Craft Brewery Tuatara Subject of a Case Study

The secrets of success against much larger competitors, is the subject of the third case study published by the organisers of the Kapiti Horowhenua Business Awards.

Winner of last year’s Electra Business of the Year award, Tuatara Brewery of Reikorangi in Waikanae on the Kapiti Coast, is relatively new, is in rapid growth mode and operates in an evolving and increasingly sophisticated sector where consistency and quality are paramount.  

The case study compiler, Chris Ineson of Drivingforces says its success is based on the type of qualities that characterise all successful businesses – a clear, long term inspirational vision underpinned by a strategy.

Tuatara Brewery Ltd has won many awards over the years, among them being placed 32^nd on the Deloittes 2011 Fast 50 index of New Zealand’s quickest growing businesses, the 2011 Wellington Emerging Gold Award and the 2009 NZ’s Best Brewery.

Tuatara employs 11 staff (general manager, head brewer, operations manager, sales reps and tasting team); its head office is in Reikorangi in Waikanae (on the Kapiti Coast) with The Malthouse and Bodega being its initial Wellington outlets. Craft beer has grown in Wellington;  a city known as the craft beer capital of NZ.

Tuatara distributes its range throughout the country, as well as in Australia, east coast of USA and with overtures into China.

The principal shareholders are Vasta Brewing Company Ltd and The Malthouse Ltd. Its directors are Carl Vasta and Sean Murrie plus an informal director (James Brown) with the aim, in time, to evolve to a more formal governance structure.

Today Tuatara produces six core beers, each with their own distinctive taste to suit the needs of its growing customer base, with new season offerings as a means of keeping relevant and leading the market through producing beers that suit the trends of its market.

The Electra Business Awards case studies can be viewed and downloaded from http://www.electra.co.nz/businessawards/business_of_the_year_case_studies/index.htm

When water and oil mix

The company, Alternative Petroleum Technology NZ, is introducing a range of emulsified fuel technologies which can help to reduce fuel consumption, increase engine efficiency, engine life and significantly reduce noxious tailpipe emissions and green house gasses. The parent American company, based in Reno, Nevada, has projects in the UK, Italy, Korea, S. America and India.

Parallel with this, the NZ entity has set up a testing centre using a computerised Dynometer to test engines for fuel efficiency and emissions. Hooked up, like an ECG used in the medical profession, it can handle up to 1600hp engines. The Otaki Clean Technology Testing Centre not only provides scientific data on the benefits of the emulsion fuel but also services businesses wanting to test engines, fuels and electric vehicle technologies from New Zealand and international markets.

The emulsion technology has already drawn the interest of local operators of large fleets wanting to improve their emission profile and improve efficiency. Kapiti Coast District Council has signed a contract to trial the fuel in a tractor mower, before introducing the fuel to council’s fleet of other older diesel powered vehicles.

Used in, on and off-road vehicles, farm equipment, marine equipment and locomotives, it has the potential to save millions while delivering a cleaner environment, a healthier planet and communities. 

“I know the idea of adding water to fuel oil may seem alien but people don’t realise that combustion of any hydrocarbon produces water in the form of steam. Our emulsion technology only changes the sequence on when the water is introduced to make the fuel burn more efficiently.”

In this precombustion stage, very fine water droplets are held in suspension within the diesel. When this enters the hot combustion chamber, the water turns into steam instantaneously and shatters the diesel droplets into finer particles in an effect called “micro explosion”. It produces similar power while producing fewer pollutants like green house gasses, nitrogen oxides, smog and soot.

There is also reduction of carbon built up in the engine which means less maintenance costs. “The cost of lube oil for a large fleet is very high. Emulsion fuels will increase the life span of vehicles. When you consider a new bus can cost up to $650,000 and old ones sold off for only between $5,000 and $20,000, there are significant cost savings to be made,” says Mr Ramsey.

The attraction to industries and businesses are the immediate practical benefits. “It’s called ‘drop-in technology’ because you just have to put the fuel into the vehicle or plant. You do not have to replace or modify the engine. There is just a standard operating procedure that needs to be followed to make the change. The vehicle can be changed back to the standard “pump” diesel if required,” he adds.

These immediate practical benefits are part of larger unfolding changes in the international scene. Mr Ramsey says emulsion fuel is at the cutting edge of a global market demand.  “The world is facing twin challenges. Firstly, you have depleting petroleum supplies and rocketing prices. Secondly, industries and economies are looking at increasingly stringent emission regulations to reduce air pollution caused by the burning hydrocarbons,” he adds.

One solution to these challenges, through the use of emulsion fuel, is in the more efficient use of the petroleum resources while the development of alternative fuels unfolds. Alternative fuels can also be blended into the mix. “This will enable us to continue our existing way of life as we face these challenges,” he says.

Emulsion fuels fit perfectly into these challenging changes. “As a   transitional technology, it enables solutions to a number of problems,” he says, adding that the emulsion technology has also proven to be useful in burning biofuels more cleanly.

“Our presence at Otaki also puts us in touch with the Kapiti Horowhenua horticultural community. There is growing interest in developing feedstock for biofuel production. Our emulsion technology and testing centre has the ability to help support that new industry,” he says.

As an enabling technology, the positioning of APTNZ at the Clean Technology Centre has a positive clustering effect. “It helps towards the creation of a critical mass of clean tech companies, businesses, and education establishments like WelTec. This incubates a cross-fertilisation of ideas and new opportunities,” says Chris Barber, CEO of Kapiti Horowhenua economic development agency, Nature Coast Enterprise.

Mr Ramsey says being at the Centre has opened his business to networking and marketing opportunities through Nature Coast and Grow Wellington, and access to administrative and PR support through these two regional agencies. “For start-up companies these are valuable resources to have at hand and has been pivotal in securing my international partner,” he adds.