New Zealand Edition 3 Hellers

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HELLERS – A GREAT NEW ZEALAND SUCCESS STORY Hellers is New Zealand’s leading manufacturer and distributor of small goods; bacon, sausages, hams, sliced and pre-packed meats, all sold exclusively through supermarkets. Their story is one born from simple beginnings, with Todd Heller following in the family footsteps by joining his father’s butchers shop. The unique recipes of Todd’s sausages proved to be so popular that they caught the attention of a supermarket chain. Demand grew at such a rapid rate that Hellers needed to expand the production facility several times to keep pace. An opportunity to buy a local bacon factory came about and a new enterprise, Heller Tasty, was established. Distribution and popularity of Hellers products spread quickly and soon outpaced the factory’s capacity to meet demand. This led to a major investment to build a new, export rated plant based in Manukau, in Auckland.  ACCELERATED GROWTH Sales grew in the first 10 years to $25 million per annum and Hellers decided to accelerate their growth by backing their expanding reputation with an investment in brand marketing. This along with product development and innovation helped Hellers reach over $150 million in sales over the next eight years. In 2011 the Prime Minister, John Key officially opened a new $20 million, state-of-the-art factory in Christchurch giving rise to the country’s most advanced small goods manufacturing facility. It gave Hellers the capacity to continue to grow with demand and sees them now as NZ’s market leader in their categories. The new plant has enabled Hellers to now look at the export potential for their products.  Hellers is truly one of the great New Zealand success stories growing from humble beginnings to become New Zealand’s favourite brand of sausages, bacon, ham and sliced meats. AWARD WINNING QUALITY Hellers is dedicated to producing the finest quality and best tasting smallgoods and this has been recognised by their industry peers with numerous awards. These include winning the New Zealand Supreme Sausage award for their London Pride pork sausages and for their Cheese Kransky sausages. Hellers also won the Supreme Award in the inaugural NZ Bacon Awards with their Middle Eye Bacon. Hellers is the only mass market 26

producer to have gained these top awards – an exceptional achievement in competing with niche producers and craft butcheries throughout the country. In all, Hellers has gained over 70 industry awards for their sausage and bacon products. Another accolade for Hellers was winning the Convenience and Meal Solutions Award – Food Product Innovation Category in the New Zealand Food Awards. Todd Heller was recently recognised with the Christie Award, a life time achievement award for his contribution to the industry. The Heller family has produced four generations of butchers who have passed on the secrets of their craft and recipes through the decades, a factor that distinguishes Hellers as a family based business that applies a history of passion and knowledge to their volume production processes.  CONSUMER DRIVEN The end user is at the heart of all of Heller’s product and packaging developments. Hellers invests periodically in independent

consumer research to assess new consumer demands and test their new product ideas. This ensures the products they take to the market are one step ahead of demand. It also ensures that they will be guaranteed winners with their target market of mid-to-upperclass household shoppers who demand quality and sensational taste. By constantly monitoring consumer trends, Hellers can introduce more relevant products and flavours. Products such as Premium Precooked Chicken Sausages that carry the Heart Foundation ‘Tick’, gluten free sausages, and the Free Farmed range of sausages and bacon, appeal to health conscious and ethically minded consumers. Hellers consumer driven focus is ingrained in their branding communications, with television advertising featuring popular New Zealand personality and Heller’s brand ambassador, Leigh Hart. He moves amongst the public, testing consumer feedback on the latest Heller’s products with the subtext of a never-ending search for quality, taste, convenience and innovation. INNOVATION Hellers is always looking to create new innovative categories in response to consumer wants and needs. Whether it’s exotic new flavours or categories or new packaging or manufacturing techniques, Hellers is constantly taking the pulse of the market and keeping one step ahead of demand, something supermarkets are always on the lookout for. Over the past two decades Hellers has introduced a whole host of new sausage varieties and taste experiences from around the world to New Zealand consumers. With more health conscious consumers demanding convenience, quality and taste, the innovation of the new category of Premium Precooked sausages provide gourmet quality flavours and taste whilst being quick and easy to cook. The chicken varieties in the range with the Heart Foundation tick are another example of how Hellers develop new products to reflect demand in an ever-changing market. Hellers pioneered the introduction of modified air packaging in New Zealand, creating a whole new convenience category for shaved and sliced meats. Gas flushed packaging is now used in many product ranges beyond its initial application in the sliced meats category providing significant category growth for supermarkets.

PIONEERS Hellers not only focuses on creating whole new categories but also on stimulating demand in existing categories. Hellers pioneered packaging frozen sausages in the now popular free-flow packs – a convenient solution for consumers buying large longer-life packs for the freezer. Their most recent product innovation will inject new life into the traditional bacon category with the development of three new flavoured bacons; Ol’ Smokey, Paprika and Cumin, and Rosemary and Juniper. These versatile and tasty bacons spice up traditional bacon dishes and introduce all new meal ideas and uses for streaky bacon. MODERN TECHNOLOGY Hellers has recently invested over $18 million in the latest state-of-the-art technology and manufacturing processes enabling them to meet supply requirements. New packaging techniques such as the ability to layer their Free Farm New Zealand bacon allow consumers to see the consistency and quality of all the slices in the pack. Other new machinery also allows Hellers to adjust the thickness of its bacon slices to ensure that the same number of slices meets each weight size. The number of slices in each pack is printed on the

pack so the consumer knows exactly how many slices of bacon they’re buying – a handy consumer benefit helping meal planning.  The brand new factory includes a product development and test kitchen which includes consumer taste-testing booths and Hellers currently has a significant variety of new and innovative products under development. Hellers leads the way in terms of food safety with serious investment in the area and is the first smallgoods manufacturer in the industry to implement PR (Positive Release) testing. PRODUCT RANGE Hellers makes over 170 varieties of small goods and every week they produce over three million sausages and over half a million slices of bacon. The breadth of Hellers range caters for every taste and preference of household shoppers in the smallgoods category. Hellers is the largest supplier of sausages to the New Zealand market and their gourmet range reflects Hellers passion for bringing exotic and flavoursome new combinations to the market. Hellers gourmet sausages are differentiated from other supermarket brands with their high meat content and top quality ingredients. They have won numerous industry awards including two times ‘New Zealand’s Supreme Sausage of the Year’ for their London Pride pork sausages and their Cheese Kranskys as well as NZ’s Best Bacon award for their Middle Eye Bacon. THE VERY LATEST, INNOVATIVE PRODUCTS Hellers has recently launched three flavours of gluten free Cocktail Sausages; Skinless, Cheese and Original. These new Cocktails with their fun & quirky packaging are designed to put new life into these favourites with children and adults alike. They have also recently injected some real flavour into the traditional bacon category with the launch of a new flavoured streaky bacon range including Ol’ Smokey, Rosemary and Juniper and Smoked Paprika and Cumin. RETAIL READY Developed by Hellers as a packaging first for New Zealand, pre-packed sliced meats are in a convenient, see-through Modified Air Pack, where

a gas is used to preserve the meat for longer life, both in the supermarket and in the fridge. Hellers has also used this packaging technology for their eleven popular and delicious varieties of 95-97% fat-free pre-packed meat, burgers and meatballs, and their gluten and dairy free bier sticks. FREE FARMED Hellers popular Free Farmed range includes products sourced only from selected New Zealand farms and are guaranteed hormone-and antibiotic-free. Hellers Free Farmed Bacon is the New Zealand sales leader in the category. The stand-out packaging is a winner on the shelves as it is easily identifiable as a healthy choice. Hellers has recently added to the range with their Free Farmed Sliced Leg Ham and Free Range Sliced Roast Chicken, extending the two top- selling flavours of shaved meats into the Free Farmed range. COMPANY GROWTH & PERFORMANCE Hellers is now New Zealand’s largest bacon, ham and smallgoods manufacturer. They currently manufacture half of all the bacon sold in New Zealand, has a 60% share of the fresh and cooked smallgoods market, 28% share of the bacon market and a 30% share of pre-packed and sliced cooked meats and ham products. Hellers has achieved an average growth of 20.5% per year since 1994.

THINGS YOU DIDN’T KNOW  ABOUT HELLERS m Established 1990.  m Produces four million sausages per week.  m Produces one million slices of bacon per week.  m Twice winner NZ Supreme Sausage Award.  m Inaugural winner NZ Supreme Bacon Award.  m Winner of 76 gold, silver and bronze medal awards.  m Sales 2011– $150 million.  m Original shareholders: Todd Heller, founder, and Nick Harris, managing director. 27