2009 Entrepreneur Of The Year category winners - Ernst & Young - New Zealand

Diane Foreman, Emerald Group Limited
'A Non-Vanilla World'

In business terms, Diane Foreman’s world is clearly not vanilla.  Not even hokey-pokey.  In fact, in ice cream terms, it would be near impossible to pick a flavour that captured the diversity of her Emerald Group.

Nevertheless, ice cream is an important part of her empire.  Purchased as a failing business Diane saw its potential. She implemented a new management team and a changed strategy that has seen it become New Zealand’s largest franchise business. Under a number of high profile brands—most notably ‘New Zealand Natural’—a range of tasty treats are shipped from Auckland to almost 700 own franchised stores in 21 countries.  Being part of one of New Zealand’s prime industries, dairying, gives Diane immense satisfaction.

She’s also involved in health care with an aptly named Healthcare Holdings (23% owned by Emerald) providing private hospital and clinic facilities and owning 100% of the MercyAscot Group). Diane’s most proud of ensuring private radiography is now an option for New Zealanders.

Broadening the sweet and surgery base, Emerald Group is involved in hospitality and tourism via the boutique, Auckland-based Emerald Inn; a 50% holding in specialist, high level recruitment and contracting company Emergent Limited provides a good investment as well as a source for key talent to help manage her Group.

As is the case with many entrepreneurs, Diane didn’t have much of a taste for education leaving school at 15 with no tertiary qualification.  She trained as a typist and in her early 20s became a medical secretary.

When former husband Bill Foreman came to the practice one day, a strong business and marriage partnership began.  A major stroke in 1990 prompted Bill to promote Dianne to board status of his Trigon Holdings in order to learn the business as well as manage family interests.

Eventually becoming CEO, she single-handedly negotiated the sale of Trigon to US interests at a purchase price of NZ$130 million.

Post deal, Diane continued to create success on her own terms.  Today her four ‘gems’ of completely different heritage directly, or through shareholding, employs over 4,000 people and has interests in 29 countries.

Ross Hyland, Seales Limited
'Cordon Bleu for Cows'

In the bovine, as in the human world, there are ‘mass’ market food options as well as more ‘boutique’ offerings that cater to both the discerning and demanding buyers.

Seales would appear to fit into the second category.  By ‘custom blending’ quality stock feed, the company is able to directly target dietary requirements that are specific, or unique, to a particular herd or farm.

Ross Hyland explains: “On-farm conditions can change quite rapidly and dramatically which will affect a herds needs.  Our feeding approach means we can cater for any situation and thereby can facilitate significant improvements in cow health, condition, production, conception rates, reduced animal health costs and, most importantly of all, an increase in our customer’s on-farm profitability.”

Given the importance, and size, of the dairying industry to the New Zealand economy, there is stiff competition in the provision of feed.  Seales has 30% market share in the national compound feed market, but an impressive 50% stake in its home region, the Waikato.  Again, this ‘custom blending’ approach with commensurate benefits has put Seales as the Number 1 feed choice for the discerning Waikato dairying market.

Ross Hyland maintains that the company’s ability to satisfy the demands of this prime farming region means that other dairying regions, once they get a taste for Seales, will gladly opt for his product.

“Our focus ultimately is the overall New Zealand dairy farmer market, but right now our focus is on spreading across Northland, the Bay of Plenty, Waikato and Taranaki.  We do, however, have a strategy in place to become the Number 1 provider of nutritional products to every farmer in New Zealand.”

With this aim in mind, Seales has embarked on a number of ambitious growth projects.  The company is currently investing $1.6 million in expanding its main manufacturing plant capacity—based in Morrinsville—by 30%. 

In addition, Seales has recently purchased land in Tokoroa to build an inland road/rail container terminal and new feedmill.  A NZX listing is on the horizon as are export ambitions.  The company has also diversified into feeding other four legged farm inhabitants including calves, goats, pigs and deer, as well as speciality feeds for pigs and organic feed for poultry.

Graeme Clegg, New Image Group
'The Road to Healthy Returns'

This truism strikes a chord with New Image Group creator Graeme Clegg.

“No health, no future.  The healthy have many wishes; the sick only have one.”

Having seen 3 close family die of cancer, Graeme could well have been staring down the barrel of his own demise.  Be it a strong survival instinct, or having seen the benefits of nutritional supplements in animals when he worked as a professional shearer and stud sheep farmer, he set out to find an elixir for good health.

He did, in the form of a nutritional supplement known as Colostrum, which he sees as the answer to concerns about the weakening of the body’s immune system.  Subsequently, other nutriceuticals have been added to the New Image offering.

Instead of keeping the secret for a longer life to himself Graeme did just the opposite.  He created what has become one of the more vital players in a highly competitive health supplement direct sales market.

This year is Graeme’s ‘second coming’ to the Entrepreneur of the Year Awards.  A 2003 category winner, he has made the return foray for the simple reason his list of achievements is even more impressive.  A NZX listing; a tenfold increase in turnover; a successful launch into three more countries; the development of retail brands and FMCG as well as the direct sales lines; and the creation of a scientific division for product development and support; and the building of two manufacturing plants to keep up with demand.  

Wherever his Colostrum goes, consumers seem to follow.  New Image Malaysia, for example, is recognised as the fastest growing direct sales company in the country and is in the Top 10 of over 700 competitors.  The Taiwan venture is in the Top 10 category performers.  Currently the Group has a team of 137 and operations in 10 countries. 

The Group he created keeps Graeme vibrant.  “Since I started New Image, 25 years ago, I have never had a day sick. Many people have observed my exuberant energy, my zest for life, my positive outlook and healthy wellbeing.”

Peter Marshall, Tallon Systems
'Making Waves in the Marine Accessory Market'

In his business life, not every venture Peter Marshall put his talents to was smooth sailing.

Whatever the case, he discovered his entrepreneurial skills at a VERY young age.  As a student at Wellington College, he tinkered with a number of businesses, including designing and selling jewellery at age 12 and apparel at age 14.  Eventually, the world of commerce took centre stage in Peter Marshall’s life when the headmaster of the College called him in to say: “One of us is leaving and I’m the one with the job.”

Peter worked in a variety of situations and incarnations in the pre-1987crash ‘cowboy days’ when the saying went that ‘you could throw a cork down the river and someone would invest in it.’

After being burnt by a couple of unsuccessful retail ventures, he found his niche in the technology sector. With business partner Mark Thomson he founded one of the country’s flagship technological financial products, Eftpos New Zealand. Building the business and eventually selling it to the ANZ Banking Group for a tidy sum, Peter Marshall decided to head for the quiet hills of Wanaka to escape the rat race.

Despite intentions of retiring and going fishing, it didn’t take long for Tallon to be launched.

Having no marine industry expertise, he nevertheless had a life-long passion for boating.  With the resources to build the boat of his dreams, he thought he could source the boating accessories of his dreams. When he found they didn’t exist, he filled the gap in the market with the launch of Tallon Systems.

The mission was to provide superior choice, quality and value to boat owners and manufacturers by delivering an integrated system of accessories that is innovative, flexible and easy to use - ¬ as a result enhancing boaties  enjoyment.

After a year of research and development plus industry consultation, Tallon was launched to the world in March 2007.  That same year, it scooped the prestigious 2007 Innovation Award at the International Boat Builder’s Exhibition in Miami, USA.

With distributors in the United States, Australia, Canada, the United Kingdom, and Europe, and with diversification into other leisure markets, Peter Marshall’s newest creation is full steam ahead.

Derek Handley, The Hyperfactory
'Upwardly Mobile'

For the lay person, the mobile telephone is a convenient way to keep in touch with friends, or the world, via voice, text and other offerings. 

In the hands of savvy brand builders, this same device can work wonders for building businesses and brands in terms of getting compelling, cool and convincing information out to target audiences.  This is the territory the aptly named Hyperfactory buzzes in.

Derek Handley’s company—founded with brother Geoffrey—divides the mobile focus into two operating areas. 

One is an agency operation where the mobile is the medium delivering an integrated strategy, creative approach and ‘offer’ or opportunity to create a relationship with a particular brand. 
The other is technology based designed to benefit businesses through planning, integration and deployment of mobile technology—regardless of the platform, protocol and device.

Against some stiff and sizeable competition worldwide, the Hyperfactory has built a client base that includes the likes of Coca-Cola, BlackBerry, L’Oreal, Vodafone, Disney and Kraft.  Employing over 100 people, the company has a network of offices in Auckland, Los Angeles, New York, Chicago, Hong Kong, Sydney and Hyderabad, India.  A recent multi-million dollar stake sold to a major US media conglomerate shows the business has bite.

While this is his present incarnation, and though he is still a youngster in business, Derek Handley already has an impressive track record of entrepreneurial pursuits.  He has, as he says, ‘established, built, failed and tried again’ with a number of other ventures. 

He launched a global software business; he created and publically listed a sizeable child care operation; he took vodka success story 42 Below to Hong Kong and China as sole executive agent; and he wove a luxury boutique cashmere clothing brand into an international fashion business.  Proving that men can multi-task, some of these ventures were developed concurrent to the building up of Hyperfactory.

An Entrepreneur of the Year applicant some years back, Derek Handley’s second coming is, he says, better than the first.

“The Hyperfactory is the business case presented—however as an entrepreneur my experiences and battle-scars throughout my career are far better rounded and deeper.”

Jack Henderson, Commtest
'Picking Up Good Vibrations'

Jack Henderson’s father told him he was lucky...for two reasons.  First, that he was born a New Zealand.  Second, and more importantly, that he was blessed to be a West Coaster.

Throughout an eclectic business career culminating in the formation of Commtest, this pride has paramount.  “In tough negotiation situations, or business challenges, I believe that I am at least equal to anyone...and often better.”

Selected as a New Zealand Rugby League school boy rep at age 14, he kicked off his working career at 15.  At age 17 he became an assistant to the owner of a Morris car franchise which began a 50 year association with the motor trade.

Involved in a number of franchises—mainly Mitsubishi—Jack became the principle for the country’s largest dealership.  In the late 1980s he changed gear to establish Dynamic Controls Limited—and guided this electric wheel chair directional supply company to be the pre-eminent world brand.

His next venture was Commtest—a technology foray based on vibration analysis and monitoring instruments.

The market for this service (designed to detect potential, and costly, machine failure thus allowing early repair or replacement) tended to be the territory for expensive and sophisticated products. 

True to his ‘No 8 wire’ roots, Jack felt convinced a cheaper, and simpler, diagnostic tool was possible.  He just had to find it and convince the market that ‘price and ease’ would still mean a viable solution. 

He persevered to the point that the company now offers what Jack believes to be the market’s best vibration analysis product range at the lowest total ownership cost.  The world clearly agrees for over 98% of turnover is exported.  With offices in New Zealand, the United States, China and Dubai, Commtest employs over 50 people.