Big gains in store for NZ exporters

Big gains in store for NZ exporters

New multi million dollar cardboard print and packaging technology is offering New Zealand exporters an opportunity to become preferred suppliers and improve their overseas sales in some of the world’s largest retail stores.

More than two years research and development is behind Charta Packaging’s unique technology that creates glossy, high quality display boxes that meet stringent global criteria being set for the world wide trend of shelf-ready and point-of-purchase packaging.

Lower Huttbased Charta Packaging says its decision to invest heavily in new technology and build a major new factory was spurred by a fiercely competitive New Zealandpackaging industry dominated by multinational companies.

With investment support from the Foundation for Research, Science and Technology, Charta began a world wide search for innovative systems to help to position the company as a niche manufacturer at the top end of the market.

By adopting new high tech processes, Charta has been able to form an alliance with an international consortium of quality packaging manufacturers whose shelf-ready packaging has preferred access to stores such as the world’s largest retail chain Walmart, the United Kingdom’s largest retailer Tesco and Costco, which is a major warehouse operator in the United States and Canada.

“We are becoming an export enabler, getting exporters’ produce to market in the right format. When a New Zealandexporter approaches one of those major international retailers they will be given preference if their products are packaged to meet the retailers’ stringent packaging criteria, and Charta ensures they can,” says Charta’s Operations Manager Grant Nicholson.

The technology involves colour printing to tolerances never seen before in the corrugated industry, which allows the same fine, high quality print that appears on individual product packets to be reproduced on corrugated cardboard display stands. The print work is then covered with a special ultra violet gloss that ensures attractive bright print is protected from smudging or scuffing. Much of the processing is done in temperatures of 980 degrees, demanding complex procedures.

“Exporters can command space on the shop floor and get prime selling spots when their produce arrives in the correct shelf-ready packaging,” says Mr Nicholson. Without it, he says, exporters could find themselves delisted from some international retail supply chains.

The Foundation invested $252,000 through its Technology for Business Growth programme, enabling Charta to develop the new print processes, supporting process trials and assisting several staff through courses at the ClemsonUniversityin the USwhere they learned the detail of the new technology.

“Charta is providing significant merchandising benefits to New Zealandexporters in competitive markets. This is also giving our exporters the opportunity to attract premium prices for their goods,” says Foundation Business Manager Barbara Webster.

“Overseas evidence suggests this new form of packaging has the potential to increase export sales for an individual company by between 5 and 35 per cent,” she says.

“Charta’s innovation is opening opportunities for additional export earnings and greater access to global supply chains, placing Charta and exporters in a unique commercial position,” says Dr Webster.

Charta has invested $NZ9 million in new equipment and its new systems are unique in Australasia. Charta currently supplies packaging to a range of New Zealandfood and wine exporters, with persimmon and squid exporters the latest to investigate new packaging options.

Mr Nicholson says Charta has compacted a two year learning curve into less than 12 months in a bid to bring the new packaging techniques to market as quickly as possible.

“We could either drop our prices or differentiate by introducing new technology.

“When things get tight some companies cut prices, reduce staff or shut down. Charta decided to spend money and break out of that spiral rather than letting the difficult competitive environment control it,” says Mr Nicholson.

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