One Range Marks new Ground for Health Pak
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The tray of organic tea, instant coffee, plunger coffee, drinking chocolate and sugar launched in June, appears to be the only complete Fairtrade range of beverage sachets in the world and general manager Toby Whyte could not be happier with the way it has been received so far.
"We've never had a more positive reaction to any product we've launched. It's been quite phenomenal – worth the effort already."
There was certainly considerable effort in bringing 'One' to market. It took nearly a year of preparation, but Whyte says Health Pak was always confident it would be worthwhile.
"We've been a manufacturer of beverage sachets for years and we saw a niche in the market for something a little different. While there has been the occasional Fairtrade sachet item available in the hospitality market, no one before us had brought out a full range under a single brand. We also saw that a lot of hotels and motels want to show their guests they are being as socially and environmentally responsible as possible, and this fits well with Fairtrade products.
"We spent nearly a year trying to source the raw materials we needed, making sure the quality was good and the supply would be reliable. We're a long way away from a lot of the Fairtrade growers and global demand for what they produce is becoming very high. But we've done it, and while in the past Fairtrade has sometimes meant higher than market price, because we manufacture the products in our own factory in Auckland, we've been able to keep the price down to a level competitive with other brands."
Whyte says the Fairtrade organisation was very helpful to Health Pak in bringing the range together and Fairtrade ANZ CEO, Stephen Knapp says the new range represents a significant milestone in the availability of Fairtrade Certified™ products in New Zealand.
"It's taking Fairtrade to a whole new consumer group. It's a great opportunity for hotels and motels in particular to demonstrate a commitment to Fairtrade and offer an ethical selection to increasingly ethically and sustainability minded guests.
"This is a great initiative as scope for Fairtrade Certified™ products in the hospitality trade is huge in New Zealand, especially as we gear up for the Rugby World Cup when overseas visitors will be expecting to see a socially responsible, clean and green New Zealand."
Knapp says New Zealand represents one of the fastest growing markets in the world for Fairtrade with retail sales last year reaching $36.6 million, a 100 per cent increase on 2009.
Packaging breakthrough
It is not only the product range itself that is unique. Toby Whyte says as far as Health Pak is aware, it is the only beverage sachet range in the world where the packaging is all oxo-degradable. "That means the packaging has an additive within the film that in certain conditions will allow it to actually break down faster than standard films, which can otherwise last for hundreds of years in some cases. Oxo-degradable won't break down in all situations but we think at the moment it's a lot better than not at all."
Health Pak has used oxo-degradable and bio-plastic packaging before in other products, overcoming a number of technical challenges to perfect it. "One of the hardest things is retaining the shelf life of the product, e.g the coffee going hard," said Whyte. "There are a lot of films that one could argue are slightly more environmentally friendly than others, but they may not have certain characteristics which can maintain the product quality for a long enough time. This packaging does, so it's quite unique in that regard. Using it in the full range is something quite a new."
New Zealand influence
So why would Health Pak be so enthusiastic about Fairtrade products? Whyte says it stems from the fact that Health Pak is primarily a New Zealand manufacturer with 65 staff and it intends to stay that way.
"A lot of our competitors are importers right across our range, so we're up against product that's coming from manufacturers all around the world and some of those are in very low cost economies. We've tried to differentiate our products to give them a New Zealand flavour – to provide something relevant to the people of New Zealand. That might be making the product slightly more environmentally friendly, which we've had a big focus on in a lot of our other products, but it also might be in giving hotels and motels a more socially responsible option that our competitors are not able to offer.
"That's where the Fairtrade fits in. There's a strong demand for it – people like Fairtrade products. For motels and hotels looking at showing their guests they are trying to make a difference, the 'One' range is the perfect solution for them as far as beverage sachets go."
Positive image
Mr Whyte says his company does not regard their products such as the 'One' range as just a cost to hotels and motels, but really a benefit.
"These Fairtrade products are going to give motels and hotels a positive image. Guests are going to come into their rooms, see that the accommodation provider has made a decision to put Fairtrade amenities in their rooms, and most guests are going to view that as good.
"The first thing a guest is likely to do when they first enter their room is to have a look at what kind of freebies they're being given. They probably examine them a lot more closely than they would examine something else in their room that is a lot more expensive to provide.
"The hotel manager or motel owner won't be paying anything for that added benefit so they should be looking upon it as an investment for their guests. The teas, coffees, sugars, shampoos and soaps a guest uses have a far greater impact than the hotel or motel pays for them.
"With the likes of the Rugby World Cup coming soon and New Zealand's clean green image overseas, hotels and motels really need to convey to guests that they are doing everything they can. The 'One' range is a very noticeable way of doing that."
However, Health Pak is going to go further than just the products to help get the Fairtrade message across. "We're going to provide hotels and motels with additional information that can be prominently displayed, either in a compendium within the room or in reception, so that the guest can actually see more information about 'One' and why the hotel or motel is choosing to use it," said Whyte.
"Fairtrade has a very positive and well recognized brand and I think that if people could choose a Fairtrade product over another, everything else being equal, almost all would be picking the Fairtrade product.
"I believe 'One' is what the hotels and motels of New Zealand in particular have been looking for and the Rugby World Cup is putting even more emphasis on getting products like this out into the hospitality arena because it's everything New Zealand strives to achieve and promotes itself as being – socially and environmentally responsible. This is that opportunity – a high quality product that is price competitive. We believe 'One' ticks all the boxes so it's quite exciting for us."
Strong international trend
Toby White believes the 'One' range is going to bring a considerable boost to Fairtrade awareness in New Zealand.
"Potentially these products have the ability to reach more consumers in New Zealand than has been done before with any other Fairtrade product. If a hotel has 100 rooms and has 'One' in every room, and they have an 80 per cent occupancy, the number of consumers using these products would be enormous – and that's just in one hotel."
Fairtrade ANZ believes the Health Pak move is part of a strong international trend. "The hotel industry in Europe has taken the lead in offering the Fairtrade choice to consumers," says Stephen Knapp. "You only have to look at the Accor Group and what they're doing in the northern hemisphere. They started off with just Fairtrade coffee in France in 2003 and now they offer a range of hot drinks across Europe, the Middle East and China with sustainability and particularly Fairtrade very much front and centre. The Dorrint Hotel at Amsterdam's Schipol Airport has an entire Fairtrade floor with all beverages and snacks, toiletries, linens etc Fairtrade Certified.
"I think it's only a matter of time before New Zealand hotels and motels recognise the benefits of sustainable and fairly traded products and the value this holds among increasing numbers of travelling consumers and how this will make a significant difference in the fight to end poverty in developing countries," said Knapp.
"Fairtrade ensures a fair and stable price and an additional Fairtrade premium. Producer groups decide democratically on what to spend this extra cash on. Typically, projects include healthcare, education and business development."
