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Being a small business has its advantages but there are also missed opportunities when values do not align.
It’s the middle of February when I speak to Shyr Godfrey about what it means to be agile in a world that continues to change. Given that Cyclone Gabrielle has wreaked havoc across the North Island – claiming lives and destroying homes, livelihoods and businesses – it seems more pertinent now than ever.
Godfrey and her husband Brent run their factory in Silverdale, 30km north of Auckland on the Hibiscus Coast. They are the two directors of their award-winning nut butter company, Forty Thieves. They were not affected by water damage, but a power cut meant the factory couldn’t operate for two days.
“In some ways Covid has prepared New Zealand for a state of emergency,” Godfrey says.
From a governance perspective, their team’s wellbeing is important. They now use an app named Sling, which enables the team to look out for each other, in case someone needs help.
And while the cost of closure has impacted the business, it was important that staff were paid, leaving the pair to figure out whether insurance, or some other form of finance, would cover the loss.
Investing in their team has been vital, and ensuring they feel valued and have a sense of purpose has been integral to its success. Godfrey says they look for opportunities to upskill those who want development, hold individual review sessions and team-building activities. Faced with inflation and a rising cost of living, they are reassessing wages to ensure their people are paid sufficiently.
Regular health and safety inspections also take place, and staff are rigorously tested and trained in order to operate machinery.
Forty Thieves launched seven years ago as a family-owned business – as directors of the company they are also hands-on when it comes to the operational side. But while they have yet to appoint a board, Godfrey says it is on their mind. When they want to make big decisions they have an experienced business advisor/mentor to call on.
Godfrey comes from a design background and her husband worked in finance before they set up Forty Thieves. Both wanted to create a health-conscious product inspired by their travels together, and one that was built on a foundation of sustainability. As a small business, that was easier to implement.
When they started, Godfrey says the premium nut butter market was growing and had one or two players. They were motivated to offer something that would set themselves apart. “We wanted to make sure we had sustainable packaging and we knew we wanted to use glass.”
Forty Thieves uses 90 per cent recycled glass, Forest Stewardship Council- approved paper labels made from 30 per cent post-consumer waste, and lids made from recycled materials. Through their bank, they were also supported to offset their carbon through an assessment tool, Toitū Envirocare. “We were able to assess all of our carbon and once we knew how much we were using we were able to offset it all.”
“Being small, one of the pros is we can jump straight in and things happen very quickly, whether it be growing a product, creating new ones, or cutting them.”
In doing so, they contribute to the restoration of native forests around New Zealand. They have also swapped plastic bubble wrap for boxes designed to protect the glass jars when shipping, without the need for additional wrapping, other than brown paper.
As a food producer, they also wanted to address waste reduction. By combining the smooth and crunchy peanut butter remnants from the machines, they were able to fill jars of ‘Second Chance’ butter, which is distributed to food banks, along with Pest-Free Hibiscus Coast, a subset of Forest and Bird where it is used for trapping.
But there is a downside to having strong ethics – missed opportunities. “It’s a bit of a problem because it meant we were closed off to new product sales and new markets because the idea didn’t align with our values.”
Godfrey describes an idea they had for snack packs after discovering eco- friendly pouches. But the aesthetics didn’t sit well when competing alongside similar products, so it was dropped.
They may revisit the idea later, but it will rely partially on consumer awareness around the ‘true cost’ of packaging where, in some instances, glossy wrapping is used for products that are supposedly eco-friendly or sustainable.
She says they need to be very careful about where they invest their money, especially in terms of new equipment and technology. “We upgrade as much as we can, try to stay smart and not have too much cash sitting in machinery that isn’t being utilised.”
Being a small business, having oversight of governance issues and being so hands-on operationally is a lot of work. But one thing that motivates the business owners and their team is winning awards, which gives everyone a sense of meaning and purpose.
“It helps us [and our team] understand that what we’re doing is unique . . . and that when we did the 50 versions of the product to get it right, it was all worth it,” she says.
Forty Thieves has won a number of awards, which Godfrey says reinforces the quality of their products, but also conveys to potential retailers and exporters they take what they do, very seriously.
New Zealand remains their biggest market, but they now have demand from Asia, specifically Singapore, Taiwan and Malaysia.
“What we have learnt is they are interested in a more Western-style breakfast and they are using our spreads the way we are using them in the West, not so much for cooking.
“Being small, one of the pros is we can jump straight in and things happen very quickly, whether it be growing a product, creating new ones, or cutting them,” she says.
“We can create limited edition products and if they are successful we can run them out to stores within a few weeks.”