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Buy Kiwi Made Campaign Takes Off

Sue Bradford
Government Spokesperson for Buy Kiwi Made

11 February 2008 Media Statement

Buy Kiwi Made Campaign Takes Off

Kiwis have got behind the Buy Kiwi Made media campaign and the Government has agreed to give it a new lease of life says Sue Bradford, the Buy Kiwi Made Government Spokesperson.

"More than 1.3 million shoppers are now thinking 'Kiwi made' when they step into our stores," says Ms Bradford, "an increase of more than 200,000 since August when the consumer campaign began."

"The level of support from manufacturers, retailers and shoppers has been fantastic," she says. "I'm delighted to announce that Cabinet has agreed to extend the campaign so we can enjoy yet another Buy Kiwi Christmas in 2008."

"Support from retailers has more than doubled to reach a similar level as the 60 percent of manufacturers who support the campaign," she said.

Ms Bradford said that the campaign extension would be funded from savings within the Buy Kiwi Made programme itself. "This releases $2 million to invest in the media campaign that is proving effective and well on track to meeting all its targets."

The campaign had helped to increase by 50 percent the number of manufacturing members of Buy NZ Made Campaign Ltd, a private organisation that licenses use of the kiwi in a triangle logos.

Along with this increase in manufacturing members, major retail chains have joined such as Foodstuff's New World, Pak'n'Save, and Four Square stores, Progressive Enterprises' SuperValue and FreshChoice stores, along with service providers such as TSB Bank, KiwiBank, NZ Van Lines, The Lone Star Restaurants, and the Department of Conservation Visitor Centres. An online product locator has been developed at www.buynz.org.nz

--

How do you know there's more than a million shoppers thinking Buy Kiwi Made?

Statistics NZ population estimates (http://www.stats.govt.nz/products-and-services/hot-off-the-press/
national-population-estimates/national-population-estimates-dec07qtr-hotp.htm) show the total population aged over 15 years at 31 December 2007 as 3,363,200.

Buy Kiwi Made research shows that in December 2007 around 41% of all consumers aged 16 or over always or often consider whether a product is New Zealand made, before purchasing goods. This has increased from 35% of all consumers in July 2007.

35% of 3,363,200 = 1,177,120
41% of 3,363,200 = 1,378,912
The differenced is 201,792

What is the level of support from retailers?
The BKM media campaign research can be found online at http://www.buykiwimade.govt.nz/aboutkiwimade/MediaCampaign.aspx

What will the campaign do between July-November 2008?
There will be no paid advertising during an election period. The media campaign will continue its presence on the internet, at trade displays in partnership with Buy NZ Made Campaign Ltd, and via its direct communication with manufacturers and retailers.

Where is the additional $2 million coming from?
The $3 million Buy Kiwi Made Sector and Regional Initiatives Fund has been under-subscribed following the first two funding rounds. Cabinet has agreed to cap its value at $400,000 for round three, which opens on 26 February. Application forms and guidance notes will be loaded to the website when the Fund opens.

Cabinet criteria and parameters for the Fund, details of past recipients and the values awarded can be found online at http://www.buykiwimade.govt.nz/aboutkiwimade/Funding.aspx

What is the benefit of buying Kiwi made?
BERL research* from 2006 shows that the benefits to the New Zealand economy for every $1m of imports replacement are:
* The creation of 11.16 jobs
* Government expenditure on unemployment benefit declines by $118,836
* Government income tax revenue increases by $117,214
* Increase in purchasing power $194,887
In total an additional $1 million of value added manufacturing results in $2.16 million of initial value plus downstream value added. (or $2.72 if you include induced elements).
* Business and Economic Research Limited (BERL) Report to the Industry Capability Network
Manufacturing Scenarios and Multipliers, Prepared by Dr Ganesh Nana, June 2006 BERL ref #4486.


ENDS

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