Waikato Business News January/February 2017
Waikato Business News has for a quarter of a century been the voice of the region’s business community, a business community with a very real commitment to innovation and an ethos of co-operation.
Waikato Business News has for a quarter of a century been the
voice of the region’s business community, a business community
with a very real commitment to innovation and an ethos of
co-operation.
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34 WAIKATO BUSINESS NEWS <strong>January</strong>/<strong>February</strong> <strong>2017</strong><br />
Timing is everything<br />
with fresh fruit<br />
This is the second article in a series about<br />
<strong>Waikato</strong> business entrepreneurs and<br />
innovators, supported by the <strong>Waikato</strong><br />
Innovation Park <strong>Business</strong> Growth Services<br />
team.<br />
Selecting and enjoying fruit<br />
is a pretty personal experience<br />
for most consumers.<br />
How often have you caught<br />
yourself, at the shops, squeezing<br />
an avocado to gauge its firmness,<br />
its readiness to eat? Or<br />
eyeing up tomatoes or summer<br />
fruit for colour, taste and perfect<br />
plumpness?<br />
There is nothing as disappointing<br />
as purchasing fruit then<br />
getting home and finding it is<br />
poor quality – overripe or with<br />
an unappealing taste or texture.<br />
Food marketers and growers<br />
know if they can harvest and<br />
deliver fruit to consumers at the<br />
optimum time – when it is perfectly<br />
ready to eat and tastes and<br />
looks its best – then they will<br />
come back and buy more. Get it<br />
wrong, and they are less likely<br />
to be back.<br />
But how can you measure<br />
when fruit will taste its best?<br />
Hamilton-based business<br />
entrepreneur and innovative<br />
thinker Mark Loeffen is onto<br />
a winner with his business<br />
Delytics, which uses mathematical<br />
algorithms and clever analytics<br />
to help fruit retailers and<br />
marketers to make those kinds<br />
of decisions.<br />
“The technology we have<br />
developed is quite revolutionary,”<br />
says Mark, Delytics’ founder<br />
and managing director. “There<br />
is an incredible demand at the<br />
moment.”<br />
Sitting in his office at<br />
<strong>Waikato</strong> Innovation Park, with<br />
pastureland outside the window,<br />
Mark turns to his computer to<br />
explain how Delytics works, and<br />
how it is attracting interest from<br />
companies from Australia, Chile,<br />
California, the United Kingdom<br />
and Spain. “Our vision is global<br />
– you are sitting here in the<br />
global headquarters of Delytics,”<br />
he says.<br />
It’s crystal-ball thinking –<br />
the kind of innovation that is<br />
game-changing for an industry.<br />
<strong>Business</strong> Growth advisor Peter Davey has been<br />
working with Delytics on strategy.<br />
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“What we can do is we can<br />
predict a consumer’s liking for<br />
a piece of fruit before harvest,”<br />
says Mark.<br />
Through a series of graphs<br />
and charts, he explains how<br />
Delytics’ clever mathematical<br />
software can help predict how<br />
a fruit will taste to consumers<br />
depending on when it is picked.<br />
It analyses attributes such as<br />
size, colour, texture (firmness/<br />
softness), sweetness (brix) or<br />
sourness (acid) at different points<br />
in time – and depending on your<br />
consumer market – helps growers<br />
and marketers to choose the<br />
best harvest window.<br />
“Taste is a very subjective<br />
and complex thing,” admits<br />
Mark. “Too much acid is not<br />
good but too little and a fruit<br />
has no ‘bite’, no zing and can<br />
taste bland – so it’s about finding<br />
a balance. Each grower knows<br />
what they want to grow – we<br />
give them tools to make decisions<br />
to suit their market.”<br />
In New Zealand Mark has<br />
worked extensively with citrus<br />
growers, with much success.<br />
Following new fruit quality<br />
maturity standards recommended<br />
to New Zealand Citrus<br />
Growers Inc (NZCGI) by<br />
Delytics, consumer acceptability<br />
of New Zealand navel oranges<br />
went from 62 percent to 93 percent<br />
in one season. Simply put:<br />
retail sampling of oranges by<br />
consumers showed they tasted<br />
much better.<br />
When fruit tastes better, consumers<br />
will buy more, and will<br />
come back again.<br />
This research, and Delytics’<br />
reliable and innovative system,<br />
enables fruit growers and marketers<br />
to more consistently bring<br />
great fruit to market – fruit that<br />
is ripe and ready to eat. It’s that<br />
kind of reliability that is attracting<br />
international, as well as local,<br />
interest.<br />
Mark has a background<br />
using science to support New<br />
Zealand’s primary industries. He<br />
spent 20 years in research and<br />
development at MIRINZ (Meat<br />
Industry Research Institute<br />
of New Zealand, now part of<br />
AgResearch) before founding<br />
Seafood Innovations. From meat<br />
to seafood, Mark applying his<br />
expertise to the fruit industry<br />
from the mid-2000s.<br />
He was asked by Zespri, New<br />
Zealand’s successful kiwifruit<br />
brand, to develop a decision-support<br />
system in the mid-2000.<br />
From there, Delytics was born.<br />
In the past few years<br />
Mark has spent a lot of time<br />
Delytics managing director Mark Loeffen uses mathematical<br />
algorithms to detect the best time to harvest fruit.<br />
in Australia, using Delytics to<br />
support the development of the<br />
Queen Garnet plum (Nutrafruit.<br />
com.au), which is used as a<br />
nutraceutical, and the Calypso<br />
mango – renowned for its sweet<br />
tasting firm flesh, small stones<br />
and good quality. Mark has also<br />
worked with avocadoes, blueberries<br />
and there’s talk of pineapples<br />
in his future.<br />
From a business growth point<br />
of view, Delytics has the potential<br />
to boom. However, the past<br />
few years have been about education,<br />
hard work, and strategy.<br />
“When you have a revolutionary<br />
product the early part of it is<br />
education,” says Mark. “People<br />
need to become aware of you<br />
and learn about how it works.”<br />
The support he has received<br />
from the <strong>Business</strong> Growth<br />
Services team at <strong>Waikato</strong><br />
Innovation Park has been part of<br />
Delytics’ evolution.<br />
The <strong>Business</strong> Growth<br />
Services team is funded by<br />
the Regional <strong>Business</strong> Partner<br />
Network (RBPN), a central government<br />
initiative to help build<br />
business capability for growth.<br />
RBPN is led by New Zealand<br />
Trade & Enterprise (NZTE) and<br />
Callaghan Innovation. The aim<br />
is to support businesses that have<br />
high-growth aspirations and are<br />
also export focused, technology-driven<br />
or have innovative<br />
products or services with real<br />
commercial merit. The services<br />
are free to all greater <strong>Waikato</strong><br />
businesses, not just those based<br />
at <strong>Waikato</strong> Innovation Park.<br />
A <strong>Business</strong> Growth Services<br />
team member, Peter Maxell, had<br />
good connections in the United<br />
Kingdom, and helped open doors<br />
in research and development circles.<br />
“He put the word out, and<br />
that has been very helpful in creating<br />
connections,” says Mark.<br />
“People buy from people, and<br />
we are in the business of building<br />
long-term relationships.”<br />
<strong>Business</strong> Growth advisor<br />
Peter Davey has been working<br />
with Delytics on strategy. “The<br />
key to a successful business is<br />
strategy,” says Peter. “What are<br />
you going to do with your business<br />
is a vital question. If you<br />
don’t know which road to follow,<br />
you are going to get lost.”<br />
Calling on <strong>Business</strong> Growth<br />
Services’ expertise to assist<br />
Delytics has been invaluable,<br />
says Mark. “The company is<br />
going forward in a positive direction,<br />
thanks to strategic thinking.<br />
“We don’t know everything<br />
about everything, and I believe<br />
it’s important to seek advice<br />
from others to grow.”<br />
Like all emerging businesses,<br />
he admits it has been difficult,<br />
but thanks his wife Clare for her<br />
ongoing support and encouragement.<br />
For inspiration, he references<br />
a famous quote, given by former<br />
British Prime Minister Winston<br />
Churchill in 1941 at a school:<br />
“Never give in, never give in,<br />
never, never, never, never—in<br />
nothing, great or small, large or<br />
petty—never give in except to<br />
convictions of honour and good<br />
sense.”<br />
Adds Mark: “It’s important to<br />
have a support network around<br />
you – friends, business associates<br />
and family who believe in<br />
you and can encourage you not<br />
to give up.<br />
“Has it been difficult?<br />
Absolutely, there have been<br />
tough times. But it’s in the process<br />
of taking off, and that’s very<br />
encouraging.”<br />
For more information on<br />
Delytics see www.delytics.com<br />
TIPS FOR NEW BUSINESSES<br />
from Peter Davey, <strong>Business</strong> Growth Services advisor,<br />
<strong>Waikato</strong> Innovation Park<br />
1. Create a road map for your business, so you<br />
know where you are headed. The word ‘strategy’<br />
sometimes frightens people off.<br />
2. Validate your idea or business. Test it in the market<br />
place. Ask people what they might pay, to get a<br />
sense of the true value. Test your assumptions<br />
before sinking a lot of money into something.<br />
3. Make sure that you have a sounding board (or two)<br />
in place. That might be a business advisor, your<br />
accountant, or a mentor. A lot of people work in<br />
isolation and that is dangerous (especially to your<br />
pocket).<br />
People interested in getting advice and support for their<br />
new business idea, product or service can contact 07<br />
857 0538 or businessgrowth@wipltd.co.nz<br />
For more information see www.wipltd.co.nz/what-wedo/grow-your-business<br />
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