Hastings: Concern over $18m Foodeast hub opening without a test kitchen

The Foodeast-Haumako innovation hub is up and running in Hastings. Photo / Supplied

The $18 million Foodeast innovation centre has opened in Hastings without a test kitchen, an omission which could prove a barrier to attracting some tenants in the food innovation industry, a new report claims.

Foodeast-Haumako has defended its decision not to install a test kitchen at a cost of over $100,000, and says a space has been kept available if there’s demand for one in the future.

The Foodeast-Haumako innovation hub on Elwood Rd held a grand opening earlier this month but has been operating since July.

The unique facility is aimed at supporting food, beverage and agri-tech innovation in Hawke’s Bay.

It boasts two large buildings - one with offices and one with warehouses - and has been years in the making.

There are currently nine tenants at Foodeast-Haumako and plenty of space for more to move in.

Businesses rent a space at the hub where they can work on new products and benefit from networking.

There are also spaces available to book one-off meetings and conferences.

The majority of funding ($12m) for the new facility came from the Ministry of Business, Innovation and Employment (MBIE), and the rest came from Hastings District Council, Hawke’s Bay Regional Investment Company (owned by Hawke’s Bay Regional Council), and Progressive Meats.

The grand opening of Foodeast-Haumako in Hastings earlier this month. Photo / Supplied

There were delays getting the facility open as soaring building costs post-Covid led to a revision of the initial design.

A new report, commissioned by the Hawke’s Bay Regional Economic Development Agency (HBREDA), was released this month and highlighted a potential challenge for the hub.

“A current risk with Foodeast is that it has attractive spaces but does not currently provide access to equipment, labs, a test kitchen, or expertise that would attract and support the development of a group of food and beverage innovators and established businesses.

“Without those facilities, it is unlikely to be able to support significant innovation in the industry.

“Foodeast also has to provide a return to its investors, so there is pressure to take on any interested tenants rather than targeting the types of tenants that could combine know-how and capabilities and learn from each other.”

The report suggested Foodeast should be developed further, such as the introduction of an industrial/test kitchen.

Foodeast-Haumako is up and running in Hastings and looking for more tenants. Photo / NZME

Foodeast-Haumako chairwoman Nicky Solomon said there was a test kitchen included in the initial plans, but Covid cost-escalation meant “things had to be trimmed” including that part of the design.

“When the decision was made that the test kitchen couldn’t fall within the budgetary restraints at the time, they future-proofed one end of [the conference room] so that it has appropriate draining and electrical fittings nicely hidden under the carpet.

“So that in time, if it is deemed to be appropriate, one end of the conference room could be converted into a test kitchen.”

She said when she joined the board in October 2023, along with a few other board members, they considered adding it back into the plans.

However, after looking closer at that option they opted against it.

“As we started asking around, the problem you have is everyone wants different things, so people who may want a lab where they can do really cool technical stuff don’t want to share that with anybody else,” she said.

“In our inquiries, it seemed there wasn’t enough demand for one thing that we could provide.”

She said, instead, they wanted to be flexible and work with prospective tenants to add facilities where and when there was significant demand.

“Essentially, we went actually we can’t justify spending ... more than $100,000 to put something into this conference room which we are just not certain people would be using, and how much they would pay, and how often they would be using it,” she said.

“I think it turned out to be absolutely the right decision. It is not like we are getting people ringing us willy-nilly saying I need a test kitchen.”

She said it was her understanding there was also a private business in nearby Awatoto which offers a test kitchen facility.

She said Foodeast was also not just about making food.

“What Foodeast is here to support is not just food and beverage production, but also on-orchard and on-farm innovation.

“It is not just about making food, it is much more nuanced than that, and much more broader than that, and much more aspirational than that.”

She said “we are pretty happy” with the number of tenants that have moved in to date.

“We won’t be happy until we are full of course, but it is good progress.”

Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.