CASE STUDY #3
Food and Beverage Information Project (iFAB)
Stream 2: Emerging Growth Opportunities, Regional Growth Opportunities and Market Reports
iFAB supporting investment and growth in NZ’s Food and Beverage Sectors. A ten year (2011-2021), all-of-government project.
Client
Problem
The project team identified additional information required to support investment in the F&B industries. In particular identifying emerging growth opportunities was a priority.
Solution
Coriolis produced special topic reports, deep dives into topical subjects (e.g., the Regional Growth Opportunities series) and Market reports. The highlight however is the Emerging Opportunities series (EGO). These reports identify and then profile growth sectors in the New Zealand F&B sectors.
What we did
Coriolis produced special topic reports and deep dives into topical subjects.
The Emerging Growth Opportunities offered a wealth of information for firms and investors in the New Zealand F&B and wider agribusiness sectors. The project began as a basic screen to identify potential new growth sectors. The first report was released in 2012 and followed up in 2018. The objective of the report was to identify emerging high-potential food and beverage export categories from New Zealand, answering the question - What would be the next wine industry? The research concluded potential industry strategic directions, highlighted opportunities for further investment, and identified categories that had the potential to contribute to the goal of growing exports.
The Regional Growth Opportunities and Outcomes series (2019) analysed and profiled the F&B activity across the 15 regions of New Zealand. Deep dives across Northland and Taranaki.
Market reports were also produced covering Dairy Opportunities in South East Asia, F&B imports into Asia, and an assessment of the opportunities for Beverages in Asia and NZs opportunity to rekindle relationships in Britain.
They are freely available to investors, industry participants, government and researchers.
Emerging Growth Opportunities Series of reports
Markets reports
Regional Growth Opportunities reports
“When we look at investing in a new food sector and company, we also try and source the most recent Food and Beverage report.”
Output
The output from the project for these sections were:
Twelve Emerging Growth Opportunities reports
Seven Market reports
Five Regional Growth Opportunities reports
These reports were then distributed to firms, potential investors across the sector including those through international offices.
Outcomes
Results
In the 11 years of the Project's existence, the New Zealand food and beverage industry was the major engine of export growth for New Zealand. Over this period, the industry created almost 900 net new firms, generated almost 32,000 net new jobs, increased food and beverage manufacturing industry turnover by NZ$16 billion (to $54 billion in 2020), and boosted exports by $14 billion (to $41 billion in 2020). To achieve this, it needed to attract at least NZ$14 billion in investment. The industry delivered results for New Zealanders. Over the same period (2010 to 2020), the net value of all other merchandise trade exports shrank by $2 billion. Food and beverage was the only major sector that "kept the economic ship afloat."
Drives Investment
The project drives investment by mitigating sectoral risk, providing in-depth insights into the growing, innovative, and competent New Zealand food and beverage sector. The EGO reports showcase the country's up-and-coming sectors, positioning them as serious contenders for investment. This allows investors to focus on specific businesses, reducing overall risk and uncertainty.
Example Alcoholic spirits
The project's impact on the alcoholic spirits sector is evident as the 2014 report, "Investment Opportunities in the New Zealand Spirits Industry," spurred a noticeable increase in new spirits firms. Interviews with entrepreneurs confirm the report influenced their decisions, demonstrating the tangible impact and encouragement provided by the foundational research.
Example Pet Food
The project's research on the pet food industry, initiated in 2014 and updated recently, has played a crucial role in attracting over $2 billion in investments. The pet food reports were “on the table” for new deals. This substantial impact and report justifies the overall project investment.
The resources are a valuable resource for investors, scientists, and other government agencies.
“Reading your report gave me the confidence to invest in a distiller and develop a brand.”
“The pet food report, in particular the updated one, provided great information we could take to the bank.”