Home > Features and Commentary > Success stories > Demand for EasiYo products soars
by Graeme Kennedy
Home-made yoghurt company EasiYo cannot make product fast enough to satisfy soaring demand from home and export markets, despite extending its Auckland plant earlier this year.
EasiYo CEO Paul O’Brien
CEO Paul O’Brien says new equipment including blenders and packing machines increased monthly production of sachets containing milk powder, culture and flavour from 700,000 to 1.7 million and he has plans to lift output to two million.
“We are now getting 20 percent annual growth on sales of $30 million and will double revenue in less than five years,” Mr O’Brien said, “but we are currently constrained by manufacturing capacity and we might have to make the product under licence in high growth markets.”
EasiYo exports 75 percent of its health food to 20 countries with the UK its biggest market at just over $10 million and Australia close behind. New Zealand sales are around $7 million with the rest going to small markets with strong growth potential including Asia.
The company plans a major campaign in China where EasiYo’s 100 percent owners Hokitika-based Westland Milk Product's exports are worth $120 million, but include only around $2 million of the premium yoghurt.
“We are looking for distributors in provincial and urban China and I will be taking EasiYo to the Hong Kong Natural Products Expo,” Mr O’Brien said. “We already have offices in the UK and Australia and as we grow in Asia we plan to open there as well.
“Japan has become another small but fast-growing market for us since we began exporting several months ago. We expect to reach $500,000 by the end of the year despite a 250 percent import duty – it costs a fortune in Japan but they don’t seem to care.”
“It is a marvellous health food and in the future will play a bigger part in people’s diets.
“It helps maintain good health by providing bacteria essential for active digestion and processing food through the gastro-intestinal tract, which is affected by smoking, alcohol, stress, poor nutrition and antibiotics.
“And with more research, other areas to target include obesity, gut health, bowel function and cholesterol levels.”
The EasiYo system was invented by Auckland North Shore secondary school science and physics teacher Len Light to provide his family with an inexpensive and nutritional food.
Mr Light took it to the 1992 Auckland Home Show and sold 600 in five days. He then distributed it through pharmacies and health food stores before taking it to Australia where it was sold through major chains Coles and Woolworths.
He launched the system in the UK in 1999 and some Asian markets in 2005.
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10 August 2010
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