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Waitakaruru Honey Limited
By Wetex Kang
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Waitakaruru Honey Limited
Beekeeping is one of my many careers. I have in turn worked as a pharmacist, a nutrition and wellness consultant, a published author, a small business owner and a honey exporter.
I fell into beekeeping when my cousin asked me to source some mānuka honey to sell in Singapore, back in January 2016. I contacted an Auckland honey company via a mutual friend and the owners were disinterested in selling me any honey, despite the fact that I wanted to order in bulk. I was curious as to how hard it would be to set up a honey production and export business. In April 2016, I set up NZ Honey Innovations Limited (NZHI), a beekeeping company with my own funds and that of a few founding shareholders.
Guided by the generous advice of friends and driven by the desire to do things better, I was successful in securing NZHI’s its mandatory license to process honey for export from the Ministry for Primary Industries (MPI) by June 2016.
After I set up the facility, I faced another problem. I was not able to secure any mānuka honey to pack! It was at that point that I realised the extent of the monopoly the big honey companies had on the supply and production of mānuka honey in the industry, and the toll the global boom had taken on bees and small beekeepers around Aotearoa.
I realised that if I wanted to have a sustainable future in this industry, I need to learn how to beekeep. I enrolled in a beekeeping course with the Auckland Beekeeping Association and graduated in August 2016. At NZHI, we hired our first commercial beekeeper in November 2016.
My transition from a honey business owner to what I consider a true beekeeper happened around December 2016, when I was at Ruawai managing our beehives. It was a still and dry summer’s day. No one was around and I felt time staying still. I found that extremely therapeutic and it was at that point that I intellectually made the transition. What started out as an experiment has now evolved into something more rewarding as I saw the opportunity to provide employment in the rural communities that house our beehives and help people get more connected with the land.
Beekeeping for me is not about objectives or outputs. A beekeeper will tell you that beekeeping is the biggest time drain, more so than restoring cars. There is a list of 20-30 things you can do to attend to your bees but to do that, you will need 36 hours in a day. It never ends but we love it, we do it for the bees and I feel called to it.
After success with NZHI, we set up Waitakaruru Honey Ltd (WHL) in 2018 as a standalone company. It now operates 600 beehives and employs 2 beekeepers across South Auckland, Coromandel and Taranaki. We have a certain way of doing things at WHL. Whilst we have a strong commercial focus, we are not about extracting maximum honey from our bees. We care about the bees and we are driven by a strong social and environmental values.
An old beekeeper once told me, “I never intended to be a beekeeper but my bees found me, they have chosen me and I am now addicted to bees. Once you start, you will never stop”. Back then when I heard his statement, I thought he was crazy—but three honey seasons later, I am that bee addict!
No reira tēnā koutou, tēnā koutou, tēnā koutou katoa.
Wetex Kang, Managing Director
B Pharm (HONS), PGCertEd, GradDipSci, DipBus
What NZHI has achieved
Whilst Waitakaruru Honey is a fairly new company, it has been borne out of a journey undertaken in setting up and growing NZ Honey Innovations Ltd, our partner organisation that will continue to provide knowledge and support on an ongoing basis. Collectively, we have been able to:
- Provide Apiculture training via the Gateway programme for students from Ruawai College from 2017 to 2019
- Create 12 current jobs (17 jobs created, 5 Ruawai beekeepers left) in Northland, Bay of Plenty and Auckland
- 13 tonnes of honey harvested
- 2,000 beehives and apiaries in Hokianga, Kaipara, Auckland, Waikato, Bay of Plenty and Taranaki and the creation of Hokianga’s first honey extraction facility
- 500 acres of land acquired via NZHI original shareholders’ funds
We are really proud of the success of NZ Honey Innovations Ltd to date and have used the learnings from running that company to form the basis of setting up Waitakaruru Honey.
The MyBeehive idea / movement
The MyBeehive idea/movement is about building a hive-to-table system, to build a community of people who care about the bees, to give back to the local communities that house our hives. We want every town and city to have apiaries so everyone, especially the young people of Aotearoa, can learn about how vital bees are to ecological and human survival and be given the opportunityto keep bees, either as a profession or a hobby. The MyBeehive platform helps to facilitate a direct connection between beekeepers and the intermediary marketers, who are also our investors. As an investor, you will be able to purchase bulk honey in drums. Waitakaruru Honey will pack these drums into retail packs. Intermediary players will be able to purchase honey at a fair price and increase their margins, and beekeepers will be able to receive fairer prices.
What we do
At NZHI, we bought our first beehive in November 2016 and fast forward 32 months later, NZHI and its subsidiaries operates out of 6 regions (Hokianga, Kaipara, Waitakaruru, Bay of Plenty, Tahaaroa and Taranaki) and owns 2,000 beehives. It took two years for us to reach 1,000 beehives in the 2018/2019 honey season. In that time, we have also harvested 13 tonnes of high activity mānuka honey from 600 beehives, averaging 20kg per beehive (compared to the 2017/2018 national average of 22.7kg per beehive), a good outcome as the honey season of 2018/19 was devastated by drought.
Our ethos/kaupapa is to build a hive-to-table system, to build a community of people who care about the bees, to give back to the local communities that house our hives and we want every town and city to have apiaries so everyone, especially the young people of Aotearoa, can learn about how vital bees are to ecological and human survival and be given the opportunity to keep bees, either as a profession or a hobby.
We started in Ruawai, a small rural settlement in the Kaipara region north of Auckland, then expanded to Rawene in the Hokianga region, where we have also built the only commercial extraction facility in the region, teaming up with the Korewha family and worked with WINZ and the Solomon Group to provide beekeeping employment. In 2018, we replicated this model with Mauri Ora Bees and Honey Limited at Ruatoki, Bay of Plenty where we employ three beekeepers and have started a beekeeping program with a local high school. We have also started Tahaaroa Honey Limited and hope to replicate this model further across Aotearoa.
In 2017, Future Beez programme was established to provide apprenticeships to budding beekeepers in the community. One of our graduates, Tony Porter, is now also a local team leader, looking after hives and three beekeepers in Hokianga. We were also able to take on two apprentices from Ruawai College and one of those, Roq Balcombe, is now a senior beekeeper of NZHI.
Whilst we have a strong commercial focus, we are not about extracting maximum honey from our bees. We care about the bees and are driven by a strong social and environmental values. Soon we plan to start an organic management program at Torere, Bay of Plenty and aim to add more organic beekeeping apiaries to our group of companies.
In 2018, we set up Waitakaruru Honey Limited (WHL). It now operates 600 beehives and employs 2 people, across South Auckland, the Coromandel and Taranaki. We want to scale and improve the production capacity of Waitakaruru to meet the demand we see coming down the pipeline.
To package our honey, we have been using a business affiliate in the South Island as we lack our own facilities.
Starting our own packing facility, we aim to scale up our production capacity, improve production processes, lower costs, commit to bigger volume and expand our business. We can also offer packing services for other brands. In light of this, we felt the next logical step was to build our own packing facility at Waitakaruru, and we have decided to equity crowdfund to do that.
We're not just about the honey. Building economic resilience and empowering local communities is also the most important objective to us so we have consciously invested our time and effort to achieve that impact.
Education and employment opportunities
We are a provider of apiculture and beekeeping courses for Ruawai College’s Gateway programme, designed to provide senior students with the opportunity to access structured workplace learning and help students transition from school into the workplace. This can lead to higher-level qualifications like apprenticeships or diplomas within the industry the students train in. Participating in the program led to us establishing our Future Beez apprenticeships which has enabled us to open up opportunities to a wider group of trainees, outside of the college. Our commercial success is intrinsically linked with our ability to train and provide employment to more beekeepers, so we want to do more of this.
Honey for schools
According to the 2018 Child Poverty Monitor survey, more than 160,000 children (or 1 in 5) live in households without access to enough food. We provide investors in our NZHI companies the option to donate some or all of their annual raw honey returns to their local schools for them to provide to students or sell to raise funds, and we match these donations. As an investor of WHL, you will also have this option. Please note that this program will not start unless WHL's crowdfunding campaign is successful.
Prison beekeeping education courses
We actively sponsor resources for prisons around Aotearoa through the support of our mentor, Brian Alexander, who teaches beekeeping courses to ex-offenders to provide learning opportunities and a future employment path.
If the bee disappeared off the surface of the globe then man would only have four years of life left. No more bees, no more pollination, no more plants, no more animals, no more man. Charles Darwin
Waitakaruru Raw Honey
Commercially available honey/mānuka honey may be heated to 50-60.C, a process commonly known as Pasteurisation. Pasteurisation is generally used in honey processing to reduce yeasts in honey and to reduce the viscosity of honey (so honey can be pumped from its drum to be packed).
Raw honey has many definitions but it is broadly defined as honey as it exists in the beehive. The temperature of a beehive is between 32 to 35.C. Pasteurisation destroys enzymes, bee bread and pollens in honey, affecting the wholesomeness of honey. Nevertheless, the laws and regulations in New Zealand prohibit any health benefits of raw honey to be discussed in any promotional materials. Therefore, WHL will not be able to elaborate on this topic.
At WHL, we harvest our honey either through a low temperature honey spinner or use our revolutionary beekeeping machine (this machine scrapes the wax, honey and pollen off the frames). Once extracted, the honey is then processed via a wax press. The honey will then be pumped through a course filter and packed. The result will be our Waitakaruru Raw Honey, which retains all the enzymes, bee bread and pollens.
Okau Valley Honey
The mānuka honey produced by WHL will be sold in retail packs, under the brand Okau Valley Honey. Kangsbee Honey Trading Limited (KHTL) has been appointed as the exclusive distributor of this brand. KHTL markets predominantly to local NZ customers with connections to Taiwan and customers in Taiwan.
Ahititi Mānuka Honey
We will also sell in retail packs under the brand Ahititi Honey. Ahititi Honey is in the process of gaining approval for export to China and to have this brand of honey available via wholesale channels to retail stores.
We plan to build a pole shed to be used as a honey packaging facility. Part of the capital raised will be used for this. This facility will have an audited Risk Management Plan (RMP), issued by the Ministry of Primary Industries. At this facility, we plan to process honey from the NZ Honey Innovations group of companies (MyBeehive, Mauri Ora, Tahaaroa, Okau Valley Honey) which are currently being processed by an external supplier, thus securing a revenue stream for WHL. There will be supply and contract packing agreements in place between WHL and these companies. This in turn may create more job opportunities and new revenue streams from entrance ticket sales, tours, events and tastings and product sales.
The site in Waitakaruru is strategically located approximately 59 minutes drive from Auckland International Airport and downtown Auckland and between 1 and 2 hours drive from other tourist sights such as Hobbiton, Waitomo Caves and Rotorua so we envisage further revenue generation opportunities in the future from the tourist trade.
Retail honey brands manufactured by WHL will adhere to strict quality assurance procedures to ensure the end products are of the highest standards. Each batch of honey will be tested by independent laboratories (for example Hills Laboratories and Analytica) prior to bottling.
Research and development in bee breeding
The founder of NZHI, Wetex Kang is also the queen breeder for NZHI and WHL. We currently source artificially inseminated queen bee breeders from Betta Bees Limited and Daykel Apiaries. Wetex and another WHL shareholder have attended training workshops abroad and are planning to produce artificially inseminated queen bees during the upcoming season (2019/2020 season). NZHI and WHL plans to develop their own insemination laboratories in 2019/2020. These works are to be carried out to ensure the queen bees of our beehives are bred from the finest queen bee breeders. We believe that better queen bees result better honey crops and faster beehive propagation.
Future products and services
WHL plans to develop the following products for its product offering in 2019/2020:
- Bee Pollen: Fresh and Dried
- Bee Venom: Bee Venom face masks, Bee Venom face cream and Bee Venom lipsticks
- Other types of honey such as rewarewa and clover honey
We have dreams of building a honey experience centre at Waitakaruru in the future as an education centre for the general public and local primary and secondary school students, with a retail centre to showcase our products. Our aim is to create more job opportunities and new revenue streams from entrance ticket sales, tours, events and tastings and product sales. WHL is also trialling the promotion/sale of beekeeping experience on group buying websites, such as GrabOne.
Over the next 3 years, we plan to expand our market positioning as the boutique honey company of Aotearoa. We want to introduce customers within our ecosystem to other quality hive products, such as finished products containing bee pollen, bee venom and other raw New Zealand honey, tapping into the growing local food and food sovereignty movement.
The introduction of the new Mānuka Honey Export standards by the Ministry for Primary Industries has negatively impacted our apiculture industry. The new standards have left a large number of beekeepers with honey deemed to be “non-mānuka”. Under the new standards, this honey is now being sold for as low as $5 per kilogram. Industry giants are likely to purchase them and blend it with other honey (a practice permissible under the new standard) and resell the blended honey for 2 to 3 times their values.
Far North honey producers say the MPI’s regulatory definition, published a year ago, excludes up to 50 percent of their honey, based on just one chemical marker - even in areas where the bees have nothing but mānuka to feed on. This has been challenged by beekeepers and honey producers in the region as they believe the definition established to protect New Zealand's mānuka brand overseas fails to take into account regional variations in the chemical makeup of the honey.
According to the Northland honey producers, the MPI definition is devastating an industry that was beginning to lift many Far North Māori out of poverty1. WHL believes in building a sustainable beekeeping business and aims to remedy the impact of the more negative parts of the apiculture industry, for example instigating land wars among beekeepers and landowners and offering beekeepers/land owners unfair prices. WHL hopes to follow Fairtrade principles, where land owners, beekeepers and honey packers can build, coexist and grow a sustainable industry together.
WHL plans to increase the number of beehives it owns to 1,000 in mid 2020 to grow the brand into a global brand through distribution partners based overseas. Other brands who have followed a similar strategy include Comvita, Mānuka Health and Streamland Honey.
New Zealand is the world’s third largest exporter of honey by value, behind China and Argentina. However, it is only the 16th biggest global supplier on a volume basis, reflecting the premium price for monofloral mānuka honey, which accounts for as much as 80 percent of New Zealand honey exports and is prized for its health benefits.
It has been estimated that 10,000 tonnes of New Zealand mānuka honey have been sold in China (2014 figures obtained via personal communications) in retail packs.
According to the Apiculture NZ market data, the 2016/17 season produced an estimated honey crop of 14,855 tonnes. The value of New Zealand’s pure honey exports increased by 5 percent in 2016/17 to $329 million, despite a drop in volume (of 4 percent) compared to the previous season. China was the largest market accounting for 25 percent of total honey exports by volume.
Prized mānuka honey originates from New Zealand, yet demand is so high that supply cannot keep up. The net result is that some producers appear to be substituting cheap standard honey.
Mānuka honey is produced by bees feeding on the mānuka tree which grows throughout New Zealand. Mānuka honey with its claimed health benefits can have a retail price in the UK of as much as £90 (NZ$162) a pot.
Strategic growth plan
Over the next 3 years, we plan to solidify our market positioning as a “boutique” honey company of New Zealand, locally in the countries listed below. We want to support the development of markets for other types Aotearoa honey, such as rewarewa and kānuka honey. This will relieve the heavy reliance on mānuka honey as beekeepers’ sole source of income.
We plan to export honey to China, Hong Kong, Taiwan, Malaysia, Korea and Singapore, leveraging customer networks established through NZHI’s related subsidiary companies and a previous crowdfunding round for MyBeehive (2018) Ltd. A number of our investors in MyBeehive (2018) Ltd also supply corporate gifts of bush and multifloral honey to companies in China, which would provide another sales avenue for us. We intend to add raw honey by Waitakaruru Honey as another option for these customers, providing another sales revenue for us.
We want to introduce customers to other quality products, such as bee pollen, bee venom and other types of New Zealand honey (such as clover, comb, raw honey and rewarewa honey).
We would also like to further our development on various strategies to raise assurance/awareness of our customers that the honey they receive from us is produced using a ‘hive-to-table’ approach and develop our marketing strategies to continue building our worldwide ecosystem of New Zealand honey lovers.
Use of capital
Why are we crowdfunding
We want you, our crowd, to help us grow! We want you as customers, we want you to tell all your friends and families about our products, and we want Waitakaruru Honey to be owned by the people in Aotearoa.
We have experienced the benefits that crowdfunding brings to a growing company, through our 2018 campaign for our sister company My Beehive (2018) Ltd. We saw levels of engagement from people who were passionate about honey and health and secured revenue streams through that campaign from a wider network of people that we wouldn’t have been able to reach as quickly on our own.
We care about giving back to the communities we work with and to you, our crowd, to build our honey processing facility at Waitakaruru.
- Minimum subscription: $100,000 for 14.61% of the Company
- Maximum subscription: $400,000 for 44.46% of the Company
- Share price: $1 per share
- Minimum investment: 100 investment shares for $100. Maximum investment: $60,000.
All shares issued in this round will be non-voting Investment shares and Preference shares (with voting rights). Any investment over $10,000 will be issued Preference shares. You can read more about the rights attached to our share classes in our constitution. All shareholders will be invited to our AGM and will have the opportunity to purchase our retail and bulk honey at wholesale prices, subject to availability. Shareholders will also be the first to know of any product or experience offers in the future.
Any honey received as shareholder perks may incur tax, please consult your accountant/tax agent for additional information.
We are offering investors the chance to own up to 44.46% of the company based on pre-money valuation of $584,660. The valuation has been calculated using the total assets of Waitakaruru Honey Ltd with no multiplier applied. This is because the company is still new and is just about to complete a full financial year ending March 31st, 2020. We believe this could be attractive as it presents the opportunity for investors to come aboard at this early and exciting stage, and be on this journey with the company as it grows.
The valuation was undertaken by the company director with internal and external professional input. We have considered how the targeted fund raise would affect the turnover and growth of the business and determined a long-term view for the company. We have used a number of industry benchmarks to determine business value and feel our current valuation is wellconsidered and reflects our understanding of and belief in the business.
Honey for Schools
According to the 2018 Child Poverty Monitor survey, more than 160,000 children (or 1 in 5) live in households without access to enough food. As an investor of WHL, you may opt to donate some, or all of your annual raw honey returns to your local schools and we will match your donation. For example, if you invest $500 and receive 5kg of raw honey per year, you may opt to donate 2kg to your local school. If you choose to do this, we will cover the cost of delivering your donation to that school and match your donation, i.e. 4kg of raw honey will be delivered to the school of your choice. The school may choose to use the honey in meals prepared for kids that go to school hungry or sell the honey at their fundraising events.
The Waitakaruru team
Wetex Kang, Managing Director, Team Leader and Queen Breeder
Wetex graduated from University of Otago in 1994 with a Bachelor of Pharmacy (Hons), with his Honours research on Pharmacokinetics published in the British Journal of Clinical Pharmacology. After his internship, he purchased a pharmacy in Auckland, New Zealand and embarked on a career in the health and wellness industry. Trading under the company name, New Zealand Low Carb Limited (NZLC), they started manufacturing its own range of nutritional supplements sold through its retail shop and online website. Between 1996 and 2014, Wetex consulted on the health and wellness of over 80,000 individuals within New Zealand (many of them professional athletes). In 2004, he published his book on low carbohydrate/sugar nutrition. NZLC currently sells its products in Australia, Singapore and New Zealand.
Wetex fell into beekeeping by accident and his passion for bees has seen him excel within the industry. Wetex is also a queen bee breeder and has recently acquired the training to artificially inseminate queen bees. Wetex is also the managing director of NZ Honey Innovations, a minority shareholder and partner organisation of Waitakaruru Honey Ltd.
Roq Balcombe, Beekeeper
A success story from our FutureBeez program, Roq is part of the beekeeping team for WHL. Roq joined NZHI’s Future Beez program back in 2017 when he was attending Ruawai College, in the Kaipara Region. Roq was sixteen when he started beekeeping and worked one day a week for NZHI as a trainee beekeeper. Roq moved to Auckland at the end of 2017 and started his employment with NZHI in August 2017. After two seasons with the company, Roq resigned in March 2019, seeking a brighter future in Australia but found that he missed beekeeping. Roq returned to Aotearoa in May 2019 and when Waitakaruru Honey was formed, Roq was appointed as the beekeeper. Roq currently cares for 250-300 beehives at Waitakaruru.
Kody Wrathall, Beekeeper
Kody is a FutureBeez graduate and our other permanent beekeeper at Waitakaruru. Kody and Roq were childhood friends and grew up in Ruawai together. Kody was working as a dairy farmer but Roq’s passion for beekeeping sparked his interest. Kody started his beekeeping apprenticeship with NZHI in late 2017. Kody has experience in operating excavators and heavy machinery, skills that we currently use for the processing facility. His main tasks include creating access and preparing sites for the honey and queen breeding teams. Kody is a young father with a young son.
The NZ Honey Innovations Limited Team
WHL have contractual agreements in place with NZHI for knowledge sharing, administration and logistics. NZHI will provide these free of charge to WHL and therefore the expertise of the people in the team will also be made available to the team to Waitakaruru. Wetex is also the Managing Director for NZ Honey Innovations. In addition, the Waitakaruru team will continue to work closely and receive support from the NZ Honey Innovations team.
Yu Li, Asia Pacific Marketing Specialist
Yu is an experienced high level executive, responsible for leading the team for NZHI and WHL. Yu holds a Masters in Business and has held marketing positions in a pharmaceutical company in China. Yu manages a team of sales consultants who have far reaching relationships across the globe and have been tasked with the mission of marketing honey for NZHI and WHL.
Luciana Schwarz, Chief Operating Officer
Originally from Brazil, Luciana moved to NZ in 2010 to study Business and Management and fell in love with NZ’s beautiful culture, people, and its natural beauty. As the COO of NZHI, Luciana gets to combine her Management degree with her passion for beekeeping. Luciana loves the flexibility and variety her job gives her, from office work and managing teams as well as going out and working with the hives. Luciana is also a trained queen breeder.
Risks & mitigation
How we’ll mitigate them
Biosecurity risks such as American Foul Brood, varroamite and other biosecurity risks
Our experienced beekeepers will regularly check for biosecurity risks in our beehives however we cannot avoid AFB being spread from nearby apiaries. All of our beekeepers are DECA or DECA 2 certified, qualifications issued by AsureQuality, a government appointed agency, that assist in preventing AFB infection. We apply varroa treatment 2-3 times a year in September and February using chemical and organic treatments. The breeder queens we use for queen breeding also have some mite resistance characteristics.
Our management will constantly monitor current affairs within the beekeeping industry and other industries that are closely related to apiculture. We will respond to any new biosecurity threats by formulating alternative strategies.
The 600 beehives will be placed throughout New Zealand at our apiaries located within South Auckland (Tuakau, Clevedon, Patumahoe), Helensville (at a macadamia nut orchard for pollination and macadamia nut honey), Kopu/Coromadel, Tahaaroa and Taranaki region, Waitakaruru will be used as the headquarters facility.
NZHI has secured mānuka tree landblocks within the regions mentioned above. Land agreements have been signed with landowners and this agreement and goodwill will transfer to Waitakaruru Honey Ltd.
The risk of not having land access has also been lowered by cultivating a good relationship with Maori families and most importantly with mānuka Whenua Holding company, which is in turn owned by 5 shareholders of NZHI.
Thieves and vandals
We are insured against theft for a maximum claim amount of $20,000 per claim.
The honey yield of a beehive is highly dependant on the weather of the region when the mānuka trees are flowering. Regular rainfall will reduce honey harvest. A dry spring/summer will maximise the amount of honey collected from beehives. Shareholder updates will include a report on the climatic conditions affecting, including the impact of any unfavourable conditions. WHL will also have a supply contract in place to obtain honey from My Beehive, Mauri Ora and Tahaaroa if needed.
Market related risks
Our management will regularly monitor current affairs within the beekeeping and apiculture industry and other closely related industries. We will respond to any market risks by formulating alternative business and beekeeping strategies.
The revenue derived from the export of manuka honey may be negatively affected by the economies outlook of WHL’s overseas markets, for example China.
In the future, other companies in Aotearoa may utilise the hive-to-table approach that WHL is currently using. This may in turn lead to more competition and possibly lower revenue.
Regulatory related risks
The approximate date of completion of the honey packing shed is around mid October 2019. In the event of delays due to longer council consent processing time, the cashflow of the WHL may be impacted negatively.
Other regulatory changes for legislations relating to the honey industry may have negative impacts on the revenue of WHL.
The key personnel for Waitakaruru Honey Ltd includes the Factory manager, beekeeping team leader and managing director. These roles can easily be filled by replacements, to be recruited via the normal recruitment channels.
In the event of financial difficulty and NZ Honey Innovations Ltd declares bankruptcy, Waitakaruru Honey Ltd will be able to operate independently and continue trading. There is also the converse risk that Waitakaruru Honey may run into financial difficulty. If this were to happen, WHL’s Directors together with support from NZHI will engage professional services to assess the best path forward.
Note from PledgeMe
We have completed a Veda check on the company and their directors, as well as a google check. There were no adverse findings.
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New Beez (Shareholders') Facebook Group
22/09/2019 at 5:32 PM
Kia Ora New Beez,
I have started a facebook group for our new beez. If you have pledged and would like to learn more about bees, beehives and what we do, please join the following Facebook group:
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We are live!
05/09/2019 at 12:08 PM
We are live!
Thank you for your patience - we are now live and you can pledge on our campaign.
Please click on the link below and feel free to share this with your friends and whanau. We look forward to having you on board as a shareholder!
|Maximum Shares Offered||468,000|
Explanation of valuation:
|Prev Year||Current Year||Est. FY 2021||Est. FY 2022|
|Revenue||NZ $0||NZ $1,535,708||NZ $2,735,762||NZ $4,047,313|
|Operating Expenses||NZ $0||NZ $316,280||NZ $452,534||NZ $675,089|
|EBITDA||NZ $0||NZ $468,428||NZ $1,217,128||NZ $1,942,714|
|Net Profit||NZ $0||NZ $248,644||NZ $787,954||NZ $1,310,641|
Company Name: Waitakaruru Honey Limited
Company Number: 7133494
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Ask a Question (You must login to ask a question)
Will there be any voting right for the investors on this crowdfunding and who will received the financial report at the end of each financial year from Waitakaruru Honey Limited ?
Kia Ora Piau, if you invest $10,000 or more (GOLD Package), you will receive Preference Shares with voting rights. Everyone will receive financial statement at the end of each financial year. Thank you in advance for your support. Nga mihi/Thank you.
Answered on 04-09-2019 by Wetex Kang
Will there be the possibility of dividends being paid out to shareholders?Posted on 04-09-2019 by Richard Mudge
Kia Ora Wetex and co. Firstly well done on putting together such a thorough and professional IM! Firstly your honey rewards seem extremely generous - are you sure this is sustainable for the business - it sounds like they are fully factored into your forecasts? Also your IM states you have harvested 13T of honey, but not yet made any sales? Is this correct? When do you envisage starting to make sales - given you forecast $1.5M of sales by (end of March?) next year this seems like a big ask?? How will you achieve this level of sales from scratch?Posted on 05-09-2019 by James Cameron
Hi there I might have missed where the information is about delivery costs and packaging of the 🍯 honey... Is it free packaging jars/container included in the shares we purchase? andis it free delivery to our door step? CheersPosted on 05-09-2019 by Iri McCready
Kia Ora, for every $100 you pledge, you will receive 2x 500g shareholders' only limited edition non manuka raw honey around the first week of February of each year. Limited to shareholders who have pledged during this round of capital raising, delivery will be free, within New Zealand/Aotearoa
Answered on 05-09-2019 by Wetex Kang
Hi, I have similar questions to James (Generous Honey Rewards & Sales by March 2020).
Could you please answer it in here?
ThanksPosted on 06-09-2019 by Pirmin Patel
We have factored in the honey to be given to our shareholders, assuming the fact that we raised the full amount of $468,000, we will have to give 4680kg of non manuka raw honey to our investors.
For the first year, 4680kg divided by 600 beehives = 7.8kg less honey available for sale per beehive. For the second year, 4680kg divided by 1440 beehives = 3.25kg less honey available for sale per beehive. For the third year, 4680kg divided by 2304 beehives = 2.03kg less honey available for sale per beehive. We are not planning to offer such deal in subsequent crowdfunding, so this is an one off offer. We believe this is sustainable and Waitakaruru Honey is financially robust to offer such returns.
Answered on 06-09-2019 by Wetex Kang
The 13 tonnes of honey was harvested by Mybeehive(2018) limited, a company NZ Honey Innovations Limited crowded last year. Out of that, 8 tonnes have been sold. It is clearly stated in the IM that it is not related to Waitakaruru Honey.Posted on 06-09-2019 by Wetex Kang
We have distributors in several countries (Hong Kong, China, Taiwan and locally in New Zealand). We have pre-negotiated distribution partners and packing contracts, once the factory is up and running, we will start to make sales.
Answered on 06-09-2019 by Wetex Kang
Hi Wetex, how confidence that WHL will be start paying devidend to the shareholdrrs after the first 3 years and how do you plan to distribute the dividend to the shareholder ?Posted on 06-09-2019 by Piau Lim
Kia Ora Piau, according to our financial forecasts, I am confidence that WHL will be able to start paying dividends to shareholders after 3 years. I don't quite understand the second part of the question but dividends will be distributed in cash (not just honey) according to percentage of share held by shareholders.
Answered on 06-09-2019 by Wetex Kang
Couple of questions - will there be a platform to buy and sell shares?
Also, how often will we receive updates on the share price, business development and growth etc?
We have contacted Syndex to manage our share register and manage our share transactions. I am in the process of employing a part time person to look after updates for shareholders.
Answered on 06-09-2019 by Wetex Kang
Hi Wetex, how did you get the number of 1440 and 2304 beehives in year 2 and year 3?Posted on 06-09-2019 by Piau Lim
Kia Ora Piau, in the first year, there are 600 beehives, in the second year, 600 splits of beehives +600 beehives from year 1+(700 nuclei of beehives growing to production beehives) minus 24% estimated loss over winter = 1440 beehives. In year 3 1440 beehives + 1440 splits of beehives minus 20% estimated winter loss = 2304 beehives. Thank you
Answered on 06-09-2019 by Wetex Kang
Hi there, I think this is a great idea, and love being part of it, but can I check, please, that as well as allowing for the honey you are giving to investors you have also factored in the honey you may need to donate to schools to match investor donations?
Kia Ora, Thank you for wanting to be a part of Waitakaruru Honey. It will be next to impossible to account for the extra honey but we have conservatively accounted for 20kg of multiflora honey per beehive per year. Nevertheless, a beehive is able to produce more honey than that, I guess that will account for any overage for donation to schools. A beehive may produce 30kg of Clover per week during the honey flow, depending on the strength of the beehives and weather. I hope I have answered your question.
Answered on 07-09-2019 by Wetex Kang
Thanks for your respond to my question.
1. The reason i asked about how did you get the beehives number for year 2 and year 3 is simply because on your memorandum if raised 100,000 WHL will have 960 beehives in year 2 and 1535 beehives in year 3, if WHL raised $468,000 WHL will have 1440 beehives in year 2 but the beehives number drop back to 600 in year 3 plus it also mention the yield for multifloral honey is lower in this scenario because WHL has to provide more honey to a higher amount of investors, compared to the minimum raise of $100,000. Should be WHL be paying out almost the same amount of non Manuka honey every year for the first 3 year?
2. What cost does the shareholder need to cover by receiving the honey from WHL?
3. In the forecast of profit and lost, it estimated over 78% increased on revenue for year 2 if raised $100,000 but only 47% in year 3. The Depreciation & amortisation stay the same from year 1 to year 3, can you explain a little more how they remain the same please?
Is South Island will be someplace where WHL look into in future development?
Kia Ora Piau, perhaps it might be a good idea for me to email you the entire cashflow forecast document? My email is [email protected]
For this round of capital raising only, freight will be included for the delivery of honey to investors.
As mentioned, it will probably be better if you read the financial forecast document but the maximum raise will give WHL the funds to buy 700 more nuclei of beehives, these beehives will become production beehives and hence the increase in revenue (from extra honey harvested).
My accountant has used a straight line depreciation but the depreciation schedule is included in the cashflow forecast document.
Looking forward to receiving your email.
Answered on 07-09-2019 by Wetex Kang
We are planning to move some beehives to the west coast and will be forming a joint venture with our business partner down in the South Island to produce comb honey.Posted on 07-09-2019 by Wetex Kang
Hi, this is more a comment from Piau's comment that Wetex may want to confirm / provide updated info - The year 3 forecast of # hives / yield if max 468k is raised is wrong. It is a copy and paste of the yr 1 data. Wetex can you please update this with the correct nos?Posted on 07-09-2019 by James Cameron
Morena James, I have since the IM and the cashflow forecast, thank you for pointing this out. I have contacted our designer to sort this out, the correct information should read:
Maximum raise of $468,000
Year 3 (2021-22): Honey harvested from 2304 beehives, total net yield of 39,168kgs of multifloral honey and total yield of 43084.8kgs of mānuka honey. Note: The yield for multifloral honey is lower in this scenario because WHL has to provide more honey to a higher amount of investors, compared to the minimum raise of $100,000.
Answered on 08-09-2019 by Wetex Kang
This is not an investment, it is a gift you have no protection and very little in the way of transparency. I really dont see why someone who is a director of at least 5 companies and who main investor can acquire '500 acres' of land would need to crowd fund for their business. A search of the companies registrar shows the seeking of funds has been a director or major share holder of over 20 companies. There seems to be companies rapped up in related companies with numerous business started then rapped up. This is not a charity it is a business. Will the directors involvement with the numinous other similar companies and the directors pay be made available to the 'share holders'? buyer beware, to me it seems giving money to this company you are making a gift rather than making an investment.Posted on 10-09-2019 by Doug
Kia Ora Doug,
Thank you for your comments. As stated in our Information Memorandum, the main reason why we are crowdfunding is to have a crowd. Our core business is to establish a hive-to-table ecosystem. If I invest personally (which I have and will continue to do so), we will not have the crowd we have gathered so far.
To date, I am happy to share that we have had people pledge who:
1. Have volunteered to campaign on behalf of us by calling around other potential pledgers
2. Is a Beekeeper with 14 beehives
3. Include several online retailers of manuka honey and a wholesaler based in China (a New Zealander).
We are crowdfunding for the crowd and not just money, hence why we are asking for $468,000, not the maximum amount we could legally raise of $2 million.
I have been in business for 23 years, I have never liquidated a company or been made bankrupt and I have never owed any shareholder's money. Companies have been closed for either lack of use, or previous trademark protection.
I have traded under:
Total Quality Pharmacy - I sold this business in 1998
New Zealand Low Carb Limited - now known as Future Beez Honey Experience Centre Limited
Other companies - I have disclosed in the Information Memorandum.
I have not been paid since the setup of NZ Honey Innovations Limited, I have started receiving a modest wage from NZ Honey Innovations (starting 3 months ago). I have invested heavily into this group of companies, to the magnitude of proceeds from 5 properties.
You are kind of right in the last part of your question, in that investment made will be a gift to our beez and the young people/rural communities. Nevertheless, this is a for-profit social business and as a shareholder you do receive shares in this business.
Please download our IM for full transparency and you are welcome to contact me for anything that needs further clarification.
Answered on 10-09-2019 by Wetex Kang
Kia Ora everyone,
Someone posted a question as to why if I am a part owner of 500 acres of manuka bush blocks, why should I crowdfund. Pledgeme posted an article by their CEO provides the perfect answer, here is the part that is applicable:
One of our alumni spoke at an event recently about why he chose the equity crowdfunding path. He explained it so succinctly: “We had to decide if we wanted to be responsible to one big daddy investor, or a crowd we’d like to drink with.”
It may help that his business is craft beer, but I still think it’s a nice way of putting it. You should only get your crowd involved if you want them there.
In our sector, the government initially spoke of protecting ‘ma and pa’ investors when the legislation was first created. But we’ve seen diversity in those investing, anywhere from 18-93-year-olds who believe in the business they’re investing in.
It’s almost been a year since the government opened up equity crowdfunding beyond the 1% of unlisted public companies. And now we’re seeing an even greater diversity in the businesses choosing equity crowdfunding.
Because people are investing in more than shares. They’re typically fans of the product or service already. So you’re turning them into something beyond customers. Supercharged owners. Propagators. An army of brand evangelists not on the books. People to whom you can offer discounts through a campaign but will maintain loyalty when the offers end.
As they own a piece of you and want you to succeed, there’s a shared sense of ownership which stock market investors rarely feel.
Over the last 24 months across Australia and New Zealand, we’ve seen 25 crowdsourced funding campaigns raise in excess of $23 million. And I wanted to share some advice that I’ve learnt in the last seven years, as crowdfunding is not for everyone.
It’s not a silver bullet, but it can be powerful for certain types of companies.
Here is the rest of the article:
https://www.smartcompany.com.au/startupsmart/advice/misconceptions-equity-crowdfunding/Posted on 10-09-2019 by Wetex Kang
Hey! If you invest $10,000 do you get any limited edition honey or is that only for the bronze package? Sorry if it’s a dumb question. Cheers bro.Posted on 21-09-2019 by Mark
Kia Ora Mark, if you invest $10,000, you will get 10% dividends each year. Unfortunately, it will have to be either money or honey. Perhaps you can purchase honey at wholesale prices with the dividends paid? Thank you.
Answered on 21-09-2019 by Wetex Kang
I was looking at your balance sheet you emailed me and i think the calculation on page 6 regarding the Own brand Waitakaruru Manuka Honey Sales-Export is incorrect because $15+$2+$2+$2 is $21 NOT $20 and that make a total of $20,000 different for 20,000 jar of honey.
In saying that, both $100,000 and $468,000 capital raised balance sheet is incorrect because they both used the exact calculation, again how is that possible for the total gross margin are different for both page when noting is changed ?
On page 4, it also mention that you planned to invest 2 new creaming tank for the next 3 year if $468,000 is raised, is this correct ?
The balance sheet only show the figure on cost per jar, is that 500gm, 750gm or 1kg? I was trying to look at the total honey harvest and sale each year but without knowing what is the quantity per jar, it is not possible for me to do that.
The Balance sheet show the budget for staff wages hasn't changed for both $100,000 or $468,000 in year 1, 2 and 3 but you will have extra 700 single beehives to look after if the WHL managed to raised $468,000?Posted on 21-09-2019 by Piau Lim
Kia Ora Piau Lim,
To start with, I would like to clarify the fact that we have employed an accounting firm to prepare the financial forecasts, given the fact that I was trained as a health professional and management accounting was my worst subject when I studied business at Massey University, after Pharmacy School.
I will confirm with my accountant via email re the calculation of revenue and I will cc you in the email.
Can you please clarify re your comment on the balance sheet, I am looking at the balance sheets and they both look different, are you referring to the profit and loss statement, if so, the 700 nuclei of beehives will not produce any honey in the first year but they will in the second year. The gross margin is different because for the $468,000 scenario, we have to give away more honey to investors, hence the lower revenue/yield.
We plan to purchase x creaming tanks, if we managed to raise $468,000.
We have to use an average price per unit (an average of 250g and 500g), otherwise, it will be too hard to compute the forecast. Given the fact that they are forecasts, they will be "best guessed" figures. The amounts harvested are clearly stated in the forecasts, expressed in number of beehives, weight of honey per beehives and unit price and etc.
If we raise $100,000
1st year - 600 beehives - 2 beekeepers - 300 beehives to be cared for by each beekeeper
2nd year - 960 beehives - 3 beekeepers - 320 beehives each
3rd year - 1536 beehives - 5 beekeepers - 307 beehives each
1st year - 600 beehives - 2 beekeepers - 300 each
2nd year - 1440 beehives - 3 beekeepers - 480 each
3rd year - 2304 beehives - 5 beekeepers - 460 each
It is common among honey industry for beekeepers to look after 300-500 beehives each, the more experienced beekeepers know how to schedule their work to best utilise their time spent.
Answered on 21-09-2019 by Wetex Kang
Here is a followup answer for PiauLim, I have checked with my accountant, the actual figures are:
$15+$2+$1.5+$1.5 = $20 - $1.5 as rounded off to $2, so the figure od $20 is indeed correct.
page 6 regarding the Own brand Waitakaruru Manuka Honey Sales-Export is incorrect because $15+$2+$2+$2 is $21 NOT $20 and that make a total of $20,000 different for 20,000 jar of honey.Posted on 22-09-2019 by Wetex Kang
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