From Aotearoa to the world: how Wai Mānuka is going global

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Speaker E: Welcome to Business Is Boring. What does it take to make a new kind of drink for a new kind of occasion and take it to the world from Aotearoa. Today we look into the story of why Manuka, the premium sparkling honey drink. Co founder and CEO Joseph Haruera joins us to share the Kaupapa story and mateship behind growing wai Manuka. Tanakwe. Thank you for joining us.

Speaker A: Kia ora Simon. Thank you very much for having me. It's a pleasure to be here.

Speaker E: Hey, so first up, tell us about how this idea kind of emerged from a chat with mates at a whakatane, uh, New Year's.

Speaker A: Yeah, sure. So it really started as a New Year's Eve idea between myself and a few good mates. We were at a, um, a friend's place for a barbecue. It was 2019, going into 2020, so I hardly ever drink alcohol. And uh, that night I was drinking pineapple kombucha, uh, and it tasted nothing like pineapple. And I remember complaining to everyone at the party. And, uh, after, uh, they finished giving myself a bit of stick, we sort of jumped into solutions mode. And by the end of the night we'd sort of, um, come up with this concept of, of taking a Manuka honey, uh, spring water infused beverage to the world. And we were going to call it the Healing Water of Aotearoa at that stage. And why we were kind of focused on sort of Manuka honey and spring water was because we wanted to create something that would be uh, sort of embraced and loved by the world. We wanted it to be an export product from day one. Uh, and at the same time we wanted it to celebrate New Zealand and Mori culture, uh, our connection to the Whenua and that type of thing. So there's this whole kind of sort of Kaupapa woven into it. Um, and then on New Year's Day, so I dropped everyone off home at like 3 or 4 in the morning. And then on New Year's Day I woke up and then did a bit of desktop research. And then I saw that no one was actually making a uh, uh, premium alternative to alcohol using Manuka honey. And that was kind of the uh, green light for us to, to give it a nudge.

Speaker E: And were you guys involved in the world of making products at the time? Like, what was the, what was the end to go, hey, we should be doing this.

Speaker A: So I started with two of my good mates. Um, one of them is a primary school teacher. The other one at the time was working at, he was a floor manager at Super Liquor and I was working at New Zealand Rugby. So, uh, short answer is no. None of us had any sort of uh, industry or beverage experience, uh, up to that point. We sort of just went in blind and learned as we went along.

Speaker E: That's. So what does it take to create a new drink and like a whole new category? Right? Because, um, it's not like a mead, it's not like a sparkling water. It's a new kind of thing for people to think about.

Speaker A: Yeah, I would say it takes like absolute belief in what you're doing and the vision that you want to create. I also feel that if we weren't as naive like back this is four or five years ago, and so we were pretty green and naive back then and I think we needed to be because if we had come from the industry and knew some of the constraints and challenges that sort of were before us, then that might have swayed our decision of not creating this um, beverage with a goal of going global kind of a thing. So I think the fact that we were green and we were, um, really wanted to bring this vision to life of celebrating Aotearoa Mori culture on the world stage, I think that provided us with the, um, drive really to want to do this despite all the challenges.

Speaker E: And how do you go about actually going from idea, uh, like, um, water from the, uh, Gisborne area, the uh, Manuka Honey, and bringing those elements together in a sustainable package. How do you go from that kind of concept to m, you know, finding suppliers, formulating a drink, getting it into market?

Speaker A: Yeah, it's totally. Listen, um, it really comes down to sort of the strength of your networks. Um, so for us and the timing of COVID really. So, you know, coming out of uh, New year's, this is 2020 now. The country went into lockdown in March and so I moved back from Wellington to Whakatane, which is where we were from, for lockdown, because my mum lives alone. Uh, rather than being a hindrance, lockdown actually gave us the time and the space to um, build the business and develop the recipe and find the right people. So it was a bit of a buffer really for us to get our feet under the desk to figure out what it was that we were creating and who was going to help us to do it.

Speaker E: And, and how do you go out? So you kind of work the network, find kind of reliable people. I mean, how do you lead a conversation with a new supplier, uh, to kind of go, hey, we're going to try this new thing.

Speaker A: Yeah, I just reached out through my networks on social media and email. Luckily I've. I've done a few things so, like I've, you know, spent time in the military, uh, and then I studied at Massey and then ended up working for the NRL and Rugby league and the New Zealand Rugby League. So as a result of all of these connections, um, we were able to find sort of like a, um, beverage consultant and then a designer team to help us with the packaging. And we were able to bring it together relatively easy because everyone else was working from. Look, everyone else was at home and they had a bit of time and they were looking for different projects. So it all really played in our favor. And yeah, rather than Covid being a hindrance, it really was an enabler for us.

Speaker E: Tell us about the brand that you built and the name and yeah, the design of the packaging as it's a really beautiful thing to kind of look at and touch.

Speaker A: Yeah, thank you. Um, we really wanted to sort of capture the essence of Aotearoa Mori culture within the brand name. Uh, the design, the look and feel, um, and of course, sort of the value. So the name sort of Waimanuka, that actually represents sort of, you know, why as Water. And manuka represents the sort of manuka honey aspect. Uh, and then sitting above that, we have a broader kind of, um, vision or statement, which is he. Tanga. No, aotearoa, which means a precious gift from New Zealand. Uh, and that was gifted to us, uh, from my mum, who taught, uh, te reo mori at Kohangario. Uh, and then the Mori design that's sort of woven into every bottle, that was gifted to us from a renowned T? Moko artist. His name is Katsumahi. Um, and that particular design, um, it represents sort of the changing of the seasons and in particular pays homage to the relationship bees have with nature and making manuka honey. So there's this whole sort of kaupapa that's woven into it, um, that we wanted to share with the world. So for us, the reason why we're doing this is because it represents us and where we're from and who we are. Um, but also, um, there's a philosophical goal. So if you're a Kiwi and you're overseas and you happen to be trying Waimuka, you feel a connection, uh, to home. There's an emotional pull, uh, there's a sense of pride because this product has come from home. And if you're non Kiwi, then Waimanaka gives you the opportunity to experience your own little slice of Aotearo. It's kind of like, you know, I travel a lot, and when you're overseas and you're walking through the airport and you look out to the tarmac and you see, like, an Air New Zealand plane with the Koru, and straight away, like, you might be at Heathrow or JFK or whatever, but straight away you feel a connection to home. That's the feeling we want to recreate through Waimanaka around the world.

Speaker E: And that idea of being very export first from the beginning, um, I mean, very quickly after launch, you had that in the America's cup village, right? Like, tell us about that kind of like, straight to export journey.

Speaker A: Yeah, the journey that we weren't ready for. Yeah, sure. So halfway through lockdown, one of our mentors forwarded me an expression of interest for beverages for the Americas Cup. So at that point they'd gone out to market and they were asking beverage brands to put forward their proposals to represent Aotearoa. And at the, uh, at the regatta, and all he said in the email was, you know, way too early for you guys. Um, but this is an example of what's out there. Just wanted to share. And then I had a look at Sort of the criteria and what they were asking for was, you know, we want to work with brands that celebrate New Zealand, that embrace Whnona Tanga, Manaaki Tanga. And like, as I read through this list and despite the fact we hadn't made the product just then I was like dude, we like meet all of us. So I put in our application, thought nothing of it. And then two weeks later I got invited um, for a panel interview, did the panel interview and thought I bombed it. And the main reason why I thought I bombed it was because I've got no industry experience, man. I didn't know how to make a beverage. We hadn't even made it at that point. Um, so I thought nothing of it left. Yep, sweet. Let's just carry on. And then a couple of weeks later got a phone call from the head of Food and beverage for the Americas Captain. So she was like radio, um, I just wanted to give you a call because we've made a decision. So we've selected six brands to represent New Zealand at the Americas Cup. Four alcoholic brands, two are non alcoholic and we're going to go with Coke and you. And I was like what the fudge? So um, yeah, that gave us sort of an unprecedented launch to market in terms of uh, profile and exposure. And then we uh, were able to build up uh, sort of some nationwide kind of connections off the back of that and launch into the likes of New World. Funny story, we did a, um, I flicked in there a random email to seven Sharp, uh, on the afternoon that we uh, got selected for the America's Cup. And all I said in the email was like, do you guys want a random story? There's three Mori boys from Whakatane have just made a beverage and got selected for the America's Cup. That afternoon they called and they were like when are you available to do

Speaker E: a story that's so good and like such a great example about how a brand with real purpose will go further in places where that matters than brands that don't have real purpose and that like news, you know, like people worry so much about how to get PR and stuff right but if you've got a real story that that's all that any media wants, right?

Speaker A: Yeah, I think that's been one of the really defining um, things on the, on the whole journey is, is the strength in being uh, yourself, authenticity and living your own values and not trying to be anyone else. That is the value proposition. Like I feel like too many people sort of want to copy or be like others but, well, that certainly hasn't worked for us. We're just us.

Speaker E: We'll be back in a moment to chat about how Waimuka has grown and what's coming next.

Speaker B: This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome, that's new. It can help you with practically anything on the web, like restoring a vintage M motorcycle from a 50 page page restoration block. Or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it, ready to make anything online make sense. There's no place like Chrome. Check responses, setup required. Compatibility and availability various 18 plus

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Speaker E: So what stage is the business at now? Like you came straight out of the gate, you and a little emerging brand called Coca Cola representing New Zealand at the Americas Cup. And then from there you've grown into some really great export markets as a kind of um, flag bearer for Aotearoa. Where's the brand at today?

Speaker A: Yes, today we've continued to scale across Aotearoa, so this will always be sort of the Providence story. Uh, and at the same time we've managed to launch trials into Japan and New York City. Um, this is off the back of some uh, really great trade missions along the likes of um, uh, New Zealand trade and enterprise. So we've got a small trial happening in Japan with a large importer distributor. We're in a few sort of high end hotels there. Japan is very much a slow burn. That's just how business is done there. And then in New York we're partnered with a high end importer distributor. Uh, we launched into New York about four months ago and we're, we're scheduled to be in around about one, uh, hundred sort of outlets across the city, uh, by the end of this summer. So, um, that's pretty exciting. And sort of at the same time, we're building out an Amazon platform to launch online, uh, next month in New York. And we're also sort of fielding interest from different states. So it's definitely a rapid growth market which is New York City.

Speaker E: Ah, uh, that's so cool. And what. Things along that journey have been kind of harder than expected. And what's been easier than expected, certainly

Speaker A: the hard one is trying to grow, um, a global brand into sort of capital, uh, intensive markets, that is Japan and New York with limited working capital. So at the minute, like I'm still the only full timer in Waimanaka. Um, one of the boys exited a couple of years, so we started it with three. Uh, and one of the bros is still involved, um, he still works full time, uh, and he just helps out where he can. So that sort of leaves me kind of juggling everything. Um, and yeah, that's the hardest thing is the lack of capital to invest in growth and to make the most of the opportunity.

Speaker E: Yeah. And like it's such a capital intensive business. Right. Like even getting a big order just means, oh, gotta get more inventory and get it to market and do the three pl. There's an enormous amount of logistics. But the, uh, flip side to that is if you get great distribution, you can very quickly get to quite good scale as a business.

Speaker A: Yeah, totally. And it kind of reminds me of a saying that we used to have back in, back in New Zealand, rugby was working in sort of the high performance space. And that is the saying was go slow to go fast. So whilst there's a lot of exciting opportunities in the U.S. um, it's a very complex, um, market. It's super competitive and every state you've more or less got to treat like another country. Um, and because of that you've really got to go in there focused on creating sustainable growth. So you don't want to be, you don't want to be, do too much too soon or grow too aggressively, uh, because the chances are you won't be able to keep up. Because to your point around sort of scale and distribution, getting your product on shelf through a distributor is only half solving half the challenge, the other half is getting it off the shelf, uh, and at scale and consistently. So that's where a lot of brands fall over. Like, it's one thing to get on the shelf, it's another thing to get off it. Uh, and that's why we're very mindful of taking a targeted approach to how we grow in New York. So specifically targeting high end hotels, restaurants and cafes and boutique retail chains, just really building up that foundation, understanding where in the channels, sort of why Manuka can win and what our customers look like. And then once we've got that, then we can start sort of expanding on it.

Speaker E: And how does the authenticity and the story travel? Like, um, you know, it's such a unique thing to see on a shelf in America.

Speaker C: Right?

Speaker E: That's so cool. How does that story and that kind of honesty go?

Speaker A: Yeah, it actually blew me away in terms of the, um, curiosity and how the Mori M provenance story in particular resonated with the US audience. So I was lucky enough to go up to New York last month. I think it was for a trade show where we exhibited to like 5,000 people from the hospitality industry. And that's one of the small ones. Um, and during that time, people were so curious about Mori culture. And I think the thing for Waimanauka on the whole is it's got different layers of value proposition. So firstly there's the uniquely New Zealand, then there's the Manuka honey halo effect, the natural ingredients, um, and then the, um, Mori sort of culture sort of woven into it all being a premium non alcoholic beverage. So, so all of these layers of sort of value for different customers. And I think that that's really sort of resonating with sort of, um, US audiences who are wanting to feel they're wanting more than just a product. They're wanting like a story. And I feel like that's the thing that sort of Waimanaka gives them, is a story of connection to Aotearoa. Ah, to Mori culture. Certainly what happened last year in Parliament and the, uh, haka that took place around the world shone the light on Mori culture even more. Because when we launched into New York a couple of months ago, our US partner headlined a, uh, news article, up with Mori Provenance Brand lands in New York. You know, which is like, this is pretty cool.

Speaker E: That's super cool. What things have you brought to this journey of building a business from your past careers in high performance with sport, and from serving with the military?

Speaker A: I think for myself, those experiences have given me perspective. So, because it's tough when you're like, trying to grow a business with global aspirations on a shoestring budget, and you're the only full timer, and you're operating in three different countries, different time zones, you know, you're juggling a lot. Uh, but the perspective piece comes into play. Uh, where I was Lucky enough to serve overseas in the New Zealand army to go on operations, uh, served with the British forces and so forth. And you get to see kind of, I guess, the best and worst of what humans are capable of doing to each other. And I feel like those experiences, sort of, um, provide you with, uh, a benchmark or a yardstick. So whenever I face what I think is a tough situation in the beverage game, uh, I think back to sort of some of those experience and realize that, you know, it's not. And then kind of, uh, delving into the professional sports side of things, be it rugby league or, um, or New Zealand rugby, um, you know, that's, that's all about kind of, um, sort of your resilience and your ability to push through challenges and to grow and to, you know, your ceiling just keeps sort of going kind of a thing. So I feel like those experiences, um, through my different careers have put me in good, steady, uh, for running a company with global ambitions. And it was funny, I was talking to a potential investor the other day and he goes to me, you know, one of the things I'm really concerned about is founder energy. And then I was like, what do you mean? Because, like, so many founders burned out and, you know, you're just at the start of export growth and what you're saying sounds great, but there's a lot of work. That's. Where are you at, energy wise? I was like, dude, I'm like in first gear, man. He laughed. It was a bit of a pause. But, um, yeah, so if anything, it's given me a bit of a reality spin as to what is really hard and being in business, whilst it can be hard at times, um, you know, I'm not a doctor working on the emergency department of an ed. Yeah.

Speaker E: And what's coming next for you and the brand you're mentioning? They're speaking to investors. What will more capital for the business unlock and enable you to do?

Speaker A: Yeah, so at the moment we're sort of navigating through a capital raise. We've just launched onto the New Zealand trade enterprise Active Investor plus platform, which will open us up to global investors. What we're looking at doing is we're raising 1.5 million, uh, and that'll give us, uh, the opportunity to accelerate growth in New York and to build out a foundation. So that's our primary market and we want to invest more into that market over the next sort of, um, 12 to 18 months. Uh, and at the end of that, our goal would be to be knocking on the door of one of the nationwide retail chains within sort of 18 months to two years leading to the next capital raise. This is probably a five to seven year journey to get to um, sort of maybe an acquisition or a strategic partnership.

Speaker E: Yeah. And that kind of global view. The cool thing about AIP is the ability for. That's the program where international investors can, uh, get residency by investing 5 million in growth businesses or 10 million in more balance kind of things. And that's really cool because one thing I've noticed about the local investment scene is there's just not that many investors who specialise in or have experience or are comfortable with FMCG compared to technology or really traditional businesses is. Right. But in big markets like the States, there's so many sophisticated consumer and FMCG investors. So it'd be a dream if like someone who could be part of your growth there becomes a, a part of the company, right?

Speaker A: Oh, totally, man. Like if we could, um, you know, if we could partner with a global investor who has a background in sort of food and beverage or the beverage industry and an understanding of the US market, you know, that'd be fantastic because it's one thing to sort of secure capital, but it's another thing to secure smart capital. So you want someone who's going to be strategically active in your business that's going to unlock the next opportunity for growth.

Speaker E: Yeah. And from talking to great FMCG people in the local scene like Brianne west of um, ATIQ and now Incredibles, you know, you always hear from them that it's finding the people who believe in what you do and understand, you know, they could be your customer and, and um, yeah, like, wish you all the best for the capital raise and taking this mission to the world.

Speaker A: Yeah, thank you so much. I'm really excited about the next sort of phase of growth for Waimanuka as we sort of build out the global presence. So it's going to be an interesting time. So thank you for the opportunity.

Speaker E: Oh, not at all. And as a last couple of thoughts, like what would your advice be for people who are looking to create something new that, that carries something more than just the product, that carries purpose and a story.

Speaker A: Mate, you're talking to the guy who's, who sold his house to invest in the business and burned through all his life savings. I would say just give it a go, throw everything into it and you know, for all of the challenges we face as a nation kind of a thing, um, we're hands down one of the best countries to live in in the world like you. If you're healthy, confident and educated, you're never going to fall too far. And that should be the green light for any aspiring entrepreneur or founder who's got an idea to bring that thing to life and throw everything into it.

Speaker E: And as a final thought, what will success be for you and for Waimaruka?

Speaker A: Uh, success for us would be seeing Waimuka experienced around the world by people of all cultures, um, and us being able to connect those people to Aotearoa.

Speaker E: So, uh, cool. Well, I can't wait to see where you take it next. And thank you so much for sharing the journey so far. And if anyone is interested, get in touch and see if you can be part of the mission to take Waimuka to the world. Kia ora.

Speaker A: Simon, thank you very much for your time. I really appreciate it being on the show. Kyoto.

Speaker E: Awesome. Thank you so much to Joseph Harawera of Waimuka. Thank you to everyone who helps make this happen, like our producer Teai Habatla. And thank you for having us along in your ears and listening. If you do like what we do, please do rate and leave a review. It really does help.

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