Who buys the products?
Our primary customers are all the people out there who have to cope with food allergies, intolerances and coeliac disease, and of course, their families. For a lot of these people finding safe food is a daily challenge, and for parents of children with these conditions it's a constant worry.
So what are some of the growth trends you're tapping into with your products?
Our products exclude the five most common allergenic foods - nuts, eggs, dairy, gluten and soy - and because of this we're finding there are a number of growing trends that we can tap into. For example, the prevalence of food allergies and intolerances is increasing, and so is the prevalence of coeliac disease - and there's a growing number of people with multiple allergies, especially children.
We're also seeing a growing number of people with more obscure allergies and people with irritable bowel syndrome and an intolerance to gluten - as well as more people choosing to reduce their dairy and gluten intake or choosing to be vegan.
Alongside these kinds of trends, people are also looking for good-tasting, convenient products that the whole family will eat and that they know are safe.
Obviously these are niche products given they're targeted at people with specific dietary needs and preferences. What's worked well for you in terms of reaching your specific end consumers?
Word of mouth is a powerful thing. I had a friend tell me the other day that when she logged on to her allergy forum someone had asked where they could get a cake mix for their daughter's birthday cake and three people had already mentioned Love Cake.
We also work closely with Coeliac NZ and Allergy NZ, supporting them in ways we can, like donating products for giveaways or functions. The Gluten Free Food and Allergy Show has also been a great platform for us to showcase things like new products because these shows are a real destination for people wanting information on all things allergen-free.
Social media is another platform we've found really useful, and we have an active following on Facebook.
How important is new product development in this sector?
For us bringing out new products is an important part of our business strategy. We come up with ideas for new products by listening to customer feedback, seeing where there are gaps in the market, and keeping a close eye on market trends.
So, for example, currently there's a move away from sugar - partly through necessity with the growth of diabetes, obesity and allergies to sugar, and partly through food trends. So we've launched the first two products in our sugar-free range and have three more planned in the pipeline.
We're also expanding into the wider allergen-free food space. Our first foray was into a range of cake decorations, and we've also brought out a range of baking essentials for the gluten free and allergy free home baker. Next up, we're planning a range of pantry essentials.
I understand you're exporting some of your products. How has that developed?
Our first export market was Australia, where we've supplied a specialist online retailer and distributor for many years called Allergy Friendly Foods. We also export a small amount to New Caledonia to an organic retail chain there.
Up to this point export hasn't really been a key part of our business strategy, but we've been approached by a number of interested parties and have done some quite extensive work on paths to market in Asia. There's a growing awareness in Asia of organics, and a growing need for allergen free foods. Hong Kong and Singapore, with their expat populations, have been at the forefront of this, but we're now also seeing emerging markets in Taiwan and South Korea, which we're planning to explore further next year.
What's been your biggest learning about building a brand and a business in this sector?
Integrity is paramount. Love Cake is about offering a gluten and allergy free product that people can trust, without compromising on flavour. Having to do without common foods is a huge adjustment for people and their families, so often it's the little things that count like being able to bake a birthday cake for your child or make a dessert for your guests.
Coming up in Your Business: Building networks is important to keep connected, get exposed to new thinking, and get leads for new business. Who are some of the great small business networkers out there, what networks do they tap into and how have they made the most of them? If you've got a story to share, drop me a note: nzhsmallbusiness@gmail.com