NPNZ Annual Report 230216

®ANNUAL REPORT 2015

Table of ContentsFrom the Chair of Natural Products NZ............................................................................................................................1 Progress on the Aims of NPNZ....................................................................................................................................1 United Industry.................................................................................................................................................................1 Representation..................................................................................................................................................................1 Advocacy............................................................................................................................................................................2 Regulation..........................................................................................................................................................................2 Media...................................................................................................................................................................................3 Business Support..............................................................................................................................................................3 Export Development.......................................................................................................................................................3 Financial Results................................................................................................................................................................4 Executive Director/Administration..............................................................................................................................4Executive of Natural Products New Zealand.....................................................................................................................4In Closing.....................................................................................................................................................................................5Financial Statements & Auditor’s Report for the year ended 31 December 2015....................................................6

WE ACKNOWLEDGE OUR PARTNER’S GENEROUS SUPPORT IN 2015Alison Quesnel Kerry WarnExecutive Director Business Manager

2015 ANNUAL REPORTFROM THE CHAIR OF NATURAL PRODUCTS NZDear Natural Products New Zealand Member2015 has been a very interesting year for our industry.PROGRESS ON THE AIMS OF NPNZOur constitution sets out the following objects:United IndustryTo foster commitment, involvement, mutual respect, effective communication and joint collaboration between allparticipants in New Zealand’s natural and complementary health products and services.This year we have continued to increase membership with a number of organisations approaching us to join, andseveral being recommended by other members. For us this verifies that we have become an organisation our membersfeel a real benefit from and enjoy being a part of.We have had a continued net increase in membership with 148 full and associate members as at the end of December2015.This is a net increase of 7% on 2014.Relationships with our partners have continued well, and two new partners have joined us this year: New WayzConsulting and Scientific and Technical Recruitment have joined us as bronze partners. We thank our Gold PartnerASB Bank, our Silver Partner James & Wells, and our two other Bronze Partners Forbes Packaging and CroweHorwath for their continued support.Summit 2015 in Rotorua was, as expected now, a significant event in the industry year and many members choseto support the Summit as well as our outstanding goodie bag. We thank all members for their commitment to theindustry as a whole.RepresentationTo be the pre-eminent body representing the natural and complementary health products and services industry inNew Zealand.We continue to work closely with our “sister” and other relevant organisations in New Zealand and elsewhere:NZSMI, NZCFTA, NZFGC, MTANZ, NZBIO, the CMA in Australia, plus ANZBC and NZCTA. NPNZ Annual Report 2016 | P1

Our representation to government has continued and we have worked closely with the Ministry of Health on worksurrounding the Natural Health and Supplementary Products Bill which still awaits its third and final reading. Wehave continued to work closely with NZTE and MBIE.Our Executive Director presented this year at the ASMI Conference in Sydney, the Auckland University Innovation InBiotechnology Seminar, and at Natural & Organic Products Asia in Hong Kong on innovative New Zealand ingredients.We also ran a NPNZ seminar at NZBio’s Conference.We did not attend our international industry organisation’s conference – IADSA, but we remain in constant touchwith them.AdvocacyTo influence local and international regulatory outcomes to achieve industry growth, a positive product environment,and low compliance costs.NPNZ continues to be recognised by government as the pre-eminent industry body for the natural products sectorand NPNZ continues to build on its representation at government levels.Our Executive Director represents us at the MPI Food & Beverage Forum meetings,Therapeutic Advertising Pre-Vetting System Code Consultative Meetings and connects regularly with NZSMI, the CMA, the Advertising StandardsAuthority, the Pharmacy guild, and other organisations as required to ensure our voice is heard.Through the middle of 2015 our Executive Director connected with relevant MPs from all parties regarding the Billand the industry’s support of it. She also met with Simon O’Connor, head of the Health Select Committee, StevenJoyce and Tim Groser as well as Annette King. Other members of NPNZ and some directors assisted with this. Wecontinue to work with our industry lobbyist Roger Sowry on this issue.Throughout the year we attended and gave our support to NZSMI’s proposal and launch of the New Zealand SelfCare Alliance.RegulationAlong with all members we are awaiting the outcome of the NHSP Bill, but we have worked closely with the Ministryof Health on various aspects of the proposed regulations this year. Part of our close relationship with the CMAhelps us to keep up to date with actions by the TGA.We connect with MPI on the matter of regulation as required on behalf of our members.NPNZ Annual Report 2016 | P2

MediaOur work in this area means we have been contacted more by media asking for statements on particular issues thisyear which has always been our aim. We are becoming the go-to organisation that is known to respond in our sector.We thank Anna Radford and our PR Sub-Committee for their help this year.Business SupportTo provide and communicate information (including market research) to members (by way of publications, forums,commissioning research, etc.) that will support members in their businesses domestically and/or internationally.On an ever ascending slope our Rotorua Summit 2015 was again lauded as the “best ever”. Post Summit feedback wasexcellent and we continue to challenge ourselves to present speakers with valuable knowledge and to give membersan opportunity to leave their offices behind and think outside the square for a couple of days. 159 delegates andpresenters attended.In February we were pleased to be able to have Steven Joyce, Minister for Economic Development, launch the resultsof the Survey completed in 2014. Crowe Horwath generously assisted with a space for us to hold the function anda number of members and media attended.In August our Executive Director attended Natural and Organics Asia to deliver a presentation on innovative NewZealand ingredients and we were represented at Vitafoods Asia and Supply Side West.We formalised our news flow to members with weekly bulletins: week one is our Newsletter with informationwe want to pass on to members and media and other updates; week two sees our Connections go out with newsfrom other industry associations.We held members’ meetings in Christchurch in June, and in Nelson in October. Our usual Mid-Year Members’ meetingwas held in Auckland.Export DevelopmentTo be New Zealand’s key Natural Product export promotion body and to engage in activities that grow the NewZealand Natural Product export sector.We continue to support export as well as we can within our budgetary restrictions.This year we were able to fundour Executive Director’s attendance at Natural & Organics Hong Kong, and we were represented atVitafoods Asia byFiona Murray and a number of members.Alison also attended Supply Side West in Las Vegas representing members,and met with NZTE USA staff at the time as well as further developing a relationship with GOED and the Omega-3Centre. NPNZ Annual Report 2016 | P3

Financial ResultsThis year we are pleased to report that we are again posting a modest profit while achieving all that we set out todo. Adding this to our modest profit from last year means that we will be able to support the industry in moreways in 2016. We acknowledge the good financial management of our Executive Director and her ability to increasemembership and deliver to members to retain them.The financial statements have been independently audited and received a positive clean audit report.Executive Director/AdministrationLate in 2015 we promoted Kerry Warn to the position of Business Manager. Kerry will take over more of the dayto day management from our Executive Director Alison Quesnel and is responsible for our Summit arrangementsand is our Website Manager. She will also deal more and more with members and partners. Both Alison and Kerryhave been able to maintain continuity to an exceptional extent in the income and expenses of the organisation yearon year, reflecting their attention to detail and congruence with the outcomes we all expect for Natural ProductsNew Zealand. A great job, well done. We thank Alison and Kerry for their commitment, flexibility and success inwhat has been a busy year for NPNZ.EXECUTIVE OF NATURAL PRODUCTS NEW ZEALANDThe following representatives of the Natural Products membership were elected at the AGM held in March 2015,or continued on for another year:Ron Geiger,Alaron Products Ltd, ChairRoss Keeley, SeaDragon LtdPeter Lehrke, Pharmaceutical Technologies LtdLeigh Kite, Artemis LtdMinesh Patel, New Zealand Health Manufacturing LtdGren Purchase, Lifestream International LtdPhil Rasmussen, Phytomed Medicinal Herbs LtdWendy Maddocks, From Nature Ltd (previously M J Health Ltd)John Stanton,Vitaco LtdFiona Murray from NZTE continues in her seconded role as a non-voting member of the Executive.NPNZ Annual Report 2016 | P4

We would like to acknowledge the important contributions made over the years by retiring members of the ExecutiveGren Purchase,Wendy Maddocks and John Stanton.All three have given generously of their time in support of ourorganisation and provided valuable opinions and knowledge to the actions of the Executive.We will miss them.IN CLOSING...Natural Products New Zealand Incorporated exists to represent and further the goals and objectives of the NaturalHealth Products sector in New Zealand. We are an open, consultative group funded primarily by the dues andcontributions of our member and corporate sponsors. Once again this has not changed and we remain constrainedfinancially and have to commit to the best we can within our budget.Whatever the membership wants from NPNZneeds to be funded by the members and the other supporters we have in the form of our valued sponsors. TheExecutive Board thanks the members for their support, constructive feedback, input and suggestions provided in thelast year.We thought that 2015 would be the year we saw the NHSP Bill passed, but it was not to be. The industry is morecohesive on this matter than at any other time and we must all remain positive and constructive to continue toensure that we do have a regulatory system that will support and ensure consumer choice, quality, safety and efficacy.As I have stated before it needs to be one with rigour and commitment, but that still remains a “light touch” and isa separate unit within the Ministry.As an industry this year has seen many of us very busy with exporting to China. This has been a very good yearfor the industry as a result and many of us have been able to expand and employ more staff. While we do not havefigures for the increase we believe it is sustainable as long as we continue to provide quality product made in certifiedmanufacturing plants. Global expansion is our future and we need to continue to work cohesively on behalf of BrandNew Zealand to achieve growth.On behalf of the Executive Director and Board of NPNZ:With best regards,Ron GeigerCHAIR – NATURAL PRODUCTS NEW ZEALAND INC NPNZ Annual Report 2016 | P5

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