Hong Kong hub working

Bay of Plenty based Comvita is the winner of the 2011 Cathay Pacific HKNZBA award for ‘best use of Hong Kong by a New Zealand company for its business'.


This award comes after a steady period of trading in Asia with Comvita selling its functional food and healthcare products in China for almost two decades.

The honey products manufacturer originally distributed through Asian and South East Asia from Hong Hong, before buying the distributor, says Comvita CEO Scott Coulter.

'Hong Kong as a hub concept came from two things, as we grew countries we couldn't have those countries all reporting back to New Zealand. We needed them to report to a central place then we look after the central place. That's the tyranny of distance.

'The other one was we were seeing very much the development of China we felt we needed to get much closer to the customers in China. We had a very good distribution relationship in Hong Kong. Took the board up to Shanghai and showed them what was happening in China.

'The board saw the opportunity, and we acquired the Hong Kong business. All the key people are still in the business in Hong Kong. It is a great addition for us and a great stepping stone into China.

'We have been able to grow our China business and grow our regional business. Hong Kong's benefit is that it is so central to that region. Half the world's population lives within five hours flight of Hong Kong.

'It's easy. The airport's good, rules and regulations are clear, it's an English based legal system, so very easy to set up a company. Administration's easy, it's a really good place to do business and we have benefitted from that over the last two years and I think we are extremely well placed to grow in the region.”

Comvita is the world's largest producer of high grade manuka honey from which it manufactures its skincare range, Huni and woundcare products, such as Medihoney.

Initially, Comvita worked through a Hong Kong distributor, Greenlife, and its first major success came in 2004 when pharmacy giant, Watsons began selling Comvita products in Hong Kong.

That year Comvita also made a concerted foray into mainland China.

In 2007, Comvita acquired Greenlife. Today there are over 50 Comvita retail outlets (stand-alone stores and stores-in-stores) selling natural health products in Hong Kong, with annual sales in excess of NZ$15 million and growing at 15 per cent per annum. Comvita's Hong Kong office employs more than 100 staff.

Hong Kong is also the hub for Comvita's wider activities in the Asian region and is the regional head office for Comvita's subsidiaries in Japan, Taiwan, South Korea and its distribution partner in China.

Asia accounts for 33 per cent of total group sales.

China has developed into Comvita's fastest growing market with 400 stores across more than 40 cities.

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