Asian consumers value Kiwi quality, integrity

Moving to New Zealand proved to be a life-changing experience for two members of the Butt family of Hong Kong, on both personal and career levels.

KC Butt and his son Ronnie are now heavily involved with the Paengaroa-based natural health product company Comvita, but Ronnie says their previous career interests were very different.

'My father was a plastics manufacturer in Hong Kong when we came to New Zealand and when I graduated from university I worked for 10 years for the petro-chemical company ExxonMobil in the Asia Pacific Region.”

Ronnie was 17 when the family arrived in this country. He completed his secondary education at Mt Albert Grammar and then gained a Bachelor of Engineering (Chemicals and Materials) at the University of Auckland in 1994.

Although the Butt family loved their New Zealand lifestyle, KC Butt retained strong business interests in Hong Kong. When he ‘discovered' Comvita, founded in 1974 by the then 64-year-old Claude Stratford, he saw an opportunity to introduce its high quality products to the
Asian markets.

SARS

In 1992 KC established GreenLife in Hong Kong solely for the distribution of Comvita products and a selection of other high quality natural and organic products.

KC says initially the challenge was the lack of consumer understanding about Western style health supplements. It was the 2003 SARS (severe acute respiratory syndrome) outbreak that boosted consumer interest and led to Comvita products being sold in major pharmacy chains and premium supermarkets.

Traditions of using natural products and foods as medicines date back thousands of years in Asian cultures but unlike Comvita products and Western medicine, there is little scientific evidence to prove their efficacy.

'Consumers are now looking for assurances that products are effective, safe and of top quality, which is what Comvita offers,” Ronnie says.

In 2005 Ronnie joined his father's GreenLife business and under his management, developed a Comvita in-store concept, launching the first stand-alone store in 2004. Today there are more than 400 Comvita-branded outlets in more than 40 cities in China.

In March 2007, Comvita acquired GreenLife and Ronnie became Comvita's general manager for the Asia region, including Taiwan and Japan.

It was a logical partnership to combine the attributes of GreenLife and Comvita, enhancing both. 'It is a case of one plus one equals three.”

The synergies between the two companies are very strong. KC and Comvita's founder Claude (now 102) and co-founder, Alan Bougen share a firm friendship as well a mutual commitment to the core values of health and wellbeing, sustainable business practices and social responsibility.

PM's award

Last month Ronnie was among the 14 recipients of the New Zealand Prime Minister's Business Scholarships, designed to build business capability and enhance New Zealand's opportunity for growth by developing skills in management and international business leadership.

He will use the scholarship to attend a four-week course at one of the world's leading and largest graduate business schools, the INSEAD Business School in Singapore.

'I hope the experience will challenge my thinking and refine my decision-making processes, giving me skills I can pass on to others in Comvita too.”

Ronnie, his wife Molly and children Hayden (8) and Hayley (3) live in Hong Kong but hope to eventually make New Zealand their permanent home.

'I have benefited greatly from living and studying in New Zealand and learning to understand the Kiwi culture and values, which have assisted in the success of the Comvita brand in Asia.

NZ brand

'New Zealand's own brand is seen as representing quality, innovation and integrity and that further enhances Comvita's premium brand.”

Comvita products are sold in more than 18 countries and it has offices in New Zealand, Hong Kong, Australia, Japan, Korea, Taiwan and the United Kingdom.

While honey and bee products remain at the core of the business, Ronnie says developments into other health products, including its olive leaf extract, offer exciting possibilities for the future.

A clinical trial by The Liggins Institute at The University of Auckland has shown fresh olive leaf extract prepared by Comvita may support normal blood sugar in healthy individuals.

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