Mars research generates million dollar returns

Media Release                                                                                          8 May 2009

Mars research generates million dollar returns

A $188,000 investment from TechNZ into collaborative research has contributed to Mars Petcare New Zealand developing of a new range of export cat food that is expected to generate returns of more than $2 million annually to the New Zealand economy.

Mars worked with AgResearch to create a premium petfood product, being made at Mars’ Wanganui manufacturing plant, to grow export markets.

TechNZ is the business investment arm of the Foundation for Research, Science and Technology. Mars Petcare New Zealand is owned by Mars Incorporated. Its Wanganui plant employs 230 staff and produces more than 15,000 tonnes of pouch petfood products annually, 75 per cent of which are exported.

“TechNZ aims to foster collaboration between research organisations and business and this investment is a great example. The investment is helping to reinforce New Zealand’s place in the global supply chain of a multinational company and the research is also generating direct returns for the local economy,” says TechNZ Senior Business Manager Joseph Stuart.

“The TechNZ decision to invest was based on Mars being able to commercialise unique New Zealand science quickly through its extensive channels to market and on the significant economic and social benefits, particularly to Wanganui,” he says.

Mars approached TechNZ in 2007, looking for help with its goal of developing a premium petfood product with significant improvements in aesthetics and palatability than its current Whiskas range.

“TechNZ played a fundamental role in supporting the research, both in terms of enabling the initial partnership between AgResearch and Mars and supporting the project through funding,” says Mars Product and Innovation Manager, Jonathan Cox.

Mars worked with AgResearch, which has a significant history and knowledge of developing added-value foods from livestock products and has created intellectual property in biotechnology-based food and nutrition.

The research has resulted in a new product range under the WHISKAS label, and will see seven different products which will be manufactured for the Australian market.

These products are expected to return more than $2 million annually through employment and meat products, says Mr Cox. The increased market demand has also resulted in the Wanganui plant moving from a three to four shift roster.

“AgResearch has also identified other opportunities involving the creation of novel meat chunk technologies which are already opening the way for future product development and new exports,” says Mr Cox.

Another significant development is the formation of a new research consortium, Protein Innovation New Zealand, involving Mars, AgResearch and Massey University. The consortium will be working to generate new knowledge of raw meat materials by researching the protein interactions and nutritional values of raw meats. The consortium will be working towards commercialisation of New Zealand meat science which will produce additional export revenue growth.

Mr Cox says Mars Incorporated has already confirmed new research funding, is making an ongoing commitment to research and development in New Zealand, with product innovation being a core part of the company’s long term vision. He is optimistic there will be further growth opportunities for Mars in Wanganui.
 
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