will try to be re established by those remembering the good prices but forgetting the scorching , or should I say those with optimism .

Focusing heavily on China brings short term wealth at the cost of long term disappointment . 

The smart marketer would close that door and invent something new 

Some big questions here. China is a big beast and Manuka and other premium goods are probably only sold to the top 15-20% of the population. If the economy slows/shrinks is the effect so great within that demographic of the population? Possibly not. The issue is more likely to be that growth slows and the market continues to become more congested as every man and his dog seems to want to sell their brand there. The inevitability is that most brands only know one way to sell the product. Price. They become addicted to the few customers, large volume business model and leverage price as the weapon of choice. The follow on effect is a devaluation of the market and product category. 

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10 hours ago, Adam Boot said:

Some big questions here. China is a big beast and Manuka and other premium goods are probably only sold to the top 15-20% of the population.

 

I think that you radically over estimate how wealthy China is. That portion of New Zealanders can’t afford Manuka and we have a considerably wealthier population than they do.

That said, if a fraction of a percentage of their population buys Manuka honey, that makes it a massive market for NZ.

 

https://www.stlouisfed.org/on-the-economy/2018/january/income-living-standards-china

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Posted (edited)

New Zealand GDP per capita $38,900USD

China GDP per capita $16,700USD.

 

Chinas middle class is huge at over 400 million, although closer reading shows this is defined as those spending $10-50 per day. They have a huge income disparity but their wealthy population utterly dwarfs NZs population.

 

https://www.cia.gov/library/publications/the-world-factbook/geos/nz.html

 

https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html

 

https://chinapower.csis.org/china-middle-class/

Edited by cBank
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2 hours ago, cBank said:

but their wealthy population utterly dwarfs NZs population.

That's the key the rich in China.   They are the ones buying manuka not the middle class.  Selling to the wealthy is one of the sercerts to wealth creation.  They are high margin and reliable through out the economic cycle. 

 

They will keep truckin. 

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I read this article earlier which takes about a massive population decline in China over the coming decades as a result of the one child policy.

https://edition.cnn.com/2019/01/07/asia/china-population-decline-study-intl/index.html

 

The only other country that comes to mind as currently having those characteristics is Japan which has a static or declining population, low unemployment, low inflation,

low interest rates, and a declining GDP.

 

It is not hard to imagine China going that way too...

 

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I would be keen to hear about more marketing of other wonderful honey than manuka.

That the problem it's all manuka let's push things along and market other honey to the world 

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On 2/01/2019 at 11:06 PM, frazzledfozzle said:

 

What is manuka ? 

You could talk to a dozen beekeepers and they will all have a different take on what is Manuka honey.

MPI came up with a standard does it actually define Manuka a lot of people say no it doesn’t .

On the flip side now there’s a standard beekeepers will have to work with it or around it whatever they need to do to make it stack.

If you look at it in a different light with the emphasis not on the type of honey but on the activity which is what people were and are still buying on, then as long as the numbers on the label represented the activity in the jar the does it matter to the consumer how much actual “ Manuka” is in the jar ?

I'm with @yesbut on this one. The question of what is manuka is irrelevant if you're trying to defend blending other honeys and honeydew into it. The only certainty with this blending into manuka had is that it's manuka content diminished.

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9 minutes ago, Otto said:

I'm with @yesbut on this one. The question of what is manuka is irrelevant if you're trying to defend blending other honeys and honeydew into it. The only certainty with this blending into manuka had is that it's manuka content diminished.

 

People don’t care what kind of honey is in the jar they care about the numbers.

thats why Comvita are concentrating on honey that is at least 5+ rather than honey that only tests as Manuka.

The bees blend the honey themselves anyway. 

You talk about blending diminishing the Manuka content but you are going by the MPI standard of Manuka and there’s a lot of doubt that MPI have it right.

even MPI admit it will need tweaking and they don’t have it right yet. 

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Posted (edited)

So would it be ok to put an mgo/npa value on any honey type ???

Edited by nikki watts

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I can't see that a description of the honey's attributes ( as per test results) could not be allowed. It seems to be calling it Manuka that is the issue. It is an opportunity for a new product in my opinion. 

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15 hours ago, cBank said:

 

I think that you radically over estimate how wealthy China is. That portion of New Zealanders can’t afford Manuka and we have a considerably wealthier population than they do.

That said, if a fraction of a percentage of their population buys Manuka honey, that makes it a massive market for NZ.

 

https://www.stlouisfed.org/on-the-economy/2018/january/income-living-standards-china

I think that is what I am saying?

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12 hours ago, flash4cash said:

That's the key the rich in China.   They are the ones buying manuka not the middle class.  Selling to the wealthy is one of the sercerts to wealth creation.  They are high margin and reliable through out the economic cycle. 

 

They will keep truckin. 

Agree - So why are so many of our NZ brands discounting the hell out of product into China?

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2 hours ago, Otto said:

I'm with @yesbut on this one. The question of what is manuka is irrelevant if you're trying to defend blending other honeys and honeydew into it. The only certainty with this blending into manuka had is that it's manuka content diminished.

I hope you are wrong on this one. If you take this direction then you will start undermining the one honey that is leading the way for NZ on a global stage. In my opinion we should do everything possible to defend Manuka and the stricter the standard the greater the credibility. 

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2 hours ago, nikki watts said:

So would it be ok to put an mgo/npa value on any honey type ???

 

Why not ?

I think you are spot on and it would be a good thing

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21 minutes ago, frazzledfozzle said:

 

Why not ?

I think you are spot on and it would be a good thing

Has anyone tested other honeys for mgo/npa ?? 

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1 hour ago, Adam Boot said:

I think that is what I am saying?

 

I got a different meaning from your original post sorry, I misunderstood.

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1 hour ago, Adam Boot said:

I hope you are wrong on this one. If you take this direction then you will start undermining the one honey that is leading the way for NZ on a global stage. In my opinion we should do everything possible to defend Manuka and the stricter the standard the greater the credibility. 

A little confused... Don't see how the statement I made could undermine anything.

All I said was that if you take non-manuka honey (like honeydew) and blend it into manuka this is guaranteed to reduce the amount of manuka in that blend. Standard or no standard, if the brand is manuka this practice surely should diminish the value and credibility of that product?

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The Honey Marketing Board was disestablished many years ago - but in the proposed commodity levy the given splits are 10% for advocacy and 3% for market access. - with another 3% for product benefits. Could all 16% come under marketing/alternative honeys? This might represent $300,000 per year.

 

Apologies for those that don't want the levy mentioned. As you were . . .  [JM]

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Great step in the direction of opening up new opportunities. Having contacts and building bridges  always a positive move. I may be newer to the industry however, watching the ups and downs over recent times highlights the volatility that exists in this industry. Resilience and diversity is a key element for success. Understanding that the high honey prices could not last. Yes honey price is supply and demand, however blending, fueled by hunger for the $$$ has certainly not made things any easier. Even more difficult for those of us that have stayed true to the character of the honey and restrained from offering a mixed blend just to get the $$$. 

Don't bite my head off!!!

I follow and read a lot of threads in the hope of gleaning more info as to what is going on out there beyond my own beeyards. While always concerned about will the effort be rewarded at the end of the season.

 

 

 

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