JV to help grow Auckland’s food and beverage sector

2 August 2013

JV to help grow Auckland’s food and beverage sector

Today’s announcement of a new joint venture with the Government to fund and operate New Zealand Food Innovation Auckland Ltd, trading as The FoodBowl – Te Ipu Kai, is a significant boost for Auckland’s $3 billion-a-year food and beverage sector.

The state-of-the-art facility in Mangere has been an Auckland Tourism, Events and Economic Development (ATEED) subsidiary since it opened in 2011, and been funded by the Government and by ATEED on behalf of Auckland Council.

The FoodBowl’s processing plant and supporting business development services are used by many of the most innovative food and beverage companies from Auckland and around the country – including established businesses and start-ups.

ATEED Chairman David McConnell says the joint venture with Crown agent Callaghan Innovation is an important strategic and economic growth decision.

“The joint ownership and funding model secures The FoodBowl’s long-term future. It provides the support required for The FoodBowl to identify and capitalise on future opportunities. Auckland’s economy – and therefore New Zealand’s economy – will be the clear winners from this deal,” says David McConnell.

He says the joint venture is a great fit for ATEED’s two-part vision for food and beverage – for Auckland to be recognised internationally as the food and beverage innovation hub of the Asia-Pacific, and for the sector’s annual exports to more than double to $6.37 billion by 2025.

“ATEED supports the ambitious export and GDP growth targets in Auckland’s Economic Development Strategy, and The FoodBowl is integral to our plans to meet those targets,” says David McConnell.

In the deal, ATEED will continue to own and fund a third of The FoodBowl, and Callaghan Innovation will own and fund two thirds. The initial funding level of $3 million a year runs until June 2016.

“The FoodBowl is a brilliant facility and one of Auckland’s innovation gems. ATEED can see significant potential for The FoodBowl from the addition of Callaghan Innovation’s skills, resources and business networks,” says David McConnell.

Food and beverage companies employ more than 40,000 people in Auckland, and the region is home to two thirds of the top 50 New Zealand companies in the sector. They include multi-national giants such as Nestle, Asahi and Heinz.

ENDS

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