New Zealand brand activation specialist Hoop Ltd (Hoop) has formed a joint venture with Australia’s largest pure play co-packer LJM to fill the gap in New Zealand’s co-packing market.
The partnership will position the companies as the leading retail co-packing specialists for New Zealand suppliers, with the first run scheduled for May 2020.
LJM, employing over 500 people across seven high-tech sites in New South Wales and Victoria (50,000 sqm including Multipack LJM), moves approximately 60 million packaged products across 1000 SKU annually for national and global FMCG, food, beverages, spirits and pharmaceuticals companies.
The aim of the joint venture is to be the go-to service provider for all co-packing requirements in the New Zealand market, enabling local suppliers to design and build specialist promotional activities.
Chris Hood, Director at Hoop Ltd comments, “The co-packing industry in New Zealand is fragmented. There is a huge gap in the market for a dedicated co-packer to enter and drive the industry forward. LJM’s strong co-packing track record, size, intellectual property and technology combined with Hoop’s marketing and promotional capabilities are expected to be embraced by FMCG brands.
“Hoop currently has a national field team of over 350 brand activators and a promotional logistics division. The LJM/Hoop partnership will be able to pre-build stock into displays and the national activator team will support the install and compliance process on the shop floor. A full-service circle of promotional activation will be provided.
“There is an evolving need for global brands to rework their stock packing to conform with local regularities and consumer information. Speed to market with full compliance of stock filled displays is a void the new partnership will fill,” added Chris.
Lance Miles Director and Founder at LJM, comments, “LJM’s extensive experience in co-packing, combined with Hoop’s client facing marketing capability will be a formidable combination in New Zealand. There are currently no dedicated co-packing companies in this country. It is an untapped market waiting to be serviced. The joint venture will help leap frog the businesses to become the leading co-packing specialists in New Zealand.
“This is the first time a co-packing and brand activation company has partnered on this scale, specifically servicing FMCG brands. The commercial decision to partner with Hoop was influenced by their reputation in New Zealand, a shared FMCG target market and complimentary service offering. LJM’s size and scale will help drive the co-packing market in New Zealand.”
According to the latest State of Industry Report from the Contract Packing Association (US 2018/2019) the secondary co-packing number is estimated at USD $17 billion annually and is being driven by international FMCG brands.
It is growing at about 10 per cent annually. New Zealand and Australian markets are expected to follow suit.
LJM services blue-chip manufacturers, multinational FMCG companies, local manufacturers and brand custodians.
All types of FMCG products are packed or handled such as canned food, confectionary, alcohol, tea and coffee, dairy and frozen foods, personal care products, sauces and condiments and bottled water. Spirits and pharmaceutical products are also regularly co-packed.
Markets serviced by LJM include Australia, New Zealand, Japan, China, South East Asia, Middle East, USA, UK and Europe.
A range of services and solutions are provided to meet any co-packing requirement. With over 55 production lines, flexible machinery and a highly skilled workforce, LJM has the scope and capacity to deliver an extensive range of services with a fast turn-around.