AROHA DAIRY

Dedicated to delivering milk nutrition safely and sustainably from grass-to-glass.

We are leading dairy collaborators from New Zealand, developing balanced nutritional solutions from the highest quality cow’s milk. Combining advanced science with the nature of New Zealand, we deliver premium, value added milk solutions across the complete circle of life stages.

A trusted partner, International operates a transparent value chain, dedicated to delivering milk nutrition safely and sustainably from grass-to-glass.

THE MARKET OPPORTUNITIES
THE BUILDING

COMPANY GOALS

  • Build a global network of collaborators working openly to bring innovative life stage nutritional products from milk to market globally. We are open to sharing our high-end technology and innovation capabilities with long term partners.

  • To build a premium range of advanced life stage nutrition products available in targeted international markets under our own brand

  • To build from niche to volume a defendable portfolio of high end diary nutrition products in key targeted markets

  • A unique vertical value chain collaboration of partners with shared values, goals and aligned incentives

OWNING THE SPACE AT THE TOP OF THE DAIRY SECTOR BEFORE OTHERS IS VERY VALUABLE,
ESPECIALLY IF YOU HAVE A TRANSPARENT FULL SUPPLY CHAIN STORY.

GO TO MARKET TIMING

Earliest possible contract packing with CAN Pack and Keytone. Aroha& Infavita English brands.

  • Launch the company at Gulfoods Exhibition Dubai in Feb 2020

  • Commission Plant in Feb / March 2020

  • First Contract Pack customers orders booked for factory 2020 (Feb onwards)

  • First Contract pack orders packed August 2019

  • Full Brand AROHA and product range design completed June 2019

  • More Distributors appointed in countries other than CHINA ready by April 2020

  • First shipments to distributor of branded goods English Brand September / October 2019

PRODUCT STRATEGY

AROHA DAIRY will operate a two pronged product strategy with volume contract pack products and it’s own high quality branded products.

WE WANT TO BEHERE

FOCUS ON VALUE ADDED PRODUCTS

  • AROHA DAIRY can tell the story about organic milk products& milk from A2 cows in New Zealand. A story of farmers that really care about animals, nature and feeding the world while looking after the planet for future generations. Add to this the latest in organic farming techniques, the latest technology, plant and equipment, the highest quality standards and the best in nutritional science, and you have a complete story that’s hard to emulate.

  • There is a natural space where AROHA DAIRY can compete the best as it is at the intersection of nature and science.

DAIRY PROJECT VIDEO

NATURAL LIFE STAGE NUTRITION

In all stages of life we have the same basic nutritional needs. Each stage has different stresses, pressure points and health concerns.

The proliferation of smaller specialist nutrition brands also makes it very confusing for consumers. Brands are built by experiences that build strong relationships over time. One brand could meet the needs from expecting mums and infants through to elderly.

Milk and milk products are an excellent base upon which advanced life-stage nutrition products can be built. Milk is one of the four major food groups that make up a balanced diet. Consumers are familiar with milk and see it as being natural and healthy. New Zealand’s history of dairy excellence, pasture-fed agriculture, organic milk from A2 cows and the use of the very latest technology all add appeal.

There is opportunity for brands that can span all of the life-stage nutritional needs of consumers from conception to grave. The market is currently crowded with lots of specialist limited range products, focusing on one or two life stages. This, combined with the extreme pressure on retailers shelf space and the fragmentation of distribution channels, points to a consolidation of brands.

From a retailer and category management point of view, a life-stage brand would offer a number of advantages in terms of efficient ranging and promotion.

BRANDED HOUSE STRUCTURE

WHERE WE SIT IN THE MARKET!

There are many ways to add value to a brand.

AROHA DAIRY is natural, organic, milk from A1 & A2 cows, produced in New Zealand. High quality ingredients and processes are all powerful brand positioning attributes that add value.

Flavours, textures and packaging require great care to ensure they are competitive as these tend to be hygiene factors. The emotional aspects associated with being “better for me and my loved ones“ is where the greatest value can be added overtime.

THE ULTIMATE OPPORTUNITY

There is a gap for high quality brands of nutritional products which meet all life stages in a simple, easy to understand and credible way.

Regulatory and health system changes in China and other countries are driving this demand.

This is driven by social awareness and life style changes of the consumers

DECISION MAKING SHORTCUTS FOR BUYERS

Branding is about meaningful differentiation. Things that set you a part from your competitors in a way that potential and current buyers value.

Branding is also about designing and reinforcing decision making shortcuts for buyers and consumers. A unique and trademarked technology ingredient brand can prove to be a powerful marketing tool, especially if your customer scan be convinced to use it in their brands and products.

BRANDING IS ABOUT MEANINGFUL DIFFERENTIATION & DECISION MAKING SHORT-CUTS.

AROHA DAIRY has a technical advantage over other New Zealand OEM/Contract Packers in the ‘vacuum’ blending and packing system. This system and equipment blends powder mixes in a vacuum environment under pharmaceutical processing conditions, resulting in a gentler, more through hand more hygienic mix while effectively locking in the highest nutritional value possible. Use of this system also results in a more soluble product and better mouth feel and superior flavour retention. It is our intention to develop and have trade mark protected a unique technology ingredient brand as part of the brand design process and the overall brand story.

WHICH ONES IN WHICH ORDER?

  • New Zealand
  • Australia
  • China
  • North and South Africa
  • UAE
  • Korea
  • Japan
  • USA
  • Malaysia
  • Vietnam
  • Taiwan
  • Thailand
  • Hong Kong
  • Singapore
  • Europe
  • Canada

  • Grocery
  • Pharmacy
  • Health Stores
  • Baby Stores
  • Food service
  • TV Home shopping
  • Internet…

  • Health Supplements
    • Infant Formula
    • Elderly
    • Pregnant
    • Women’s
    • Men’s
    • Sports Nutrition
    • Children’s
  • Whole Milk Powder
  • Skim Milk Powder
  • Functional Foods
  • Breakfast Drinks…

  • Diameter 99 cans / 400g
  • Cartons 12x 400g and 24 x 400g
  • Diameter 127 cans/ 900g
  • Cartons 3 x 900g, 6x900g and 12 x900g
  • Bag in Box 500g to 1000g
  • Sachets 1g to 3000g
  • Sachets / Pouch Packings:
  • Stick, Pillow, Standing Pouch, Four corner seal etc.
To be among the highest quality and most respected dairy brand and companies in the world
Financial Perspective Contract Pack for cashflow Build theAroha Green/ Infavitabrand internationally for long term returns Proactively Manage costs and cashflows Strategic Partners to enhance capabilities and surety of supply
Customer Perspective Advanced Life Stage NutritionCollaborators from NZ Aroha Green / Infavita Advanced life stage nutrition from Milk World Class Execution Standards Grass to Glass Quality & Supply Surety
Internal Perspective Best in class advanced nutrition technical & production capabilities Global brand development & control Local adaption and execution Robust systems and processes The best of nature combined with the best of science
Learning & Growth Perspective Network of World Class collaborators& advanced nutrition programmes Systematically improve advanced life stage nutritional range & brand content Pragmatic use of technology Manage team & collaborations through programmes & projects
Values Perspective Advanced Dairy Nutritionists Visibly Transparent Naturally Curious Continuously Improving Quality Demons Globally Connected Warmly collaborative
VALUE CHAIN GRASS-TO-GLASS

The complete supply chain will vary by market and channel but the above diagram gives a feel for potential size of the complete value chain for any given market. Some markets may require a slightly longer and some a much shorter version of this. The costs and margins associated with each player in the value chain need to be mapped out and modelled separately from this exercise. Each activity in a supply chain adds a cost and each player a margin. The higher values and margins needed further along the supply chain are to cover many of the value accentuating activities.

These are the harder things to achieve in practice but they make the biggest competitive difference long term. All of the value creating activities need investment in the same way that plant and equipment does if a branded goods company is too succeed long term. These people and process capabilities are driven by the right strategy and culture. To grow any brand or category, you need a steady stream of relevant new news (innovation) and appropriate promotion in the form of sales and marketing.

INTEGRATED SUPPLY CHAINS CREATE MORE SHAREHOLDERS WEALTH
Positioning is important to get right from the outset.
Powder OEM Powder and Mass Dairy (non powder) brand Powder OEM and Premium Health Products Brand OEM Powder and Premium Brand Full vertical farmers, OEM dairy and powder, and Premium bran
Premiumbrand with full supply chain story and surety
Premium brand with some surety
Premium products brand
Mass product brand (Don’t go here
Commodity services

Low shareholder wealth creation —————> High demand and shareholder wealth creation

Given the trends towards more natural, ethical, sustainable, nutritionally dense and functional products, and the need to get early cashflow from OEM/contract business to sustain the business and help fund the long term brand development, it is important that the company does not lose sight of the end goal being a defendable high value added branded business and remaining at the top of the dairy value pyramid as far as is practical.

While it may sometimes seem attractive just to keep doing OEM/contract packing work and it is easy to get caught up in the thrill of constantly chasing new business, this does not create the same level of shareholder returns or potential company value as a more holistic strategy focused on building you own defendable branded position over time

Designing for the new tighter retail channel realities, with smaller product ranges and life-stage stories, and for the demand of quality-focused complete supply chain stories creates significant value over time.